Coconut oil prices soar in Asia, shifting to premium segment

cost-conscious households are increasingly opting for more affordable refined sunflower oil for daily use, reserving coconut oil for traditional dishes where its flavor is essential. Prices in India have soared to a record 423,000 rupees ($4,840) per tonne, while global CNUT-PHID-P1 quotes reached an all-time high of $2,990 per tonne. The price surge began in the second half of 2024, driven by production challenges in Southeast Asian countries caused by droughts, pests, and diseases. The International Coconut Community (ICC) forecasts that prices will remain between $2,500 and $2,700 per tonne in the second half of 2025 due to high demand and limited supply. This is significantly higher than 2023 levels, when prices hovered around $1,000. Although supply typically increases in the second half of the year with the new harvest, a Singapore-based trader notes that prices are unlikely to drop below $2,000 anytime soon. Global coconut oil production is declining due to aging palm ...