Lang
The Solvent Extractors’ Association of India (SEA) urged the government on Friday to allow imports of coconut oil and dried coconut, or copra, for a short period to address domestic price volatility after coconut oil prices tripled over the past year.
In a memorandum to relevant ministries, the association requested urgent action to address the crisis by allowing temporary imports of copra and coconut oil for six to 12 months.
Wholesale coconut oil prices have risen to more than 400 rupees per kilogram, compared with around 130 rupees a year earlier, prompting consumers to switch to alternatives such as palm oil and sunflower oil.
SEA said India’s coconut production has suffered for two years due to pest attacks, resulting in a 40% decline in output.
The association warned that demand for coconut oil could shift permanently, which may affect prices of other vegetable oils and increase reliance on imports.
The memorandum was sent to Agriculture Minister Shivraj Singh Chouhan, Commerce Minister Piyush Goyal, and Food and Consumer Affairs Minister Pralhad Joshi.
SEA said the measure would not harm farmers, but would help stabilize prices and support them over the long term. Imported oil, after customs duties, would remain priced similarly to local products, while additional availability would ease supply pressure.
The association noted that Kerala, one of the largest markets for coconut oil consumption, has started moving away from coconut oil because of high prices.
It also warned that adulteration has become common because of elevated prices, leading to a loss of confidence in coconut oil.
SEA concluded by warning that once consumers move away from a particular oil, it is difficult to recover demand, as previously seen with other domestic oils such as groundnut oil.