SEA Submits Memorandum on Soaring Coconut Oil Prices: Relief Not Possible Without Allowing Imports
11-Jul-2025 03:10 PM
SEA Submits Memorandum on Soaring Coconut Oil Prices: Relief Not Possible Without Allowing Imports
★ The continuous surge in coconut oil prices in India has placed both consumers and farmers under stress. Over the past year, the price of coconut oil has tripled. In light of this alarming situation, the Solvent Extractors’ Association of India (SEA) has urged the central government to take immediate policy action.
★ SEA has submitted a memorandum to the Ministries of Consumer Affairs, Agriculture, and Commerce, requesting a temporary relaxation in import restrictions on coconut and copra oil for a period of 6 to 12 months. According to the association, this measure would help balance the supply situation and would not have any adverse impact on domestic farmers.
★ The memorandum highlights that from March to May 2024, extreme summer conditions and pest attacks severely damaged coconut plantations, leading to a sharp decline in yields—up to 40%. Due to high prices, consumers are shifting away from coconut oil to cheaper alternatives, which could have long-term negative consequences on the demand for coconut and the income of farmers.
★ SEA also warned that once consumers shift away from coconut oil, it is difficult to win them back—an issue previously witnessed with groundnut oil.
★ Therefore, SEA has appealed to the government to allow controlled and limited imports, possibly under a Tariff Rate Quota (TRQ) system, to stabilize prices and retain consumer confidence in coconut oil.