To cater to the increased demand during the Onam season, the Kerala State Civil Supplies Corporation (Supplyco) has reduced the price of its Sabari brand subsidised coconut oil to ₹229 per litre from ₹249 across its outlets.
Official sources said the price reduction followed a ministerial decision and applies to a combination pack comprising subsidised and non-subsidised portions. The price of the 500-ml subsidised portion has been reduced from ₹140 to ₹110. Consumers will have to produce a valid ration card to purchase the subsidised stock.
However, the Cochin Oil Merchants Association (COMA) said the price reduction is unlikely to cause much concern among traders, as Supplyco traditionally reduces prices during the festival season. The move could, however, have an impact on domestic coconut oil consumption, given that retail prices are currently ruling around ₹300 a litre.
Increasing supplies
The coconut oil market is currently steady, with wholesale prices ruling at around ₹280 a litre. Prices are expected to remain stable even after Onam, supported by increased availability of copra, Thalath Mahmood, president, COMA said.
K.K. Devraj, a consultant to the coconut oil industry, said Supplyco’s intervention would help arrest the upward trend in prices. Although Kerala witnessed a good coconut harvest this season, traders from other States had allegedly resorted to hoarding, creating an artificial price rise during Onam and pushing retail prices above ₹300 a litre.
“Supplyco’s decision to sell coconut oil at ₹229 a litre is a welcome move and will bring relief to households,” he said.
However, the intervention could put Kerala’s coconut oil millers under pressure as they are holding copra purchased at higher prices, which would make their products costlier in the retail market. The Government should also step up measures to curb the sale of spurious coconut oil, Devraj said, warning that vested interests could attempt to undercut Supplyco’s prices by selling adulterated products.
Published on August 18, 2026