Sri Lanka coconut auction prices take a breather after run
ECONOMYNEXT – Sri Lanka’s average coconut prices eased 0.54 percent to 55,017 rupees for a 1000 nuts at an auction on June 25, after rising three weeks in a row, while the top price edged up to 60,100 rupees, official data showed.
The highest price was 60,100 rupees for 1,000 nuts, and the lowest, 48,000 rupees at the auction conducted by Sri Lanka’s Coconut Development Authority on June 25.
Buyers offered 1,018,510 nuts at the auction and sold 773,548 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 deficit.
Many imports have been controlled after the central bank printed money, driving prices up.
Production had also fallen.
Sri Lanka’s coconut production was estimated to have dropped 12.6 percent to 679 million nuts in the quarter of 2020 from a year earlier.
There had been disruptions in plucking and husking during lockdowns to contain the Coronavirus. Officials have said the virus is now under control and economic activities have been gradually brought to normal. (Colombo/June 30/2020)