Now Reading: Onam demand pushes coconut oil prices to Rs 260/kg
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Onam demand pushes coconut oil prices to Rs 260/kg
Coconut oil wholesale prices have risen to Rs 260 a kg in Kerala, driven by Onam festival demand after months of subdued rates. Copra prices also climbed to Rs 168 per kg…
The Story in Brief
Coconut oil wholesale prices have risen to Rs 260 a kg in Kerala, driven by Onam festival demand after months of subdued rates. Copra prices also climbed to Rs 168 per kg in the state, while Tamil Nadu rates are slightly lower at Rs 242 and Rs 163 respectively.
Traders allege vested interests in a neighbouring state artificially inflated prices by hoarding copra stocks despite adequate supply. However, procurement agencies have withdrawn from purchases, forcing millers to moderate rates. Improved arrivals and better crop yields after last year's pest attacks are expected to cap further sharp increases, according to industry consultants.
The Indian Opinion
The usual finger-pointing at 'vested interests' for a seasonal price spike ignores the fact that raw material availability has improved significantly from last year's deficit. Blaming hoarding may be convenient, but the steady moderation after agency withdrawals suggests market forces are at work. The real test will come after Onam: will prices settle below Rs 240 as predicted, or will demand from upcoming festivals keep them elevated? That alone will show whether the rally was genuine or manufactured.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
