Coconut oil prices to remain steady

Written by Commodities Bureau | Kochi | Updated: Dec 12 2008, 04:21am hrs
Declining availability of coconut and copra in Kerala has helped the coconut oil market to remain steady despite selling pressure from Tamil Nadu, traders said. Coconut oil is plentiful and cheaper in Tamil Nadu, but the lower supply of coconut has helped contain the slide, Talat Mehamod, a trader at the terminal market of Kochi told FE. In Kerala, the peak season for coconut starts in January and extends up to June, he said.

Moreover, he feels that traders in Tamil Nadu are also managing the supply efficiently. They are holding back supply when prices show a tendency to go down. Controlled supply has helped them in getting better revenue, he added. Prices at the terminal market of Kochi have eased a bit from the recent highs, but have managed to stay relatively at higher levels compared to the previous seasons. Coconut oil was quoted at Rs 59.75 per kg on Wednesday at the Kochi market.

Supply of fresh coconut and copra has been declining in Kerala with the increase in consumption of tender coconuts.