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The Solvent Extractors Association (SEA) has called on the government to permit short-term imports of coconut oil and copra to address the sharp rise in domestic prices. Over the past year, coconut oil prices have surged dramatically, reaching unprecedented levels and causing significant market volatility. The industry body has urged authorities to allow imports for a limited period of six to twelve months to stabilize the situation and prevent consumers from shifting to alternative oils.

In a representation to key ministries, SEA emphasized the urgency of the matter, warning that prolonged high prices could lead to a permanent decline in demand for coconut oil. The steep price increase has already forced many consumers to switch to cheaper alternatives such as palm and sunflower oil. The association attributed the supply crunch to declining coconut production over the past two years, primarily due to pest infestations that have reduced yields by nearly 40%.

SEA has raised concerns with senior government officials, including the agriculture, commerce, and food ministers, highlighting the broader economic implications of the crisis. The association argued that allowing imports would not harm farmers, as duties would keep landed prices aligned with domestic rates. Instead, it would help stabilize the market and ensure long-term sustainability. The current supply shortage has particularly affected Kerala, a major consumer market, where rising costs are pushing buyers away from coconut oil.

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Additionally, SEA warned that the high prices have led to increased adulteration, further eroding consumer confidence. The association pointed to historical trends, noting that once consumers abandon a particular oil, demand rarely recovers fully. This was seen in the past with other traditional oils like groundnut oil, where price surges led to lasting shifts in consumption patterns. Without immediate intervention, the coconut oil market risks a similar long-term decline, which could have ripple effects across the edible oils sector and increase reliance on imports.