The National Movement for Consumer Rights Protection (NMCRP) has warned that the government’s budget proposal to remove the Special Commodity Levy on coconut oil and palm oil could result in serious market distortions and health-related consequences.
Speaking at a media briefing in Colombo today (29), NMCRP Chairman Ranjith Vithanage said the proposed move carries a high risk of coconut oil being adulterated with harmful oils before reaching the local market.
He further cautioned that prices of locally produced coconut oil are likely to increase from April 1, placing an additional burden on consumers.
Vithanage noted that the removal of the levy could encourage the widespread availability of palm oil and other substitute oils in the domestic market. Citing medical opinions, he said health professionals recommend coconut oil as the most suitable option for deep frying, while the use of palm oil and other alternative oils has been associated with increased health risks.
He also pointed out that exporters engaged in coconut-based industries are diverting coconuts meant for domestic coconut oil production to export markets, leading to a shortage of coconut oil locally.
According to the NMCRP Chairman, this shortage has already forced many consumers to turn to palm oil and other lower-cost substitute oils, raising concerns over both consumer health and market regulation.
