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, according to The Hindu BusinessLine, to cater to increased demand during the Onam season. Official sources said the price reduction followed a ministerial decision and applies to a combination pack comprising subsidised and non-subsidised portions.
Price Cut Details
The revised pricing affects the subsidised component of the pack: the 500-ml subsidised portion has been reduced from ₹140 to ₹110, while the overall per-litre rate moves from ₹249 to ₹229. Consumers must produce a valid ration card to purchase the subsidised stock, official sources said.
- Sabari brand coconut oil: ₹249/litre → ₹229/litre
- 500-ml subsidised portion: ₹140 → ₹110
| Item | Previous price | New price | Price change |
|---|---|---|---|
| Sabari brand coconut oil (per litre, combination pack) | ₹249 | ₹229 | -₹20 |
| 500-ml subsidised portion | ₹140 | ₹110 | -₹30 |
Market Context and Industry Reaction
The price cut brings Supplyco's rate well below prevailing market levels. Retail prices are currently ruling around ₹300 a litre, while wholesale prices are around ₹280 a litre, according to the Cochin Oil Merchants Association (COMA). COMA said the 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 prevailing retail prices, the association added.
Thalath Mahmood, president of COMA, said the coconut oil market is currently steady, with wholesale prices around ₹280 a litre. Prices are expected to remain stable even after Onam, supported by increased availability of copra.
Supply-Side Drivers: Harvest, Hoarding Allegations
K.K. Devraj, a consultant to the coconut oil industry, said Supplyco's intervention would help arrest the upward trend in prices. Kerala witnessed a good coconut harvest this season, he said, but 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. — K.K. Devraj, consultant to the coconut oil industry
Pressure on Millers and Call for Action
Devraj said 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. He also said the Government should step up measures to curb the sale of spurious coconut oil, warning that vested interests could attempt to undercut Supplyco's prices by selling adulterated products.
Outlook for Traders and Procurement Teams
According to COMA, wholesale coconut oil prices are expected to remain stable even after Onam, supported by increased availability of copra. For commodity traders and procurement teams, the Supplyco price cut signals fresh state intervention in Kerala's coconut oil market at a time when wholesale rates hold at ₹280 per litre and retail prices have crossed ₹300 per litre. The combination pack mechanism, which blends subsidised and non-subsidised portions, effectively splits the market between ration-card holders and other buyers.
Sources:
