Coconut oil breaches Rs 6,000/quintal mark

Coconut oil prices crossed the psychological barrier of Rs 6,000 a quintal on Wednesday paving the way for a new bull phase, according to market experts.

The oil hit Rs 6,050 a quintal The supplies of both ready coconut oil and copra are extremely tight owing to heavy summer showers and upsurge in the demand for the oil.

All the market parameters indicate further appreciation in prices till the supply from Tamil Nadu will be in full swing by June, next. The demand for the Vishu festival season also helped the market to cross the Rs 6,000-mark. Most of dealers expect prices in the range of Rs 6,000"�6,500 a quintal in wholesale trading for the next 8-10 weeks.

The withdrawal of import duty on palm oil has not triggered a fall in prices of the oil. Hence, an immediate shift towards palm oil is not expected by traders. Prices of other edible oils, like gingelly oil and sunflower oil, remain bullish in spite of government intervention.

The abnormal rainfall in Kerala and Tamil Nadu has also affected the drying of coconut and, according to M J Kuriakose, president, Cochin Oil Merchants Association (COMA), the supply of copra has fallen by 30 per cent this year as compared with last season.

The production season in Tamil Nadu will begin by mid May and will be in full swing by June, followed by Andhra Pradesh. Till then, a tight supply condition is expected.