Sri Lanka planning on exporting vinegar and toddy
The Morning: Despite the coconut shortage the country has for exports and local consumption, Sri Lanka plans on exporting vinegar and toddy, The Daily Morning Business learnt.
Speaking to The Daily Morning Business, Coconut Research Institute (CRI) Director Sanathanie Ranasinghe said: “Now we have selected a few districts, especially the areas where the coconut is affected by monkeys that we can’t get a coconut yield for the production of vinegar which will be a value-added product,”
She pointed out that the Coconut Development Authority (CDA) has prepared a project proposal for the production of vinegar in collaboration with the Ministry of Plantation Industries, Coconut Cultivation Board (CCB) and CRI.
According to the CRI: “First, we are going to start the project from Kegalle district and depending on the problems or any feasibility study from that district they will start expanding it. Moreover, this is a project that will help to uplift the income of low-income groups while providing them opportunity and training for toddy tapping.”
She added that they might have to go through some regulations when they start exporting vinegar and this is a very good opportunity for Sri Lanka. However, they make sure to balance the coconut production since the country needs more coconuts for exports and local consumption.
Even Though, there is potential in the country for both vinegar and toddy exports, the problem currently they see in the market is the nonavailability of genuine toddy – either people have used sugar for fermentation or they have not used fresh toddy from coconuts, she explained.
Moreover, Ranasinghe added that there are no legal obstacles in exporting toddy but there are barriers for toddy tapping, very few people export toddy in Sri Lanka. Additionally, to tap less than 10 trees they don’t need a license, but if they tap more than they need to get a license from the excise department.
“We use the coconut trees to harvest coconuts, so if we tap the trees to make toddy, we can’t harvest nuts from that. However, we already have a limited supply of coconuts, so we can’t go for massive tapping. Instead, we need to strike a balance because there is a limit to the number of coconuts we can harvest,” she said
According to the Central Bank of Sri Lanka (CBSL) statistics, the export earnings of coconut-based products increased by 25.17 % in February 2024 compared to February 2023.
OSL take:
Sri Lanka’s ongoing programme to further expand the country’s exports business has seen an expansion in the export product portfolio. The country’s export authorities while carrying out promotional campaigns in foreign markets is conducting programmes to encourage local exporters to focus on diversifying and expanding the existing product portfolios with the aim of market expansion. Sri Lanka’s manufacturing and export sectors are a key revenue generator for the country as well. It is at such a time that Sri Lanka is looking at exporting vinegar and toddy to the export markets. This new move has expanded business/investment opportunities for local manufacturers of vinegar and toddy. With the ongoing expansion in Sri Lanka’s overall exports sector, foreign businesses/investors could confidently explore the growing business/investment opportunities in the exports sector, especially in the new and emerging segments of vinegar and toddy. Foreign businesses could also look at forming collaborations with local businesses engaged in these sectors with the aim of further expansion.