Coconut growers in dilemma

SRI Lanka, often celebrated as the land of the “Tree of Life,” is facing an alarming crisis in one of its most vital agricultural sectors—the coconut industry.

- By Wing Commander Chanaka Fernando (Retd.)

While coconut remains an integral part of the nation’s culinary identity and a key export commodity, the growers who sustain this legacy are battling mounting challenges that threaten both livelihoods and the future of the industry.

At the heart of the crisis lies a growing disparity between what coconut growers earn and what consumers pay. The current farm gate price of a coconut has dropped to approximately Rs. 110, while retail prices in urban markets soar between Rs. 180 and Rs. 200 per nut. This disparity has exposed the unchecked power of intermediaries—middlemen and brokers who extract significant profit while farmers barely cover costs. For many growers, the system has become unsustainable.

Concerns have intensified over the recent conduct of coconut auctions held under the oversight of the Coconut Development Authority (CDA). While there was a brief increase in prices earlier this year—due to reduced production caused by whitefly infestation, coconut mites, and erratic weather patterns—this was short-lived. Prices were reportedly driven down again by deliberate manipulation from dominant buyers in the auction process. Many in the industry have raised alarm over the lack of transparency and fairness in how prices are set, leaving small-scale growers, vulnerable and voiceless.