Coconut and copra prices are increasing due to many reasons
07-Jul-2025 01:48 PM
Kochi. In recent months, the prices of coconut, copra, and coconut oil have witnessed a sharp increase due to several domestic and global factors.
Since the onset of the COVID-19 pandemic in 2019-20, coconut and its related products have experienced increased demand in the market.
According to the Coconut Development Board (CDB), the production and transportation of coconut were disrupted during the pandemic.
As prices began to rise, many shifted to converting coconuts into copra for coconut oil production. However, this did not yield the expected results, and prices actually declined significantly in March 2022. The downward trend continued until August 2024.
This sustained fall in prices led to a decline in coconut production, not only in India but also in other major producing countries like Indonesia, the Philippines, and Sri Lanka. Climate change, droughts, and other natural calamities further affected coconut cultivation. Temperature fluctuations also harmed the plantations.
As a result of the price crash, farmers saw reduced income and reduced their investment in plantation care, including fertilizer use.
Post-COVID, consumer awareness about health surged, increasing demand for tender coconut, especially in northern India, where consumption of coconut water rose sharply.
Farmers from Karnataka and Tamil Nadu began transporting raw coconuts in bulk to northern markets, preferring early harvests to capitalize on better prices. This led to a decline in mature coconut availability, which is essential for making copra.
Meanwhile, demand grew steadily in industries producing desiccated coconut powder, coconut milk, and virgin coconut oil—products that saw strong export growth. This further fueled the price rise of both coconut and copra.
Since September 2024, coconut and its value-added products have been on an upward price trend, which persisted through June 2025.
However, with the supply situation improving gradually in Tamil Nadu, prices are expected to stabilize in the next two to three months.