Coconut farm-gate prices hit all time low
Coconut growers in the country are alarmed that the farm-gate price of coconut has hit an all-time low of Rs. 27 per nut and now they fear that during the coming months of May, June and July it could further sink to below Rs. 25.
Ranjith Dias, a former President of the Coconut Growers Association of Sri Lanka (CGA) and a veteran coconut grower, told the Business Times this week that the farm-gate of coconut was dropping very sharply and noted that the CGA urges the Minister of Plantation Industries to take the necessary remedial measures to arrest this tragic situation.
He said that according to the auctions held in Colombo on April 10, the average farm-gate price recorded was Rs. 27 per nut. The number of nuts offered at the auction was 2,725,652 and the nuts traded were 1,053,408. So, approximately, a quantity of 1.7 million nuts was withdrawn due to low prices.
As things stand the growers expect a bumper harvest in the coming three months and Mr Dias said that unless concrete steps are taken to reverse the current trend the prices would hit an all-time low which would be disastrous and definitely lead to the downfall of the coconut industry.
He said that in order to arrest this situation, CGA President Jayantha Samarakoon and its Secretary Jayantha Wickramasinghe met the Additional Secretary (Development), Ministry of Plantation Industries Janaka Dharmakirthi last week and agreed to implement the following:
- Farm-gate price mainly depend on the desiccated (DC) coconut prices. Thus a strategy to be adopted to control variation of farm-gate price on DC price. Allow export of fresh nuts without restrictions and advertise the provisions immediately.
- Different kinds of Refined, Bleached and Deodorised (RBD) oils are issued to the market, some of which are processed using unacceptable methods and thereby leads to health issues. Discuss with Ministry of Health and Ministry of Industry on restrictions of oil refinery and bleach.
- Economic research should be done with the University of Sri Jayawardhanapura and plans and policies on coconut sector should be based on this research. Quota restriction on kernel products applied to major kernel based product manufacturers (coconut milk, cream, paste) should be in place. Encourage establishment of new factories for coconut cream, coconut milk. DC mills and other industries of value added products.
- Regulations on standards for VCO (Virgin coconut oil) and other kernel based products must be strengthened. Study the possibility to apply a quota system for the industrial oils so that they cannot be used for adulteration of edible oils.
- NIPM Diploma on coconut sector must be designed with state agencies involved in the industry. Field experience should be included in the course. Armed forces officers about to retire should be targeted so that they can be engaged in coconut plantation after retirement.
He said that if the authorities concerned do not take suitable action to implement this action programme by April 30, the Association will have to take alternate action to safeguard the interests of 700,000 coconut growers spread all over the country.