Sri Lanka’s export-oriented coconut by-products industry hit by COVID-19 for around two months will be back on track within the next few months, industry leaders said while demanding more edible oil imports to make available coconuts for the indudtry .
A close study of the import policy of the Sri Lankan government on edible oils indicates that import tariffs on edible oil are lowered when the supply of fresh coconut in the domestic market is limited.
The manufacturers of the main products such as tender coconut water, coconut oil and desiccated coconut powder are suffering losses with the factories closed during the curfew period which was imposed following the coronavirus outbreak.
Sri Lanka’s desiccated coconut export volumes fell by 45 per cent year-on-year to 8,630 tonnes and by 28 percent in value to Rs. 3.7 billion (US$20.0 million) from January-April 2020.
The country earns Rs. 110 billion (US$594 million) annually through the export of coconut-related products, the CDA data showed.
Under this circumstance, Sri Lanka’s exporters of value added coconut products are asking authorities to allow more edible oil imports, so that it would reduce local oil production and free more nuts for other industries.
The CDA is also considering this request as a short term solution for coconut industrialists to raise their heads after struggling in the coronavirus storm.
(LIN)