Sri Lanka's coconut auction maintained a fixed price of 140,000 rupees (approximately 700 USD) per thousand nuts for the second consecutive week on January 30. This follows an average price of 145,687 rupees (about 728 USD) on January 9, according to official data.
Buyers and sellers at the auction, conducted by the Coconut Development Authority, agreed to cap the price at 140,000 rupees (700 USD). However, the volume of coconuts offered decreased from 239,829 to 172,462 nuts, with sold volumes dropping from 238,624 to 114,800 nuts. On January 30, sold volumes further declined to 82,257 nuts.
Analysts suggest that coconut farmers may prefer selling in the open market due to the auction's price cap. Coconut prices have risen steeply since the last quarter. Auction prices, which were around 90 rupees per nut until August, increased rapidly in subsequent weeks, reaching an all-time high on January 9.
The auction was not held on January 16 due to a shortage of nuts. Despite a previous price of around 60,000 rupees (approximately 300 USD) per 100 nuts in 2021, prices did not increase sharply in 2022, even when the rupee depreciated. While fresh coconuts are not directly exported, coconut products are.
Sri Lanka's coconut production has declined in 2024, causing higher demand. The country is 250 million nuts short of the projected production for the first half of 2025. Industry officials emphasize the need to import raw materials to prevent losing export markets to competitors.
Coconuts retail at 205 to 220 rupees (about 1 to 1.10 USD) per nut in supermarkets. Wholesale prices for large nuts were 180-190 rupees (around 0.90 to 0.95 USD) and 150-170 rupees (approximately 0.75 to 0.85 USD) for small nuts on January 23. Coconut oil's local wholesale price ranged from 840,000 to 880,000 rupees (about 4,200 to 4,400 USD) per metric ton, while coconut shells were priced at 47,000 to 49,000 rupees (approximately 235 to 245 USD) per metric ton.
Source: Economynext