06/05/2009 (Daily News, Sri Lanka) - The Government will not hesitate to impose high taxes on palm oil imports as a precautionary measure to protect the country’s coconut industry, said Minister of Plantation Industry, D.M. Jayaratne.

The Minister added that the Government has already increased the taxes on palm oil and palm kernel oil to a considerable level.

He was addressing a meeting held at the Ministry, organized by representatives of coconut cultivators in Colombo.

Responding to the grievances of coconut cultivators Minister Jayaratne pointed out that price per nut at estates is around Rs. 8-10. But the market price of a coconut is around Rs.20-25. Therefore, a substantial profit is made by middleman.

This process should be stopped. For the demands made by coconut cultivators is to increase the present taxes, the Minister said that the Government imposed a tax of Rs.60 on a 1 kg of palm oil and proposed to increase this by further Rs.20.

Minister Jayaratne said that the Government has decided to stop importing a substitute for coconut oil too.

More than Rs.15,028 million have been spent during 2008 for importing palm oil. This is a real waste of money, he said.

The Minister also appealed to the relevant officers to take necessary action to increase coconut exports.

Coconut Cultivation Board (CCB) Chairman Dr. Jayantha Gunatilaka was also present.