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‘Coconut Development Authority the future pioneer of economic growth’ – CDA Chairman, Keerthi Sri Weerasinghe
2021 records largest income from coconut exports in history
Public unaware it is an immune booster and an ideal source of high nutrition
Next goal: Coconut re-export zone, Hambantota
Coconut Development Authority Chairman, Keerthi Sri Weerasinghe claims that the largest income from coconut exports on record was achieved in 2021. A programme with an economic goal of USD 2.5 billion is already in the works.
Commenting on plans to reap economic benefits from coconut development, Weerasinghe admitted that Sri Lanka is faced with an economic crisis. “The Treasury is left with only USD 1.04 billion. We are forced to pay huge debt service payments. Consequently, we can’t retain dollars.” He reiterated that the Sri Lankan economy is currently experiencing negative growth. “We have no money for imports. Therefore we must strive for higher export revenue.” Weerasinghe pointed out that Sri Lanka can no longer depend solely on traditional methods for income generation. “This is exactly where we failed. Using only traditional methods has curtailed our revenue. We must increase our income tactically.”
He revealed that the estate sector has already amassed a considerable sum to this effect. According to him, the coconut industry alone brought in approximately USD 661 million last year. “It has hauled in approximately USD 850 million by November this year. It’s a 30 percent increase in export income.” In fact, 2021 records the largest income from coconut exports in history. Weerasinghe divulged that a plan to double it is in the works. He informed that the need has arisen to rouse the industrialist out of stagnation. “Industrialists are the ones who introduced the coconut industry and coconut-based products to the world. Such products became popular globally. The reason for this popularity is the numerous attributes of coconut.”
Weerasinghe pointed out that the reason for comparatively few COVID-19 casualties is due to the many attributes of coconut. “Locals, who are used to consuming a lot of coconut, are naturally disease tolerant due to the immunity-boosting nature of coconut.” He said that, although the locals are oblivious of such advantages, the rest of the world is not. Consequently, there is a huge demand for coconut. “Coconut contains lauric acid, Omega-3 and Omega-6. The only other substance that contains these constituents is breast milk, a known immunity booster.” He explained that coconut oil contains approximately 60 to 70 percent Medium chain triglycerides (MCTs), popular as ‘brain cell fuel’. As the term suggests, MCTs supports the brain’s nervous system. Its fast-absorbing nature allows it to be used as a quick energy source. “The body produces energy through processing glucose. But the energy produced by processing lipids is important for brain cells. There is a fundamental difference between the two types of energy produced by processing glucose and lipids.” In many countries, MCT dietary supplements are introduced to children to combat autism and Parkinson’s as MCTs are vital for the proper functioning of the nervous system. “Glucose
requires insulin to facilitate the absorption of energy produced through its processing. But MCTs are readily absorbed into the bloodstream.”
According to Weerasinghe, the future will offer Sri Lanka the opportunity to supply this demand, which so far Sri Lanka has failed to deliver. He confided that although Sri Lanka was able to increase coconut production from 2800 million coconuts last year to 3100 in 2021, it’s not sufficient to supply the demand. “We are losing the industry. In fact, since we can’t supply the demand our industrialists have been forced to open factories in countries like Indonesia and the Philippines. Not only is our technology transferred, but our industry is also forced to compete with those countries.” He pointed out that local industrialists are operating at half their capacity. “They get only 50 percent of their coconut requirement since we don’t produce enough. We could earn extra revenue while supplying this demand.”
A special export zone was established at Hambantota for this purpose. “It will provide a platform for industrialists to develop the industry and supply global demand by importing coconut to supply their demand.” He declared that after the industrial zone and the re-export zone commences operations it could bring in 2.5 billion by 2025. “Lands have already been earmarked for the purpose, with the collaborations of the Board of Investment. Twenty-five local industrialists have already expressed their interest. We are currently awaiting phytosanitary certification. Everything is a go. We just need the recommendation of the National Plant Quarantine Service and the Coconut Research Institute.” He further revealed that the project is independent of state finances, except to construct the office complex and laboratory. “Instead funds provided by private sector industrialists will be utilised. It’s an obvious source of income. And after the laboratory commences operations, it can cater to laboratory requirements of not only the coconut industry but could also provide laboratory facilities to the whole Southern Province. It will be capable of issuing quality assurance certificates for other cultivations as well.”
Weerasinghe revealed that the cost of the first phase of this two-phase project will be to the tune of SLR 10 billion. “Which will be born by industrialists, because this is a huge profit-generating industry. The only thing left for the state sector is to leave the industry to its own devices.” He reiterated that it is a strategic project. “It will be housed in the Hambantota Port and Sri Lanka Customs, Police, Coconut Research Institute (CRI) and the National Plant Quarantine Service will operate from within this zone. Not a single coconut imported for this purpose will enter the local market.” Weerasinghe claimed that he can guarantee that, although tea is currently the major export crop hauling in the biggest chunk of foreign exchange in Sri Lanka, coconut can generate USD 2.5 billion worth of foreign income by 2025. “If we can achieve this Sri Lanka will never have to face another economic recession.”
Weerasinghe opined that, when the world transcends traditional industry, it can branch off to other industries and produce finished goods instead of raw material. He is already in discussion with the world’s leading industrialists to this effect and is confident that the foreign exchange can be increased to five billion US dollars. “The market share of coconut-based products is USD 40 billion. With just five billion of that, we can bail out our economy.” Weerasinghe believes that the general population lacks an understanding of the Sri Lankan economic situation. “Particularly the state sector employees. Seventy-five percent of them are pessimistic. A majority of the Sri Lankan public would rather languish without work. This has to change. Our Authority worked five days a week without break, even during the lockdown period, to bring it to this level.”
Weerasinghe was able to encourage the Coconut Cultivation Board (CCB), CRI and industrialists. “Vested powers must be used not for one’s benefit, to fulfil personal vendettas, but to achieve economic advancement. The President clearly wants to do the right thing. The Finance Minister and Ministers Ramesh Pathirana and Arundika Fernando are proactively working towards the same goal.” Weerasinghe elaborated that the tourism industry has collapsed and the only way to resolve it is to generate income to supplement the loss. Weerasinghe, with the collaboration of all chairpersons, hope to develop a proactive methodology in this regard. “We must endeavour to strengthen the rupee.”
Commenting on the issue of coconut mites that plagued coconut cultivation in the recent past, Weerasinghe admitted that the industry has failed to bring the mite problem under control. As a result of the Authority’s discussions with the Brazilian Agriculture Department, they have expressed their willingness to assist the local coconut industry in the matter. “The problem is that coconut trees grow quite tall. As such, application of chemicals can prove very tricky, because of the farms and residential areas surrounding the plantations.” The CDA, in collaboration with the CRI and CCB, hopes to resolve the issue using drone technology.
But the mites are the least of the problems faced by the coconut industry. “Monkeys, macaques, giant squirrels, porcupines, elephants and free-ranging cattle contribute to one-third of crop destruction, jeopardising food security.” He pointed out that countries like the US have warranted culling to keep deer populations at bay. “If we are to develop the estate sector, crop destruction must be prevented at any cost.”
Weerasinghe revealed that the CDA assists small scale industries. “Capital is vital in entrepreneurship. The advantage of coconut-based businesses is that it requires little capital. Coconut husks alone fetch USD 300 million, coconut shells USD 200 million.” He revealed that entrepreneurs are issued dryer machines and other technologies and are eligible for interest-free loans. “They are given the opportunity to break into not only the local market but the global market as well. At the moment such businesses are doing considerably well.” On behalf of the CDA, he expressed willingness to assist anyone who is dedicated and is interested in breaking into the industry. The CDA has been providing coconut oil producers with dryers. “Copra develops mould during the drying process, which produces Aflatoxins. This is why the CDA issues dryers that can dehydrate coconuts in a matter of hours, instead of days.”
When asked how the CDA hopes to intervene to produce coconut oil devoid of Aflatoxins, Weerasinghe reproached media for disseminating false information regarding the subject. He added that the public’s awareness of the subject is also miserably inadequate. “Coconut oil is imported as crude oil, which is then refined into ‘refined, bleached and deodorised’ oil, known as RBD. These have zero Aflatoxins. However, locally produced oil may contain Aflatoxins.” He claimed that the objective of the CDA is to produce oil with zero Aflatoxins after refining. “RBD oil can be consumed without fear.” According to him, legislation that makes mandatory the indication of Aflatoxin levels on the packaging is in the works.
When asked whether the CDA has taken action to bring coconut prices under control, he declared that the CDA is vested with the authority to regulate the coconut supply. “Coconut is used for consumption, oil production and coconut-based business. Sri Lanka is unable to produce enough coconut to supply the combined demand of the three categories.” He elaborated that depending on the supply the CDA reduces or increases the import tax and quantity of oil imported to compensate for the demand. “Coconut prices go up only when this process is not streamlined. Consequently, it is very easy to control coconut prices. In fact, we will ensure that prices remain stable in the near future.”
When asked about the CDA’s plan to produce coconut milk, Weerasinghe expressed interest in tripling coconut milk production. “Coconut milk use has exceeded dairy use. Coconut milk has the ability to eliminate fungus, bacteria and parasites. Consequently, the demand for coconut milk has increased.” He said that the CDA is bent on popularising coconut milk production in order to prevent bacterial contamination when making coconut milk at home. “And also to develop the product as a business venture. When coconut milk is produced at the factory level, the coconut shell is not discarded. Shells are in high demand and this brings in a huge profit. Even waste coconut scrapings are in high demand.” As such, it would come as huge relief to Sri Lankan housewives that the CDA does not condone coconut scraping on a regular basis.