Coconut oil is likely to get a subsidy from the government, which will help the commodity to be available in the market at a lower price.
A proposal for the same has been submitted to the Union government by the Coconut Development Board. The Centre has agreed to implement a scheme under which 50 per cent of the subsidy would have to be borne by the State government. The proposal is under the consideration of the State government.
The proposal had been made with a view to extending support to the coconut farming community which has been facing problems of low prices for the commodity.
The import of palm oil has adversely affected the sales of coconut oil in the market. The import duty imposed on palm oil was removed later in the wake of edible oil shortage in the country. The Board has urged the Centre to restore the import duty on palm oil and the proposal is under the consideration of the Centre.
The import of palm oil through ports in south India had been restricted after the issue was taken up with the Centre. The curbs on export of coconut oil from Kochi port had also been removed to provide an impetus to the coconut sector.
