ECONOMYNEXT – Sri Lanka’s average coconut auction prices continued to move closer to retail prices in the third week of April with the average price hitting 181,915 rupees for 1,000 nuts, up 1.3 percent from 179,497 a week earlier.
Sri Lanka’s coconut retail prices were around 200-220 rupees a nut, but auction prices were controlled around 140,000 per 1,000 nuts leading to small volumes coming in.
Sold quantity fell to just 21,000 nuts on March 13 under the 140,000 rupee price control. Industry sources say some volumes from state plantations came to auction but other suppliers were selling outside the auction.
Auction volumes were less than 200,000 nuts amid price control, compared to 500,000 to 800,000 seen in previous years.
Sri Lanka desiccated coconut and other factories catering to export markets buy from the auction.
Average auction prices jumped to 174,601 per 1,000 nuts at the April 3 auction, from 146,158 the week earlier.
With auction prices moving closer to the market, bigger volumes are expected in the coming weeks at the auction, sector officials said.
The highest price for a nut was 192 rupees, on April 28, while the lowest price was 165 rupees.
Wholesale prices for large nuts were 180-200 rupees and small nuts were 160-170 rupees on April 24.
Farmgate price in Kurunegala was 155-165 rupees a nut.
Retail prices were 185-240 rupees for large nuts and 165-190 rupees for small nuts.
Sri Lanka’s central bank said coconut output fell 31.6 percent to 178.1 million nuts in February 2025, from 260.5 million nuts a year ago.
In 2024 coconut output was down 11.9 percent to 2,790 million nuts.
Sri Lanka’s coconut product exporters have sought permission to import semi-processed product including kernels to bridge a shortfall, with a 250 million nut crop shortfall projected for the first half of 2025 by the Coconut Research Institute.
Excessive rainfall and a fertilizer ban under President Gotabaya Rajapaksa have been blamed for the crop shortfall.
However, coconut output is down across Asia and prices are moving up with unusual weather widely blamed.
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Export revenues from coconut products, which include activated carbon, grew 27 percent to 100.6 million dollars in March 2025 from a year ago, the Export Development Board said.
Export earnings from Coconut Oil increased 76.63 percent, Coconut Milk powder 93.45 percent, Coconut Cream 46.15 percent and Liquid Coconut Milk 41.93 percent in March, Sri Lanka’s Export Development Board said.
It is not clear whether the higher earnings came from volume or price increase.
In the local market coconut oil local wholesale price was 850,000 to 870,000.00 rupees per metric ton.
Copra was 130,000 to 137,500 rupees per 250 kg. (Colombo/Apr28/2025)