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Coconut oil prices touched an all-time high of Rs 10,300 a quintal in the wholesale market due to an acute shortage of copra, dried white flesh. This is due to the October-December seasonal shortfall in production. The retail price went up to Rs 110 a kg in local markets. Supply is likely to rise by January.
Kerala and Tamil Nadu face serious shortage. This has slowed crushing in both. The retail price is Rs 12-16 a nut in production centres. In Kochi, it can go up to Rs 20.
K V Somanathan, a grower, said there was a shortage as this was a lean season for production. In Kerala, production would pick up next year and prices would come down, he added. In Tamil Nadu, it would pick up by March. Hence, oil prices are likely to stay up for the a couple of months, said traders. In Kerala, shortage is severe in the northern districts, where 60 per cent of the state's production is done.
Demand for coconut will be high for a couple of months as the pilgrim season at Sabarimala, Kerala, has started. Thalath Mehmood, a Kochi-based trader, said the supply from Tamil Nadu was weak. Demand is likely to increase during the festival season. Christmas and New Year demand will heat the market, he said.
Quality copra fetches Rs 7,500-7,700 a quintal. Even so, it is not readily available. Most crushing mills in Kerala have stopped production. Industrial users mainly depend on Tamil Nadu supply A major chunk of the oil traded in the retail segment also comes from Tamil Nadu. Retail traders said local demand was bad. When the price increases, demand shifts to palm oil, Rs 75-80 a kg.
Adulteration of oil (mixing with palm kernel oil) increases in line with the price and most oil in the local markets is inferior.
