Sri Lanka coconut auctions in limbo after price floor
ECONOMYNEXT – Sri Lanka’s main coconut auction has been in limbo for over a month after a floor price of 28 rupees a per nut was set by authorities, in the wake of falling nut prices and a recovery in production.
The floor price was set by the ministry in charge following requests from growers, who said they could not sell below 28 rupees a nut, industry officials said.
With no bids below 28,000 rupees accepted, lots offered at the auction are withdrawn.
Coconuts were last auctioned at the weekly auction in Colombo on May 23 at an average price of 24,700 rupees per 1,000 nuts. No coconuts have been traded at auctions since then.
However growers are selling below that price out of the auction.
Desiccated coconut exporters usually buy at the auctions.
In the retail markets the price has fallen to 40 rupees a nut. Last year around April, coconuts were above 65 rupees a nut.
Global coconut prices soared after droughts in Asia including Sri Lanka, but production has recovered.
In the first four months of 2019, the coconut crop was estimated at 1,036 million nuts, up 30 percent from 781 million nuts last year.
(COLOMBO, 26 June, 2019)