18/08/2014 (Hindu Business Line) -  Prices of raw coconut and coconut oil look set to boil over during the Onam season as the State is straddled with a shortage of locally produced copra and drop in the number of oil mills.

The price of coconut oil is being controlled by traders in Kankayam in Tamil Nadu as copra production and oil extraction works are limited in the State, said Cochin Coconut Oil Merchants’ Association sources here on Thursday.

Coconut oil was sold at Rs.167 a kg in the wholesale market in Kochi on Saturday; the retail price was higher by about Rs.20 a kg. The price was Rs.168.50 in Thrissur. The spurt in price happened over the last fortnight, a development that was not foreseen, oil industry sources said.

As a result of the rising oil price, sales had dwindled to about half of what used to be around 1,000 litres daily at the Mattancherry market.

The trend did not augur well for either coconut famers or traders as consumers were switching to cheaper palm and sunflower oil. The sources pointed out that the recent downward trend in dollar price had helped bring down palm oil price.

As per the Department of Economics and Statistics, the price of raw coconuts without husk had gone up 107 per cent over a period of one year. A unit of 10 raw, de-husked coconuts was selling for Rs.198.85 on Wednesday against the Rs.95.93 a unit a year ago. The rising price of raw coconut reflected in the hike introduced by the State-owned Nafed for procurement. The procurement price was raised this week from Rs.29 a kg to Rs.32 a kg.

The price of unbranded coconut oil, sold in loose packets, had appreciated 127 per cent over a period of one year. The price of packed oil sold by Kerafed under the brand Kera had gone up 117 per cent over the period.