Coconut oil is widely used for cooking, skin care and other purposes, but now it has turned into a luxury item. The prices of coconut oil in India have risen over the past two years. The reasons include limited coconut oil supply, higher demand and low coconut production. Amid the rising prices of coconut oil, consumers find it difficult to afford coconut oil. Moreover, some have shifted to cheaper oils like sunflower oil for daily cooking.
Rising Prices of Coconut Oil: Here’s Why
Surprisingly, bad weather conditions such as lack of rainfall, excessive heat, and storms have severely affected coconut production in countries like India, Malaysia, and the Philippines. Additionally, pests and diseases have damaged the crops. New coconut trees have not been planted sufficiently, while older trees are yielding fewer coconuts. During COVID-19, prices were low, leading farmers to neglect their plantations, which has resulted in lower yields now. People also prefer more coconuts for water, often picking them earlier, leaving fewer mature coconuts available for oil production.
Global Impact of the Low Coconut Production
The prices of coconut oil have increased worldwide, not just in India. Furthermore, prices of other oils such as palm kernel oil, soy, and sunflower are also rising as consumers switch to them for their cooking needs. Some countries, including Indonesia, are exporting more raw coconuts instead of oil, which further reduces the coconut oil supply.
What could be the Possible Measures:
In India, manufacturers are requesting the government to permit more coconut oil imports. Additionally, Indonesia is considering halting coconut exports temporarily to retain more oil within the country. Planting of new coconut trees has commenced to boost production, but it takes 4–5 years for new trees to yield coconuts.