Small units hit by shortage of coconut and copra and high prices

01-Apr-2025 08:38 PM

Kochi. Due to a sharp decline in production and supply, the prices of coconut oil and copra are rising to new record levels,

due to which many small units in Kerala are facing great difficulty in continuing their activities and due to non-availability of raw material in sufficient quantity, there is a danger of their closure.

According to industry analysts, due to increase in export of raw coconut, increased use in other value added products and heavy demand for tender coconut (coconut water) due to severe heat,

the supply and availability of copra in the market has decreased considerably. Due to this, there is an environment of regular rise and rise in prices.

According to the President of Cochin Oil Merchants Association (COMA), the wholesale market price of coconut oil in Kerala has jumped to a peak level of Rs 261 per kg.

Similarly, the price of copra has reached Rs 174 per kg and is slowly moving towards the 2017 record price level of Rs 200 per kg.

Currently, the supply of copra in Kerala and Tamil Nadu has decreased by 40-50 percent, which is causing a lot of hindrance in the operations of small scale milling units.

In view of the extremely high price, Disawari traders and buyers especially from North India have disappeared from the copra and coconut oil market.

Although the retail price of coconut oil has increased to Rs 300 per kg, coconut producers are not getting any special benefit from this.

The price of coconut was Rs 30-35 per kg six months ago, which has now reached Rs 65-70 per kg.

It is believed that some stockists in Tamil Nadu and Karnataka have suppressed the stock of copra and are earning huge profits from the boom in the market. The government should investigate this.