Kottayam: Fearing further surge in coconut oil prices in Kerala during the Onam season, Supplyco is considering the distribution of palm oil as an alternative. Agencies have already alerted the corporation about the challenges in effectively distributing coconut oil, citing limited stock and soaring costs.

Currently, Supplyco has only 1.5 lakh litres of coconut oil in stock -- far from sufficient to meet the demand over the next three months. On average, the corporation sells 15 lakh litres of coconut oil per month. To procure enough supply, at least ₹60 crore would be required. Agencies also say that providing oil for public distribution with any significant margin reduction is proving increasingly difficult.

The shortage of copra (the dried coconut kernel used to extract coconut oil) is adding to the crisis. Poor production in Southeast Asia has severely impacted copra availability, delaying oil production. Wholesalers predict that the retail price of coconut oil could touch ₹600 per litre by Onam if the trend continues.

Supplyco is also facing a potential challenge in opting for palm oil due to its volatile pricing. If the price of palm oil drops significantly after being fixed at ₹120-₹130 per litre through tender, the corporation could suffer major financial losses.

Food Minister G.R. Anil confirmed that Supplyco's request to procure palm oil is under consideration. He added that the government is also exploring ways to make coconut oil available at a more affordable price. If no other viable alternatives emerge, a decision will be made on introducing palm oil.

1980s: Palm oil and public queues

Palm oil was previously introduced in Kerala in the early 1980s when coconut oil prices soared. It was distributed through ration shops and Maveli Stores, leading to long queues. “There were massive crowds at the shops then, and a litre was sold for just ₹10,” recalls Johnson Vilavinal, a leader of the ration dealers association.

A subsequent palm oil import by the 1991 state cabinet also stirred political controversy at the time.