The expectation of Onam and the upcoming North Indian season demand for the ensuing festival season has again made the farmers and traders to hold on to their stocks. This has arrested the fall in prices and pushed up prices marginally.
| Photo Credit:
Siva Saravanan_ S
Efforts to rein in coconut oil prices below ₹350 per litre before Onam do not seem to be yielding the desired results.
Coconut oil prices in Kerala are ruling now at ₹373 in the wholesale market and ₹390 in retail outlets. Copra prices are also hovering at ₹221 per kg.
Thalath Mahmood, president of Cochin Oil Merchants Association, attributed the reason for prices remaining at this level to the holding of copra by traders in neighbouring States. The surging demand for coconut oil for Onam is also a contributing factor for the prices to move up.
KK Devraj, a consultant in the industry, pointed out that coconut oil prices had started showing a downward trend during the last couple of weeks due to the fresh arrivals of coconuts from Tamil Nadu and Karnataka, where the harvest season had started. Prices of coconut oil dropped from the high of above ₹400 per kg to around ₹350 per kg.
Surging demand
But the expectation of Onam and the upcoming North Indian season demand for the ensuing festival season has again made farmers and traders to hold on to their stocks. This has arrested the fall in prices and pushed up prices marginally. How long this can hold will depend on the inflow of fresh arrivals into the market, he said.
Asked why the prices are not dropping as expected, an industry source said that local traders procured copra at the rates between ₹250 and ₹300 for coconut oil production, and at this rate, it is not viable for them to sell the product below ₹350. The surging demand for coconut oil in the festival season also arrested a further fall in prices. Moreover, arrival of raw coconuts to the market had come down and facilitated the prices to remain stable.
Moreover, the State government move to sell coconut oil at subsidised rate of ₹349 also facilitated a price correction in the market. Benefitting consumers, the authorities have further reduced prices of subsidised coconut oil to ₹339 in the festival season.
Published on August 29, 2025