4 days ago
Surging coconut oil prices leave Kerala Ayurvedic drug manufacturers in a fix
The surging coconut oil prices have left Ayurvedic medicine manufacturers in Kerala in a fix. Despite increasing the prices of products involving coconut oil by up to 20%, the manufacturing cost is going through the roof, they say.
The Ayurveda industry in the State is worth around ₹4,000 crore, and around 800 manufacturers, both big and small, are involved in the business. According to D. Ramanathan, general secretary, Ayurvedic Medicine Manufacturers of India (AMMOI), around 12,000 tonnes of coconut oil are required a year for making various products. Apart from this, coconuts and coconut oil are required for the bathing soap industry and for producing virgin coconut oil. 'The price of one litre of coconut oil was ₹166 in 2020, ₹185 in 2021, ₹150 in 2022, ₹138 in 2023, and ₹160 in 2024. However, it has now risen to ₹450 this year,' he says.
For making products such as 'Murivenna', a healing oil for joint pain and muscle strain, and 'Dhurdurapathradi Velichenna', which is used for treating dandruff, pure coconut oil is used. 'The market price of 450 ml of Murivenna is ₹430. The price of the coconut oil being used in this itself costs around ₹225. Along with it come the prices of herbs and the cost of manufacturing, packing materials, fuel, marketing, and commission for dealers. So, the manufacturers will not be able to survive if the price is at least around ₹450,' points out Dr. Ramanathan.
P. Ramkumar of Kottakkal Arya Vaidya Sala, Malappuram, who is also the president of AMMOI, says that there seems to be a shortage of coconut oil across south India. 'The prices of coconut oil have gone up in the past as well. We could manage the situation then by importing it from elsewhere. Now, the scarcity is spread across all southern States. Even though the manufacturers have increased their product prices by 10%-20% to address the situation, it is not helping much. But, we can't raise them any more as it will burden the customer,' he says.
As prescribed by ancient Ayurveda texts, sesame seed oil was earlier used for the preparation of 'Thailam' or oil-based products, say doctors. A few decades ago, it was replaced by coconut oil to suit Kerala's social situation and also to help coconut growers who were then hit by a campaign against its alleged unhealthy aspects.
Dr. Ramkumar, meanwhile, expresses hope that the situation could improve in the next six to seven months as favourable weather conditions may lead to increased production of the crop in the next season. AMMOI has urged the State government to initiate steps to get coconut oil at subsidised rate for the industry.
