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| Sunday, 10 July 2005 |
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CGA lobbies for reintroduction of fertiliser subsidy by Elmo Leonard Less than 15 percent of Sri Lanka's coconut plantations have been fertilised during the current year, president, the Coconut Growers' Association (CGA) of Sri Lanka, Ranjith Dias said. For the survival of the coconut industry there should be a harvest of over three billion coconuts per annum. The country now produces a yield of around 2.5 billion nuts, per year. The cost of production of a coconut is Rs 8 to Rs 10. Seventy percent of the 700,00 coconut growers of the country own less than 25 acres, and around a half, less than 10 acres, each. Eighty-five percent of coconut growers depend on the income from their land for their survival and the CGA is lobbying for the reintroduction of the fertiliser subsidy. Speaking at the 11th AGM of the CGA, Dias quoted recent increases in the price of organic and inorganic fertiliser, some types of which have gone up by over 50 percent. CGA is lobbying for measures to be taken to increase the production of coconuts, not only to keep exports of desiccated coconut and copra for export moving, but also to restart the coconut oil industry which was active over two decades ago, Dias said. The CGA is also up in arms against the import of copra "in an irregular manner" but regretted that they had not received a response from the Customs. Imports of excessive quantities of edible oils, than what is stated in documents, into the country, besides adding to imports, also reduces the collection of cess on exports. The BOI, Indian and Vanaspathy project is jeopardising the surviving coconut oil industry. The minimum 35 percent value addition needed for exports of oil, off the Vanaspathy production line is a pretence to the country of origin rules, according to reports received from New Delhi, Dias said. Following representations made to the Ministry of Tourism and Investment Promotion, a technical committee has been set up to look into the matter. CGA now fears that when things hot up in India for Vanaspathy manufacturers, they will lobby the Sri Lanka government for access of oil into the Lankan domestic market. CGA also wants the abolition of Re 1 cess on a kilogram of exports of desiccated coconut for Mahaweli Coconut Plantation, which is a private company. The Re 1 is finally deducted from the farmgate price of the grower, Dias said. |
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