Coconut oil prices remain flat despite copra supply shortage

In Kerala, coconut oil prices declined by ₹3 to ₹250 per litre, while copra prices rose by ₹2 to ₹158 per kg.

Despite a short-term supply shortage in the copra market during November, coconut oil prices have remained largely flat, supported by adequate stocks in the market.

However, traders expect supply conditions to tighten further during the transition to the next harvest season, exerting upward pressure on prices in early 2027.

The Cochin Oil Merchants’ Association (COMA) said coconut oil and copra markets in Keralam witnessed mixed price movements. In Kerala, coconut oil prices declined by ₹3 to ₹250 per litre, while copra prices rose by ₹2 to ₹158 per kg. In Kangeyam, coconut oil prices increased by ₹3 to ₹208.50 per kg, while copra prices also gained ₹3 to ₹151 per kg.

Prakash Rao, president of COMA, said the overall market had witnessed stronger copra prices, while coconut oil milling prices showed divergent trends. He pointed out that coconut oil is facing a demand crisis due to soaring prices, prompting consumers -- especially from the HORECA segment who purchase n large quantities -- to shift to cheaper imported alternatives.

More corrections likely

Traders and stockists in Tamil Nadu have accumulated large quantities of copra, anticipating a price rise during the off-season. However, the expected surge has failed to materialise despite the onset of the off-season. Production and market activity in coconut oil also remained below expectations, even during major festive periods such as Diwali, he said.

Given the current availability of copra, pressure from existing stocks and production forecasts for the upcoming season, further price corrections are likely, Rao said.

With the new production season expected to begin after January 15, copra availability is likely to improve, potentially exerting further downward pressure on prices, he added.

K K Devraj, consultant in the coconut oil industry, said that the demand for coconuts and coconut oil during the ensuing Sabarimala season starting from next week and extending for the next couple of months is expected to push up prices further. Local millers will be slightly aggressive in purchase of copra to cater to the coconut oil demand during pilgrimage season.

Even though, the harvest season in Keralam starts from early next year, the cumulative rainfall deficits in southern states are weighing on local water reserves, which typically slows down fresh nut arrivals and keeps Tamil Nadu and Keralam copra prices supported, he said.

Published on November 12, 2026