The coconut oil market is expected to become stable in this season. The floods in Kerala and cyclone Gaja in the neighbouring Tamil Nadu have impacted the supply and it is likely to firm up this season on the short supply from key states like Kerala and Tamil Nadu.
Coconut oil is used for many household applications such as cooking in states like Kerala and Goa. It is also used in the bakery, hair oil and soap manufacturing industry.
India is the world’s biggest buyer of vegetable oil, importing nearly 60 % of its 16-17 million tonne annual consumption. Out of the total production, only 35% is utilised for copra and coconut oil production.
Talat Mehamod, member of the Coconut Oil Merchants Association (COMA) and trader at the terminal market of Kochi said, “The market is tight and supply of copra is limited. It is likely to move up further in the days to come. The supply from Tamil Nadu is on the lower side also due to the shortage of labourers taking a break for the festive season of Pongal.”
He also added, “Demand is seen to be good and likely to support the market even as arrivals pick up in the coming months. The downside to the market might be the supply of extracted oil from imported coconut cake.”
As per the report released by the ministry of agriculture & farmers welfare states stated that coconut production has increased substantially in India in the last four years with increase seen in both productivity and area under cultivation.