Coconut oil prices cross Rs 300/kg again; here’s what’s driving the rise

Kottayam: Coconut oil prices have started rising again after a brief period of stability, with retail rates crossing Rs 300 per kg on Monday.

The price was between Rs 260 and Rs 278 per kg on Saturday, while the wholesale rate stood at around Rs 293 per kg on Monday.

Retailers are currently charging up to Rs 10 more per kg than the prevailing wholesale rate, traders said.

Coconut and copra prices rise

Traders attribute the increase mainly to the rise in coconut and copra prices amid heavy rains. The price of dehusked coconut has increased from around Rs 45 to Rs 75 per kg, while copra prices have crossed Rs 160 per kg.

Kangeyam in Tamil Nadu, a major coconut oil trading centre, also witnessed attempts by mills to push up prices last week. Mills reportedly tried to hold back stocks to create upward pressure on prices. However, agencies did not support the move, prompting mills to temporarily reduce prices before raising them again towards the end of the week.

Some traders, however, maintain that there is no significant shortage of coconut or copra in the market.

Private brands remain costlier

The latest increase comes after Kerala-based public sector company Kerafed reduced its coconut oil prices in July following a decline in copra rates. The price of Kerafed coconut oil was reduced from Rs 332 to Rs 299 per litre, while the 500 ml pack was cut from Rs 167 to Rs 150.

Kerafed officials said they had no plans to increase prices, citing sufficient copra stocks.

Private brands, however, have not reduced their prices significantly. Several brands continue to sell coconut oil at around Rs 320 per litre.

Coconut oil had crossed Rs 500 last year

Coconut oil prices had crossed a record Rs 500 per kg in July 2025, when copra prices surged to around Rs 280-300 per kg from about Rs 90 per kg in 2024.

Prices began declining towards the end of 2025 as more coconuts entered local markets in southern states. Reduced exports amid the West Asian conflict also contributed to weaker demand and lower prices.

Traders now warn that the latest rise in coconut oil prices could affect demand, particularly as palm oil prices have remained relatively stable.