Copra prices surge 50% on short supply

Processors and oil millers attributed the copra shortage to unfavourable climatic condition. They also cited a strike by gunny bag workers in Kozhikode, one of the largest copra-producing centers in south India, as another reason for disruption in the supply chain. Gunny bags are used to pack copra for transportation across the region.

The strike was called off last week after the workers reached a settlement with the management and the normal movement of copra would begin shortly, said M J Kuriakose, president, Cochin Oil Merchants Association (COMA).

Marico and Kerafed, the major consumers of copra, have been paying Rs 4,000-4,100 a quintal for copra and they see prices remaining at the higher end up to mid-June, till which time the supply is expected to be hit.

Meanwhile, Tamil Nadu is gearing up for the copra season and the production will hit a peak by July. During the same time, copra output will rise in Andhra Pradesh too, bringing down the prices.

According to leading oil dealers, prices are likely to appreciate in the next couple of weeks and will cool down by the end of the next month.

The uptrend in prices of other edible oil varieties, like palm oil, has also pushed up coconut oil prices.