Weather Woes, Rising Demand Making Coconut Oil A Luxury Item

Photo: Kerala Tourism

India-West News Desk

COCHIN— In kitchens across India, coconut oil — once a humble staple — has become a luxury. Prices have nearly tripled in less than two years, hitting a record $4,840 per metric ton, as demand soars and supplies tighten across Asia’s coconut-growing belt.

For millions of Indians, especially in the south and coastal regions where the oil is central to cooking, hair care, and rituals, the surge has forced households to stretch budgets and search for alternatives. The squeeze is also hitting companies that use the oil in soaps, shampoos, and skincare products.

The seeds of today’s shortage were sown during the pandemic, when lockdowns led to falling prices and farmers neglected their groves.

The rally in coconut oil prices began in late 2024 and gathered momentum as plantations in India, the Philippines, Indonesia, and Sri Lanka struggled with erratic weather, heat waves, and pest attacks, Reuters reported.

As demand rebounded, influencers on social media spotlighted the health benefits of coconut water and oil, spurring a surge in consumption that the supply chain could not match, Reuters added.

Mature coconuts take nearly a year to ripen, but many farmers, lured by the booming demand for electrolyte-rich coconut water, are harvesting them early. That has further reduced the supply of nuts available for oil and copra.

Globally, output has stagnated. The U.S. Department of Agriculture estimates production at 3.67 million tons in 2024–25, virtually unchanged for three decades.

Now the demand has grown from farmers. “The demand for seedlings is so strong this year that most nurseries have run out of stock,” said an official with the state-run Coconut Development Board. “But new plantations will take at least four to five years to start producing, so high prices are likely to persist.”