Market sources feel that the decline in coconut oil prices will be fully felt in Kerala during the Onam, the harvest festival, which falls in the second week of September.
The Nafed has already procured around 47,000 tonne of copra in the state through its agencies, Kerafed and Marketfed. The federation has also bought fairly good quantities from the farmers in Tamil Nadu.
Though there are reasons for the consumer to rejoice as the festival season may give him an opportunity to go shopping without causing much damage to his wallet, the coconut farmers see it as a bad sign. The farmers are sure to be badly affected since the coconut price is solely dependent on coconut oil price.
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Coconut oil prices have already shown signs of a downtrend with the price at present hovering around the Rs 3,150-mark per quintal this weekend.
As more oil is expected to be pumped into the market following the Nafed move to convert the procured copra, the market sources feel the coconut oil prices are sure to hit. Dealers say that the retail rates may even fall to around Rs 30 a kg from the present Rs 36 to 37 a kg.
Copra this week qouted rates far below the support price level of Rs 3,250 per quintal. Farmers in this southern state are already on a warpath, demanding a reasonable price for coconuts.
The state government, in spite of various measures, including procurement of coconuts instead of copra, has been receiving flak for its failure to keep prices up.
Further, the availability of palmoil at even lower prices has hit consumption levels of coconut oil, the market sources added.