Coconut prices a hard nut to crack in prolonged shortage
The coconut shortage is not only triggering desperate searches for dwindling supplies in a pandemic situation but forcing people to pay a hefty Rs. 90-100 per nut despite a law prohibiting sale above Rs. 70.
The shortage is to remain until January next year, a government study says.
To add to the misery, the Consumer Affairs Authority (CAA) has temporarily stopped raids on traders selling overpriced coconuts.
For consumers such as Sudharshi Hewawasam from Piliyandala and M. Rajadurai in Mattakkuliya, coconuts are no more an affordable essential ingredient at their current Rs. 80-100 price.
While some complain about prices, others complain about the size of coconuts. COVID-19 health guidelines are ignored in morning marketplaces as people flock to purchase larger coconuts.
Prior to the Minuwangoda COVID cluster, CAA officers were seen at economic centres, wholesale and retail shops, checking the circumference of coconuts to make sure traders were sticking to the gazette issued a few weeks ago.
Now with the severe shortage of coconuts, the CAA is taking a step back from raiding, a senior official said.
The gazette states a coconut with a circumference of 13 inches or more should be sold at Rs. 70, a nut with a circumference between 12-13 inches should be Rs. 65 and a nut under 12 inches should be Rs. 60.
Violators of this rule are threatened with a fine of Rs. 1000-10,000 and even a six-month prison sentence.
“The law was introduced to ensure prices would remain below Rs. 100 rupees. But now, as there is no coconuts in the market, it is obvious that the prices will increase,” the CAA official said.
Sri Lanka's total coconut production is about three million nuts annually, with local consumption totalling 1.8 million and the surplus used for industry-related products and export.
The Director of the Coconut Research I n s t i t u t e, Dr. Sanathinie Ranasinghe, told the Sunday Times production would remain low for the rest of the year.
“Our production forecast for July-August is 420 million nuts, September to October is 395.2 million nuts, and November to December production will be 392 million nuts.
“If bi-monthly production is less than 500 million there will be definitely a competition between local consumption and export market/ industry products. That is what’s happening now,” she said.
The public is requested to bear with the shortage for now as the forecast for 2021 is better.
“This year, production in the highest yield months (January to April) was 921 million nuts and the forecast from January to April next year is 1,142 million nuts,” Dr. Ranasinghe said.
If the shortage turns severe, exporters and local manufacturers of coconut oil and milk will be given permission to import frozen kernel to make products at an affordable rate, she said.