Sri Lanka coconut auction prices ease after 5-week rally
ECONOMYNEXT – Sri Lanka’s average coconut prices fell 1.1 percent to 50,402 rupees for a 1000 nuts at last auction on May 28, from 50,970 rupees a week earlier, ending a five week rally, official data showed.
The highest price was 58,100 rupees for 1,000 nuts, and the lowest, 45,000 rupees at the auction conducted by Sri Lanka’s Coconut Development Authority on May 28.
Palm oil, close substitute for coconut oil has been taxed at 350 rupees a kilogram.
Buyers offered 943,000 nuts at the auction and sold 529,000.
The key buyers at the auctions are from industrial sectors such as desiccated coconut and oil mills.
Sri Lanka’s coconut prices have picked up steadily from an average of 38,215 when auctions resumed on April 09 using zoom.com, after the prices dropped from 45,500 rupees on March 12.
Sri Lanka’s coconut production was estimated to have dropped 6.69 percent to 467 million nuts in the first two months of the year.
Sri Lanka has also raised taxes on vegetable oils to 350 rupees a kilogram, helping drive up coconut oil prices. (Colombo/June 01/2020)