Despite claims that the authorities are seeking to uplift the local coconut oil industry, in reality, coconut oil importers seem to be receiving more support from the authorities than local coconut oil producers, industry representatives alleged.

They claimed that the taxes applicable to imported coconut oil has been reduced by around Rs. 200, which they pointed out is a significant reduction, while the Value Added Tax applicable to locally manufactured coconut oil, which is about Rs. 127 per kilogram of coconut oil, is not charged from importers.

These issues were explained to The Daily Morning by the All Ceylon Traditional Coconut Oil Manufacturers’ Association Chief Convenor Buddhika De Silva, who added that after discussions with the relevant stakeholders, the sudden price in coconut oil seen during the past few weeks has been managed to a certain extent, resulting in a reduction of prices by around Rs. 40 per litre. He explained, however, that despite that situation, long-term measures are necessary to stabilise the coconut oil industry, and to ensure the quality of the coconut oil available in the country.

“In order to provide local consumers with clean coconut oil, as an alternative to the importation of chemically refined coconut oil, we have given a proposal to the authorities seeking permission to import dried coconuts in order to produce coconut oil within the country. The proposal, which was presented in 2021, has not been taken into account yet. A Cabinet paper was also passed to implement these proposals, which has also not materialised for around four months.”

He opined that the fact that such decisions and directives are not being implemented shows that there is an influence of public officials on the industry.

Attempts to contact the Trade, Commerce, and Food Security Ministry yesterday (24) to discuss the issues pointed out by De Silva were not successful.