Surge in production and export disruptions following the West Asia crisis have dented coconut oil and copra prices, which are now witnessing a southward movement after hitting record highs a few months ago.
Thalath Mahmood, President of Cochin Oil Merchants Association (COMA), said coconut oil prices in Kerala dropped to ₹266 per litre, while copra rates came down to ₹153. This is a sharp decline from last July’s peak of ₹393 and ₹259 for coconut oil and copra respectively. Raw coconut prices have also decreased significantly, falling about ₹36 per kg over the past seven months.
He said that the demand was subdued both at the corporate level and in local purchases and the declining price trend is likely to continue unless the supply reduces with the onset of monsoon. There are also reports of liquidating stocks by traders in Tamil Nadu in view of the price fall.
P Vinod Kumar of Coconut Producer Consortium, Palakkad said higher production has also played a major role in the prices to drop as increased output of fresh coconuts across producing states has led to excess supply in the market.
Another factor is the shift in consumer preference. When coconut oil prices were high, many consumers switched to cheaper edible oils, and this change has continued to affect demand. Notably, Kerala remains the only state where coconut oil is widely used for cooking, while in other regions it is mainly used for industrial purposes.
Industry sources pointed out that the West Asia conflict has disrupted exports of coconut products to Gulf markets due to soaring shipping costs, prompting companies to pause procurement. This, coupled with labour exodus to West Bengal and Assam for assembly elections hit copra processing, leading to reduced procurement of fresh nuts and contributing to price fall.
Sunny George of Tejaswini Coconut Producer Company said that raw nut prices in Kannur has dropped to ₹45 per kg in the wholesale market due to increased production. The prices were at their peak at around ₹70-75 per kg earlier. He pointed out that the prices may decline further if supply continues to rise. At the same time falling prices are becoming a concern for farmers as current rates are approaching or even dipping below production cost of around ₹50 per kg.
Published on April 30, 2026