Coconut industry-based authorities are looking at the possibility of imposing the “essential commodity” tag on coconuts in a bid to contain prices at levels as indicated by the government. The authorities are finding it hard to ensure that prices in the local market can be retained without surging from Rs.110 upto around Rs.200. Currently prices [...]

Business Times

Coconut likely to become an “essential commodity”

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Coconut industry-based authorities are looking at the possibility of imposing the “essential commodity” tag on coconuts in a bid to contain prices at levels as indicated by the government.

The authorities are finding it hard to ensure that prices in the local market can be retained without surging from Rs.110 upto around Rs.200. Currently prices in supermarkets are at Rs.180 per coconut. As a result of this sudden surge in prices due to a shortage in supply, authorities are trying to beat the competition by bagging stocks from private parties and state plantations and channeling it to consumers at three nuts per person.

Coconut Development Authority (CDA) Chairman Shantha Ranatunga told The Sunday Times Business on Monday that they are looking at the possibility of ensuring that coconuts will also come under the “essential commodity” category. This is being worked out in a bid to retain prices in the domestic market at lower levels.

Authorities are currently selling coconuts at Sathosa outlets and have been assured of supplies from a number of private parties including the Catholic Church that is said to have a large extent of coconut plantations.

In the meantime, Mr. Ranatunga also said they have requested to provide subsidies to the growers for which an allocation of Rs.300 million is to be made as an immediate step. He noted that this will be provided to the coconut growers through an established network.

Further the Chairman pointed out that due to the direct buying of coconuts from the state plantations by the authorities to make them available at reasonable prices through the Sathosa outlets the coconut auction has been suspended till March next year.

Authorities have also found that a mafia is involved in the raising of coconut prices with the middle men engaged in buying the nuts from the estates at a rate of around Rs.110-120. But when this reaches the consumers it would reach almost Rs.200 and authorities are unable to impose a controlled price. This shortage in coconuts is expected to continue until February next year, Mr. Ranatunga said adding that the seasonal shortage is what caused the crisis at present and once the coconut season picks up from March there will be an increased supply.

So far, it is estimated that about 2650 million nuts have been produced this year however while the target is to harvest 3000 million nuts annually.

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