Coconut prices crumbling, struggle to maintain estates

Coconut growers in Sri Lanka are panic stricken as the farm-gate price of coconut is drastically dropping to an all- time low, to a point at which growers are considering giving up maintaining coconut estates.

Ranjith Dias, a former President of the Coconut Growers Association of Sri Lanka (CGA) and a veteran grower, reflecting these concerns told the Business Times the farmgate price of a coconut at this time of last year was Rs. 45 and today it has dropped to more than half the price – Rs. 21.

He said that they have been repeatedly urging the authorities to address this grave situation, arrive at a solid solution to sustain a stable price and not allow it to deteriorate.

He said that many of the large scale cultivators would fade away at today’s farm-gate price when the cost of production per nut is Rs. 30 to 35 for an average extent of cultivation of 25 to 50 acres. Mr. Dias pointed out that according to the Colombo Coconut Auction held on April 10 the average farm- gate price per nut arrived at was Rs. 27.47 and while 2.725 million nuts were placed for auctions, more than 50 per cent was withdrawn due to poor prices.

At the auction held on May 2 the average farmgate price had dropped to Rs. 24.03 with 4.248 million nuts were placed at the auction and there 2.074 million nuts were withdrawn from the auction. The auction held on May 9 saw the farm-gate price drop to Rs. 21. Coconut growers want the relevant authorities to take urgent measures to arrest this steeply sliding of coconut farm-gate price.