The 29^th Annual General Meeting of the Coconut Growers Association of Sri Lanka was held on the 4^th of August 2023 at the Sri Lanka Foundation, Colombo 7.

The dignitaries at the head table were:

• His Excellency the President Hon. Ranil Wickremasinghe,
• Hon. (Dr.) Ramesh Pathirana Minister of Plantation Industries,
• Professor Roshan Perera Chairman of Coconut Development Authority,
• Mr. C. C. Muhandiramge Additional Secretary Ministry of Plantation Industries,
• Immediate Past President Mr. Jayantha Samarakoon,
• President Mr. Cryshantha Jayawardhana,
• Secretary Mr. Shakila Wijewardane of the Coconut Growers Association of Sri Lanka (CGASL).

The outgoing president of CGASL Mr. Jayantha Samarakoon in his welcome address reiterated that Sri Lanka with 1.1 million acres of coconut producing 2.496 million tons will lose its position to Brazil as the 4^th largest producer of coconut. Brazil with 800,000 acres is set to produce 2.458 million tons. The Sri Lanka nut production per tree/ per annum is only 55.

Sri Lanka’s export income from coconut products was USD 817 million in 2022. USD 407 million from kernel products and USD 410 million from non-kernel products.

He compared Thailand having 450,00 acres of coconut land producing about 800 million coconuts earn over USD 10 billion annually from export of coconut products.

Thailand increased their export income, by liberalizing the coconut sector to foreign direct investments and value addition of coconut products.  In Sri Lanka too we need to follow investment strategy to liberalize the coconut cultivation and processing sector with foreign direct investments, and public-private-partnership.

The farm-gate price of a coconut is LKR 50-60 at the moment and the retail price is LKR 110-120 per coconut. It is therefore evident that the middlemen in the supply chain are benefitting at the cost of growers and consumers.

The main reasons for the low farm-gate pricees are owing to excessive import of crude pemoline, and coconut oil. The other reason is pegging the farmgate price of husked coconut for industrial use to low-quality DC products by Coconut Development Authority (CDA) and Coconut Research Institute (CRI).

Sri Lanka’s annual edible oil requirement is 250,000 MT for industrial and domestic consumption. Domestic consumption is 90,000 MT, though Sri Lanka has facility to produce this requirement only 30,000 MT is produced locally, and balance is imported.  We request the government to encourage Traditional Coconut Oil Producers to meet the entire annual domestic demand. This will save over USD 100 million in foreign exchange annually.

Therefore, we request the President to appoint a committee to expedite the proposed liberalization, modernization, and digitalization of the coconut industry in Sri Lanka for SUSTAINABLE COCONUT PRODUCTION FOR FOOD SECURITY AND NUTRITION OF THE NATION whilst bringing much needed foreign exchange.

Mr. Cryshantha Jayawardhana President of CGASL in his inaugural speech presented a strategic plan and the road map of the association for period 2023/25 by a video presentation.

The video presentation highlighted the issues the coconut industry is currently facing with high input cost to farmers making it uneconomical to maintain essential agricultural practices. Coconut being a perennial crop, he requested for consistency in policy for at least five years as being essential to observe results in the industry.

He proposed the implementation of a Geographical Information System for the coconut industry (Agri GIS) with all stakeholder participation to support the policy makers with accurate real time information to improve productivity, to assist CDA with market information and coconut auctions, Coconut Cultivation Board (CCB) with extension programmes, pest and disease control, crop projection, and for the grower access to markets to obtain a competitive price and obtain input supplies.

He was optimistic that the growing industry could be revived after nearly three years of neglect with immediate intervention by the government with proper policy, investment, and stakeholder participation.

Minister Hon. (Dr) Ramesh Pathirana highlighted the significant increase in coconut export income in recent times, driven by the growing demand for various coconut products like milk, substrate, and activated carbon. This year, exports related to coconut products are expected to generate 700 million dollars, and the goal is to achieve a 2-billion-dollar export income within the next decade. To support this, a second coconut triangle is planned to be established, covering areas in the Northern Province like Jaffna-Point Pedro, Mannar, and Mullaitivu.

Currently, two-thirds of coconut production is utilized locally, leaving only one-third for exports. The plan is to increase opportunities for exports by altering this situation. Investments should be encouraged in the coconut industry. Currently, 55% of total coconut production comes from the Coconut Triangle, and the plan to establish a second coconut triangle in dry areas is a promising step forward.

President Hon. Ranil Wickremesinghe expressed gratitude for the invitation to participate in the deliberation of a very important industry and acknowledged the historical significance of coconut cultivation in Sri Lankan and the businesses it created. The land reform enactment of 1970 reduced the Sinhalese peoples land holding significantly of coconut land, leading to a decline in the capital of Sinhala businessmen.

He further mentioned that during the presidency of J.R. Jayawardena, efforts were made to develop the coconut industry with assistance from the Asian Development Bank. However, he acknowledged that the coconut industry’s progress over the last 50 years has not been satisfactory, contrasting it with other countries such as Brazil and Vietnam that have rapidly advanced in coconut cultivation.

President Ranil Wickremesinghe emphasized the current situation of coconut farmers in Sri Lanka, with 82% of them owning less than 20 acres of land, while only 18% are engaged in large-scale cultivation. Comparatively, India, which started coconut cultivation with approximately 20 million acres of land in 1950, now has around 45 million acres dedicated to coconuts.

He pointed out the significant difference in coconut yield between Sri Lanka and neighboring regions like Tamil Nadu, Telangana, and West Bengal. While Sri Lanka’s coconut production stands at 7000 nuts per hectare, these regions are achieving much higher yields, such as 11,400 coconuts per hectare in Tamil Nadu and 10,000 coconuts per hectare in Telangana.

President Ranil Wickremesinghe’s address at the event indicated his concern for the coconut industry’s development in Sri Lanka and his commitment to fostering progress in the sector to match the advancements seen in other countries.

In the Andhra region, coconut cultivation yields approximately 15,000 coconuts per hectare, which is twice the output we achieve here.

A proposal has been put forth to merge three coconut-related institutions, and it seems appropriate to combine the Coconut Research Institute with the Agricultural University, thereby streamlining the process.

The government has already initiated an agriculture modernization program with the aim of creating a highly competitive economy through agriculture. To achieve this, we must also focus on advancing the coconut industry. Increasing coconut production and marketing it effectively are crucial. Relying solely on price control will not lead to successful business development. Instead, the key lies in boosting production and enhancing the value of coconuts.

Mr. Shakila Wijewardena Secretary of the Association delivered the vote of thanks. He thanked the chief guest, guest of honor, invitees, industry stakeholders, members, and sponsors for their participation to make the event a success.