Coconut Industry calls for Imports amid Severe Coconut Shortage

Speaking at a media briefing at the National Chamber of Commerce Auditorium yesterday ( January 21), Chamber President Jayantha Samarakoon identified skyrocketing fertilizer prices as the primary cause of the crisis.

He warned that without immediate imports, Sri Lanka’s coconut-based export industry could face a potential revenue loss of USD 1 billion.

Currently, Sri Lanka’s monthly coconut demand is 250 million nuts, with 150 million used domestically and 100 million by the industrial sector. However, last year’s annual yield dropped from 3 billion to 2.68 billion nuts, and the Coconut Research Institute predicts a further decline this year to between 2.4 and 2.6 billion nuts. A shortfall of 200 million coconuts is anticipated between January and April 2025.

To mitigate the crisis, the Chamber has proposed importing coconut products such as milk, peeled coconuts to supplement local supplies.

Samarakoon highlighted that fertilizer prices have surged from Rs. 1,500 to Rs. 12,000 per 50 kg bag, leading to a dramatic reduction in its use by coconut growers. Less than 10% of growers now use fertilizer, further exacerbating the production decline.

The Chamber has urged the government to reduce fertilizer prices to Rs. 4,000 per bag, while also introducing subsidies for water supply and soil conservation to support coconut cultivation. The industry is hopeful that these issues will be addressed in the upcoming budget.