Trade and markets
 

Detail

Area
Sri Lanka
Commodity Group
Oilseeds, oils and meals
Commodity
Coconut
Date
01/03/2018
Policy Category
Trade
Policy Instrument
Market regulation
Description
Confirmed plans to temporarily permit imports of fresh unhusked coconut to address a shortage in domestic supplies and halt a surge in local prices.
Notes
Confronted with persistently high market prices for coconut, the Government confirmed its plan to temporarily permit the importation of fresh unhusked coconut (see also MPPU June’17). Reportedly, the county’s quarantine law has already been revised to enable traders to import coconut kernels. In Sri Lanka, consumer prices surged as domestic coconut output tumbled on the back of prolonged drought and pest attacks. The release of publicly held coconut stocks (see MPPU Oct.’17) barely calmed the market. As for the government-imposed price of LKR 75 per nut (USD 0.48), the responsible state agency informed that legal action has been taken against traders who sold nuts for more than the controlled price. Meanwhile, the country’s coconut growers association voiced its opposition to any type of coconut importation, stating that foreign purchases would damage the local industry and its reputation for high-quality coconut products.