Govt. to allow coconut kernel imports to support related industries

• Coconut shortage for this year estimated at 250mn nuts

With an estimated shortage of 250 million coconuts this year, the Cabinet of Ministers has approved a proposal to import coconut kernel for the local coconut kernel-related industries, subject to conditions. 

The Cabinet of Ministers on Monday approved a proposal submitted by Plantation Minister Dr. Ramesh Pathirana to allow coconut kernel imports for the local coconut kernel-related industries, if the bimonthly coconut production falls below the margin of 100 million nuts, within four months continuously. 

The Government Information Department noted that the Cabinet of Ministers approved a similar proposal in late 2017 to import coconut kernel, subject to certain conditions, due to the shortages in the local production, to support the coconut kernel-related industries.

Accordingly, 2,542 MT of coconut kernel had been imported during a period of eight months.

Meanwhile, according to the latest market update of the Coconut Research Institute (CRI), the palm oil prices in Sri Lanka have jumped above the coconut oil prices, due to the increase in import taxes of palm oil. Accordingly, one kilogram of palm oil was traded at Rs.470-480 while the same amount of coconut oil was traded at Rs.450- 455, between December 15 and 31, last year. Compared to international market prices, the prices of both coconut and palm oil prices in Sri Lanka had nearly doubled.

As per CRI, the FOB price of one kilogram of coconut oil was at Rs.282.25 and the price of one kilogram of palm oil was at Rs.180-242 levels in international markets during the same period.

In December 2020, the Cabinet of Ministers approved a proposal to import 39 MT of sliced dry coconut through the staterun British Ceylon Corporation (BCC) over a period of three months, to encourage local coconut oil producers.