Kerala govt to offer coconut oil at subsidised rate during Onam as prices set to cross ₹500 per litre

The Kerala government will make coconut oil available at subsidised rates during the upcoming Onam season, as prices have recently surged past ₹450 per litre and are expected to rise further. The decision was taken at a high-level meeting chaired by Food and Civil Supplies Minister G. R. Anil at the Supplyco headquarters, according to a press release issued by the Information & Public Relations Department (I&PRD) on Tuesday.

The minister stated that Supplyco outlets would ensure availability of food items, including subsidised products, during the festival. “Effective interventions are being made to ensure availability and affordability of essentials,” he said.

The move aims to ease the burden on households during Onam, when coconut oil demand spikes, and to prevent market exploitation amid rising costs.

Steep rise in prices linked to production drop

The price of coconut oil, which stood at ₹235 per litre in January 2025, has now crossed ₹450 per litre and may reach ₹500–₹600 during the festival. The surge is attributed to declining coconut cultivation, adverse climate conditions, and farmers' reluctance to maintain trees.

Following the COVID-19 pandemic, a market glut had initially kept prices down. However, a post-pandemic global production drop — including in India and other equatorial regions — has contributed to the current spike.

Adulteration concerns and call for central action

The rapid increase in prices has led to concerns about adulterated coconut oil entering the market, as unscrupulous vendors take advantage of high demand and limited supply.

Despite the availability of cheaper alternatives like palm and sunflower oil, coconut oil remains the preferred cooking medium for most households in Kerala.

To stabilise the market and protect the domestic industry, the Cochin Oil Merchant’s Association has called on the central government to temporarily ban exports of coconut and allied products. The association also urged lifting import restrictions on coconut and copra from countries such as Indonesia and the Philippines.

Other essentials

The state has already held direct discussions with the Food Corporation of India regarding rice procurement. Additionally, Kerala will consult ministers from Andhra Pradesh, Karnataka, and Tamil Nadu to facilitate sourcing of essential commodities.

To ensure availability in interior regions, the government will deploy rice-laden lorries for direct distribution of food items, the minister said.