Wednesday Jan 22, 2025
Wednesday Jan 22, 2025
Wednesday, 22 January 2025 00:24 - - {{hitsCtrl.values.hits}}
Ceylon Chamber of Coconut Industries President Jayantha Samarakoon (3rd from left) addressing press conference, others from left: Exporters Association of Coconut Substrates President Jayaruwan Samarathunga, Coconut Milk Manufacturers Association Lalitha Ratnayake, Ceylon Virgin Coconut Oil Manufacturers Association President Janaka Manchanayake, Desiccated Coconut Manufacturers Association Secretary Jason Samaranayake, and Ernst & Young Sri Lanka Senior Partner – CCCI General Secretary Ranil De Saram – Pic by Upul Abayasekara
By Janani Kandaramage
The Ceylon Chamber of Coconut Industries (CCCI) yesterday called for immediate Government intervention to address an unprecedented coconut shortage threatening both domestic consumption and the export potential of the industry.
Prior to 2023, Sri Lanka’s annual coconut production typically ranged between 3000-4000 million nuts. However, this figure sharply dipped to 2,950 million in 2023 and further declined to 2,684 million in 2024. Based on data provided by the Coconut Research Institute (CRI), the country has experienced a yield reduction of over 700 million coconuts from 2021 to 2024. This shortage has triggered skyrocketing prices-straining household budgets and disrupting raw material supplies for export manufacturers. In 2023, coconut product exports generated $ 708 million, and by November 2024, the country had earned $ 782 million, reflecting a 20% increase compared to the corresponding period last year. The annual figure is estimated to close at $ 850 million in 2025, marking the highest ever income to the industry with a 17% year-on-year (YOY) growth, signifying the critical need in stabilising the sector to safeguard its revenue potential and the livelihoods it supports.
Shedding light on the key challenges inhibiting adequate coconut production, CCCI President Jayantha B. Samarakoon highlighted escalating fertiliser costs, pest infestations, land fragmentation due to real-estate projects, and climate change as limits to cultivation. In the recent past, coconut fertilisers became a luxury to ordinary farmers, priced between 8,000-14,000 per 50 kg. In addition, the extreme temperatures experienced during the first three months of 2024, exacerbated the ongoing coconut shortage, alongside the rising population of toque macaques. In Sri Lanka, the ideal temperature for coconut trees is around 27–28°C. When temperatures exceed 33°C, coconut pollination declines, leading to reduced yields. About 10% of the country’s coconut harvest is destroyed by toque macaques, giant squirrels and other pests, stressing the importance of balancing animal populations.
“In addition to the impact on cultivation, the reduced supply has driven up prices making this essential staple inaccessible to many households and risking nutritional deficiencies. Also exporters face significant supply chain obstacles, undermining its competitive edge in global markets and tarnishing Sri Lanka’s reputation as a reliable exporter,” he told a media briefing.
The President also underscored the cultural and economic significance of coconuts-labelling it vital for household and supply-chain sustenance, and a major source of foreign exchange.
“The current coconut shortage poses a dual crisis for households and exporters. In addition, the industry provides over 750,000 direct employment opportunities, making it a lifeline to the local economy. Therefore, it is essential that the Government focuses on leveraging this industry as a part of their agenda, by following up on 2025 targets and measures set and proposed by the CCCI,” he opined
The forecasted coconut production for 2025 remains at an achievable 1,407 million, with 590 million yielded within the first six months. A further production shortfall of approximately 200 million coconuts is predicted from January to April 2025. However, this loss is expected to be offset between May-June which brings significant rainfall, moisture, and favourable climate conditions supporting the maturation of coconuts.
To keep to these targets and address shortages in the future, the CCCI outlined the following measures:
Farmer support: Allocate Rs. 1.5 billion from the CESS Fund to provide subsidies for moisture conservation, fertilisers, pest control, replanting, and infrastructure aimed at enhancing agricultural productivity.
Consumer awareness and alternatives: Promote processed coconut products, coconut milk powder/liquid, and desiccated coconut, particularly in urban areas, to control demand for fresh coconuts that are scarce.
Appeal to consumers: Encourage households to minimise coconut waste by shifting to processed products certified by the Sri Lanka Standards Institution (SLSI) and the Coconut Development Authority (CDA). Studies show that 20-25% of domestically consumed coconuts are wasted. A 10% reduction in domestic consumption could release 200 million coconuts to the industry, generation over $ 160 million in foreign exchange annually.
Short term measures: Permit the importation of 200 million nuts or equivalent raw materials, such as copra chips, dried pairings, coconut milk, and frozen kernels to stabilise the supply chain.
Quality standards: Develop practical SLSI guidelines for imported raw materials that align with global standards to ensure quality and availability for both domestic and export markets.
“With global demand for coconut based products estimated at $ 27-30 billion annually-fuelled by the rise in vegan and plant-based diets – Sri Lanka has immense potential to expand its market share. Coconut husk-based fibre and substances, which account for 30% of the nation’s coconut export earnings are highly demanded due to the global shift towards the controlled environmental agriculture.”
The CCCI is committed to aiding Sri Lanka in its goal to achieve $ 1.5 billion in export revenue by 2027 for which 4.5 billion coconuts per annum is required. Through effective collaboration with relevant stakeholders and immediate action, this goal will not be a distant fantasy.
