Coconut prices surge due to auction practices – Coconut Cultivation Board

By Indika Sri Aravinda

Colombo, May 27 (Daily Mirror) - As per the Coconut Cultivation Board. The main reason for the sustained high coconut prices in the local market has been identified as the pricing practices of intermediaries at government coconut auctions.

In a recent discussion with senior government officials, this issue was brought to light, by Dr. Sunimal Jayakody, Chairman of the Coconut Cultivation Board.

Although coconuts from government-owned plantations are auctioned at minimum prices, intermediaries buy these stocks and sell them in the market at much higher rates, securing substantial profits. Dr. Jayakody pointed out that this practice results in unfair disadvantages for both coconut cultivators and consumers.

He further pointed out that although there was a decline in the coconut harvest since August last year, coconut prices have remained above Rs. 200, indicating a crisis situation.

Amidst predictions of a harvest of 555 million coconuts during May and June, concerns were raised during the discussion regarding the continuing price surge, despite anticipated increases in production.

As a solution, it was proposed that only a portion of the coconut stock be sold through auctions moving forward, while the remainder would be distributed to the public at concessionary rates via Sathosa outlets and cooperatives.

President Anura Kumara Dissanayake has also taken note of the rising coconut prices and has made inquiries into the matter. He has instructed top officials in the agriculture sector to formulate a plan to stabilize prices.

In line with this, the Coconut Cultivation Board is preparing to implement several programs from next month to boost coconut production.

Although the government currently owns nearly 100,000 acres of coconut plantations, it was revealed during the discussion that many of these lands are underutilized. As a result, the government is now focusing on the development of these lands.

Dr. Jayakody also warned that the coconut harvest may decline again in the coming months, which could lead to another price hike. Meanwhile, the Coconut Cultivation Board has sought clarification from the Lunuwila Coconut Research Institute regarding their forecast of an increase in harvest during the months of April, May, and June.