Kerala to ensure availability of ample coconut oil during Onam, says State Agriculture Minister Prasad

The consumption of coconut oil in Kerala is estimated at three lakh tonnes per year.

The Kerala government is gearing up to ensure sufficient availability of coconut oil during the Onam festival season by procuring more quantities of copra to meet the production requirements.

P Prasad, the State Agriculture Minister, told businessline that the surging price of copra and its shortage are posing a problem for coconut oil production, but the government, through Kerafed – the cooperative federation of coconut farmers – is in the process of procuring raw coconuts, which will be converted into copra later. The production will be enhanced to meet the festival demand, he said.

The primary societies, under Kerafed, have been directed to procure coconuts at ₹1 above the procurement price fixed by the Coconut Development Board for copra conversion from the growing regions of Kasargod, Kannur, Malappuram, Kozhikode, Palakkad and Thrissur, the Minister said.

Besides, tenders will be floated to procure another 500 tonnes from the open market. However, rising prices are a concern before the government, he said. 

Relying on Tamil Nadu

Quoting the commodity market outlook of the World Bank report, the Minister said there has been a 25 per cent drop in coconut production worldwide and the figure is 40 per cent in South India.

Industry sources say that Kerala is depending on neighbouring Tamil Nadu for copra especially from Kangayam and heavy rains in the area has reportedly affected the quality of the raw material with fungal attack. The consumption of coconut oil in Kerala is estimated at three lakh tonnes per year.

According to the Minister, the government will also ensure the quality of coconut oil produced by Kerafed and would take all possible measures to curb the sale of adulterated oil in the domestic market at cheaper prices, of late rampant in the state.

Expecting a fall

With retail prices of coconut oil reaching ₹450, the local sales have been hit, raising a concern among traders, said Thalath Mahmood, president of Cochin Oil Merchants Association. The market is witnessing a subdued demand for coconut oil due to the rising prices especially when the rates of other edible oils such as palmolein and sunflower oil is quoting at ₹120 and ₹150 per litre respectively, he added.

Copra prices in Kerala are quoting ₹255 per kg, while in Tamil Nadu, it was ₹245. The wholesale price of coconut oil is ruling at ₹384 in Kerala and ₹380 in Tamil Nadu. However, the market is anticipating a drop in prices as arrival of fresh stocks from Tamil Nadu and Karnataka has started, he added.

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Published on July 7, 2025