Coconut oil prices are on the rally due to robust demand and short supply. Normally coconut oil prices decline after Onam, the harvest festival, due to sluggish demand from the state.
India is the world’s biggest buyer of vegetable oil, importing nearly 60 % of its 16-17 million tonne annual consumption.
Wholesale coconut oil prices at the Kochi market on Monday evening stood at Rs 94 a kg and oil from Kangayam delivered at Kochi stood at Rs 92.
?Supply of copra is limited and up-country demand is robust. We were expecting market to come under pressure after the festival season. But good consumption by industrial users have given support to the market,? Talat Mehamod, member of the Coconut Oil Merchants Association (COMA) and trader at the terminal market of Kochi, said.
Regular inspection by the Food Safety Authorities during the festival time also helped in supporting the price. “Normally coconut oil is adulterated with paraffin oil when demand is good from the bakery sector. This time it was curtailed to a large extent due to the good enforcement by the authorities,? he added.
Arrival of copra from Karnataka is good in the market, while it is off-season in Kerala and Tamil Nadu. Kerala is the main coconut-growing state with an area of 10.20 lakh hectares.
