Coconut production to increase

Indunil Hewage

Sri Lanka is expected to record an increase in the coconut production in this year as a result of favourable rainy conditions in the country along with the fertilizer subsidy granted by the Treasury for coconut cultivation.

In 2010, the total coconut consumption in the country recorded 2584 million coconuts. During 2009 and 2008, it was 2760 million and 2910 million coconuts respectively. In 2010, total coconut products exports value surged to Rs 32.4 billion as against that of Rs 29 billion in 2009, a senior official in the Coconut Development Authority told Daily News Business.

Annual coconut oil production has increased to around 75000 to 50000 metric tons of coconuts as against that of around 25000-30000 metric tonnes of coconut oil production recorded during the last couple of years.

Though the annual coconut production in the country is estimated around 2500-2800 million coconuts, the annual coconut requirement for the domestic consumption and to export coconut products such coconut oil, powder and coconut related products is over 3,500 million coconuts. In addition, palm oil imports to Sri Lanka from Malaysia and Indonesia see a considerable decline in the face of high freight charges. Annually Sri Lanka imports around 50,000 -70,000 metric tonnes of palm oil as against the 100,000 metric tonnes of palm oil imports recorded during the last couple of years.

The other reason attributable to the decline of the palm oil imports to the country is identified as increasing palm oil prices in the world market.

Currently a bottle of palm oil is sold over Rs 200 as against around Rs 120- Rs 150 recorded during the last couple of years. At present there are around 975000-970000 acres are under coconut cultivation.