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State Minister of Coconuts Arundika Fernando says current production totally insufficient
"The total amount of coconut oil consumption in the country is estimated to be around 180,000 metric tonnes (MT), and 90,000 MT is allocated to cater to consumers. We only produce 50% of our total requirement during the season" State Minister of Coconuts Arundika Fernando[/caption]
In light of recent events, do you believe there should be a ban on crude coconut oil?
Yes, it should be banned. We also took action against the importation of crude coconut oil. The total coconut production in the country is around 2.8 billion nuts, and we need to increase coconut production by another three billion nuts. Out of this, we need to allocate around two billion nuts for consumption. So only 0.8 billion nuts will be left for trade. When it comes to trade, there is a huge demand for coconut-related products like coconut milk, desiccated coconut, coconut water, activated carbon and coconut fiber (coir), etc., but 0.8 billion nuts is not enough to cater to this demand.
Coconut oil production is another part of the coconut trade industry .The total amount of coconut oil consumption in the country is estimated to be around 180,000 metric tonnes (MT), and 90,000 MT is allocated to cater to consumers. We only produce 50% of our total requirement during the season. During the off season, we need to import more coconut oil.
We import coconut in three ways: As crude oil, as RBD coconut oil (coconut oil that is refined, bleached, and deodorised), and as pure coconut oil. If we import pure coconut oil, we have to spend $ 1,500 per MT. So the market price for a litre of coconut oil would increase up to Rs. 500 or more.
Some companies prefer to import non-refined oil due to its cheap price and some try to mix them with other oils. For example, some mix it with palm oil. But due to the import tax on palm oil, along with other restrictions on the cultivation of palm trees in Sri Lanka, it has been limited. Adulterated oil is not good for the health and it is poisonous. These companies sell it for a cheap price and label it as “Manufactured in Sri Lanka”, which is wrong. They are only refined in Sri Lanka. There are nine such companies that refine oil in the country. They refine not only coconut oil, but also sludge oil and waste oils from hotels and temples.
Do you believe the two bowsers of substandard coconut oil seized by the Police in the Divulapitiya area and handed over to Sri Lanka Customs were part of the previous stock which was proven to have aflatoxin?
According to Customs, it’s not. However, we need to clarify that. If the aflatoxin-contained oil was released to the market, then that is a problem. These companies should be punished if this is proven to be true. We need to cancel the company license too. Health authorities, the Consumer Affairs Authority, and Customs should be strong enough to punish them.
Why doesn’t the Coconut Development Authority (CDA) have any say in regulating coconut oil?
The CDA was established under the provisions of the Coconut Development Act No. 46 of 1971. It is responsible for working for the development of the coconut industry in Sri Lanka and regulating it. But the Authority is not aware of the companies that import coconut oil. We have the Act, but we don’t have regulations to regulate or powers to penalise. The Import and Export Controller is responsible for this.
As the subject minister, I have taken steps to introduce rules and regulations so that the Authority has more power to work in relation to this subject. The International Coconut Community (ICC) and the Asian and Pacific Coconut Community (APCC) also said not to influence adulterated oil. Coconut oil should be regulated under the CDA with strict rules. So we are in discussion with the Attorney General (AG) to make that possible.
How can you increase the coconut production in Sri Lanka?
Together with the Ministries of Trade and Plantation, we are hoping to re-establish BCC Lanka Ltd., the company which produced coconut oil earlier. We are hoping to import dehydrated coconut chips and have already received approvals for the cabinet paper so that the manufacturer can purchase them for a low price.
We need to cultivate coconut and re-activate coconut estates. President Gotabaya Rajapaksa ordered to re-cultivate coconut in lands belonging to the government.
The main coconut growing area consists of three administrative districts within the “Coconut Triangle” – namely Kurunegala, Puttalam, and Gampaha. However, in conjunction with the Ministry of Plantation, the Coconut Cultivation Board (CCB) is expected to participate alongside the CDA and the Coconut Research Institute of Sri Lanka (CRI). Nearly 100,000 acres of fertile land will be rehabilitated and redressed for coconut cultivation.
This second coconut triangle will consist of the areas of Jaffna, Mannar, and Mullaitivu. The third would consist of Embilipitiya, Hambantota, and Monaragala. We are also working on coconut seedlings and giving subsidies.
What is stopping the Government from increasing coconut production?
Our annual coconut production in 1970 was the same as now, which is approximately 2.8 billion nuts, so it has never increased after 1970. This is primarily due to the division of coconut hectarage without any mechanism. No rules were available to protect the coconut tree or to add value. However, presently the division of coconut lands is carried out by the Ministry of Plantation and we will never allow anyone to divide them without good reason. We also hope to name the coconut tree as an endangered tree so that it will put a full stop to felling coconut trees.
What are your future plans in terms of the industry?
We would like to promote coconut farming, planting, and growing. “Raa”, or coconut toddy, the local alcoholic drink made by fermenting the sap of the coconut’s flower, would also be promoted and exported in the near future. We are currently holding discussions with the Excise Department of Sri Lanka. We would also limit importing coconut oil. Moreover, we have to standardise oil warehouses in future.
Are you satisfied with what you have achieved so for after assuming duties as the State Minister?
Well, yes. I was able to establish the Kithul Development Authority (KDA) under my ministry and we have exempted toddy from all taxes. My target is to bring $ 1 billion to the country by the end of this year from the coconut trade.
According to several media reports, you were directly involved in ASP Eric Perera’s transfer. Is this true?
He put innocent people behind bars on fake charges, which we cannot accept. This was a social issue. I have received 25 complaints against him. I asked for an investigation through a letter addressed to Minister of Public Security Rear Admiral Sarath Weerasekera. But the media handled this incident very badly and partially. I saw this edited voice clip which tried to prove that I’m involved with “kasippu”. I never wanted to legalise the local moonshine called kasippu and make it as a self-employment business. I only wanted to provide alternative self-employment options to those who are currently involved in the kasippu business.
Any final comments?
I would like to say that I never entered politics to personally profit like some others who earned by obtaining bar licenses. I was an employee of SriLankan Airlines. I’m sad that people took my sensitive words wrongly.