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| Another Minister readying for hedging like swindling |
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(Lanka-e-News, November 29, 2008, 10.00 PM) Another Minister is reportedly getting ready for a swindle like hedging that took away $ 700 million from the country.
The Minister cum coconut mill owner who represents Puttalam district, has proposed the government a quota system for palm oil so that the entire business will go to a few desicated coconut millers. |
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Sri Lanka has imported palm oil to the country since 20 years as the coconut oil production is not adequate to supply the demand.
The country imports around 180,000 metric tons of palm oil a year. On the request of the coconut industry people of the country, the state imposed a 28% levy on palm oil since 2007 and as a result the amount of palm oil impoted in 2007 dropped to 57,000 metric tons.
The government introduced a cess of 4% for desicated coconut for the development of the industry.
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The price of a ton of palm oil in the international markets have declined from Rs. 1400 to 400 now. The import tax was reduced once to 5% but increased again to 15% for the protection of local coconut industry.
Sri Lanka needs 4000 million cocnuts for desicated coconut, oil and other productions. The Chairman of the Coconut Development Board D.G.U. Purasinghe says that the maximum coconut production of the country is 2800 million nuts. 1900 nuts are needed for consumption and 1300 milion are needed for oil extraction. 800 milion nuts are needed for desicated coconut.
The coconut oil production was increased in 2007 from 18,000 metric tons to 75,000 metric tons. However, the coconut industry is in crisis now as the price of a nut has declined to 13.50 average. Coconut production has also declined. However, the people in the industry gained fat profits until the beginning of the year.
The Minister’s proposal for quota for palm oil import comes in this background. Quota system is highly corrupt and the quota system in the garment industry is pointed out as an example.
A committee has appointed under the chairmanship of the Ministry of Plantation Additional Secretary Disanayaka to make recommendations after studying the proposal for a quota system for importing palm oil. The report of the committee will be submitted by the coming weekend.
A spokesnam of the Ceylon Chamber of Commerce said to Lanka-e-News that the licence and quota system to import palm oil would create a monopoly and proposed to impose 28% tax again on palm oil imports. |
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