Coconut exports allowed following pleas from producers
As requested by the Coconut Growers Association (CGA), the government has lifted the ban on fresh coconut exports and allowed exports with immediate effect, due to a glut in the market.
The Coconut Cultivation Board has allowed exporters to use the export license that was issued for the year 2017, until the end of 2018.
Improved weather conditions resulted in a glut of coconut crops and that in turn made the farm-gate price of a coconut to drop to an all-time low. According to Ranjith Dias, a former President of the CGA, the government’s immediate action to relive the industry is due to the Business Times report titled “‘Coconuts in crisis: Traders make huge profit at the cost of consumer” appearing on August 26.
Mr. Dias said that they hope and pray that the weather gods would be sympathetic to the growers since due to the rains earlier the coconut crops had increased creating a glut in the coconut market leading to a crash in the farm-gate price.
He observed that due to their representations made to the concerned authorities, coconut exports have been allowed which is a great encouragement for the growers.
The association is of the view that the Export Development Board should provide support to motivate and encourage fresh coconut exports.
With the oncoming Maha season the growers should not get unnecessarily worried in investing on fertilizer which will have a positive response in the form of increased harvest in the year 2019. Mr. Dias said that it is extremely necessary to ensure a reasonable farm-gate price throughout the year with the application of good agricultural practices for maintaining a satisfactory crop.
He indicated that the average cost of production in a coconut plantation of between 25 to 50 acres is Rs. 30 to 35 a nut. Therefore maintaining an average farm-gate price of Rs. 40 to 45 is a must in order to sustain the coconut growing industry in a reasonable and satisfactory manner.
With regard to this farm-gate price, currently the Coconut Cultivation Board and the Coconut Research Institute are analysing the price formula and very soon they will be able to establish an average price for the purpose of working out a suitable scheme to make the coconut growing industry more lucrative. It should also be noted, he said that the current farm- gate price is worked out on the average price of desiccated coconut and this formula has been established few decades ago.
There are more and more kernel products now being marketed and it is necessary to work out a new price formula taking into consideration the marketing prices of desiccated coconut, coconut water, coconut milk, coconut powder and activated carbon.