Coconut Price Drop In Kerala Leaves Farmers Wary After High Returns In 2025
Market analysts and traders are of the opinion that the downward trajectory is likely to continue for sometime.
Published : January 3, 2026 at 2:18 PM IST
Kozhikode: If 2025 went down as a golden year for Kerala's coconut farmers with record breaking returns, the dawn of 2026 has put farmers in a state of bother. The price of raw coconuts has tumbled from an all-time high of Rs 78 per kg to Rs 55 per kg, returning to the levels last seen in November 2024.
Market analysts and traders are of the opinion that the downward trajectory is likely to continue for sometime. "The market is witnessing a steady inflow of produce even in retail sectors. As the harvest season peaks, arrivals will increase further," observed Hashim, a Kutiyadi-based trader. He noted that a return to pre-boom price levels would not be surprising given the current supply dynamics.
Analysts say that several factors have contributed to the sudden cooling of prices. The unprecedented price surge in 2025 had prompted landowners to revive neglected coconut groves, the yield of which is now entering the market. Additionally, a robust harvest in neighbouring Tamil Nadu and Karnataka, coupled with imports from Indonesia, has ended the supply crunch that drove up prices last year.
It is worth mentioning here that the raw coconut prices hovered between Rs 23 per kg and Rs 26 per kg for over five years before climbing to Rs 39 per kg prior to the 2024 Onam season. A subsequent shortage by March 2025 saw prices skyrocketing and breaching all the previous records.
The correction in raw coconut prices has begun to reflect in the coconut oil market, offering much needed relief to the households. During the last Onam season, coconut oil prices had burnt a hole in pockets of consumers, crossing Rs 500 per litre mark. Currently, wholesale prices in Kozhikode have come down to Rs 334 per litre. While it may take days for this drop to fully reflect in the retail outlets, the trend is clear.
Copra prices have also seen a significant decline from a peak of Rs 27,000 per quintal during the festive season to Rs 20,000 with the traders predicting further depreciation.
The volatility has had a ripple effect on the state's coconut-based industries. There are over 2,000 units in the country producing coconut byproducts that employ more than 25,000 people. These units had faced a severe crisis during the raw material shortage. Mill owners had previously petitioned the Centre to allow imports from top producers like Indonesia, Philippines and Sri Lanka to keep operations afloat.
Interestingly, the price crash has also curbed a unique law-and-order issue in terms of coconut theft. During the peak price period, Police Stations across the state had registered numerous cases of theft and related altercations.
With the onset of New Year, farmers are anxious that coconut prices may fall further, returning to the time when poor returns left them struggling to survive.
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