Mattancherry: Coconut oil prices in Kerala are soaring to record highs, with wholesale rates crossing ₹300 per kilogram in some regions. In Kochi, the wholesale price has touched ₹287 per kg, while in Thrissur it has climbed to ₹297. Kozhikode tops the chart with ₹307 per kg, the highest ever recorded in the state.
Over the last 10 days, coconut oil prices have risen by ₹15–₹17 per kg. The current spike surpasses the previous record from 2017–18, when the price had peaked at ₹204 per kg. Retail prices are now averaging between ₹340 and ₹360 per litre across Kerala, with packaged oil hitting ₹350 per litre.
The steep hike has triggered major concern in both the consumer and manufacturing sectors. To manage the impact, leading edible oil companies are experimenting with smaller packaging sizes instead of directly raising prices, introducing reduced-quantity packs to the market in an attempt to maintain affordability.
One of the primary reasons for the price surge is a global shortage of copra (dried coconut). Major coconut-producing countries such as Sri Lanka, Indonesia, and the Philippines are facing production declines, leading to reduced supply and rising prices. The shortage is also being felt in southern Indian states like Tamil Nadu and Karnataka, which traditionally supply copra and coconut oil to Kerala.
Since sometime, Kerala has been heavily dependent on Tamil Nadu for copra, which is either processed into oil locally or directly imported as coconut oil. However, with copra availability plummeting, many oil mills in Tamil Nadu have been forced to shut down. Mills in Kerala are also facing difficultes operating due to a lack of raw material.
Despite the skyrocketing prices, coconut farmers in Kerala are reportedly not benefiting much. With very limited produce available, they are unable to take advantage of the high market demand and rising prices.
