Coconut oil prices in Kerala witnessed a weak trend with corporate buyers staying away from the market.

Traders alleged that the market seems to be in the grip of corporates as some buyers dealing in the production of cosmetic coconut oil are manipulating the market.

Prices started dwindling by registering a daily drop of ₹100/kg for the third day today after hitting a new high of ₹16,400/qunital on Onam demand.

Currently, coconut oil is at ₹16,100, while copra prices are at ₹11,700 a quintal.

Coconut oil prices in Tamil Nadu are ruling at ₹15,000, whereas copra rates are at ₹11,050.

Thalath Mahmood, President, Cochin Oil Merchants Association, told BusinessLine that there was a supply constraint of copra due to low production of raw nuts.

The adverse climatic conditions in Kerala and Tamil Nadu have also affected the availability of sun-dried copra.

The coconut oil consumption in Kerala has also come down due to higher prices in the retail market and consumers are now looking at other edible oils for their household requirements.