Coconut, oil prices soar on low supplies

A sharp fall in the supply of coconuts and copra has meant a sharp increase in their prices and of coconut oil in recent weeks.

According to market sources, supply would be very tight for the next five to six weeks, since this was the off-season for coconut plucking in Kerala, Tamil Nadu and Karnataka. Untimely rainfall had also damaged plantation crop, aggravating the supply problem.

The price of a single coconut, Rs 6-7 four months earlier, is now Rs 12-16 in local markets. Even at these tags, both coconut and copra are often not available. Here and in Thiruvananthapuram, a single coconut can even attract a price of Rs 16-20.

In line, the price of coconut oil in wholesale markets here has crossed Rs 8,000 a quintal, a record.

In the retail market here, the price of a kg of coconut oil has risen to Rs 85-90. Market sources expect a change in the conditions only after a month, when a fresh crop of the ‘Makaram’ season comes to the markets. They said the huge demand for coconuts for worshipping at the Sabarimalai temple has also enhanced the demand multifold.

Supply of coconut oil from Tamil Nadu, the largest producing state, is weak due to heavy rainfall. Rain had seriously affected the drying of copra and affected the quality available in the market.

The copra producing season in Kerala usually starts by December, but this time most producers lacking coconuts and the crushing mills are in trouble. Coconut oil dealers expect a change in the market condition by mid- January.

Demand, especially industrial demand, for copra and coconut, had risen in recent months, as there is heavy increase in the sale of coconut oil-based fast moving consumer goods and ayurvedic medical products. Sharp increase in the prices of other edible oils like palm oil, sunflower oil and groundnut oil has also impacted coconut oil.

The shortage in production has sharply increased the price of coconut husk from Tamil Nadu. This has upset small and medium-size coir units which mainly depend on Tamil Nadu for the husk. The price of coconut husk from Tamil Nadu has almost doubled in the past couple of weeks.

Traders say one sequel ahs been a rise in adulteration of coconut oil, mixing it with cheaper ones such as palm kernel oil and used oils. This mixing is being done at the crushing stage and cannot be detected by smelling or tasting. There’s only a mild change in the colour.