Cabinet nod to import 39 MT of sliced dry coconut

Thursday, 24 December 2020 00:11 - - {{hitsCtrl.values.hits}}

Plans to ban coconut oil mixed with palm oil and other products
Imports to save coconut oil factories, nearly 50 estimated to be already closed
13 MT to be imported by B.C.C. Corporation for 3 months

The Government will import 39 metric tons (MT) of sliced dry coconut through the State-run B.C.C. Corporation over a period of three months to encourage local coconut oil producers. According to Cabinet Co-Spokesman and Plantations Minister Dr. Ramesh Pathirana, a combined proposal presented by his Ministry and the Ministry of Industry to import sliced dry coconut to fill the current shortage faced by local coconut oil producers was approved by the Cabinet.

The proposal is for the development of the coconut-based industry, Dr. Pathirana said, pointing out that 13 MT of sliced dry coconut would be imported via the State-run B.C.C. each month for a three-month period.

According to the Government, the Consumer Affairs Authority (CAA) has found out that the coconut oil imported into the country contains nearly 70% of non-coconut oils. Due to the insufficient coconut production in the country, it has become a challenge for nearly 500 coconut and allied factories to keep functioning.

“We aim to provide relief to the coconut oil industry which is under much strain and to give local consumers quality coconut products at a reasonable price. Nearly 50 coconut oil manufacturing plants have shut down due to the lack of sliced dry coconut,” Dr. Pathirana said.

Dr. Pathirana told reporters the export income of Sri Lankan coconut oil and coconut-related products had increased by 16.6% in 2019 compared to 2018, justifying the need to support the industry.

Under the proposal, the Cabinet has approved the manufacture of dried coconut slices by B.C.C., prohibited the sale of coconut oil mixed with palm oil or other oils in order to protect consumer rights, and branding of Sri Lankan coconut oil.

Further, the Government plans to discourage palm oil consumption in the country and to only permit the import of refined palm oil due to concerns regarding consumer rights and public health.