Coconut oil prices likely to increase; Tamil Nadu lobby creating artificial scarcity

Kochi: The Tamil Nadu lobby is back in the spotlight over alleged efforts to push up coconut oil prices. Oil traders in Kerala claim that traders in Tamil Nadu are hoarding large quantities of copra (dried coconut kernel) to create an artificial shortage. They have demanded that Kerala Kera Karshaka Sahakarana Federation (KERAFED) stop buying copra at inflated rates.

Coconut oil prices have been rising sharply for the past year. During the last Onam, state government intervention helped stabilise prices for a brief period. Prices had recently started to come down. However, traders say deliberate attempts are now being made to push prices up again.

As prices increased, demand fell significantly

According to Muhammed, president of the Cochin Oil Merchants Association, coconut oil consumption has dropped by nearly 50 per cent in the past year. Many consumers are shifting to cheaper alternatives such as palm oil and sunflower oil, which cost almost half the price of coconut oil. This trend is hurting the coconut oil market and may affect coconut farmers in the long run.

Kerala depends largely on Tamil Nadu for copra supply. Traders allege Tamil Nadu-based companies are taking advantage of this dependence and creating artificial scarcity. This forces KERAFED to buy copra at higher prices. As a result, local oil mills are also compelled to pay the same rates. Many small mills in Kerala are now struggling and face the risk of shutting down.

With concerns over hoarding growing, the Cochin Oil Merchants Association has urged KERAFED to act with greater vigilance. They have also called on the Kerala government to intervene urgently to control coconut oil prices and protect consumers, farmers, and small oil mills.