MARKET DEVELOPMENT
Cheaper Palm Oil May Put Pressure on Coconut Oil
Cheaper Palm Oil May Put Pressure on Coconut Oil
15/05/2013 (Hindu Business Line) - Coconut oil may attract upcountry orders and corporate interest only after its prices stabilise.
Bharat N. Khona, former Board Member, Cochin Oil Merchants Association (COMA), said that upcountry buyers and corporates may not enter the market until coconut oil prices stabilise.
However, it seems that imported edible oils that are available cheaper have taken over coconut oil market for the time being, he said.
Coconut oil prices remained more or less steady both in Kerala and Tamil Nadu this week.
The prices are ruling at last week’s level.
In Kerala, prices are Rs 61.50 a kg, whereas in Tamil Nadu they are flat at Rs 58.
Prakash B. Rao, Vice-President, COMA, said that majority of the buyers are not active in the market at this level.
Besides, there is no major enquiry from corporate buyers.
The cheaper availability of palm oil and palm kernel oil and the delay in copra procurement by Government agencies has also contributed to the market sluggishness.
There is a possibility that lower palm oil prices tend to put pressure on coconut oil prices and consumption may shift to lower priced oil, he said.
Palm oil prices are now trading at Rs 48/kg while palm kernel oil is at Rs 51/kg.
Copra prices in Kerala and Tamil Nadu ruled at the last week level of Rs 4,450 a quintal and Rs 4,300 respectively.
Compared to Kerala, Tamil Nadu is having a good season both in production of nuts and copra arrivals, he said, adding that the productivity level is declining in Kerala.
Bharat N. Khona, former Board Member, Cochin Oil Merchants Association (COMA), said that upcountry buyers and corporates may not enter the market until coconut oil prices stabilise.
However, it seems that imported edible oils that are available cheaper have taken over coconut oil market for the time being, he said.
Coconut oil prices remained more or less steady both in Kerala and Tamil Nadu this week.
The prices are ruling at last week’s level.
In Kerala, prices are Rs 61.50 a kg, whereas in Tamil Nadu they are flat at Rs 58.
Prakash B. Rao, Vice-President, COMA, said that majority of the buyers are not active in the market at this level.
Besides, there is no major enquiry from corporate buyers.
The cheaper availability of palm oil and palm kernel oil and the delay in copra procurement by Government agencies has also contributed to the market sluggishness.
There is a possibility that lower palm oil prices tend to put pressure on coconut oil prices and consumption may shift to lower priced oil, he said.
Palm oil prices are now trading at Rs 48/kg while palm kernel oil is at Rs 51/kg.
Copra prices in Kerala and Tamil Nadu ruled at the last week level of Rs 4,450 a quintal and Rs 4,300 respectively.
Compared to Kerala, Tamil Nadu is having a good season both in production of nuts and copra arrivals, he said, adding that the productivity level is declining in Kerala.