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| Sunday, 17 February 2002 |
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| News Business Features Editorial
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Technology essential to develop desiccated coconut industry The desiccated coconut (DC) industry is the most important component in the coconut industry since it brings much needed foreign currency and enjoys a 30 per cent market share internationally. Therefore, it is everybody's duty to protect it, said Immediate Past Chairman of Desiccated Coconut Millers Association, Sunil Watawala. He said that recently, foreign buyers have moved to other countries as suppliers are defaulting the contracts due to the short supply of coconuts. He said the acreage of coconut cultivation in Sri Lanka is sufficient, but the productivity is too low to meet the demand of the industry. Therefore, it is essential to use modern technology to increase productivity. The annual crop of coconuts is 2.6-2.7 billion nuts, out of which about two billion are consumed locally, leaving one billion nuts to be shared by the industries of DC, copra, oil and fresh coconuts. The DC industry has also recorded increases of 125 per cent in furnace oil, electricity 100 per cent, labour 75 per cent as well as in fuel. Mr. Watawala said Sri Lanka's desiccated coconut industry is on the verge of collapse due to low production and high prices the industry has to pay for coconuts. "We are competing internationally with countries such as Philippines and Indonesia. "Therefore, in the near future, we might lose the business and thereby deprive the country of much needed foreign exchange," he said. He said that there are over 45 fully automated DC mills in the country. The mills are considered the most modern and efficient DC mills in the DC producing countries. "If we do not take immediate steps to revive the DC industry, the investment and the future of about 20,000 highly skilled workers are at stake." The Coconut Development Authority has given permission to open eight more mills while the existing mills do not have sufficient work, he added. During 1999 and 2000, exports from coconut amounted to Rs 11,936 million and Rs 12,504 million respectively. Desiccated coconut, being the major kernel export, earned 40 per cent of the total export earnings. Exports from January to October 2001 have fallen from Rs 4.2 billion to Rs 2.5 billion for DC when compared to last year. This is a staggering decline of 40 per cent, Lukmanjee added. Volumes too have fallen similarly. The figures for November and December are disastrous with production coming almost to a standstill during mid-December. Production has not yet resumed properly. |
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