Structural changes essential to address coconut sector issues: Kabir

Minister of Public Enterprise Development Kabir Hashim emphasised that issues facing the coconut sector could only be addressed via making structural changes in the industry, which would boost national production and meet the increasing demand of the local market. 

Participating as the Chief Guest at the appreciation ceremony organised by the Kurunegala Plantation Ltd. (KPL) at the Kandyan Reach Hotel to reward employees by giving incentives for their valuable contribution towards making the company a profit-making enterprise under the purview of the Ministry of Public Enterprise, the Minister said that the company had shown significant growth in profit earnings when it came under the purview of his Ministry in 2015. 

The Minister further mentioned that it was the first time a company reported an outstanding profit soon after it came under the management of the State sector. 

“Many public enterprises under the purview of my Ministry can be named as loss-facing companies. I need to make them more profitable and provide the benefits to the people. National coconut production, which was at 3,092 million nuts in 2000, declined to 2,700 million nuts in 2010, creating a severe gap between the demand and the supply of the production in the market. Hence, the coconut price has been increased due to the lack of supply. Meanwhile, 75% of national coconut production is being still supplied by the home gardeners,” the Minister charged.

The Minister further mentioned that there were many lands which used to develop coconut production being misused (land fragmentation) by the politicians who were in the previous regime to develop hotels and other unsolicited constructions. 

“In 2000 the coconut planted land areas were around 444,000 hectares, but decreased up to 360,000 hectares in 2010. We are in discussions to introduce structural changes to the sector by getting the support from the Ministry of Plantation Industries. The National Government will carry out a program to introduce national policies for many sectors to make them more profitable. We need to make the country self-sufficient in coconut production,” the Minister said.

Kurunegala Plantation Ltd. was taken over by the Government with effect from 1 January 2005 under the purview of the Ministry of Plantation Industries due to lack of proper management by the private sector during a period of nearly 13 years since it was established in 1992. The company came under the purview of several ministries since 2005 and came under the purview of Ministry of Public Enterprises Development in 2015. The company manages a portfolio of diverse agricultural products through cultivation, production, processing and sale of coconut, rubber and ancillary crops and produce. 

KPL comprises eight area estates with a land area of 5,244.58 hectares (12,954.1 acres) encompassing different agro climatic zones, spanning the three districts of Kurunegala, Gampaha and Anuradhapura. The company manages 4,097.36 hectares (10,120.48 acres) of coconut plantation and 250.10 hectares (617.7 acres) of rubber plantations.

KPL celebrated its achievements for the fifth consecutive year, this time under the guidance of the Ministry of Public Enterprise Development. This time the company has allocated more than Rs. 25 million for financial incentives to motivate employees. The event was attended by North Western Province Governor Amara Piyaseeli Rathnayake, MP J.C Alawathuwala, KPL Chairman Upali Piyasoma, Additional Secretary of the Ministry of Public Enterprise Development J.M.Dauglas and other distinguished guests.