Coconut Oil Futures Revives Market

Prices of copra and coconut oil have been gradually rising since the resumption of futures trading in these commodities.

The Kochi-based Futures Commodities Exchange of India is the only exchange in the country conducting futures trade in copra and coconut oil. While futures trading in copra was re-introduced in June 2001, trades in coconut oil recommenced in October 2001.

N Ananthan, chief executive of the Futures Commodities Exchange of India, said: The oil milling industry in Kerala was struggling for survival ever since the ban on futures trading in coconut oil was imposed in 1971. The lack of a risk management mechanism in the absence of a hedging facility had also led to cut-throat competition among companies and under-utilisation of capacities. This forced many small oil milling units to pull down their shutters.