DFNet

May 05, 2025 | Oils & Fats International |

Coconut oil prices are rising due to global supply constraints and high demand, prompting the Philippine Coconut Authority (PCA) to explore policy options for managing economic impact without resorting to price controls or export bans. The PCA attributes early 2025 price surges to tight international supply and heightened demand caused by exporting nations prioritizing domestic needs. Indonesia, for instance, is considering halting coconut exports to support its processing sector. Additionally, global disruptions like the Russia-Ukraine war have reduced sunflower oil availability, pushing buyers toward coconut oil alternatives. Despite concerns, the PCA has ruled out price ceilings for now, noting such action would require subsidies. An export limit through an executive order is also unlikely, though the PCA is exploring a “percent retention” policy, where a portion of production would be reserved for local use—such as for food and biofuel—before allowing surplus for export. The PCA continues consultations with industry stakeholders and other government agencies to determine long-term solutions that balance domestic needs with export opportunities, ensuring sector stability amid volatile global vegetable oil markets.

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