CDA to crack down on substandard virgin coconut oil companies
The growing demand for Sri Lanka’s virgin coconut oil overseas especially in Europe and importance of curbing substandard exports has prompted the Coconut Development Authority (CDA) to crack down on bogus virgin coconut oil companies, the CDA chief said.
There is strong demand for Sri Lankan virgin coconut oil from the US, Europe, Japan and South Korea and exports from Sri Lanka has increased by around 140 per cent last year compared to 2013.
Last year’s exports brought an income of over Rs. 4,304 million from 6,000 metric tons (MT), up from Rs. 1,500 million and 2,101 MT in 2013.
The CDA issued strict guidelines recently to virgin coconut oil producers in the wake of the detection of a consignment of low quality Sri Lankan virgin coconut oil infected with fungus in South Korea which was rejected and returned to the island, Chairman of the authority J.T.S.P. Kariyawasam told the Business Times.
Four such contaminated virgin coconut oil containers were returned to the sender by foreign buyers recently, he said
He added that the authority has decided to carry out stringent inspections and make the registration of virgin coconut oil companies compulsory to prevent the re-occurrence of such situations.
Only coconut oil produced in conformity with the 32:2002 Sri Lanka Standards virgin coconut oil specifications and fulfilling certain requirements can be sold in the local and export markets, he revealed.
According to guidelines issued by the CD and published as a notice in newspapers this week, only coconut should be used for the production of virgin coconut oil and coconut kernel, copra bran, produced by external parties or dry coconut kernel made at above 60 degrees Celsius heat should not be used for production process.
The production of virgin coconut oil should not be carried out in above 60 degrees Celcius heat and it should not use food preservation chemicals.
Exporters should only export virgin coconut oil obtained from producers registered with the CDA.
Sixty such producers have submitted applications for registration, Mr. Kariyawasam said, adding that six of them will be registered shortly as their products were in conformity to the required specifications. Other applications are being scrutinised by the CDA, he disclosed.
A CDA inspector will carry out daily checks on the registered companies and samples of the virgin coconut oil and other by-products will be collected and analysed by the authority, he added.