Kottayam: After nearly 2 years of fuelling concern in kitchens, coconut oil prices have seen a steep decline. Recently, it was sold at ₹250 per kilogram, following a surge to around ₹500 in 2025. 

Prices of copra and coconuts have also fallen. Tender coconut prices dropped from ₹80 to ₹42 per kilogram, while dried coconut is priced at just ₹52. Overall, coconut prices have decreased by ₹36–₹40 over the past eight months. Copra prices have dipped below ₹150.

In Kangayam, Tamil Nadu—home to a large number of coconut oil mills—mill owners offloaded stocks in large quantities after noticing the price drop, triggering a sharp fall over the past two days. The summer season also prompted farmers to sell off coconuts quickly, fearing excess drying, further correcting the market.

The West Asian conflict has slowed cargo movement, making traders cautious about stocking goods. Those producing value-added products from coconut oil are also proceeding carefully rather than rushing into purchases.

Traders had hoped prices would stabilise around ₹250. However, wholesale dealers say sales had dropped by up to 60% when prices were high. Meanwhile, palm oil imports have strengthened, with agencies in Malaysia and Indonesia offering attractive deals. India imports an average of 5–7 lakh tonnes of palm oil every month.