After touching record highs in July last year, coconut oil and copra prices have been on a sustained downward trajectory, with coconut oil currently ruling at around ₹227 per kg in the Kerala market and copra at ₹131 per kg.

According to Thalath Mahmood, President of the Cochin Oil Merchants Association (COMA), the decline is primarily due to increased arrivals of raw coconut across major production centres. However, he alleged that a lobby in neighbouring states is holding back copra stocks in an attempt to create an artificial shortage and push up prices. The abundant availability resulting from higher production is likely to prevent any significant price escalation, he said.

In Kerala, coconut oil and copra are currently quoted at ₹227 per kg and ₹131 per kg respectively, while in Tamil Nadu the corresponding prices are ₹191.75 and ₹127. The current levels are significantly lower than the record highs of ₹393 per kg for coconut oil and ₹261 per kg for copra recorded in July 2025.

Bumper harvest

K.K. Devraj, an industry consultant, said poor arrivals during 2025 had propelled coconut and coconut oil prices to unprecedented levels. However, a bumper harvest during this year’s peak summer season in Kerala and Tamil Nadu has dramatically altered market dynamics.

Raw coconut prices, which had climbed to around ₹70-75 per kg, fell to nearly ₹40 per kg during March-May owing to heavy arrivals,” he said. While farmers are struggling with rising labour costs for tree climbing, harvesting and de-husking, millers have benefited from a steady supply of copra that has enabled them to operate their processing units without interruption.

Despite the easing raw material costs, millers are facing a marketing challenge. Retail offtake has slowed considerably as traders and consumers anticipate further price corrections. Frequent downward revisions in retail prices have left higher-priced stocks on store shelves, making it difficult for retailers to clear inventories before replenishing with fresh, lower-priced supplies.

Switch to alternatives

Many consumers who switched to alternative edible oils such as sunflower, soybean and blended oils during the period of high coconut oil prices have been slow to return. Consumers have become accustomed to these oils, which also remain cheaper than coconut oil, he said.

Industry sources pointed to falling raw coconut prices as a key factor behind the decline in copra and coconut oil rates. Raw coconuts are currently selling at around ₹42 per kg, supported by higher production in neighbouring Tamil Nadu. A temporary slowdown in exports of value-added coconut products due to the ongoing West Asia crisis has increased domestic availability, adding further pressure on prices, the sources added.

Published on June 25, 2026