March 1: Coconut oil prices, which hit a record low of Rs 40 per kg last week, is likely to decline further in the coming weeks following the import of copra from the Philippines.According to oil merchants in Kochi, at least 10,000 tonnes of copra imported from the Philippines through the State Trading Corporation have arrived in Tuticorin port in Tamil Nadu. And the consignment has already been cleared from the port last week. This would be sufficient to make nearly 6,000 tonnes of coconut oil, sources added.
The oil extracted from this will be sold mainly to industrial consumers in Mumbai. "Upcountry buyers are keeping away from the Kochi market and that is the main reason for the slump in prices and low offtake," a leading oil merchant said.
Sources said there was a difference of at least Rs 5,000 a tonne between imported and domestic copra. In the domestic market, copra costs around Rs 29,000 per tonne, while the landed price of imported copra is Rs 24,000 per tonne. This is after paying the importduty and meeting transportation costs. Dealers feel the current downward trend in the oil price is due to the import of copra from abroad. Last year, the total import of copra was around 2,000 tonnes, which was converted into nearly 1,200 tonnes of oil.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
