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Factors Affecting Coconut Price Determinants in Sri Lanka: An Integrative Review

Bandara, J.M.A.K. and Kumari, D.A.T.


Coconut is a multipurpose tree providing not only food, but, shelter and income source for tropical countries. In the Sri Lankan context, coconut has a prominent place in every kitchen. Coconut is used as; scraped coconut, coconut milk and coconut oil for the day-to-day cooking. It is a main income source for people in coconut triangle, in between Kurunegala, Puttlam and Colombo districts. Copra, coconut oil, desiccated coconut are the main export products of coconut in Sri Lanka. Today fiber and fiber related products are also booming up as export products of the country. The average coconut production was nearly 2,649 million between 1992 and 2012, The supply has changed from 2,164 to 3,096 million during this period. The per capita consumption of coconut and coconut oil is around 120 nuts per year, it is 70 percent of the total coconut production. With the increase of population this consumption value has increased. This high local coconut consumption and population growth is a major problem for the processing sector as the processing industry is facing a shortage of raw materials at present and in future. Fluctuation of coconut price is a major problem which, growers, coconut product manufactures and consumers are currently facing. Price fluctuation is mainly due to the high demand which hardly matches the supply. The objective of this paper is to discuss the factors affecting coconut price determinants of Sri Lanka. The findings of the paper can be used by policy makers for their policy decisions to identify the most significant factors influencing improvement of coconut demand and to formulate new economic strategies to achieve more profit in agricultural sector of the country. Therefore, this paper provides a timely review and an integrative framework of existing research on coconut pricing ant its determinants. This paper contributes to the economics discipline both by integrating a wide body of research on an important management topic and by offering broad avenues for further research.

KEYWORDS: Coconut, Exporting, Oil, Price, Process

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