Coconut oil prices skyrocket in Kerala, crosses Rs 450/litre; Public voices concern

The recent surge in the prices of coconut and coconut oil is now being felt directly in households and commercial kitchens alike in Kerala. Coconut oil, which was priced below Rs 200 per litre during the beginning of January 2025, has more than doubled to cross Rs 450.

Similarly, the cost of husked coconuts has soared to between Rs 75 and Rs 90 per kilogram. This steep increase is forcing households, caterers, and hotels to cut back on their use of coconut and coconut oil, often compromising on taste, and in some cases, removing traditional dishes from menus altogether.

Compromising on taste — But only to an extent

“Last July, one litre of coconut oil costs Rs 170 and a kilogram of coconut was Rs 32,” says Balan Kalyani, District General Secretary of the Catering Association. “Many catering businesses have already started shutting down due to the rising costs of essential goods. We face limitations when it comes to cutting back on coconut oil and coconut in cooking. To attract repeat orders, the food must retain its authentic taste, and many dishes rely on coconut milk or coconut oil for their distinctive flavour. For example, fish curry tastes best when prepared with coconut milk, and curries cannot be properly tempered without coconut oil. The prices have changed significantly since we took orders a month ago. If coconut and coconut oil prices keep rising, many catering units will be forced to close.”

Adjusting family meals

For families as well, the price hike is making daily meals a challenge. “We are a family of four, and it’s impossible to get through a day without coconut and coconut oil,” says Viji Suresh from Thrissur.

“Even with careful economising, we need about two coconuts a day. Earlier, fish curry was made with coconut milk, but now we have started grinding coconut ourselves. Cooking fish with just chilli, which wasn’t common before, has become a new experiment. Snacks like Puttu, Vellayappam, and Ada have been taken off the menu for the time being. We usually use about two litres of coconut oil a month, but the new oil lacks the traditional smell and taste, and it tends to smoke and burn quickly. Every time my husband buys coconut oil, he reminds me about the cost and urges me to use it sparingly. Children’s favourite snacks like Poori and fried items are things we have to avoid for now.”

Impact on community kitchens

The price surge is also affecting community kitchens. “Around 700 people come for lunch daily, with meals priced at Rs 20 and snacks at Rs 10,” says Anitha Sajith, Incharge of Subhiksha Hotel, Kunnamkulam. “We had just started recovering financially after clearing liabilities, but the price hike forced the government to raise lunch prices to Rs 30. We are concerned because the prices of coconut oil and coconuts continue to soar. We use about 12 litres of oil daily. Dishes like fish, beef, and chicken help us make a profit at this price point. However, if coconut oil isn’t used, the taste will suffer. We need to allocate over Rs 5,000 for coconut oil alone, which is not feasible. We are reluctantly switching to sunflower oil. We also need around 15 kilograms of coconut daily for snacks, curries, and thoran.”

Hotels face a growing crisis

The hotel sector, already struggling with rising goods and fuel prices, faces a deeper crisis due to the coconut price hike. “Hotels are now forced to switch to palm oil, sunflower oil, or other alternatives to manage costs,” says C Bijulal, State Working President of the Hotel and Restaurant Association and manager at Arya Bhavan, Guruvayur.

“This inevitably affects the taste, which will impact business, but there is little choice. When it comes to coconut, no substitute exists. Snacks like Puttu and Vellayappam remain popular, and chutney is essential for Idli. Currently, we are managing by reducing the amount of roasted ground coconut in sambar, adding more lentils, and avoiding curries that require coconut.”