Incentives to boost coconut production

by Chanuka Mannapperuma

The production of coconut oil should be increased to 50,000 Metric tonnes per year to reduce the import of palm oil,Plantation Industries Minister D. M. Jayarathne, told to the Sunday Observer.

The Minister said to upgrade the local coconut oil production, the Government has imposed a duty of 28% and a tariff of Rs.6.00 per litre of palm oil. A 15% VAT is also added. The Minister said he had discussed ways to reduce the cost of living.

He said he had decided to release the coconuts from estate lands to be determined by the market. Coconuts supplied by the estate lands could be sold at Rs. 20 per nut.

The coconut priced between Rs. 14-16 is reasonable, he noted. Meanwhile, 160,000 metric tonnes of palm oil have been imported. Imports have come down by 30%, resulting in a foreign exchange saving of Rs. 500 million.

Asia and Pacific countries grow coconuts in 10.4 million hectares and produce 47,886 million nuts of which 30-40% is grow for the manufacture of copra.

Coconut and coconut products including coconut oil are known worldwide for its nutritional value. Even though more than 60% of the coconuts produced in the Asian and Pacific countries are used in domestic markets for local consumption, there is considerable increase in the export market over a decade. Coconut oil was the major product exported to many countries.