Solvent Extractors Association (SEA) has urged the government to allow short-term imports of coconut oil and copra to tackle domestic price volatility, as coconut oil prices have tripled in the past year. The industry body requested that the government take urgent action by permitting imports for an interim period of 6-12 months to manage the current crisis and retain consumer interest in coconut oil.
Coconut oil prices have surged to over Rs 400 per kg at the wholesale level from around Rs 130 a year ago, prompting consumers to shift to alternative oils like palm and sunflower. India's coconut production has been under stress for two years due to pest attacks, resulting in a 40 per cent drop in yields.
It said the measure would not adversely impact farmers but would stabilise prices and support them long-term. The imported oil with duties would still cost the same as domestic prices, but increased availability would ease supply stress. Kerala, a prime consumer market, is showing signs of turning away from coconut oil due to soaring prices. It also warned that adulteration is becoming rampant due to higher prices, eroding trust in coconut oil.
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