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| Sunday, 10 August 2003 |
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| News Business Features Editorial
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DC industry future looks bright by Hiran H. Senewiratne The Coconut Development Authority (CDA) expects a Desiccated Coconut (DC) output of 40,000 to 50,000 Mt before the end of this year, which will enable the country to re-capture lost traditional export markets. Sri Lanka, the second largest DC exporter in the world for years, lost many traditional markets such as Europe and Middle-East due to the inconsistent supply of DC owing to the shortfall of nuts for the industry to operate as a result of the prolonged drought. "This year seems to be bright as far as the DC industry is concerned," Chairman CDA H.A Tilakeratne said. He said the Authority with the assistance of the Ministry of Plantation Industries, arranged a loan scheme where up to five million rupees will be disbursed through five designated banks to restart DC mills which had been closed for some time due to the non-availability of nuts. The banks involved are Hatton National Bank, People's Bank, Bank of Ceylon, Seylan Bank and DFCC Bank. Sri Lanka had annually exported 90,000 Mt of DC, but could not maintain that quantity last year and the year before. Last year's exports were less than 30,000 Mt. Tilakeratne said about five mills have already obtained the loan facility while another 30 are expected to follow suit before the end of this year. Nearly 62 DC mills are in the country, currently all are in commercial operation. He said the target of 50,000 Mt before the end of this year is possible with the favourable weather conditions currently prevailing in the country. Ten per cent of the loan's interest component will be borne by the CDA. The scheme has attracted a positive response from many DC mills, he said. President DC Millers Association Sunil Watawala said major exporters such as Philippines and Indonesia exploited the opportunity from Sri Lanka's failure in maintaining a consistent supply of DC to the world market. He said 45 out of the 62 mills in the country have been automated. They have an annual capacity of nearly 95,000 Mt. To make the DC business vibrant, the country should improve the productivity of coconut production and cultivation in plantations. Watawala was confident that since all mills are in operation, there is the opportunity to re-capture lost DC markets. He said the high cost of production compared to other countries in the region is a reason for the local DC market to suffer. The world market price per nut is said to be around five rupees while in Sri Lanka, it is about eight rupees. |
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