Copra is primarily used for extracting oil. India produces about 4.5 lakh tonnes of coconut of oil equaling to about 6.9 lakh tonnes of milling copra. Tamil Nadu and Kerala account for 90 percent of oil production. The usage of coconut oil is a cooking medium is confined to Kerala.
Palm oil and palm kernel are the two substitutes of coconut oil. The former competes with coconut oil in the edible oils segment and the latter in the non – edible oils segment of the consumption base. Palm oil prices are globally cheaper than other major edible oils. Palm oil dominates the Indian Import Scene.