16/02/2013 (Hindu Business Line) - Copra sales have been falling daily, as coconut oil factories have ample stock and crushers are buying palm kernel, which is cheaper.

At the Avalpoonduarai regulated Market Committee, only 600 quintals arrived for sale on Friday.

Buyers, including a few from North India, quoted lower prices.

A trader said, “The sale of coconut oil has decreased, so factories are buying limited stock.” Trader R.M. Palanisamy said, “Coconut oil crushing factories have adequate stocks of copra and the sale of coconut oil has come down drastically. So, crushers are buying less. Further, palm kernel is available at Rs 4,500 a quintal, so biscuit factories and other major industries are buying palm oil, not coconut oil. Usually during the winter, coconut oil sale dips.”

Water scarcity has affected coconut production, said farmers.

On Friday, the first quality copra was sold at Rs 4,395-4,535 a quintal, down Rs 400 from a month ago. Second quality was sold at Rs 3,815-4,375. All the 600 quintals kept for sale were sold.