Coconut-based imports need to continue
Sri Lanka has imported stocks of coconut based products for manufacture and export purposes but the industry insists this quantity alone will not suffice and more imports are in order as crop production is likely to drop going forward.
Following the Cabinet approval in March to import coconut milk, frozen coconut kernels and other coconut based products imported recently by Ceylon Biscuits Ltd (CBL) this needs to be continued to ensure that exporters have a constant supply, Ceylon Chamber of Coconut Industry (CCCI) President Jayantha Samarakoon told The Sunday Times Business. He noted that the government aims at generating US$1.5 billion worth of export income by 2030.
At present about four manufacturers are interested in importing coconut based products and milk solely for export purposes in order to ensure their supply chain is maintained, he said. It will be controlled imports, Mr. Samarakoon said adding that the farm gate prices also needs to be maintained at around Rs.150 so that growers are not affected by the changing demand and supply.
Sri Lanka requires 250 million nuts per month with 150 million nuts for domestic consumption and 100 million nuts for export. May was able to produce 250 million nuts and it is likely that the months of June and July will also be able to sustain these yields, it was noted. The lean period will come during the last three months of the year which is a regular phenomenon and the tendency is for the prices to lower then and pick up in September. However, Mr. Samarakoon said “We don’t want the farm gate price to drop” since growers need to be encouraged to maintain the current rate to sustain their costs. He pointed out that the main concern was that collectors and dealers try to keep a huge mark-up and exporters too are at a disadvantage since they too are compelled to buy from these middlemen.
In the meantime, exporters are trying to maintain their forward bookings for which they need a constant supply chain. Sri Lanka exported coconut products worth US$857 million last year and this year within the first four months exports have generated over $300 million. This would mean that if the same volumes are maintained in the next eight months the country can generate an income of $900 million.
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