Adulteration hits palm oil trade

Mixing of cheap coconut oil with costly edible oils is rampant in south

Adulteration is posing a serious threat to the edible oil trade in south India. Mixing of refined coconut oil, made from poor quality copra, with other oils is on the rise.

As coconut oil is the cheapest edible oil available in the market, mixing it with other oils is turning into a profitable business here.

The practice is rampant in the case of palm oil as its availability is low due to high global prices and import restrictions. A few years back, when coconut oil had crossed Rs 65 a kg, it was mixed with refined palm kernel oil, which was cheaper then.

But now, when the retail prices of palm oil have crossed Rs 68-70 a kg, while coconut oil remains stable at Rs 60, the trend has reversed. According to copra dealers, the palm oil refiners, especially in Tamil Nadu, have large stocks of low quality copra, which is available at Rs 3,400-3,500 a quintal.

"The refined oil made from this is ideal for mixing with other costly oils," they said.

All edible oil prices except for coconut oil are ruling above Rs 70 a kg. Ground nut oil and sunflower oil have a retail price of Rs 95 a kg while gingelly oil is costing Rs 100.

Meanwhile, coconut oil prices are also on the rise. Today in Kochi, prices were hovering around Rs 5,650 a quintal, up by Rs 50.