Sri Lanka Coconut Industry

Published Date: 02 Nov 2017

1Senior officers of the coconut development board said that palm oil is the major competitor for coconut oil in the state. So, the coconut board has sought a ban on palm oil import to make down all coconut oil prices.

Coconut oil must require in south state and sri lanka government make a ban on the import of palm oil from the southern ports will increase & demand for coconut oil.

In Sri Lanka, the development board make pressure on the union government to lift the quantity restriction on the coconut oil and make bulk packing in Indian south ports. Due to static available with the CDB, import of refined oil during November- may increased by 97 % and touched 10, 84.033 tones compared to 5, 51,327 tones in the previous year. and sri lanka crude palm kernel oil import increased by 82% compared coconut oil.

Coconut oil export is limited up to maximum of 10,000 tones. A restricted quantity can only be export in branded consumer packs up to 5 kg each.

Since international as well as domestic prices are almost same with other, the export market is population of south Indian people in the west Asian countries.

2Import duty

On 18 February 2010, the government of Sri Lanka waived existing import duties on oil and petrol products. Effective until further notice, palm, soybean, sunflower seed and coconut oil are subject to lower import duties.

There has been growing demand over the last week or so for March and April supplies. Prices have not really moved but there is a growing opinion that coconut oil will firm up over the next month or so as demand is slowing increasing. This is expected to push up prices of desiccated coconut by a little. Also there is a large trade show going on in the Middle East this week which might some extra business for the Philippines as well.

On the negative side though Sri Lanka has dropped their import duty on coconut oil which has helped to push their prices down a little. This hopefully will balance out any switch in demand from the Middle East as a result of the current trade show.

Moving forward production remains good with no issues. Market at the moment is demand driven but with Cadbury, Mars and Nestle all well covered its the large

3IMPORT TAXES

Sri Lanka Coconut manufacturing owners are advice the government to decrease the tax on palm oil import to decrease the coconut prices in the limited market.

Manufacturing source said that the require for the coconut oil have improved payable to a raise in the palm oil taxes.

According to the Coconut growth power the global prices of new coconuts be: Philippines Rs. 16, Indonesia Rs. 13, Thailand Rs. 13 and Sri Lanka Rs. 31.

Obligation on palm oil import be raise to care for coconut oil millers, who would or else include be not capable to compete by low-priced import. upper require as of coconut oil mill short of up the farm entrance prices of raw coconuts, ensure improved income to cultivators. But, it lead to an raise in the prices of raw nuts.

The dried coconut industrialist claim that the add to in coconut prices have unfavorably unnatural them with cause a failure of about 10,000 straight and 20,000 not direct jobs, due to the strict lack of coconuts in the country.

The price per nut ranges from Rs. 35-40 while a bottle of coconut oil sell at Rs. 200.

"Usually, all day as of January to April the state experience high coconut prices," he said.

Responding to a doubt Minister said that the trade in taxes of palm oil couldn’t be reduced as the government had to protect the limited coconut growers.

Trade Restrictions

Srilakan coconut Industry

Trade Restriction

Custom Duty

Import Taxes

Import Duty

Foreign trade receive

The prices of copra in viz., Kochi, Alappuzha, Alleppy, Kozhikode, Manglore, Kangayam markets provide a fair index of copra prices in India It could be observed that the prices in Foreign and Indian markets, generally exhibits a similar trend.

It was observed that the Srilanka market and Indian market showed closed affinity towards their price trend than the rest of the world market, which more or less behaved in the same manner.

The relative level of prices in these markets changed from time to time. The prices in Indian markets were slightly higher than the prices of Indonesia, Philippines and Sri lanka markets

Conventional trade in coconut product including nuts and copra are characterized by the involvement of intermediary at different levels of marketing due to which the farmers suffers a long.

Organized transport system involving number of cottage industry area should be involved.

LABOUR LAWS

In Sri Lanka, labour rule is law for labour connecting to their service.

In Sri Lanka labour law is commence starting regarding 1830 by the increase of agricultural estate industry.

At present, there are 45 labour standing in process of which a few are extra or fewer obsolete.

Labour Law

Sri lanka Coconut Industry

Wages Boards Ordinance No 43 of 1941

Factories Ordinance No 45 of 1942

Employee holiday Act No 06 of 1959

Privilege Leave (private) Law Act  No 14 of 1976

Employee provident fund Act No 46 of 1980

Payment Gratuity Act No 12 of 1983

WORKING SHIFT

WORKING HOURSE OF LABOUR

Normal Working Day- One-Shift Operation

Monday to Friday

9 hours per day(10.00 a.m. to 7.00 p.m)

Saturday

6, 6 ½ or 7 hours(10.00 a.m. to 4.00 p.m)

Two Or Three-Shift Operation

Monday to Friday

8-10 hours per day

Saturday

5 ½ hours per day

Night Work

Male

NO restriction

Female

8 hours per night(10.00 p.m. to 6.00 a.m)

EMPLOYEE HOLIDAY

DETAILS

Weekly Holiday

Sunday shall be the weekly holiday for factory workers. it is an unpaid holiday.

Poya holiday

The full moon Poya day of each month is a holiday with pay for monthly paid employees.

Public Holidays

Public holidays declared by the government. there are 8 such holidays at present

EMPLOYEE LEAVE

DETAILS

Vacation Leave / Annual Holidays

14 to 21 days per year

Casual Leave

7 days per year

Sick Leave

Sick leave may be granted at the discretion of the management.

Maternity Leave

84 days