Coconut oil firms up despite rise in copra arrivals
Coconut oil traders are keeping their fingers crossed in the wake of firming up of prices despite increased arrivals of copra across the markets.
Traders were expecting prices to ease after Onam especially with the start of harvest season. But the prices remain elevated to reach ₹362 per kg in Kerala and ₹310 in Tamil Nadu in wholesale market. Copra prices are ruling at ₹222 in Kerala and ₹217 in Tamil Nadu.
Thalath Mahmood, president of Cochin Oil Merchants Association (COMA) said the market expected a drop after Onam following increased copra arrivals, instead the prices remained firm. The retail prices of coconut oil are hovering in the range of ₹390 forcing consumers to shift to cheaper edible oils. The rising price of copra has hit the coconut oil industry, forcing many small milling to close down as it become unviable to start with production when copra prices are on the roof at around ₹250 by paying taxes.
He alleged that several trading centres in Tamil Nadu are holding copra, which is one of the reasons for the prices to sustain at this level. Normally, the price will drop with the start of harvest, but a reverse had happened this time, he said.
Official sources, citing strong buyer interest and persistent supply concerns, attributed reasons for the prices to remain firm to increased export demand for coconuts due to shortage in producing countries such as Indonesia and Sri Lanka. The rising demand for value added products globally pushed coconut supplies, which led to shortage in copra conversion.
This is evident from rising exports of coconuts with shells from India, reaching 10,727 tonnes up to August this year compared to 8575 tonnes in the corresponding period last year. Fresh coconut without shells also rose to 20,000 tonnes against 19,000 tonnes. Coconut exports put together up to August stood at ₹2546 crore against ₹1605 crore last year, the sources said.
It is pointed out that coconut prices have been ruling below MSP in the last three years. Now, the farmers are deriving the benefit of higher prices and the increased demand has prompted them to return to farming which facilitated high demand for seedlings. The demand for tender coconuts in North Indian markets is also reported to be a reason for slow movement in copra conversion.
The 2025 market outlook also reported supply constraints and the prices likely to remain firm or increase in Q3. Buyers, who are focusing on high-demand products like virgin coconut oil and desiccated coconuts, are procuring coconuts much earlier to soften risks associated with price volatility. Weather related supply challenges also significantly impacted coconut yields.
Globally, coconut products remain in high demand, driven by the growing preference for plant-based ingredients. This demand surge is further fuelled by coconut’s versatility in food, beverage, and cosmetic applications.
Published on November 10, 2025
