Archive · 25 Jul 2025
Coconut Oil Prices Surge Due to Supply Constraints and Global Factors
Coconut oil prices are way up!
It's now much pricier than other cooking oils.
This happened because there's less coconut oil being made, especially in places like the Philippines and Indonesia, due to a drought.
These countries make most of the world's coconut oil.
Plus, the Philippines is using more coconut oil to make biofuel, which means less is available to buy.
Even though coconut oil is super expensive, most people in India don't buy it as much as other oils like palm or soybean oil, so the price change won't affect everyone too much.
Coconut oil prices have surged, now significantly more expensive than other cooking oils.
Wholesale prices in Kerala's Kochi market have nearly doubled since the start of the year.
Global supply tightness, driven by drought in the Philippines and Indonesia, is a key factor.
Government regulations in the Philippines, including biofuel blending, are also impacting supply.
Coconut oil has a smaller market share in India compared to imported oils like palm and soybean.
- Who
- Consumers of cooking oil are affected, as well as coconut oil producers and traders.
- What
- Coconut oil prices have increased significantly, nearly doubling in price.
- When
- Prices have surged since the beginning of the year and are being felt now.
- Where
- Primarily affecting the Indian market, with data from Kerala and the Philippines.
- Why
- Due to a combination of factors including drought-reduced production in key exporting countries and government regulations impacting supply.
Industry Perspective
Consumer Impact
Production and Supply
Industry Perspective
Manufacturers emphasize production challenges and market forces driving prices.
Consumer Impact
N/A
Root Causes of the Price Increase
Industry Perspective
Focus is on the effects of climate change and governmental policies within the producing nations.
Consumer Impact
N/A
- Wholesale price increase (Kochi)
- Rs 22,500 to Rs 39,000 per quintal (approx. Jan to Current)
- Retail price (approx.)
- Rs 460 per kg
- Price comparison (sesame oil)
- Rs 425 per kg
- El Niño impact period
- July 2023 to June 2024
- India's coconut oil production
- 5.7 lakh tonnes
- Domestic coconut oil for food
- 3.9 lt
- Philippine biofuel blending mandate
- 3% (Oct 2024)