Demand drives coconut shell prices to record high in Kerala

August 18, 2025

Kottayam: Coconut shells, once discarded as waste across Kerala, have now emerged as a valuable commodity, with prices reaching record highs due to growing industrial demand from other Indian states and international markets.

In recent months, the price of coconut shells has skyrocketed, touching up to Rs 35 per kg in parts of Kerala. At the beginning of the year, the shells were sold for just Rs 5 per kg, marking a significant jump that has surprised even seasoned traders.

The sharp price rise comes alongside an increase in the cost of coconuts themselves, which now sell for Rs 80-90 per kg, up from Rs 30-40 last year. Traders say the shells, once viewed as mere waste, are now fetching almost as much as the fruit.

Export and Industrial Demand Behind the Surge

Local traders confirm that high demand from buyers in Tamil Nadu, Karnataka, and international markets like China and Taiwan is driving the price increase. Coconut shells are widely used to produce activated carbon, a material critical in water purification, cosmetics, and various industrial applications.

Subair, a trader based in Kollam, said he has been selling coconut shells to Tamil Nadu traders who later export them overseas. “Prices have touched Rs 33 per kg here,” he said.

Murugan, another trader from Erattupetta in Kottayam district, also reported a spike in local demand. He sources coconut shells from nearby areas and sells them to industrial buyers in neighboring states. “It has now become a high-value product,” he said.

Kerala Households Join the Trend

As prices climb, many households in Kerala have begun saving and selling coconut shells to local traders, turning a once-ignored by-product into a source of side income. The trend has also sparked the rise of small-scale entrepreneurs and online-based shell collection businesses.

Price Rise of Essentials Triggers Public Concern

However, the rising cost of coconuts and coconut oil—both essentials in Kerala homes—has started to impact household budgets. Coconut oil now sells for Rs 400-500 per kg, a steep rise that has drawn public frustration.

With the Onam festival approaching, the price surge has become a political issue. In response, the state government has announced subsidised sales of coconut oil through public distribution channels to provide relief to consumers during the festive season.