Copra prices, which had hit Rs 15,000 per quintal in the key producing states of South India, have reversed their trend over the past few days due to cheap imports from Indonesia.
Prices have dropped to Rs 12,000 per quintal in Tamil Nadu and Rs 13,000 in Kerala.
In Karnataka, the modal prices for the ball copra have dropped by around Rs 2,000 since mid-February to around Rs 11,000.
Some portion of the domestic demand has shifted to Indonesian copra, which is imported under the advance license scheme by exporters even though the government did not allow copra imports under open general license ( OGL) to avoid a slump in domestic prices.
With the starting of the harvest season in Kerala, the rates are likely to fall further in the coming months with more availability of raw nuts.
Sudden fall in prices and the method adopted by companies to fix the rates have impacted the market in the recent period, resulting in a subdued demand.
The fall in prices was also reflected in coconut oil prices, which were at Rs 17,300 per quintal in Kerala and Rs 16,800 in Tamil Nadu.