Palm oil imports affect coconut oil prices amidst fears of fresh coconut imports
Demonstrating the planting of a coconut seedling.
The Sri Lankan government has been accused of playing a double game in the development of the coconut industry; on one hand allocating a large amount of funds to develop the sector but on the other hand reducing the duty on palm oil imports which affects local prices.
Furthermore there are no proper checks on imported palm oil which is allegedly mixed with coconut oil and sold in the open market.
These accusations emerged during a meeting of coconut growers in the Divulapitiya district and held last week in Divulapitiya. Speaking at this day-long awareness session, Lionel Fonseka, President of the Coconut Growers Association, Sri Lanka (CGASL) said that about 10 years ago palm oil imports stood at about 60 metric tons but today it has shot up to around 160 metric tons and a major part of its usage is not accounted for.
A large number of cultivators big and small participated while all the government agencies and private sector companies involved in the coconut cultivation were at hand to assist the cultivators with necessary information they needed to improve the coconut growth.
Mr. Fonseka indicated that the palm oil issue is adversely affecting coconut producers as the adulterated coconut oil is sold at a cheap price compared to pure coconut oil. If this situation continues the coconut industry would face the same fate as the tea industry as producers won’t be able to export coconut oil as pure Sri Lankan coconut oil.
The tea sector is deeply divided over producing a pure Ceylon Tea product as against a blended variety with local tea mixed with cheap imported tea.
Mr. Fonseka said the import of palm oil has reached alarming proportions and was causing a negative and, very damaging impact on the coconut industry. He further pointed out that there is another debacle brewing in the local coconut industry as there are also moves to import fresh coconuts.
On the sidelines of the meeting, the Business Times spoke to several coconut farmers. Ms. Charlot Hemantha and Ms. Chandrani Sriyalatha, both from Banduragoda, said that they have 40 and 50 coconut trees, respectively. They said that they needed information to increase the yields of coconut per tree and how to apply correct proportion of fertiliser.
Ranjith Dias, a former president of the CGASL and a veteran producer, said that a shortage of rain is seriously affecting coconut cultivation in the area and due to this factor year by year the production is dropping, urging the government to provide them with irrigation facilities.
He said that the maximum yield per tree now stands at 100 nuts and they are trying to emulate the Indian example of increasing this yield to 120 nuts.
Kapila Yakandawala, Chairman, Coconut Cultivation Board, said that at present the wholesale price from the farm is around Rs. 30 to 40 per nut and to ensure a good price for the cultivators they are exploring the possibility of increasing this price to around Rs. 60.
One of the small producers, asked for her response to a potential increased price for coconut, said that would make her happy. With the open market price per a nut now at Rs. 75, she said if the wholesale price goes up to Rs. 60 then the retail price was bound to increase to Rs. 150.
She said she has just 10 trees in her garden and most of the produce is for her own consumption. However if the yield per tree is increased to 120 nuts per tree and if the selling price in the retail market goes up to Rs. 150 per nut she would sell all her production.
Open market prices in Colombo for fresh coconut vary from Rs. 50 to Rs. 70 per nut.