Sri Lanka coconut auction price drops 6-pct
ECONOMYNEXT – Sri Lanka’s average coconut prices dropped 6.07 percent to 51,674 rupees for 1000 nuts at an auction on July 02, falling for the second week after hitting a peak of 55,318 at an auction on 18 June, data showed.
The highest price was 57,900 rupees for 1,000 nuts, down from 60,100, and the lowest 45,000 rupees at the auction conducted by Sri Lanka’s Coconut Development Authority on July 02.
Buyers offered 1,200,000 nuts at the auction and sold 861,000 nuts.
Sri Lanka’s coconut prices have picked up steadily from an average of 38,215 when auctions resumed on April 09 after a break due to a Coronavirus crisis, and the prices dropped from 45,500 rupees on March 12.
Palm oil, close substitute for coconut oil has been taxed at 350 rupees a kilogram while coconut oil imports have been restricted after money printing by the central bank to finance the fiscal deficit and control interest rates.
Many imports have been controlled after the central bank printed money, driving prices
Production had also fallen.
Sri Lanka’s coconut production was estimated to have dropped 12.6 percent to 679 million nuts in the first quarter of 2020 from a year earlier, data showed.
There had been disruptions in plucking and husking during lockdowns to contain the Coronavirus, but economic activity is now near normal. (Colombo/July 06/2020-sb)