Climate change, coconuts to China: Kerala oil prices double to ₹340/litre

The aroma of coconut oil is hard to miss in a Kerala kitchen. But lately, so is its price tag. Over the last two months, the cost of coconut oil has doubled, forcing tea stalls and home kitchens alike to rethink their cooking habits.

In places like Kuravilangad and Karukachal, small eateries are either switching to other oils or increasing menu prices. At home, coconut oil might soon become a guest star, not the main act.

Tea, but hold the chakka chips?
For many small tea shops, especially those making snacks exclusively in coconut oil, the price hike is hitting hard. “We’ve had to add ₹6 more to each snack,” says V G Anilkumar, who runs a tea stall in Velloor. “We use 10 litres a day—earlier that cost ₹1,400. Now, it’s ₹3,400.”

What’s causing the surge?
The root of the problem? A sharp dip in coconut production in Tamil Nadu and Karnataka. The shortage of copra (dried coconut) is driving prices up across South India. According to the Kangeyam Coconut Oil Manufacturers Association in Tamil Nadu, copra arrivals have dropped by 75%.

Add to that unpredictable weather, and farmers are reporting a 40% drop in coconut yields this season.

China's growing appetite for fresh coconuts
Here’s the twist: Tamil Nadu is exporting large volumes of fresh coconuts to China, which is putting extra strain on local supply. With fewer coconuts being dried and processed, copra mills are slowing down or shutting entirely.

Palm & sunflower oil to the rescue?
The ripple effects are already visible. Restaurants and catering kitchens are substituting coconut oil with palm oil and sunflower oil. Dishes that once sang with coconut flavour are losing their signature note.

No relief till September
Don’t expect a price drop anytime soon. Experts say coconut oil prices are unlikely to ease before September. In the last six months alone, fresh coconut prices have risen from ₹35/kg to ₹85/kg. Copra has jumped from ₹130–150/kg to ₹220–240/kg.

The oil math: Why production isn’t profitable
To make 6 kg of coconut oil, you need 10 kg of copra, worth about ₹2,200. By the time labour and processing costs are added, even selling the oil at ₹400/kg leaves little to no profit, say wholesale traders.

What this means for Kerala's food scene
This isn’t just an economic story - it’s a culinary one. Coconut oil isn’t just a cooking medium here, it’s culture. As prices soar and alternatives take over, we’re not just paying more. We’re tasting less of what makes Kerala’s food unique.