MARKET DEVELOPMENT
Kerala Asks Centre to Stop Coconut Oil Import Move
Kerala Asks Centre to Stop Coconut Oil Import Move
16/07/2015 (Hindu Business Line) - Kerala has asked the Centre to dissuade the State Trading Corporation from importing coconut oil.
State Agriculture Minister KP Mohanan has sought the Prime Minister’s intervention, saying it would hurt the prospects of 30 lakh coconut farmers in the State.
The Minister’s appeal comes in the wake of the recent tender floated by STC to import 2,000 tonnes of both crude and edible grade coconut oil through Mundra Port.
The Minister in his letter to the Prime Minister pointed out that the decision would have adverse effects on the coconut sector, which is expecting a 10 per cent production drop in the current year. The import of palm oil has also led to a price fall in the market. In the circumstances, the Government should give necessary directions to STC to stop importing coconut oil, he said.
Cochin Oil Merchants Association (COMA) has also taken up the issue with the Kerala Government, saying the declining prices has already affected the coconut oil market, which registered a drop of ₹1,000/quintal in the last one week.
Coupled with the import decision, Thalath Mahmood, Director, COMA, said that some of the branded coconut oil producing companies in Kerala also started copra imports from Indonesia to meet their production needs and this would further aggravate the situation. There were reports that these companies have already imported 200 tonnes of copra cake through Kochi Port, he said.
Meanwhile, the price slide continues in the market at ₹9,900 per quintal (₹10,400) in Kerala, while Tamil Nadu price remained at ₹9,400 as quoted last week. Copra prices remained at last week’s level at ₹7,000 in Kerala, and stood at ₹6,800 in Tamil Nadu, showing an increase of ₹300/quintal.
However, Thalath said that the surplus production in most of the growing centres and the government agencies move to look at import instead of depending on the domestic market may take the market to the 2013 situation. During that period, the prices dwindled to ₹6,500 per quintal, he said, adding that it would be detrimental for both traders and farmers.
State Agriculture Minister KP Mohanan has sought the Prime Minister’s intervention, saying it would hurt the prospects of 30 lakh coconut farmers in the State.
The Minister’s appeal comes in the wake of the recent tender floated by STC to import 2,000 tonnes of both crude and edible grade coconut oil through Mundra Port.
The Minister in his letter to the Prime Minister pointed out that the decision would have adverse effects on the coconut sector, which is expecting a 10 per cent production drop in the current year. The import of palm oil has also led to a price fall in the market. In the circumstances, the Government should give necessary directions to STC to stop importing coconut oil, he said.
Cochin Oil Merchants Association (COMA) has also taken up the issue with the Kerala Government, saying the declining prices has already affected the coconut oil market, which registered a drop of ₹1,000/quintal in the last one week.
Coupled with the import decision, Thalath Mahmood, Director, COMA, said that some of the branded coconut oil producing companies in Kerala also started copra imports from Indonesia to meet their production needs and this would further aggravate the situation. There were reports that these companies have already imported 200 tonnes of copra cake through Kochi Port, he said.
Meanwhile, the price slide continues in the market at ₹9,900 per quintal (₹10,400) in Kerala, while Tamil Nadu price remained at ₹9,400 as quoted last week. Copra prices remained at last week’s level at ₹7,000 in Kerala, and stood at ₹6,800 in Tamil Nadu, showing an increase of ₹300/quintal.
However, Thalath said that the surplus production in most of the growing centres and the government agencies move to look at import instead of depending on the domestic market may take the market to the 2013 situation. During that period, the prices dwindled to ₹6,500 per quintal, he said, adding that it would be detrimental for both traders and farmers.