Introduction:
Coconut oil is extracted from copra, the dried kernel of coconut. Oil content in copra vary from 65 to 72 percent. Coconut oil is an important cooking medium in southern parts of the country especially in Kerala and has varied industrial applications in soap, hair oil and other cosmetic industry.
Global Scenario:
Globally 5.5 million tons of coconuts are produced annually.
Indonesia, Philippines and India are top three leading producers with production share- 27%, 23% and 22% respectively. SriLanka, Mexico, Vietnam, New Guinea and Brazil are other important producers.
3 - 3.5 million tons of coconut oil is produced annually around the world while consumption figure globally is around 3.8 million tons.
Annually around 2 lakh ton raw copra, 1 lakh ton meal and 3.5 lakh ton coconut oil is traded worldwide.
Important World Coconut oil Markets: Indonesia, Philippines, SriLanka are important market for coconut and copra.
There is no futures market for coconut complex outside India
Indian Scenario:
India produces around 12141 million nuts of coconut, 6.5 – 7 lakh ton of copra.
Oil recovery from copra is 65 - 72%, annually 4 - 4.5 lakh tons of coconut oil is produced in the country
SEA of India has forecasted 6.5 lakh tons of copra and 4.2 lakh coconut oil production in 2005-06.
The production is highly dependent on the monsoon and incidence of pest and diseases and fluctuates between years.
India imports around 2000 - 7000 tons of crude coconut oil.
Factors Influencing Copra Markets:
Pests and diseases incidence:
International price movement especially in Indonesia and Philippines.
The supply-demand and price scenario of competitive oils, viz., palm oil.
Industry is highly specialized with more retail consumption and less number of institutional buyers. This restricts the flow of information to a few traders, who have developed the ability to influence the prices.
Though crop is available throughout the year, it follows a seasonal cycle with the production peaking after the monsoon.
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