China has expressed interest in obtaining coconut oil from India and may import it for the first time. According to informed sources, India has not yet exported coconut oil to China; however, because the price of Indian coconut oil is comparable to competing countries such as the Philippines and Indonesia, the Chinese are interested in the Indian product.
Indian coconut oil prices are now at $1,947 per tonne, compared to $1,758 internationally. During the same period last year, Indian rates were $2,502, while the international price was $1,631/tonne. Leading corporate coconut oil manufacturers are considering sending shipments, but they must follow some strict procedures laid out by Chinese authorities before shipping the product.
According to sources, the Coconut Development Board has taken steps to coordinate with the Indian High Commission in China to complete the necessary formalities for exports. "It is too early to provide any additional information at this time." It will take some time to get a clear picture of the emerging business opportunity, according to the sources.
According to Devraj KK, a business consultant in the industry, China is one of the largest importers of coconut oil, with Indonesia, Malaysia, the Philippines, Vietnam, and Sri Lanka as major suppliers. However, if the plan to import coconut oil is implemented, it will undoubtedly benefit the struggling coconut oil industry, which is experiencing low demand in the local edible oil market.
He stated that with adequate support from the Indian government in export rules and incentives, coconut oil can undoubtedly find a large space in the Chinese market. West Asia currently accounts for more than 60% of the country's exports.
According to Thalath Mahmood, Director of Cochin Oil Merchants Association (COMA), the coconut oil market will benefit once exports to China begin. At the same time, market revival will be determined by the volume of shipments, whether crude or packed oil. India already exports both coconut and virgin coconut oil to the United States, Canada, and the United Kingdom, gaining a significant market share.
Only if Indian prices fall further to benefit the domestic industry will export prospects improve. However, global edible oil prices are falling due to easing supply constraints, and this will be reflected in international prices of coconut oil as well, according to Ubais Ali, CEO of Mezhukkattil Mills.
Earlier, China used to buy large quantities of raw coconut in bulk from India when prices were around $20-22 per kg for the production of milk-based beverages. He claimed that they had even used shells for biomass and the production of activated carbon.
