Ban import of edible oil - CGASL

by Lalin FERNANDOPULLE

The Coconut Growers' Association of Sri Lanka (CGASL) has called upon the government to sell a bag of an adult palm mixed fertiliser at Rs. 1,000 until the average auction price of a coconut reaches Rs. 22.

CGASL, Past President, Ranjith Dias said the coconut industry has not been taken into consideration in the relief package given to many industries. The government introduced relief measures to the tea, rubber and tourism industries but not the coconut industry which is facing many problems.

The farm gate price of a coconut dropped during the past three to four years as a result of the reduction of the import duty on edible oil. The duty on imported edible oil was slashed from 28 per cent to 5 per cent. The duty on edible oil was increased to 15 per cent following continuous lobbying by the CGASL. "In spite of the increase in the duty on imported edible oil the farm gate price of a coconut did not change as the world market price of edible oil dropped", Dias said.

The government imposed the 28 per cent duty on imported edible oil following the sharp decline in world market prices. The price of a metric ton of edible oil dropped to around US$ 500-600 from US$ 1,300. The CGASL proposed a temporary ban on the import of edible oil as the country has adequate stocks to meet the requirement. The Association has also requested the government to increase the Rs. 40 Cess on imported edible oil to Rs. 60. "The CGASL is proposing such measures to get a good price for a coconut which should be at least Rs. 20 per nut at the farm gate level.

Dias said that coconut growers are unable to pay the salaries of workers due to the drop in prices of coconuts. According to the specified salary a worker is paid Rs. 295 a day.

"Fragmentation of land has not caused a negative impact on the production of coconuts. There is sufficient land to cultivate coconuts", he said. The CGASL said that the Coconut Development Authority (CDA) is concerned only about the welfare of coconut oil importers.

Chairman, CDA, D.J.U. Purasinghe said the country requires around 150,000 mt of coconut oil a year but the production is around 85,000 mt. The annual demand for coconuts is around four billion nuts but the production is around 2.8 billion nuts. Coconut oil has to be imported to meet the demand.