The central government’s decision to allow export of 20,000 tonnes of coconut oil in branded packs of upto 5 kg does not bring cheer to the oil industry here, which has been reeling under a price fall for quite some time.
Cochin oil merchants association director Talat Mahmood said the decision, on the face of it, was welcome. “But the reality is that the competition from competing countries like Malaysia or Thailand offering coconut oil at much lower prices gives little scope for the material from here to find markets abroad,” he said.
The cabinet committee on economic affairs on Thursday decided to continue the ban on export of edible oils, though the export of branded coconut oil in consumer packs was allowed with a limit of 20,000 tonnes.
Talat said the market was flooded with coconut oil with more than 330 tonnes of oil coming in tankers from Tamil Nadu. Already the prices were on the downslide, and on Friday the markets closed at `5,550 a quintal, `100 lesser than Thursday.
Oil merchants said the price downslide was indication the central move – which kept the needs of the Malayalis in the Gulf in mind – would not help much. Even if there was a move for export, it would help big industrialists and there would be little respite for the grower here.
There has been strong demand from coconut growers to raise the procurement price for copra.