Growers perturbed over coconut imports

The Coconut Growers Association of Sri Lanka (CGASL) has raised concern about the 2016 Budget proposals which spelt out substantive reforms in the coconut industry.

In its reforms in Plantation Economy Section 160 reads, "The coconut industry too is faced with the issue of lack of coconuts for value addition." The Budget proposed the import of coconuts to meet the shortfall of local produce for the coconut processing industry.

The Plant Protection Ordinance No: 165/2 of November 1981 prohibits the import of coconut palm products and any imports even under quarantine control would be a violation of this Act.

Sri Lanka is now facing the adverse consequences of relaxation or the lapses of quarantine control with the advent of the Aceria Mite infestation about 10-15 years ago, and has spread throughout the country retarding production and size of coconut with the nut weight from palms which were severely attacked down by about 30%.

Similarly, the Weligama Coconut Leaf Wilt Disease (WCLWD) propagated through a protoplasmic (virus), is affecting the Matara district, with no remedial action except cutting down the affected trees. The number of trees cut to date is 280,000.

The local coconut is synonymous with the 'Produced in Sri Lanka' tag, similar to tea and cinnamon, and is recognized worldwide as a premium product of quality. This proposed liberalization will have an adverse impact on the whole industry, affecting the prices of nuts and the quality of processed coconut products negatively, the CGASL said in a media release.

Will the coconut product manufacturing industrialists blend the imported coconut kernel with local coconut kernel during the processing stage and ship it out as 'Sri Lankan Coconut Products?'

How does one ensure 'Organic certification'? Sri Lanka sells most of the non-traditional kernel products as 'organic' and caters to a niche market. The import of coconuts or kernel products for processing will have an adverse impact on the 'Sri Lanka Brand Value'.

Current status

No other crop plays such an important role as the coconut palm, in the economy and the livelihood of the people of Kurunegala, Puttalam and Gampaha districts and to a lesser extent in Southern, Northern, Eastern and Sabaragamuwa Provinces.

Over the past ten years, the change in weather patterns, and two unprecedented droughts severely affected the coconut plantations resulting in approximately 300,000 bearing trees being destroyed. The Weligama Wilt Disease and Aceria Mite Infestation has had a drastic impact on nut production. The impact on land fragmentation throughout the country cannot be quantified.

Despite these obstacles, from 2002 to 2014 the land area under coconut increased from 395,000 to 440,000 hectares. A major portion of the new acreage under cultivation (45,000 hectares) has not yet begun to contribute to nut production.

This increase is due to incentives that are currently being afforded to the coconut grower.

Coconut cultivation is a USD 1,550 business in terms of value of nut production only. Of this USD 558 million came from exports in 2014. The remaining is the value of local consumption.

The CGASL will support all endeavours to provide more nuts for industrialists and support the government to increase exports of processed and value-added products. We can achieve this through the collective effort of all stakeholders of the coconut industry.

Coconut being a perennial crop with gestation to bear nuts being eight years it is imperative for successive Governments to understand the sector and maintain incentives already provided to the farmers in its financial policy and other inputs such as subsidies for planting material, moisture conservation and fertilizer.

The coconut growers are a community comprising a wide cross-section of growers from very small farmers to medium and large plantation owners. The small growers are not represented by any organization and have no collective voice in the face of adverse situations that may affect them. The financial viability of the entire spectrum of coconut growers is essential to maintain and increase production.

Improvement in the quality of technical support to the grower from the Coconut Research Institute (CRI) and Coconut Cultivation Board (CCB) is essential to encourage and motivate the grower.

Despite the reservations, the Association noted some positive proposals in the 2016 Budget. The CGASL commended the tax holiday to be granted to companies that use drip irrigation methods, and the endeavour to use high-yield seeds in agriculture as a positive move. However, these concessions should be offered to the entire spectrum of growers including small farmers and not be limited to companies.

The 2016 Budget has proposed to lift the ceiling on ownership of land. This certainly would give an impetus to coconut growers to increase investments in coconut plantation.

In summary, the import of coconuts to cater to an export market is not the solution. The village grower is dependent on the price of coconut to keep his home-fires burning.

The risk of the coconut palm being infected with virus and predators is high and could destroy the industry. The valuable brand name 'Sri Lanka Coconut Product' will be diluted, and only a few industrialists will benefit. Is this worth the while, at the cost of people who rely on the cheapest and healthiest source of fat in their daily meal?

- CGASL media release