Coconut oil prices: the slide continues

By Our Special Correspondent

KOCHI, JULY 4. The price of coconut oil dipped to Rs 3,025 per quintal in the Kochi market today, which is the lowest level recorded during the past five years.

What the continuing slide in prices indicated was that the price support scheme, under which copra was being procured from farmers during the past few months, had failed to push up the prices, according to trade circles.

Considering the present trend it would not be surprising if prices dipped below the Rs 3,000 mark, they said. It was in April 1995 that prices had previously reached a comparatively low level- Rs 3,050.

The present market price of copra was about Rs 1,100 less than the minimum support price (MSP) of Rs 3,250 that had been announced earlier this year. Though the National Agricultural Cooperative Marketing Federation (NAFED) had begun procuring copra through Marketfed, Kerafed and cooperative societies from March 8, copra prices had continued to decline from around Rs 2,750 then to Rs 2,100 now. And ironically, even the price of coconut oil had declined below the MSP announced for copra, which only served to indicate the magnitude of the crash.

Referring to estimates that about 45,000 tonnes of copra had been procured so far during the current season, Mr Ram Bahadur Singh and Mr N. Ananthan, president and secretary respectively of the Cochin Oil Merchants Association said that including handling charges this would have involved an expenditure of around Rs 150 crores. At current prices, the "loss" involved would amount to about Rs 55 crores.

Going by the present situation, the market was not likely to improve because of lack of upcountry demand as well as low demand in the local markets. Besides, the flush season about to begin in Tamil Nadu in September and Karanataka in August. Trade circles were also aware that the copra procured by NAFED would be offloaded in the markets in the coming months.

Despite the extent of the crash in coconut oil prices, farmers of the State were unable to exert the kind of collective pressure that other segments like rubber growers were able to, when they faced a similar situation, they said.

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Section  : Southern States
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