Government of Kerala encourages merchants to join bids for offering coconut oil to Supplyco
In an effort to alleviate the rising costs of living, the Kerala Government is taking steps to reduce the price of coconut oil during the upcoming Onam festival season. The initiative involves issuing a tender through Supplyco, the Kerala State Civil Supplies Corporation, allowing traders to participate at lower rates.
This move aims to lower the supply price of coconut oil through Supplyco outlets, which could lead to a consequent drop in overall market prices. The government has promised timely payments (within 15 days) to winning bidders to support trader participation and has emphasized preventing excessive profit margins.
The government's approach is a combination of competitive tendering, regulatory oversight, and support schemes. The strategy is designed to reduce coconut oil prices during Onam while safeguarding farmer incomes and incentivizing retailers to comply.
During a meeting with over 60 coconut oil merchants, P. Rajeev, the State Minister for Industries, and G.R. Anil, the Food and Civil Supplies Minister, gave this assurance. The merchants were encouraged to participate in the ongoing bidding for the supply of branded coconut oil to Supplyco for retail through its outlets.
According to the traders, the current retail price of coconut oil is steady, and it is sold at Rs529, while in the wholesale market, it is available at Rs425. However, the price of coconut oil sold through Supplyco is expected to decrease, which could have a positive impact on the prices in the retail market.
Rajeev, the State Minister for Industries, has ruled out the possibility of importing coconut oil from other markets. Instead, the government is focusing on measures to boost domestic production, including awarding Kerala brand 'Nanma' certifications to 13 companies.
This move is not just about consumer relief. The government seeks a balance ensuring that efforts to reduce consumer prices do not undercut farmer profits. Strategies are being explored to control prices while ensuring farmers receive their due profits, particularly given the current challenges in coconut cultivation.
The traders, for their part, have expressed willingness to cooperate in price control efforts. The overall approach is collaborative, aiming to stabilize market prices without hurting stakeholders.
In addition, Kerafed plans to distribute subsidized coconut oil to Below Poverty Line (BPL) cardholders during Onam, providing further consumer relief without disturbing market mechanisms.
This article was published on July 29, 2025. The winners of the bidding will receive payment from the government within 15 days, as per the government's commitment to prompt payments. The traders' participation in this initiative is expected to contribute to a more affordable Onam for many Kerala households.
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- The government's initiative to lower coconut oil prices during Onam involves trader participation through a tender by Supplyco.
- The case for lower prices in trading markets might be linked to the government's promise of timely payments to bidders in the coconut oil supply tender.
- In the ongoing bidding for supplying branded coconut oil to Supplyco, the business community is encouraged to participate.
- If the government's measures are successful, the prices of coconut oil in retail markets could experience a consequent drop, easing the financial burden on consumers.
- Recognizing the importance of maintaining farmer incomes, the government is weighing strategies to control coconut oil prices while ensuring a fair return for farmers.
