Coconut oil: Market prices drop, Kerafed maintains higher rates

Thiruvananthapuram: With coconut oil prices continuing to tumble in the open market, state-run Kerafed has said it may further slash its prices if sufficient copra supplies become available.

Kerafed currently sells its coconut oil at ₹479 per litre, a reduction from the earlier ₹529, but still well above the prevailing market rate of around ₹400. According to Kerafed Chairman V Chamunni, the organisation has cut prices by foregoing profits to ease the burden on consumers during Onam.

Critics, however, allege that Kerafed is struggling to cut rates further because it had earlier procured massive quantities of copra at prices higher than the current market value.

With Onam festivities fuelling demand, additional stocks of the popular Kera brand have been supplied across the state. Yet, the price gap remains a setback for Kerafed. For the festival season, two lakh litres of Kera oil are being sold through Supplyco outlets at ₹457 per litre. In contrast, Supplyco’s own brand Sabari coconut oil is available at a heavily subsidised ₹349 per litre in the same outlets.

Meanwhile, copra prices in Tamil Nadu have dropped to ₹231–₹252 per kg, pushing millers to anticipate a further dip in coconut oil rates, possibly below ₹400 per litre. Small-scale manufacturers are already selling at ₹400–₹410.

The threat of counterfeit oil
Compounding the market situation is the influx of adulterated coconut oil from Tamil Nadu, sold at ₹270 per litre. Complaints are rising that this spurious oil is being rebranded in Kerala as traditional wooden-pressed oil and marketed at premium prices.

The earlier spike in coconut oil prices had driven up the cost of Onam treats. Banana chips now retail at ₹480 per kg, while sharkkaravaratti (jaggery-coated chips) costs ₹250 per kg. However, a recent drop in raw banana prices has brought some relief to vendors.