Coconut Oil Prices Cross Rs.220/kg in India; Will Continue a Steady Climb

Coconut prices in Kerala have skyrocketed in recent weeks, nearly doubling due to a severe shortage of supply across South India. This surge has been mirrored in copra and coconut oil prices, with our industry experts predicting further hikes, especially as the peak Sabarimala pilgrimage season approaches.

Coconut oil sold for Rs. 212 per kg in the second week of November. It had peaked at record Rs. 225 per kg in the last week, which was the highest it ever climbed in 2024. It first crossed the 200 per kg mark during the week of Onam festival in September 2024, when it reached Rs. 201 per kg. Coconut prices have been floating above 200 for the past two months, with no sight of drop in the near future.

Retail coconut oil prices have surged by Rs 70-80 per kg, reaching Rs. 210-230 per kg. our experts predict a strong market for coconut oil at least till the end of the year, with a steady monthly increase of 2%.

This price hike is attributed to a high demand surge of coconut, in India as well as from European countries. The upcoming Sabarimala pilgrimage season is a major factor contributing to the demand surge in India. This festival is celebrated in the months of November and December each year holds a sacred importance to the South Indian population. Pilgrims traditionally offer coconuts as offerings to the deity, and with millions expected to visit the temple, demand is likely to soar.

The global market for lauric oils, including coconut oil, is witnessing increased demand, particularly from European countries. This global trend is further bolstering prices. In 2023 alone, the European Union (EU) imported 105,104 tonnes of coconut worth €146 million ($157.4 million) from South Asia.

While the price surge presents challenges for consumers, it also offers opportunities for farmers and traders. However, sustainable solutions are needed to address the long-term supply-demand imbalance and ensure a stable market for this essential commodity.

Applications of Coconut Oil in India –

Coconut is an incredibly versatile plant, which are widely used in South Asia. Coconut products such as its oil, milk, water, desiccated coconut, flour, and sugar are widely used for cooking, baking, and as ingredients in beverages. It’s oil is also a common ingredient in cosmetics and personal care products due to its moisturizing and nourishing properties. Coconuts are also essential in biofuel production, where their oil is converted into biodiesel and used in industrial lubricants. Coconut fibers are utilized to make ropes, mats, and carpets, offering a sustainable alternative to synthetic materials.