Imports crack coconut industry

The Government’s decision to import coconuts has sparked criticism from the industry which is urging for more solid measures for sustainable growth.

“The government’s decision to import coconuts to meet the festive season’s demands is ironic, given that the country should in fact be exporting coconuts, and value added coconut products at this stage,” Coconut Producers and Manufacturers Association President Haren de Silva told the Daily FT.

“The coconut industry, although being one of the country’s important agriculture industries is in such a sorry state that the possibility of losing our markets is great,” he warned.

Explaining further the Association Chief said that although the Government says that it is pumping in a lot of money into the coconut industry for the past so many years, the coconut growers and coconut product manufactures cannot see any expansion of coconut lands or any developments in the industry.

The money that the Government earns from coconut growers and manufacturers cannot be seen being pumped back into the industry, were the views of the Association.The local demand for fresh coconuts is so big that once this is met, other industries have a limited number of coconuts to use. Coconut milk, coconut cream, desiccated coconut and even fresh coconuts are thereby not competitive in the world market as the core product is expensive.

The Association is urging the Government to allocate more lands for coconut cultivation; currently it is the small holders who cultivate coconut on coconut lands inherited, unlike the tea industry where the estates are owned by companies and sometimes even by individuals.

Another measure that will help the coconut industry is to control the customs duty on importation of edible oils so that more people could use it. Since the government wants to protect the industry, it should increase the availability of edible oils so as to encourage local coconuts to be used in other industries.

“If imported edible oils are reasonably priced, the coconuts that are available in the country can be used to make value added products and the growers will not be controlled by coconut oil millers,” said the President.

Currently the coconut oil sold at Harrods in London is cheaper and better in quality than the coconut oil available in Sri Lanka, he added.

What is needed is consistent policies from the government rather that ad hoc policies, and the government should work together with the farmers, shippers, exporters,  oil mill owners, DC mill owners, coconut cream and milk producers to uplift the industry.

‘If this situation continues, we risk losing markets such as the Middle East, Israel and Europe where Sri Lankan coconut products and fresh coconuts are in high demand, as well as lose our competitiveness in the world market.

Countries like India, Philippines and Vietnam are far ahead of Sri Lanka in coconut and coconut value added products industry. Today in Sri Lanka all coconut mills are not operating five days a week, and the high coconut prices give rise to a loss of jobs related to the industry.“Such a situation should not be the case especially when coconuts are a vital part in Sri Lankan life and cooking,” said de Silva.

The government has instructed coconut wholesalers to import coconuts during December to curb the increasing price of coconuts. This is the first time that Sri Lanka has had to import coconuts.

Sri Lanka being an island is synonymous with coconut trees and it is a sorry state when we have to import coconuts, and sometimes even the rice we need as we were once known as the ice bowl of Asia.

GOVT. Says price stability is key

The Government yesterday reiterated that temporary imports of selected commodities are necessary to stabilise prices in the local market.

Big onions as well as potatoes are also to be imported to control the rising cost of living. The Ministry of Cooperatives and Internal Trade held discussions with importers and wholesalers in order to bring down onions from Pakistan to stabilise the local prices of onions.  The price of big onions has risen Rs. 180 to Rs.200 a kilo and with the importing of this commodity; onions will be sold at Rs. 130 to Rs.140 a kilo this month.



Other measures include importing sugar direct from Brazil as a government to government transaction, and controlling the prices of the various other varieties of rice in the market said Media Secretary, Ministry of Cooperatives and Internal Trade, Nipun Ekanayake

“These temporary measures to import certain food items are being taken to stabilise the local prices, but at the same time we will also be protecting the local farmers,” he explained.

Ekanayake also added that at economic centers and Laksathosa outlets the prices of essential items such as tinned fish, coconuts, onions, rice, chicken, eggs, potatoes, lentils and sugar along with other items will be sold at reasonable rates to the public.

Coconuts cost Rs. 30 each at economic centers located around Colombo.

Laksathosa outlets have price marked one kg of Samba at Rs. 63.50 and other varieties at Rs. 53.50 per kg.

“Given that it is the winter season, world prices of food have increased along with the demand for food, and we in Sri Lanka are trying to curb the rising prices for the locals on a constant basis,” he added.

The Ministry is looking at storing certain items as a buffer stock and then releasing them to the market when there is a shortage. We are also planning to construct new storage facilities, cold rooms etc. to store stocks of rice and essential items to be released when the need arises, said Ekanayake.