Sri Lanka lifts temporary ban on fresh coconut exports from May 1
Sri Lanka is lifting a 4-month temporary ban imposed on raw coconut exports from May 1, to maintain the country’s foreign market share, a top official of the Coconut Development Authority (CDA) told Business Times.
The recent ban was enforced from January 15 to April 31. The CDA has been imposing a ban on the export of raw coconuts from time to time to stabilise prices during periods of low crop.
Director General of CDA, U.G.R. Ariyaratne revealed that coconut exports were suspended to control rising local prices of nuts due to a shortfall in production during this period.
Local nut prices were around Rs.70 per nut and the ban on raw coconut exports was aimed at maintaining the price at a stable level of Rs. 60 during the festive period, he said adding that the authority will grant permission to export fresh nuts under strict controls with effect from May 1.
This decision was taken to maintain the country’s fresh coconut market share overseas as a continued ban would help other coconut exporting countries like Malaysia gain from Sri Lanka’s loss, he added.
However exporters of value-added coconut products were of the view that the lifting of the ban at a time when the crop production was not adequate to meet the local demand is not so prudent.
Amitha Silva, Chief Marketing officer and Director of S.A.Silva and Sons Lanka (Pvt) Ltd (a division of Silver Mill group) one of the oldest companies in the island, told the Business Times, that the coconut supply for value added products for exports such as desiccated coconut, virgin coconut oil, and coconut milk, etc for export markets is insufficient, he added.
Unless the coconut production reaches at least up to 3.5 billion nuts per annum from the present level of 2.8 billion, the country should not allow fresh nut exports, he said, adding that such exports will not bring much foreign exchange revenue as well.There should be a steady supply of coconuts for companies to produce value added products and opening the doors for fresh nut exports will affect the industry, he said.