The traders alleged that the price rise was artificially created by vested interests in the neighbouring State to cash in on the Onam season by holding copra stocks, despite sufficient availability of the raw material in the market
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The ensuing Onam festival demand has started pushing up coconut oil prices after remaining subdued for several months.
Wholesale coconut oil prices are ruling at around ₹260 a kg in Kerala, compared with ₹242 in Tamil Nadu. Copra prices have also moved up to ₹168 a kg in Kerala and ₹163 in Tamil Nadu, according to traders.
They alleged that the price rise was artificially created by vested interests in the neighbouring State to cash in on the Onam season by holding copra stocks, despite sufficient availability of the raw material in the market.
However, they said the market has remained steady over the past few days, as procurement agencies reportedly withdrew from purchases following the price surge. This has forced millers to moderate prices.
Coconut oil touched a record price of more than ₹500 a kg in July 2025.
Thalath Mahmood, President of the Cochin Oil Merchants Association (COMA), said the ongoing harvest season in several producing States had ensured adequate availability of copra and there was no justification for the price rise. The upward trend is expected to ease once the festival season is over, he said. Raw coconut prices, however, have risen to around ₹65 a kg.
KK Devraj, a consultant to the coconut oil industry, said improved local arrivals and better regional crop yields following last year’s severe pest attacks and weather disruptions had helped ease supply constraints.
While supplies have improved significantly from last year’s massive deficit, Onam traditionally drives a 10–20 per cent increase in local demand. Demand is expected to remain firm through the festival period, supported by household cooking requirements, industrial production of sweets and snacks, and subsequent pan-India demand ahead of Ganesh Chaturthi and the Sabarimala season.
Prices are likely to face moderate upward pressure during the peak two to three weeks preceding Onam owing to immediate retail demand, he said.
Unlike previous years, when severe shortages triggered sharp price spikes, improved raw material availability is expected to cap inflation and prevent extreme fluctuations. Retail coconut oil prices are therefore likely to remain relatively steady rather than approach historic highs, Devraj added.
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