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The Chairman of the Coconut Research Board Dr. U.P. de S. Waidyanatha has denied the CWE's allegations that an agreement to supply coconut has been violated.

The actual position has been that at a meeting chaired by the Secretary/Ministry of Plantation Industries with the participation of the CWE, CRI and representatives of the Coconut Growers Association and other stakeholders of the coconut industry, CWE agreed to procure 300,000 nuts from the CRI in December and January. Together with supplies that were committed by the Coconut Growers' Association at this meeting the CWE had access to over a million nuts in December alone. But it was evident that the CWE lacked the capacity to handle such a large stock. At the same meeting it was explicitly agreed that the CRI sale price should be the average weekly auction price of stocks auctioned by the Coconut Development Authority, he said.

The CWE removed 14,800 nuts earlier in the month at the then average auction price of Rs. 11/50 per nut plus husking charges amounting to 40 cts per nut, a total of Rs. 11/90 per nut. Now with marginal escalation of nut prices of the auctions the CWE has decided not to procure on the agreed formula on the explanation that the prices are too high.

Dr. Waidyanatha said it must be stressed that the CRI nearly always receives premium prices for its coconuts, and in selling nuts at the average auction price, it loses on the margin. It has however volunteered to do so in the national interest.

Moreover the CRI has been giving selected nuts in excess of 11 inches diameter to CWE whereas all nuts in excess of nine inches diameter could be sold at the same price at the auctions. CRI has in stock on its field research stations over 300,000 nuts which the CWE could have on the agreed formula. It is unfortunate that the CWE has misrepresentated facts to the public," he said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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