Plantation Industries Minister Lakshman Kiriella has told the Coconut Growers Association of Sri Lanka (CGA) that the Rs. 20 per kg. surcharge on edible oil imports (chiefly palm oil) cannot be extended beyond March 31, the association has told its member.

Kiriella has attributed this to international trade agreements and asked the association to propose other types of assistance and incentives to coconut growers.

The present high price of coconuts running at around Rs. 12 per nut ex-estate, and much higher when retailed to consumers in urban areas, is partly a result of the surcharge on edible oils imposed last year when coconut prices slumped to an uneconomic low.

CGA which is planning to submit a memorandum to the government on incentives that may be offered to growers have requested its members to make their suggestions on incentives required to improve and rehabilitate their lands with a view to increasing production.

CAG Secretary J. V. R. Dias has said that the association is in touch with the Coconut Research Institute to organise a discussion forum with the aim of promoting the rehabilitation of coconut land now performing below optimum levels.

CGA has also said that as a result of the extension of the surcharge on the import of edible oil for three months from December 31 to March 31, they understood that there are moves by the processing industry to import coconut oil and an exemption of the surcharge is being sought for this purpose.

"Our stand is very clear on this issue," Dias said. "To tide over this difficult period of short supply of nuts, we do not oppose this exemption in the case of coconut oil subject to the condition that the volume is controlled, and released to the local market to stabilise the coconut oil prices."

He explained that this should be done so that a tonne of coconut oil in the market would be the same price as a tonne of desiccated coconut.

"To effectively carry this out, the import and supply to the market has to be done through the BCC or the CWE in a manner similar to rice, potatoes and chilli imports," he said.

Dias has also told the CGA membership that there are also moves to import copra and said even here the same volume control proposed should apply. Also, imported copra should be subject to strict quarantine and quality control and fumigated to prevent pests and diseases being carried to coconut plantations here.

He said that the government should also get the opinion of specialised agencies on this matter. The CGA has written to the Secretary to the Ministry of Plantation Industries expressing its concerns.