The Kerala government is stepping up efforts to prevent a shortage of coconut oil, a staple in most Malayali households, as the Onam festival approaches. With the price of copra surging and supplies tightening, the state is banking on its cooperative network and neighbouring Tamil Nadu to keep the flow going.
Agriculture minister P Prasad said the government is tackling the issue by ramping up copra production through KeraFed, the state-run cooperative federation of coconut farmers. The plan includes converting raw coconuts into copra in the coming weeks to meet increased festival demand.
Kerafed’s primary societies across Kasargod, Kannur, Malappuram, Kozhikode, Palakkad, and Thrissur have been asked to procure coconuts at ₹1 above the Coconut Development Board’s support price. This move is aimed at encouraging farmers to sell more for copra conversion.
Additionally, tenders will be floated to buy 500 tonnes from the open market. But the price surge remains a hurdle. A recent World Bank commodity market report noted a 25% global drop in coconut production – and the dip is even steeper at 40% in South India, making raw materials harder to source.
Industry insiders say Kerala has been relying heavily on Tamil Nadu, especially Kangayam, for copra. But heavy rains there have damaged crops and led to fungal infestations, affecting the quality of raw materials reaching Kerala.
Kerala’s annual coconut oil consumption is pegged at around three lakh tonnes, and with poor quality imports and falling production, there’s concern the festive season could see a shortfall unless procurement picks up pace soon.
Officials are also aiming to keep a lid on adulterated coconut oil that has been surfacing in local markets. The government has said it will tighten checks to ensure that only quality oil, particularly that produced by KeraFed, makes it to shop shelves.
The market is already feeling the pinch. Coconut oil is retailing at around ₹450 per litre, prompting consumers to look for cheaper alternatives. Palmolein and sunflower oil are currently being sold at ₹120 and ₹150 respectively, making them a more attractive choice for many households.
Traders, too, are worried. Talath Mahmood, president of the Cochin Oil Merchants Association, said the price difference has dampened demand, especially at the retail end.
There might be some relief in sight. Copra is priced at ₹255 per kg in Kerala and ₹245 in Tamil Nadu. Wholesale coconut oil prices are slightly lower, standing at ₹384 in Kerala and ₹380 in Tamil Nadu.
With fresh copra stocks from Tamil Nadu and Karnataka beginning to arrive, the market is anticipating a potential drop in prices in the coming days.