Sri Lanka records an increase in the average price for fresh coconuts as harvests recover from drought
Sri Lanka’s average price or fresh coconuts has reportedly increased 6.4 percent from a week earlier to Rs. 32,770 per 1,000 nuts, the local media has reported.
The report states that this increase is in the backdrop of the recovery of harvests from a drought and falling world market prices.
At last week’s auction in Colombo, 972,772 nuts were reportedly offered and 787,987 were sold.
Industry sources have stated that the closure of many desiccated coconut mills as prices soared in early 2018 amid a drought had reduced prices.
The Coconut Research Institute in Sri Lanka has stated that the country’s coconut output is projected to rise 20 percent in 2018 from a year earlier.
In July/August output was projected to rise to 30 percent to 512.5 million nuts from 394.7 million nuts.
Coconut farmers have reportedly fetched record prices for their nuts up to the middle of this year, as output fell amid the drought.
Meanwhile, coconut consumption is also expected to rise as retail prices fall and desiccated coconut mills and oil mills recommence operations.
OSL take:
The increase in the price of fresh coconuts is a welcome sign on the recovery of Sri Lanka’s plantations sector. The government has already decided to promote the replanting of rubber trees and now the increase of fresh coconut prices will result in the overall growth of the plantations sector. Therefore, foreign business/investors could explore opportunities to invest in Sri Lanka’s plantations sector.
| Article Code : | VBS/AT/29082018/Z_1 |