Colombo, Sri Lanka – Trade Minister Wasantha Samarasinghe has assured Parliament that there is no genuine shortage of coconuts in the country, attributing the perceived scarcity to an attempt by a “coconut mafia” to manipulate the market.
Responding to a query from Sri Lanka Podujana Peramuna (SLPP) MP D. V. Chanaka regarding an alleged acute shortage of coconuts, Minister Samarasinghe acknowledged a 14% decline in the 2024 coconut harvest compared to the previous year. Despite the reduction, he emphasized that the total expected harvest of 2,684 million coconuts is sufficient to meet national demand.
“There is no actual shortage of coconuts,” Samarasinghe said. “What we are witnessing is an orchestrated effort to create an artificial scarcity and drive up prices, forming a coconut mafia in the market.”
Government Interventions to Stabilize Supply
To counter the alleged market manipulation and ensure a steady supply, the government has initiated measures to distribute coconuts directly from state-owned estates through Sathosa, the state-run retail network.
- Kurunegala and Chilaw estates will supply one million coconuts in the coming weeks.
- The Coconut Development Authority (CDA) is set to distribute an additional 500,000 coconuts over the next two weeks.
These measures aim to stabilize prices and ensure that consumers have access to coconuts at fair rates.
Concerns Over Price Manipulation
The issue of fluctuating coconut prices has been a recurring concern, with reports suggesting that intermediaries and traders are hoarding stocks to artificially inflate prices. In recent months, coconut prices have surged, prompting public outcry and calls for government intervention.
Minister Samarasinghe reiterated that the government is closely monitoring the situation and warned that strict action would be taken against any individuals or entities found engaging in price manipulation or stock hoarding.
“Our priority is to protect consumers from exploitation,” he added. “We will not allow unscrupulous traders to hold the market hostage and create undue hardship for the public.”
Coconuts play a vital role in Sri Lankan households and industries, with their use ranging from cooking to the production of coconut oil, desiccated coconut, and other value-added products. Any disruption in supply or price spikes can have a ripple effect on the economy and household budgets.
The government’s efforts to increase direct distribution through Sathosa are expected to ease market pressure and ensure affordability for consumers, particularly in urban areas where demand remains high.
As the country braces for a slightly reduced harvest, Minister Samarasinghe urged citizens not to panic and assured that the government would continue to take necessary steps to maintain a stable coconut supply in the coming months.
