The Hon. K.V. Samantha Viddyarathna – Minister of Plantation and Community Infrastructure

¶ 01 Mr. Speaker, the response to the Hon. Ravi Karunanayake’s question is as follows:

¶ 02 1. From 2014 to 2024, annual nut production (in million nuts) is: 2014 – 2,905; 2015 – 3,027; 2016 – 2,845; 2017 – 2,450; 2018 – 2,623; 2019 – 3,085; 2020 – 2,792; 2021 – 3,383; 2022 – 3,391; 2023 – 2,944; 2024 – 2,754. The Coconut Research Institute (CRI) forecasts 2,700–2,800 million nuts for 2025.

¶ 03 Reasons for decline (per CRI): - Poor long-term management of coconut holdings reducing productivity. - Insufficient fertilizer application for a prolonged period, exacerbated by the fertilizer ban and subsequent high prices due to the economic crisis; unlike short-duration crops, coconut responds over longer horizons. - Aging stands beyond prime bearing age remaining un-rehabilitated. - Climate variability impacting yields. - Major pests/diseases now prevalent: whitefly, red weevil, and Weligama disease in the South, among others.

¶ 04 2. To reverse the trend, the Coconut Development Authority and CRI have prepared plans. Our target is to reach 4,200 million nuts by 2030 and earn USD 1.5 billion in exports. With UNIDO and all sector stakeholders, we have formulated a 10-year roadmap and a 5-year strategic plan to achieve these goals.

¶ 05 3. Fertilizer: The present Government, with support from the Russian Federation and Uralkali, obtained 56,700 MT of MOP free of charge. Of this, 27,500 MT was allocated to the plantation sector for coconut. Since MOP alone is insufficient for coconut, we are blending with Eppawala phosphate and urea via the Fertilizer Corporation under Cabinet approval. Production commenced and, since late March, distribution has been readied. We now have about 56,700 MT of coconut fertilizer for phased distribution.

¶ 06 Phase 1: Provide subsidized fertilizer directly to smallholders with 0.5–5 acres (the most constrained group). A 50 kg bag retailing around Rs. 9,000 will be given at Rs. 4,000. The typical application is about 3,300 g per tree. The total subsidy outlay is about Rs. 5,600 million.

¶ 07 Phase 2: For holdings above 5 acres, we will provide an amount equivalent to 5 acres on a fair basis at subsidized price; Cabinet has been apprised and preparations are underway.

¶ 08 Smallholder support programs via Coconut Cultivation Board: - Supply quality seedlings for systematic and home garden planting via registered and supervised seed farms. - Support underplanting/replanting by removing senile trees; conduct mobile extension programs to motivate growers. - Promote animal and pest deterrence (e.g., barrels/tyres) to reduce seedling damage by wildlife, based on CRI recommendations. - Work with the Ministry of Finance to arrange concessional loans with interest relief and collateral cover to develop coconut lands as commercial plantations. - Expand farmer awareness and establish field demonstrations. - This year, distribute 5 million seedlings to 2.5 million households (two per household) with 1 kg of the required fertilizer mix per recipient.

¶ 09 Model plantations: - In all coconut-growing districts and agro-climatic zones, select beneficiaries and lands (min 0.5 acres; up to 1 acre) via CCB/CRI/Department of Export Agriculture and Divisional Secretariats to establish model farms.

¶ 10 Water: - Establish scientific, efficient water supply systems and provide pumps/hoses where required. - Promote renewable energy (e.g., solar) to power water systems. - Prepare land for allied intercrops to ensure early incomes as coconut matures (4–5 years).

¶ 11 Pest and nutrient management: - Demonstrate integrated nutrient management (organic + chemical) for higher yields. - Demonstrate integrated pest management for key pests/diseases. - Promote export-oriented allied intercrops.

¶ 12 Additionally, using Rs. 90 million (CCB) for micro-irrigation/low-cost hose systems and Rs. 191 million for moisture-conservation projects; necessary approvals are being obtained.

¶ 13 4. Expansion into non-traditional areas: We have already begun expansion, notably the Northern Coconut Triangle—Pooneryn region (Jaffna, Kilinochchi, Mullaitivu, Mannar, Vavuniya). For 2025, Rs. 500 million is allocated. In 2023, Rs. 91.2 million was used to plant around 10,000 acres, though some estates are weak. Our plan is 40,000 acres over 2025–2027: 16,000 acres in 2025, 16,000 in 2026, and 8,000 in 2027. This year we plan to supply 1,024,000 seedlings across the five districts (e.g., 143,350 to Jaffna; 245,800 to Mullaitivu), free of charge. For systematic growers, a Rs. 30,000 per acre grant is planned for water systems. Beyond the North, 1.5 million seedlings are planned for 20,000 acres countrywide. The home garden program targets 5 million seedlings to 2.5 million families.

¶ 14 We also plan a “Village of Toddy Tappers” program from 2026 to expand employment and export value, with preparatory seed collection and training already underway to raise 50,000 toddy-related seedlings.

¶ 15 We will rehabilitate abandoned/neglected large estates—especially within the main Coconut Triangle—under the “Life Back to Coconut Lands” program: land rehabilitation, moisture conservation, water systems, underplanting/replanting, pest/wildlife damage reduction, and model home gardens.

¶ 16 5. We have already brought growers, industry, government and research institutions together and prepared the 10-year roadmap for the coconut sector, as noted.

¶ 17 We also recognize substantial wildlife damage (monkeys and porcupines) causing losses estimated at around 200 million nuts annually—approximately equal to this year’s deficit. We are working on an integrated approach and a task force for pest/disease/wildlife mitigation, with Rs. 100 million allocated this year.

¶ 18 6. We acknowledge domestic prices have become burdensome due to reduced output and higher demand. To protect both consumers and the industry, Cabinet approved limited imports: reduce levies to allow import of a volume equivalent to 200 million nuts (as milk/cream and DC) to stabilize markets. So far, 40 MT of coconut milk has been approved, of which 20 MT has already arrived.

¶ 19 To minimize impacts on the domestic oil industry, we have allowed, under Coconut Development Authority regulation, the import of split, sun-dried coconuts with kernel (not copra), routed through the State Trading (General) Corporation. A special commodity levy of Rs. 10 per unit applies to such split, dried nuts, to safeguard local growers.