Govt. secures huge coconut tranche to ease cost of living

Thursday, 9 November 2017 00:45 - - {{hitsCtrl.values.hits}}

‘Obeying Cost of Living Committee’s order’ - Lanka Sathosa’s Tennakoon
No imports, all stocks sourced locally
Three million coconuts to flood the market until 1 January
Plantation companies, state-run NLSDB weigh in

As coconut prices soared due to a drought-fuelled supply shortage, Sri Lanka announced that it was sourcing a large volume of coconuts from domestic suppliers instead of international sellers to be sold to local consumers at a low price.

“Based on the Cost of Living Committee’s order yesterday (7 November), Lanka Sathosa will source coconuts from various suppliers directly and sell them from next week at a low price of Rs. 65 each,” said Lanka Sathosa Chairman T.M.K.B. Tennakoon.

Chairman Tennakoon, representing Industry and Commerce Minister Rishad Bathiudeen, was addressing a media briefing at the CWE office at Vauxhall Street yesterday.

“Coconuts are a key product used in our kitchens and impact the cost of living directly,” said Chairman Tennakoon.

“Considering the current high prices of coconuts in the market, the Cost of Living Committee has decided to distribute coconuts to local consumers at Rs. 65 each through Lanka Sathosa outlets. We have been instructed to source them from private and state sector suppliers. We will start selling them as soon as stocks arrive. We expect to receive the first coconut stocks from private sector suppliers starting next Tuesday (14 November),” he said.

Accordingly, till coconut prices fall, Lanka Sathosa will purchase 1.25 million coconuts until the end of November and another 1.75 million during December –all to be sold at Rs. 65 each.

Until the end of November, Chilaw Plantations will supply 350,000, Elkaduwa Plantations will supply 100,000, Kurunegala Plantations 300,000 and the state-run National Livestock Development Board (NLSDB) will supply 500,000, totalling 1.25 million.

All private sector suppliers agreed to supply the same volumes in December too while the state-run NLSDB will double its supply to 1000,000 in December so that 1.75 million coconuts are moving to the Government’s largest retail store chain Lanka Sathosa in December alone. Overall, Lanka Sathosa will flood three million coconuts till January - during the rest of November and whole of December - to stabilise prices at the consumer’s end.

After India, Indonesia and the Philippines, Sri Lanka was the fourth largest coconut exporter in Asia Pacific in 2013, a time when there was no drought to impact local crops.