Coconut prices set to skyrocket amid crisis
The crisis-hit coconut industry is set to see a spike in the price of coconuts reaching Rs.200 with farm gate prices pushing towards Rs.100 in a bid to overcome the rising cost of production.
Colombo University Emeritus Prof. of Bio Chemistry Deepal Mathew, an Executive Member of the Coconut Growers Association, told the Business Times that the prices of coconuts cannot be held down for long and by December prices are likely to reach Rs.200.
The farm gate prices need to reach Rs.100 to become sustainable, he explained adding that in this respect, the retail prices of coconuts will be around Rs.200.
“They will not be able to hold down the prices and from December the prices will start to climb,” Prof. Mathew said.
If the current situation persists after 2025 there will not be any coconuts and “we (may) have to import coconuts”.
Bringing in fertiliser will not resolve the issues, he said pointing out that the cost of production had increased significantly.
As a result a 50 kg bag of coconut fertiliser sells at Rs.18,050 sufficient for about 17 plants so the cost per plant is more than Rs.1000. Total income from a coconut tree being 50 nuts per year the wholesale price is Rs.50 per nut which amounts to Rs.2500 per year.
Coconut Growers Association President Jayantha Samarakoon pointed out that growers cannot survive on the Rs.55 farm gate price and that by November and December prices are set to increase unless the energy crisis gets sorted out.
He also explained that with prices increasing and the shortage of fuel, the industry is unable to transport the produce resulting in a significant drop in the amount of coconuts sent for processing.
Every month about 150 million nuts are consumed domestically and 100 million is sent to the processing industry but now the processing industry does not process more than 40-50 million nuts. “The entire system is disturbed,” he said.
Mr. Samarakoon explained that further with imports being curtailed most exporters were finding it difficult to ship their goods due to the less number of containers arriving at the Colombo Port.
As a result of the current crisis a number of coconut growers are trying to sell their lands that will be a significant blow to the industry that generated US$480 million in export earnings just last year.
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