Demand for oil shoots up coconut prices

Ramani Kangaraarachchi

The price hike in coconut is due to the boom in the coconut oil industry and not due to the shortage of nuts, Chairman Coconut Development Authority D.U. Purasinghe said. 'There is a growth of 100 million nuts in 2007 compared to 2006,' he said.

'Many started manufacturing coconut oil with the coconut oil crisis in the world and that made the coconut price to increase,' he said.

He regretted that his recommendation to import Copra to meet the requirements of the oil industry was objected by the Coconut Research Institute last year stating that it could bring pests and diseases.

The CRI recommended a few countries to import Copra but those countries have now informed that they are unable to supply sufficient stocks leaving the oil industry in a quandary.

The Chairman said other coconut products such as coconut milk powder will face a severe problem shortly.

Coconut oil prices for the first half are expected to remain constant with the projection of lower coconut oil output in the Philippines, the largest global coconut oil exporter.