By: Staff Writer
December 30, Colombo (LNW): Sri Lanka’s coconut industry has achieved significant export revenue, with earnings of USD 782.32 million (LKR 228.84 billion) from coconut-based products in the first 11 months of the year.
This accomplishment comes amidst a severe domestic coconut shortage, declining production, and skyrocketing retail prices. Despite these challenges, the sector recorded double-digit growth in export earnings between January and November, driven by products like desiccated coconut, coconut oil, and activated carbon.
However, this growth masks a deeper crisis. The country’s annual harvest of approximately 3,100 million coconuts has seen a steep decline, falling by 700 million in 2024 alone.
Historically, Sri Lanka has required about 2,100 million coconuts for domestic consumption, with the surplus of 800 million contributing significantly to exports. Yet, recent years have seen the export of coconuts rise from 800 million to 1,400 million, aggravating domestic shortages.
The decline in production is rooted in longstanding issues, including auctioning of coconut lands under previous administrations, the fertilizer crisis of 2019–2020, and the whitefly infestation that began in 2020.
Successive governments failed to take effective action, leaving the industry vulnerable. Climate change has exacerbated the situation, with high temperatures reducing yields. Additionally, pest infestations—primarily by toque macaques and giant squirrels—destroy about 10% of the annual harvest, further straining supply.
In 2024, coconuts retailed at an unprecedented Rs 192 each, and even coconut shells sold for Rs 120 in some areas. Coconut oil production has also been severely affected, dropping 33.2% year-on-year to 23,789 metric tonnes. This scarcity has pushed prices for domestically produced 500ml bottles of “white” coconut oil to as high as Rs 850.
Export revenues continue to rise, particularly from coco peat and fiber products, which earned USD 13.56 million (LKR 3.96 billion) in November.
Yet, domestic consumers face recurring shortages and steep price increases. The Central Bank’s agricultural bulletin reported a 17.8% year-on-year drop in production for September, with monthly yields falling from 280 million nuts in March to 220 million in September.
Efforts to revitalize the industry have yielded limited results. In 2019, a former minister pledged reforms while climbing a coconut tree, but coconut prices have since doubled. Annual planting rates have dropped significantly, and no new land has been allocated for coconut cultivation in 25 years.
Experts warn of long-term repercussions for both consumers and the export market if these issues persist. Urgent measures are needed to address supply chain inefficiencies, stabilize prices, and increase yields. Recommendations include controlling pest populations, enhancing cultivation practices, and incentivizing the planting of new coconut trees.
Professor K.K.I.U. Arunakumara of Ruhuna University highlights the importance of government intervention. He suggests balancing animal populations and improving fertilization to boost yields. With the right steps, Sri Lanka can mitigate the coconut shortage and ensure the sustainability of this vital industry.
