Ayurveda industry has started feeling the pinch of the spiraling prices of coconut oil. The retail prices have crossed Rs 200 per kg, an all-time high, and are threatening to go up further. The Ayurveda industry is dependent on coconut oil for its classical and OTC preparations and does not have an alternative.
In Kerala alone, which is a hub of Ayurveda companies, there are 687 units, of which 500 belong to the small scale category. The escalating prices of coconut oil have eroded the margins of the companies. In the classical preparations for hair, coconut oil is widely used as it helps to fight dandruff.
Lot of Ayurvedic companies are bringing out cosmetic products for hair based on coconut oil and these products have brisk sales. Such products drive the profit margins as the number of consumers of classical medicines has dwindled over the years.
Few scale industries have already stopped the manufacturing of coconut oil based products. Some firms thinking to hike the prices of hair oil, whereas some others are planning to buy dried kernel of mature coconuts from other states and make oil.