Coconut oil prices have moderated a bit from the recent high as demand continues to remain sluggish. Traders expect the market to decline more as supply from Tamil Nadu improves in the days to come.
Coconut oil prices in the wholesale market of Kochi had touched R159 per kg while the retail market touched R180 per kg. India is the world’s biggest buyer of vegetable oil, importing nearly 60% of its 16-17 million tonne annual consumption. ?Oil prices have come down by R10 per kg to R145 and are likely to decline as supply improves from neighbouring states. At the same time last year, the market for coconut oil was trading at R65-70 per kg. We believe the commodity cycle has seen its peak and is likely to fall now,? Talat Mehamod, member of Coconut Oil Merchants Association and trader at the terminal market of Kochi, said.
He believes that more copra and oil will come to the market as the market corrects itself. The monsoon rains expected any time now may give some support to the market as drying of copra would take more time, he added.
Kerala is the main coconut growing state with an area of 10.20 lakh hectares and production of 5,911 million nuts, followed by Tamil Nadu, Karnataka and Andhra Pradesh. The four states account for 90.8 % of the total production in India.
Dorab E Mistry, oil industry expert, estimates that both palm and coconut oil market will come under pressure in the coming oil year due to good supply.
