 "Coconut oil on boil, price crosses Rs 180/kg on drop in production")
Coconut oil and copra prices are constantly on the rise, thanks to massive drop in coconut production in the last 10 years.
The market on Thursday quoted a wholesale price of Rs 15,900 a quintal, while in retail trade the price ranged between Rs 180 and 185, depending on the quality.
According to Kochi-based traders, the market would witness a spurt in coconut oil and copra prices in the coming days, as shortage is so serious in Tamil Nadu and Kerala — the two major producing states in India.
In these states, the production is down 50 per cent in the last six months, due to extreme summer heat. Traders project the price to cross Rs 200 a kg, as there is an increase in demand from commercial users and household consumers.
Despite price rise, there has not been much decline in household consumption of coconut oil in Kerala, said Thalath Muhamed, former president, Cochin Oil Merchants Association.
The fall in the production of coconut oil has lead to a heavy shortfall in copra cake, a cattle feed. Cattle feed manufacturers now import copra cake from countries like Indonesia in order to maintain their production.
The prices of cattle feed had gone up 10-20 per cent during last five-six months.
Coconut oil price increased 165 per cent in just 12 months, as the average price for coconut oil was Rs 6,000 a quintal in May, 2013 and for copra this was Rs 4,275 a quintal. In just five months, 61 per cent rise was recorded for the oil, as the average price in December 2013 was Rs 9,900 a quintal.
Steep rise in prices has triggered adulteration of coconut oil on a massive scale. According to traders, almost 70 per cent of the coconut oil, being distributed through unbranded retail network is impure, causing serious damage to lever, heart etc. Produced mainly in Tamil Nadu, the cheaper version is widely sold in Kerala. Imported palm kernel oil is mixed with coconut oil. Sources told Business Standard that used edible oils like palm oil and sun flower oil are also mixed up with coconut oil. The production cost of a kg of pure coconut oil comes to about Rs 150, but coconut oil is available in the Kerala market at Rs 140 a kg. Because of adulteration the product is offered at much cheaper price, said a trader.
The market on Thursday quoted a wholesale price of Rs 15,900 a quintal, while in retail trade the price ranged between Rs 180 and 185, depending on the quality.
According to Kochi-based traders, the market would witness a spurt in coconut oil and copra prices in the coming days, as shortage is so serious in Tamil Nadu and Kerala — the two major producing states in India.
In these states, the production is down 50 per cent in the last six months, due to extreme summer heat. Traders project the price to cross Rs 200 a kg, as there is an increase in demand from commercial users and household consumers.
Despite price rise, there has not been much decline in household consumption of coconut oil in Kerala, said Thalath Muhamed, former president, Cochin Oil Merchants Association.
The fall in the production of coconut oil has lead to a heavy shortfall in copra cake, a cattle feed. Cattle feed manufacturers now import copra cake from countries like Indonesia in order to maintain their production.
The prices of cattle feed had gone up 10-20 per cent during last five-six months.
Coconut oil price increased 165 per cent in just 12 months, as the average price for coconut oil was Rs 6,000 a quintal in May, 2013 and for copra this was Rs 4,275 a quintal. In just five months, 61 per cent rise was recorded for the oil, as the average price in December 2013 was Rs 9,900 a quintal.
Steep rise in prices has triggered adulteration of coconut oil on a massive scale. According to traders, almost 70 per cent of the coconut oil, being distributed through unbranded retail network is impure, causing serious damage to lever, heart etc. Produced mainly in Tamil Nadu, the cheaper version is widely sold in Kerala. Imported palm kernel oil is mixed with coconut oil. Sources told Business Standard that used edible oils like palm oil and sun flower oil are also mixed up with coconut oil. The production cost of a kg of pure coconut oil comes to about Rs 150, but coconut oil is available in the Kerala market at Rs 140 a kg. Because of adulteration the product is offered at much cheaper price, said a trader.