Rs 47 per kg: Kerala’s coconut prices reach all-time high amid declining supply

Vadakara: Over the past two days, the price of coconuts has surged to Rs 47 per kg, marking the highest price ever. Larger coconuts fetch up to Rs 23.50 each, while smaller ones are being sold for no less than Rs 16.

At the retail level, the price has risen to Rs 60 per kg. Traders have reported a 25% drop in the number of coconuts reaching the market. It is noteworthy that the state used to witness a seasonal dip in production during November and December.

Although coconut production is down, demand has not waned. Kerala, Tamil Nadu, and Karnataka – the country's major coconut-producing states – are all experiencing reduced output. The onset of the Sabarimala season has further driven up demand. Devotees typically use up to nine coconuts (the number can vary in different regions), including the neyy thenga (ghee-filled coconut), during their pilgrimage.

This supply shortage is expected to persist until January. During this period, copra from Sabarimala will begin to reach the market, which generally leads to a drop in prices.

In previous years, the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) sold large quantities of copra stock from the previous two years, which helped stabilise prices. However, NAFED has already sold most of its stock, leaving no reserves for the time being since July. As a result, traders anticipate that prices will remain elevated until the harvest season begins.

The price hikes in coconuts have had a knock-on effect on coconut-based products. Coconut oil prices have also risen, with a litre now costing between Rs 210 and Rs 240. Grated coconut, which was priced at Rs 130-140 per kilo just two months ago, now costs between Rs 160 and Rs 170 per kilo. Toasted coconut is now priced at Rs 450.

Local vendors in Vadakara are also struggling with the coconut shortage. Previously, up to four tonnes of coconuts would be sold daily in the region. However, now only a fraction of that amount is available.