Daijiworld Media Network- Bengaluru
Bengaluru, June 22: A severe shortage of coconuts and coconut oil has sent shockwaves across Karnataka, with coconut oil prices skyrocketing to as high as Rs 500 per litre in some regions. The hike comes in the wake of intense summer drought conditions and unprecedented demand for tender coconuts.
According to traders, coconut oil that was sold for around Rs 200 per litre last year is now being priced between Rs 390 and Rs 420, with premium quality oil crossing Rs 500 per litre in certain markets.
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Why the sudden spike in Coconut oil prices?
Experts attribute the price surge to a combination of reduced coconut harvest, diversion of coconuts for water sales, and delayed arrival of the new crop.
“This summer, coconut water became a hot commodity. Prices of tender coconuts shot up toRs 80 each in cities. Farmers were earning a direct margin of Rs 35–Rs 40 per nut. Naturally, many farmers preferred to sell coconuts for water rather than wait for them to dry for oil,” a market source explained.
Farmers from Maddur, Malavalli, and Mandya have been actively supplying coconut water to metros like Mumbai and Delhi, and even exporting abroad. The high market demand led to a shift in focus from oil extraction to tender coconut sales.
Shortage in traditional Coconut belts
Even coconut-rich areas like Tumakuru and Tiptur, once hailed as the “Land of Kalpataru,” have reported below-average yields this year. In addition, several districts in the Malnad and coastal regions have seen a decline in harvesting activities, partly due to poor returns and plant diseases affecting coconut trees.
As a result, dry coconuts (copra) — the key raw material for oil extraction—have become scarce, compounding the crisis.
No relief till October
The next major coconut harvest is expected only by October-November, and until then, the situation is unlikely to improve. Even with imports from other states, the supply is not sufficient to cool down prices.
Meanwhile, other edible oils are also inching upwards, with butter prices crossing Rs 250 per kg.
Consumers are now bearing the brunt of this sharp increase, with household budgets being stretched and retailers predicting that price stability will only return post-monsoon.