Exporters hurt by ban on fresh nut exports

By Bandula Sirimana

Sri Lanka’s coconut exporters say they have been badly affected by a government ban, two weeks ago, on raw coconut exports.

It is the first time fresh coconut exports have been banned, although Coconut Development Authority (CDA) officials say it’s temporary and due to lower production and rising local prices. The officials said local nut prices are at Rs 26-28 while consumers say it’s a phenomenal Rs 40 per nut. Exporters say Sri Lanka will lose valuable foreign exchange earnings of $1.6 billion per annum if the ban is not lifted.

Out of Sri Lanka’s annual output of 2.9 billion nuts, around 50 million coconuts are exported to the Middle East and Europe. A spokesman for the Coconut Exporters Association told The Sunday Times FT that they are exporting only 1.7 percent of local output and it will not affect local consumption.

Twenty large scale coconut exporters have been affected by the ban and their businesses are on the verge of collapse. CDA officials said the ban was imposed by the National Cost of Living Committee headed by Prime Minister Ratnasiri Wickremanayake and this committee is expected to review the ban in three months.

The current domestic demand for fresh coconuts is at around 2000 million nuts while the balance 900 million nuts are shared amongst coconut-based industries.