Effective intervention to reduce price of coconut oil

Coconut oil is one of the important ingredients in the taste of Malayali cooking. Kerala is probably the state that uses the most coconut oil for cooking. In other states, especially the North Indian states, other vegetable oils are used instead of coconut oil. Therefore, the state of Kerala is the most affected by the increase in the price of coconut oil and coconut. Usually, the demand for coconut oil increases during the Onam season, so the price also increases during that time. However, this time, the phenomenon of a sudden increase in the price of coconut oil occurred months before Onam, and the price of coconut oil reached up to Rs. 500 per litre, which led to widespread protests and disrupted the family budget of the common man.

It was against this backdrop that the government began to intervene to control the price of coconut oil. The most important intervention was the government's decision to provide coconut oil, which was being sold at over Rs 450 per litre in the open market, to 94 lakh ration card holders in Kerala state at Rs 349 per litre for two months through Supplyo outlets. This caused panic among hoarders and forced them to stop hoarding and withdraw. Tamil Nadu reduced the price, anticipating that copra would be stagnant if the Kerala government provided coconut oil at subsidised rates. The price of copra, which was being sold at Rs 270-275 per kilogram, came down to Rs 210 after the hoarding was stopped. This is proof that the government's intervention in reducing the price of coconut oil was effective.

Food Minister GR Anil's announcement that the price of coconut oil sold by Supplyo at subsidised rates will also decrease in proportion to the decline in the price in the open market gives more hope. The price of coconut oil in the open market has now dropped to Rs 395-425. This price is likely to drop to Rs 350 per litre by the time Onam arrives. Since the government's announcement that coconut oil will be sold at Rs 349 for Onam is still in effect, black marketers are unlikely to raise their heads for the time being. Along with the efficient intervention of the Civil Supplies Department, large companies like Parachute Coconut Oil producers Marico have started collecting copra directly from farmers, bypassing wholesalers in Tamil Nadu and Karnataka, which has also led to a decline in prices. More coconuts have started reaching Kerala from Karnataka, which has seen a good harvest, forcing wholesalers to sell the hoarded copra at a lower price.

Supplyco will supply 40 lakh litres of coconut oil to all outlets for the Onam market. Kera will also supply 2 lakh liters of coconut oil, priced at Rs 457. Subsidy is the biggest weapon the government has to control prices in the open market. This weapon must be used effectively as part of helping the common man. Similarly, the Finance Department should provide the necessary assistance to the Food Department to provide subsidies without any delay. It is hoped that the department in charge will take steps to control the prices of plantains and vegetables during the Onam season, as was the case with coconut oil.