While the prices remain on the high side, consumers say they have opted to minimise the use of coconut oil in their households.
Published Aug 08, 2025 | 12:26 PM ⚊ Updated Aug 08, 2025 | 12:26 PM
Coconut oil. (iStock)
Synopsis: Kerala has been grappling with the high prices of coconut oil for the last few months. Even though the prices have dropped since the state government intervened, the commodity is still unaffordable for most people. Producers note that the price rise is due to the reduced availability of copra.
The news that a thief robbed a grocery store in Aluva in the Ernakulam district of Kerala of 30 bottles of coconut oil on Thursday, 7 August, was not surprising for the residents of the state.
Kitchens in Kerala have been incomplete without coconut oil, an essential ingredient in almost all dishes of the state’s cuisine.
However, over the past few months, it has been slowly disappearing from the shelves due to the exponential rise in its prices.
In January this year, one litre of coconut oil was priced at ₹250–₹280. However, by April it shot up to ₹300–₹320, and by July, it further increased to a maximum of ₹450–₹500.
In view of the Onam festivities, the state government has announced two litres of subsidised coconut oil for every type of ration card and said it will also be made available at reduced prices at state-run Supplyco stores.
Even though the announcement has marginally reduced the prices, it hasn’t come down from the ₹450–₹480 range.
Producers say the price increase is a result of the reduced availability of copra. Meanwhile, consumers say they have reduced coconut oil consumption.
Even while producers noted that the price rise was due to the reduced availability of copra, they say it does not necessarily mean reduced production of coconut.
“The price hike started after the availability of copra went down. But I can’t say it is due to the lesser production of coconut. Policy decisions, import and export, and other decisions affect the availability,” Venugopal, who owns a coconut oil brand, Keradhara, told South First.
He added that the increased prices have reduced sales as well.
“If we look at the numbers, in terms of sales, the turnover has not reduced much. But since the price rise was exponentially high, there has been a drastic decrease in the volume of sales,” Venugopal said.
However, he acknowledged that the government’s intervention has reduced the prices a bit and added that since the market is highly volatile, he was not sure if it would reduce further or go up again.
When asked about the Onam market, he said he was not expecting an increase in sales since most of his customers – mostly wholesale businesses – have the high-priced oil in stock.
Meanwhile, Salim UA, who has a small-scale oil production unit, told South First that the increased prices have cut down his business a lot.
“I don’t know how long I can sustain if high prices continue. Customers have started using other seed oils. Since I sell oil by weight – one kg of oil is about 1.1 litres – the price would be around ₹520–₹530. Since many of my customers can’t afford that, most of them are looking for alternatives,” he said.
Businesses also noted a decrease in coconut oil sales over the past few months.
Muhammed Anzil, who runs a wholesale business of FMCG goods, noted that coconut oil sales have dropped while the sales of other seed oils like sunflower oil and palm oil have picked up.
“Most retail businesses now shop for more sunflower oil and palm oil since most customers now prefer a cheaper alternative. Sales of coconut oil have gone down by almost half,” he told South First.
Meanwhile, James Joseph, a retail shop owner, told South First that there have been days when he would be unable to sell even a single bottle of coconut oil.
While the prices remain on the high side, consumers say they have opted to minimise the use of coconut oil in their households.
“I can’t afford to buy coconut oil at the current price. I have started using either palm oil or sunflower oil for my needs at home. It has been months since I purchased coconut oil, which used to be the only type of oil that we consumed,” a woman who works as a domestic help told South First on condition of anonymity.
She added that she uses coconut oil only when a few neighbours give her some from what they get from their farm produce.
Another consumer, who also spoke to South First on condition of anonymity, said that the price hike has disrupted their monthly budget.
“I am a salaried employee who has a set budget for monthly expenses. However, the increased price of coconut oil has disrupted the entire budget. Nowadays, I buy two or three types of oil and use coconut oil only when absolutely necessary,” he added.
Civil Supplies Minister GR Anil recently announced that the government will distribute two litres of coconut oil per ration card through Supplyco outlets at a subsidised rate ahead of Onam.
He said coconut oil will be sold at a subsidised rate of ₹349 per litre through Supplyco stores in August.
“The same cardholder can purchase it till 4 September. From 5 September onwards, the Onam sale of subsidised products will commence. Two-litre oil will be supplied to each ration card holder at a subsidised price,” said Anil.
Agriculture Minister G Prasad said that Supplyco is planning to sell coconut oil at reduced rates following an agreement with the Kerala State Co-operative Apex Federation of Coconut Farmers Ltd (Kerafed).
He also expressed hope that prices would come down soon. He said that traders assured Industries Minister P Rajeeve that they would try to sell coconut oil at lower prices.
