As Onam approaches, two key agricultural products in Kerala—Nendran banana and coconut oil—known for complementing each other in the making of banana chips, are now presenting a mixed scenario. This festive season, falling banana prices and rising coconut oil costs are casting a shadow over chips sales.
L.A. Joshy, a Nendran banana dealer in the Ernakulam market, told businessline that wholesale prices have dropped to ₹35 per kg from ₹60 a month ago. He attributed the fall to increased production in Tamil Nadu, where cultivation area was expanded and bulk production intensified to meet Kerala’s growing demand.
Typically, a dip in banana prices would encourage chips manufacturers to stock up ahead of Onam, catering to the seasonal boom in demand. However, soaring coconut oil prices are weighing heavily on the chips industry, neutralising the benefits of cheaper bananas. As a result, sales of both bananas and coconut oil have taken a hit, he said.
Fried banana too hit
Not just makers of chips, even tea vendors who sell Pazham pori or fried banana-based evening snacks are cutting down purchases due to the spike in oil costs. With regular customers unwilling to pay higher prices, vendors are caught between raising prices or bearing losses. Some have already hiked snack prices to offset the increased cost of coconut oil, affecting sales, he said.
ICAR Emeritus Professor P. Indiradevi said parts of Tamil Nadu and Karnataka have been ramping up Nendran banana cultivation to cater to the Onam market. Tamil Nadu ranks fourth in banana production with 1.02 lakh hectares under cultivation and 39.39 lakh tonnes produced in 2021–22. Nendran is primarily grown in Coimbatore, Erode, Trichy, and Kanyakumari. Compared to Tamil Nadu’s traditional varieties like Yelakki, Poovan, and Rasthali, Nendran offers higher net return, though production costs are around ₹15 per kg—nearly double that of Kerala.
A glimmer of hope has emerged as copra and coconut oil prices have started to decline, falling by ₹10 and ₹6 per kg, respectively, in the past week. Thalath Mahmood, President of the Cochin Oil Merchants Association, said the drop is due to increased arrivals from the new copra harvest and expects coconut oil to fall below ₹350 during Onam. Currently, coconut oil and copra are priced at ₹382 and ₹241 per kg, rsspectively, in the Kochi market, he said.
Published on August 4, 2025
