Rising coconut oil price affects Ayurvedic medicine production

The soaring coconut oil prices have caused a crisis in the ayurvedic medicine industry. Although the producers have raised the price by 15 – 20 per cent, it is not enough to cover the production cost. The Ayurvedic medicine industry registers an annual return of over Rs 4000 crore. Meanwhile, there are around 800 ayurvedic medicine producers of all sizes in Kerala. Coconut oil is an unavoidable ingredient in 30 per cent of medicinal concoctions in Ayurveda. Meanwhile, around 1200 tonnes of coconut oil are required for ayurvedic medicine production alone. Oil blends like murivenna use pure coconut oil as their base.

Last year, coconut oil was sold for Rs 160 per litre around this time. However, this year, it has skyrocketed to Rs 450 per litre. Coconut oil worth Rs 225 is required for making just 450 ml of murivenna. Many companies have reduced their production due to soaring coconut oil price. Earlier, sesame oil was widely used as a base in many oil blends and tailams. However, coconut oil has now gained popularity as a great base oil, helping the coconut farmers significantly.

“Pure coconut oil is required for medicine production. Compromising on the quality of coconut oil will affect the efficacy of the medicines. So, the government should intervene to ensure that the ayurvedic sector gets coconut oil at special rates,” says Dr D Ramanathan, Secretary, Ayurvedic Medicine Manufacturers Organisation of India.