Coconut Oil

Introduction
Coconut oil is extracted from Copra, the dried kernel of coconut. This is done manually as well as by way of rotary and expeller machines. Oil content in copra varies from 64 to 70 percent. Coconut oil is the preferred cooking medium of Kerala. It has got other varied industrial uses like in manufacturer of soaps, cosmetics and recently in bio-fuel.

Global Scenario
Coconut oil is the determining factor for coconut trade world over.

• Around 55 billion nuts are produced annually.
• India, Indonesia, Philippines and Srilanka are the top producers

Important International Markets

• Philippines, Srilanka and Indonesia are the internationally important markets for Coconut oil.
• There are no futures markets for coconut derivatives outside India.

Indian Market

• India produces around 13 billion nuts and close to a million tons of copra annually.
• Around 600,000 tons of coconut oil is produced in the country.
• Kerala has got 3000 years tradition in coconut products.
• FCEI is the first Coconut oil futures exchange in the world.
• Kochi is the major trading centre in India.

Factors influencing the trade.

• As the production is located in the southern coastal areas, it is highly dependent on the monsoon.
• Production is vulnerable to pest and disease.
• 50% of the production is from the State of Kerala. Bulk of the consumption is also from this State as Coconut oil is a retail edible item here. Around 25% of the production comes from Tamil Nadu.
• Between 5-8000 tons of non edible coconut oil is imported every year by the exporters.
• Price moves on the local supply-demand situation, but also at rare instances reflect the competing products’ upward movements.
  

Copra

Introduction
Copra is the dried kernel of the coconut. Copra normally has oil content of around 70%. It is of two varieties, milling copra and edible copra. Milling copra is used for oil extraction. It is manufactured in both cup and ball shapes. Copra is vulnerable to climatic changes while storage.

Global Scenario
Copra is the main commercial product from coconut.

• Around 55 billion nuts are produced annually.
• India, Indonesia, Philippines and Srilanka are the top producers

Important International Markets

• Philippines, Srilanka and Indonesia are the internationally important markets for Copra.
• There are no futures markets for coconut derivatives outside India.

Indian Market

• India produces around a million ton of copra annually.
• Around 600,000 tons of coconut oil is extracted, mainly for local consumption.
• Kerala has got 3000 years tradition in coconut products which include Copra, Coconut oil, Coir, Oil cake and Toddy.
• FCEI is the first Copra futures exchange in the world.
• Kochi is the major trading centre in India.

Factors influencing the trade.

• As the production is located in the southern coastal areas, it is highly dependent on the monsoon.
• Production is vulnerable to pest and disease of the tree.
• Storage and long duration transportation is expensive.
• 50% of the production is from the State of Kerala. Around 25% of the production comes from Tamil Nadu.
• Price moves on the local supply-demand situation, as Kerala and Tamil Nadu accounts for 75 % of the production.