Coconut is a versatile crop grown all over the world except Australia and Europe. Indonesia, Philippines and India are leading producers accounting for three-fourth of global output. Coconut oil and Copra are the two major products shaping the global coconut economy. Philippines is the major player globally in coconut oil. Rotterdam is the centre of global coconut oil trade.

Coconut oil is extracted from copra, the dried kernel of coconut. Oil content in copra vary from 65 to 72 percent. Coconut oil is an important cooking medium in southern parts of the country especially in Kerala and has varied industrial applications in soap, hair oil and other cosmetic industry.

Coconut oil is used in India as a cooking fat, hair oil, body oil and industrial oil. Coconut oil is made from fully dried copra having maximum moisture content of six per cent. Steam cooking of copra is also practised by some millers to enhance the quality and aroma of oil. Coconut oil is marketed in bulk as well as in packs ranging from sachets containing 5 ml. to 15kg tins. The branded coconut oil in small packs is mainly marketed as hair oil and body oil. There are several brands known for their superior grade oil which have export market throughout the world.

India has unbeatable quality advantage in this sector. Refined coconut oil is also manufactured in the country for industrial uses. Refined coconut oil is mainly used in the manufacture of biscuits, chocolates and other confectionery items, ice cream, pharmaceutical products and costly paints. Generally, filtered coconut oil is used for cooking and toiletry purposes.

India accounts for nearly 20% of global coconut output. Coconut oil is the main cooking oil in the south Indian State of Kerala. Kerala, Tamil Nadu, Andhra Pradesh and Maharashtra are leading producers of coconut in the country. Kerala and Tamil Nadu are the major centres of coconut oil and copra in the country.

Besides cooking coconut oil is also used extensively on cosmetics, toiletries, hair tonics and slew of other industries. The price of coconut oil is shaped by variations in production, global demand and supply situation and price of other vegetable oils.