Negligence by subsequent Governments, the absence of a national roadmap and a scientific approach to address the growing threat of pests have led to the current downfall of the coconut industry which has helped keep home fires burning for centuries.
Industry personnel addressing the media on Tuesday lost no time to pin the blame on the authorities for inadequate action to save the lucrative industry which had sustained families for ages.
They said there has been a decline in yield from around 2023. “If so, why wasn’t the issue brought to the notice of the authorities all these years,” a participant asked.
An official of the Ministry of Plantation industries said the issues faced by coconut growers and the industry have been brought to the attention of the Ministry and that steps will be taken after meeting industry personnel.
However, industry stakeholders said if no urgent measures are taken to safeguard the industry, it would face a natural death.
“There has been a shortfall of around 700 million nuts to meet domestic and industry needs which could be addressed in the short term by allowing imports of around 200 million nuts either as copra chips, dried pairings, coconut milk or frozen kernels”, Ceylon Chamber of Coconut Industries (CCCI) President Jayantha Samarakoon said.
According to the Coconut Research Institute (CRI), it estimates that the country needs around 250 million coconuts a month and of that around 150 million is consumed domestically while the rest is exported.
The CCCI officials called upon the Government to intervene without delay to address the shortage of nuts threatening domestic consumption and the export industry.
There has been a yield reduction of over 700 million coconuts from 2021 to 2024 and a further production shortfall of approximately 200 million coconuts is predicted from January to April 2025 according to the CRI.
“If the concerns of the industry are looked into urgently, the export income could easily cross the USD 1.5 billion forecast for 2027 to even USD 2 billion,” Samarakoon said.
In 2023, coconut products exports generated USD708 million and by November 2024, the country had earned USD782 million, reflecting a 20% increase compared to the corresponding period last year. The annual figure is estimated to close at USD850 million, marking the highest-ever income with a 17% year-on-year growth.
This underscores the critical need to stabilise the sector to protect its revenue potential and the livelihoods it supports, the Chamber said.
The crop yield is forecast to decline from around 3,380 million nuts in 2021 to 2,684 million nuts in 2024 and to around 1,407 nuts in the first six months this year according to the CRI.
The coconut industry has been a lifeline to several households offering over 750,000 direct employment opportunities in the formal sector and several thousands more indirectly.
The high temperatures experienced during the first three months of this year have worsened Sri Lanka’s ongoing coconut shortage, alongside the increasing population of toque macaques who are also said to feed on coconuts.
Chamber officials said the non application of fertiliser due to high cost and inadequate irrigation practices, land fragmentation (which is high in the Gampaha district), the spread of disease and vulnerabilities to climate change pose a major obstacle to develop the industry.
The reduced supply has driven coconut prices up making the essential staple inaccessible to many households and risking nutritional deficiencies and disrupted exports, officials added.
Chamber officials recommend that the Government allocates Rs 1.5 billion from the CESS Fund to provide subsidies for moisture conservation, fertiliser, pest control, replanting and other agricultural improvement. The offer of soft loans to enhance infrastructure, including water management, fertigation and solar power to boost productivity has been envisaged.
Officials of the Chamber which was set up five months ago said that promoting processed coconut products, coconut milk powder or the liquid and desiccated coconut, especially in urban areas will help slash the demand for fresh nuts while also encouraging households to minimise coconut waste by shifting to processed products certified by the Sri Lanka Standards Institution (SLSI) and the Coconut Development Authority (CDA).
Studies show that 20–25% of domestically consumed coconuts are wasted. A 10% reduction in domestic consumption could release 200 million coconuts to the industry, generating over USD 160 million in foreign exchange annually.
Research reveals that with global demand for coconut-based products estimated at $27–30 billion annually, fuelled by the rise in vegan and plant-based diets, Sri Lanka has immense potential to expand its market share.
Coconut husk-based fibre and substrates which account for 30% of the nation’s coconut export earnings are in high demand due to the global shift toward controlled environmental agriculture. Activated carbon, the third-largest contributor to the sector, presents endless opportunities for growth.
