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Sri Lanka coconut industry calls for 200 million coconut import to prevent crisis

The Ceylon Chamber of Coconut Industries (CCCI), representing Sri Lanka's coconut sector, has called on the government to fast-track the importation of 200 million coconuts. This move is aimed at averting a crisis that threatens both domestic consumers with high prices and the export market. The current shortage has led to prices soaring to about $0.62 per nut, impacting both households and exporters.

At a press conference in Colombo, CCCI President Jayantha Samarakoon highlighted the slow pace of the import authorization process, involving various ministries and departments, which is affecting the supply chain's stability. He emphasized the urgent need for action to prevent jeopardizing livelihoods and reducing local affordability. The fear is that failure to meet export orders due to raw material shortages could damage Sri Lanka's reputation as a reliable supplier in the global coconut market, expected to reach $30 billion by 2030.

Last year, coconut and coconut-based exports generated $782 million in foreign exchange revenue, a record high. However, the Coconut Research Institute (CRI) has predicted a shortfall exceeding 200 million nuts in the first quarter of this year, with production in 2024 falling short by 260 million nuts from CRI's forecast. This represents a 60 percent year-on-year drop in the December 2024 coconut harvest.

While the government has shown support for the industry's proposal to import coconuts, approval from the Cabinet of Ministers is pending. Samarakoon pointed out that concerns raised by the Department of Agriculture about disease risks are causing additional delays. He warned that further hold-ups could adversely affect farm gate prices in the upcoming June coconut harvest season.

The CCCI believes importing fresh coconuts is the most cost-effective solution to stabilize the supply chain, benefiting industries such as oil and activated carbon production. The Chamber has also proposed utilizing the CESS Fund for subsidies to cover agricultural improvements and is seeking soft loans for infrastructure development to enhance productivity. Samarakoon stated that these measures could take almost a year to increase coconut production. Additionally, wildlife such as toque monkeys and giant squirrels have been causing a 10 percent loss to the coconut harvest.

The CCCI aims to help Sri Lanka achieve $1.5 billion in coconut-based export revenue by 2027, boosting annual production from 3 billion to 4.5 billion coconuts.

Source: Daily Mirror

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