Coconut prices triple within a year in Kerala, disrupting temple rituals

Business Standard

09-07-2025

Temple rituals across Kerala are taking a hit as coconut prices skyrocket, forcing both devotees and temple managements to cut back. At Thiruvananthapuram's Pazhavangadi Ganapathy Temple, where thousands of coconuts are usually offered daily, officials say offerings have dropped by nearly 30 per cent, according to a report by The Hindu Businessline.
The price of coconuts has jumped to around ₹75 per kg from ₹28 per kg last year. Devotees who used to offer dozens or even hundreds of coconuts as part of their vows are backing out. While people still offer one coconut, but bigger rituals are being postponed.
Temples are also struggling. Coconut oil, used for lighting lamps, has become too expensive. Vendors are refusing to supply it at the earlier contract price of ₹340 per litre. Pazhavangadi Temple has temporarily agreed to pay ₹400 to keep lamps burning.
The issue is expected to worsen with the Karkidaka Pooja at Sabarimala starting July 17. Pilgrims typically carry multiple coconuts, some filled with ghee, for offerings at the shrine. But suppliers say they can't meet demand at current prices.
India one of the world's largest coconut producers
India is one of the world's largest producers of coconuts, contributing approximately 31.45 per cent of global production in 2021-22, with a total output of 19,247 million nuts, according to the India Trade Portal. The sector significantly supports the Indian economy, contributing around ₹30,749.8 crore to the GDP and employing over 12 million people.
Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh account for more than 90 per cent of the national production. India's export of coconut also grew at a compound annual growth rate (CAGR) of 13 per cent between 2015-16 and 2021-22, with Vietnam, UAE, and Bangladesh among the top importers.
Farm neglect, climate change impact coconut supply
However, this problem didn't start overnight. According to an earlier report by The Hindu, when the pandemic disrupted transport, farmers switched to making copra (dried coconut) for oil, hoping for better returns. Instead, prices crashed in 2022 and stayed low till mid-2024, leading to neglect in coconut farming. Many stopped using fertilisers or maintaining trees.
Climate change made things worse. Hotter weather, erratic rain, and poor farm care all played a part in the drop in production. 'Consequently, the production dropped not just in India but across all major coconut-producing countries in the equatorial region such as Indonesia, the Philippines, and Sri Lanka,' a senior official from the Coconut Development Board (CDB) told The Hindu.
Adding to the mess is the spike in demand for tender coconuts—driven by post-Covid health trends—meant farmers harvested early. Mature coconuts are now in short supply. At the same time, the growth of industries producing coconut milk, oil, and powder, especially for export under Free Trade Agreements, has increased demand further.