Govt. to offer new approval to coconut millers

By Charumini de Silva

Despite strong objections from the Sri Lanka Desiccated Coconut Millers Association over the issuance of licenses to new entrants, the Government confirmed it would offer approval for fresh capacity, insisting that industry insecurity could not hamper the growth that business brings along, a top Minister said

“An improved interest was shown from both foreign and local investors to set up capacities islandwide, especially in the areas of Jaffna, Trincomalee and Hambantota,” Plantation Industries Minister Navin Dissanayake told Daily FT.

Although the Ministry has received applications to set up new facilities, the Minister assured that they would not allow new entrants into the coconut triangle comprising Chilaw, Puttalam and Kurunegala.

The Sri Lanka Desiccated Coconut Millers Association strongly objected to any fresh approvals, pointing out those new mills or factories would only make the situation worse during its Annual General Meeting held in March.

“We cannot refuse permission for new investment as they are economically viable proposals that would benefit the industry and the economy as a whole. The DC (desiccated coconut) millers can diversify their products and enter the international market, increasing the profitability of their factories and revenue accruing to the country,” Dissanayake pointed out. 

He also said that given the prevailing shortage of coconut in the country, the Government will soon import husked nuts or fresh kernel as a step towards reviving coconut-based value addition and exports. 

“We are working towards liberalising the market to reinforce value additions and exports. Soon we will import a 20-foot container of fresh kernel to monitor market reactions. We also got Cabinet approval for this (to bring down the container) two weeks ago,” he added. 

The Minister confirmed that the Coconut Research Institute (CRI) has responded favourably to his request to allow importation of fresh kernel or de-husked nuts considering the current shortage.

Faced with uncertain weather conditions, increased domestic consumption and coconut trees being felled for real estate, he said Sri Lanka needed to develop a model similar to that of the rubber industry as a shortage of coconuts is hampering value added export potentials.

Noting that from 2014 there had been a marked increase in virgin coconut oil, coconut milk, coconut cream and various other value added coconut-based products, the Minister stated that a fast-growing market was predicted for these products and assured that the Ministry would also find new international markets for such products.