Coconut chamber demands urgent import approval to avert dual crisis

• Highlights import process moving very slow
• Says current coconut shortage poses a dual crisis for households and exporters
• Asserts if exporters fail to fulfil current export orders, SL is risking future order cancellations

Jayantha Samarakoon Pic by Pradeep Pathirana

By Nishal Fernando

The Ceylon Chamber of Coconut Industries (CCCI), the umbrella organisation for Sri Lanka’s coconut industry, yesterday urged the government to expedite the proposal to import 200 million nuts urgently to avert a looming dual crisis. 

An unprecedented coconut shortage is threatening domestic consumers with sky-rocketing prices, about Rs. 200 per nut, and also exports. 

Calling an urgent press conference in Colombo yesterday, CCCI President Jayantha Samarakoon revealed that the import authorisation process, which involves multiple ministries and government departments is moving at a rather slow pace which is not helping to stabilise the supply chain.

“The current coconut shortage poses a dual crisis for households and exporters. Without immediate action, Sri Lanka risks jeopardising the livelihoods of thousands while reducing local affordability,” he said.

The CCCI expressed fears that if exporters fail to fulfil the current export orders due to a lack of raw materials, it could severely impact Sri Lanka’s reputation as a reliable supplier in the world coconut market. The latter is expected to grow to US$30 billion by 2030. 

Last year, coconut and coconut-based exports were estimated to have generated US$ 782million in foreign exchange revenue, the highest ever.

The Coconut Research Institute (CRI) has forecast a production shortfall exceeding 200 million nuts in the first quarter of this year. In 2024, coconut production fell short of 260 million nuts from CRI’s forecast, with a sharp 60 percent year-on-year (YoY) drop in coconut harvest in December 2024. The industry was targeting to bring in US$1 billion in export revenue this year.

While the government has responded favourably to the industry proposal for imports, it is yet to reach the Cabinet of Ministers for approval. Samarakoon noted that the actions of certain government bodies, such as the Department of Agriculture, are causing further delays in the import process for the proposed imports by raising concerns about the possibility of diseases entering the country.

According to the Chamber, it typically takes a minimum one-month period for imports to reach export manufacturers under the regulations. Samarakoon warned that further delays could adversely impact farm gate prices in the upcoming June coconut harvest season, as possible delays in imported raw materials could lead to an excess supply scenario during the harvest season, ultimately resulting in lower prices for domestic coconut farmers who are largely smallholders.

The Chamber is of the view that importing fresh coconuts is the most cost-effective solution, which would particularly benefit the oil and activated carbon industries. Otherwise, it is seeking equivalent raw materials, including copra chips, dried pairings, coconut milk, and frozen kernels, to stabilise the supply chain.
The CCCI initially expressed fears of an unprecedented coconut shortage in September last year, while warning that prices could rise to Rs. 270 per nut if no action was taken to reverse the current trend. 

The shortages have mainly been due to a short-lived blanket ban on chemical fertilisers and agrochemicals in 2020 and subsequent unaffordable fertiliser prices, which resulted in insignificant application of fertilisers.
The Chamber has proposed allocating Rs. 1.5 billion from the CESS Fund for subsidies covering moisture conservation, fertiliser, pest control, and related agricultural improvements. It is also seeking soft loans for infrastructure such as irrigation and solar power to enhance productivity. According to Samarakoon, these measures, once implemented, will take almost a year to increase coconut production.

In addition, it was noted that toque monkeys and giant squirrels are also causing a 10 percent loss to coconut harvest.

“The time for action is now. Through collaborative and immediate measures, Sri Lanka can not only recover but position itself as a global leader in the coconut industry. This approach is critical for restoring balance, enhancing export competitiveness, and ensuring affordable access for all Sri Lankans,” he added.

By 2027, the CCCI aims to help the country achieve US$1.5 billion in coconut-based export revenue while boosting the annual production from 3 billion to 4.5 billion coconuts.