Minister requests Proposals to save 3,000 local Coconut oil producers

Minister of Agriculture and Plantation Industries Mahinda Amaraweera, at a discussion held on Wednesday (7) at the Ministry, with Coconut Development Authority (CDA) Chairman Professor Roshan Perera, local Coconut Oil (CO) producers and Ministry officials, on the problems faced by the local CO producers, directed them to submit proposals to save 3,000 local CO producers.

Currently, the country’s annual CO consumption is 290,000 metric tons. However, only 40,000 metric tons are produced locally, while the balance 250,000 metric tons is imported as refined and unrefined CO.

In the domestic market, the prices of imported CO are low, while the prices of local CO are high. Hence, the consumer prefers the imported CO, thereby making it difficult for the local producers stay in business.

The local CO producers requested the Minister to remove the VAT currently charged on local CO. However, the Minister said that the Ministry of Finance is currently holding a special discussion on the VAT imposed on CO, and advised them to quickly prepare the proposals containing their demands as producers, in order to protect the local CO industry.

The Minister requested the proposal within a week, to submit it to the Cabinet for its expeditious implementation.

The Minister also said that consumers are dissatisfied with the quality of the CO and other oils currently available in the market. There is no recommendation for the consumer to identify the quality of the CO sold in the market. Hence the CDA was directed to immediately submit a certificate and a sticker for CO packaging to identify the quality of the CO sold.

The Minister also mentioned that although the CDA has issued a 5-Star label to identify good quality CO, the public is not aware of it.

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