Industries Minister Wimal Weerawansa has instructed Consumer Affairs Authority Chairman to annul the gazette notification issued in 2016 authorising the sale of coconut oil mixed with palm oil.
During a discussion with local coconut oil producers at the Industry Ministry yesterday, the Minister gave the instructions in a telephone conversation with the Chairman, the Minister’s Media Unit in a statement said.
It was revealed during the meeting that this gazette notification was issued in 2016 by the Consumer Affairs Authority on the instructions of the then Industry and Commerce Ministry Rishad Bathiudeen.
Local coconut oil producers said that the local coconut oil industry had suffered a severe setback due to the reduction of the Cess of Rs. 295 per kilogram to Rs. 125 per kilogram for imported coconut oil.
They told the Minister that local coconut oil producers could not compete with imported coconut oil with such a tax concession.
Minister Weerawansa said a Cabinet paper will be presented to address the price distortion.
The Minister said that his Ministry will take all possible steps to uplift the local coconut oil industry such as purchasing coconut oil from local producers at controlled prices, importing copra instead of coconut oil and producing coconut oil through local coconut oil producers and stopping the export of coconuts as nuts.
