News
Coconut and palm oil crisis continues; bakers, confectioners warn of shortages
The Consumer Affairs Authority (CAA) is to take legal action against coconut oil producers and market distributors in the crisis involving a well-known brand of coconut oil which allegedly contains aflatoxins that can cause cancer.
The move came as the CAA requested the manufacturers of N-Joy coconut oil to withdraw it from the market as it was confirmed that the product contained aflatoxins.
CAA Deputy Director Asela Bandara told the Sunday Times they had collected more than 135 samples of coconut oil to be checked for aflatoxins.
Among those samples was coconut oil which was sold under seven brands. One well-known brand was found to contain about 30 percent of aflatoxins.
“We asked the company to recall the stock. We visited the factories. Then took samples from factory tanks and also collected more samples from the market and handed them over to the Industrial Technology Institutes (ITI) laboratories,” he said.
The Deputy Director said the samples were tested and reports confirmed they contained aflatoxins. Therefore, they called on the company to withdraw its products from the market.
Mr Bandara said they had also sealed a warehouse which belonged to the company.
A company which produces and markets N-Joy coconut oil said it took the matter seriously and would do the needful in the interest of public safety. The company assured it would fully cooperate with the CAA. It said it was committed to getting to the bottom of this incident.
“The trust of all our stakeholders remains of paramount importance to us,” the company said.
It said N-Joy was a 100% natural creation. It said the product did not go through any chemical refining process and was the only one of two white coconut oil brands available in Sri Lanka, manufactured in accordance with stringent international standards, using local copra.
Customs has made arrangements on re-shipping consignments of sub-standard coconut oil imported by a private importer, on Friday.
On Friday, Customs Deputy Director and Media Spokesman Sudattha Silva said they have directed the Edirisinghe edible oil company to re-export 230 metric tonnes of unrefined coconut oil which was rejected as the stock contained aflatoxins. He said the amount was valued at more than Rs. 54 million.
Meanwhile the Government has introduced regulations restricting the import of palm oil, but industry stakeholders have warned there could be shortage. The Bakery Owners Association and the confectionery associations have raised concerns over an upcoming shortage of bakery products and confectionery items in view of the lack of palm oil in the market.
The Bakery Owners Association President N. K. Jayawardena said the sudden ban was imposed while the Government was devising a licence scheme for the import of refined palm oil.
He said there were about 7000 bakeries operating in Sri Lanka, but most of them were small scale and were unable to make direct imports. Therefore they were dependent on established importers who could import on behalf of them.
“The Government’s move to ban crude palm oil imports is a good move but the licencing matter is dragging on. Therefore we are affected as currently palm oil has not reached the market,” he said.
Mr Jayawardena said if the Government imposed a ban only on crude palm oil and devised strict regulations to maintain quality, a market shortage would not have occurred.
The Lanka Confectionery Manufacturers Association Chairman S. M. D. Suriyakumara too said that even though the Government decided to allow the import of refined palm oil varieties under a licence needed for manufacturing products, none of the stakeholders had yet been able to import.
He warned this would result in a market shortage, and could also lead to a drop or a shut down in confectionery item production.
“However as an association we appreciate the Government decision’s to allow the import of refined palm oil varieties under a licence system and support the local confectionery industry to function,” he said.
The new regulations were issued by the Finance Ministry two weeks ago, in terms of the Imports and Exports (Control) Act.
Imports and Exports Controller General Damayanthi Karunarathne said according to the new regulations, crude palm oil would be banned.
However, businesses which require palm oil to manufacture their products bring other forms of palm oil, which were refined and bleached, under a licencing system. The licence would be issued to those who use palm oil for industrial purposes. Merchants would not be able to import palm oil in any form, she said.
The Controller General said they had scheduled a meeting with officials of the Industries Ministry, the Plantation Ministry, the Sri Lanka Standards Institute, the Customs, the Board of Investments (BOI), the Export Development Board and other stakeholders to discuss the regulations.