23/10/2013 (Hindu Business Line) - Coconut oil prices continue to rule firm in Kerala and Tamil Nadu as buyers are carrying on with purchases.

Prices in Kerala touched Rs 94 a kg on Wednesday against Rs 93 two days ago, whereas in Tamil Nadu, they quoted at Rs 92, up Rs 2 over the last two days.

Copra prices are also ruling at Rs 7,000 a quintal in Kerala and in Tamil Nadu, they touched Rs 6,800.

According to Thalath Mahamood, Director, Cochin Oil Merchants Association, inclement weather has affected arrivals of copra and the situation is expected to continue in the short-term. This was one of the reasons for the coconut oil prices to rule firm.

Palm oil prices, on the other hand, have begun to cool down to Rs 53 a kg.

Bharat N. Khona, former Board Member of the association, said that the short supply of copra has made coconut oil dearer, thereby affecting the demand. This has also affected upcountry demand and corporate buying. Consumers are now showing their intention to shift to other edible oils which are currently ruling low.

Loose oil prices in Tamil Nadu are ruling at Rs 1,350 for 15 kg, he said.

Meanwhile, arrivals of adulterated coconut oil in Kerala have been reduced following the stringent quality checks carried out by the Food Safety authorities at border check posts.

Thalath Mahamood said that action in this regard has been necessitated following complaints from traders that palm kernel oil, which is a close substitute of coconut oil, is widely used for adulteration.

The decline in prices of palm kernel at Rs 62 a kg after hitting a high of Rs 72 last week is a pointer towards this, he added.