KOCHI: The Centre’s decision to drop its plan to import coconut oil has brought cheers to growers, but not to the market, as rates have witnessed a steady line this week. However, continuing rains in Tamil Nadu have pushed up copra prices, affecting arrivals from various production centres. Prices now rule at ₹6,900 per quintal in Tamil Nadu against ₹6,500, while in Kerala it went up to ₹6,950 per quintal against ₹6,800 quoted last week.
Several companies are purchasing the commodity at higher prices to meet production requirements, said Thalath Mahmood, President of Cochin Oil Merchants Association (COMA). The coconut oil market is also ruling in a steady line, with prices quoting at ₹10,000 per quintal in Kerala, while it was ₹9,350 in Tamil Nadu.
The rains have dampened all activities connected with coconut processing; even copra drying. However, prices are likely to decline further in the coming weeks, with good production and low demand, he added.
Meanwhile, the Centre’s decision to stop coconut oil imports through the State Trading Corporation (STC) has come as a relief to coconut growers, both in Kerala and Tamil Nadu. A decision to this effect was taken following the concern raised by the Kerala Government as well as from other quarters.
This was conveyed to Mullappally Ramachandran, MP, by Union Commerce Minister Nirmala Sitharaman. In the letter, the Minister pointed out that the DGFT (Directorate General of Foreign Trade) has reviewed the matter and decided to reduce the quantity of coconut oil from 10,000 tonnes to 2,000 tonnes.
It may be recalled that the DGFT had approved its inter-ministerial committee recommendations, seeking authorisation for the import of coconut oil by STC for a leading corporate firm in Mumbai, on high sea sales basis. Accordingly, the STC has imported 2,000 tonnes.
