NMCRP warns of potential local coconut oil price hike risk

The National Movement for Consumer Rights Protection (NMCRP) has warned that due to the budget proposal submitted by the government to remove the Special Commodity Levy on coconut oil and palm oil, it could lead to serious market and health-related consequences.

Addressing a media briefing held in Colombo today (29), NMCRP chairman Ranjith Vithanage stated that the proposed decision carries a high risk of coconut oil being mixed with harmful oils before entering the local market.

He further stressed that a potential increase in the price of locally produced coconut oil could be expected from April 01.

Vithanage noted that the removal of the levy may encourage the widespread availability of palm oil and other substitute oils in the market.

According to medical concerns, he emphasized that doctors recommend coconut oil as the most suitable option for deep-frying, while the use of palm oil and other alternative oils has been linked to increased health risks.

He also pointed out that exporters involved in coconut-based industries are diverting coconuts intended for domestic coconut oil production towards exports, resulting in a shortage of coconut oil in the local market.

According to the NMCRP Chairman, this shortage has compelled consumers to turn towards palm oil and other low-cost oils.