Coconut oil prices set for dramatic drop in Kerala; Prices likely to reach Rs 350 during Onam

THIRUVANANTHAPURAM: The black market lobby's strategy of hoarding copra to orchestrate a price hike for coconut oil during Onam failed massively. Companies procuring copra from farmers, bypassing wholesalers, and the government's decision to provide coconut oil at a subsidised rate during Onam, paved the way for the price drop. With this, the price of coconut oil, which had crossed Rs 500 in the wholesale market, fell to Rs 395-425 on Sunday. It is likely to fall to Rs 350 per litre during the Onam season. The government announced that coconut oil will be provided at Rs 349 per litre during Onam.

The price of copra, which was sold at Rs 270-280 per kilogram, fell to Rs 215-220 on Saturday. Most of the copra comes to Kerala from Tamil Nadu. Given the Onam season, wholesalers had collected a large amount of copra from farmers in Tamil Nadu. Realising the profit, big companies came forward to buy coconuts and copra directly from farmers. Coconuts also started arriving in Kerala in greater quantities from Karnataka, as the state had a good harvest. With this, wholesalers were forced to sell the copra they had been hoarding.

Supplyco will deliver 40 lakh litres of coconut oil to all outlets in the first phase for the Onam market. Coconut oil will reach all outlets on Monday and Tuesday. Subsidised coconut oil will be sold at Rs. 349 per litre. Two lakh litres of coconut oil will also be delivered to Supplyco. The price is Rs. 457.

Expected turnover in August- Rs 250 crore

Daily turnover in August- Rs 9 crore

Daily turnover in July- Rs 6 crore

Turnover during the shortage of goods- Rs 1 crore

Ration card holders who visited outlets in July- 39 lakh