The Hindu Business Line : Imports hurting desiccated coconut powder makers

IT'S now the turn of desiccated coconut powder makers to complain about imports, particularly under free and preferential trade agreements. Hurt by rising coconut prices, desiccated or dehydrated coconut powder (DCP) manufacturers say they are currently being affected by rising imports of DCP from Sri Lanka.

"The normal import tariff for DCP is 70 per cent. But for imports from South-East Asia or Sri Lanka, the customs duty is 30 per cent. This is because of the Bangkok and Free Trade Agreement signed by our Government," says Mr P.P. Mall, President, Karnataka Desiccated Coconut Manufacturers Association.

Between January and June this year, at least 10,000 tonnes of DCP have been imported from Sri Lanka.

This is over 20 per cent of the annual DCP production of 45,000 tonnes in the country.

"We have over 90 units producing DCP in only South India, particularly Karnataka and Tamil Nadu," Mr Mall said. The total annual turnover of the units is Rs 300 crore.

DCP makers' problems don't arise from imports alone.

"Coconut prices have gone up due to lower production. This is because of the mite disease which has destroyed many plants," he said.

"As a result of high prices, we have been forced to cut production by 40 per cent," Mr Mall said.

Taking advantage of this, traders have begun to import DCP from Lanka. DCP, produced by dehydrating fresh coconut, is mainly used in North India for sweets and biscuits, mainly cookies. Aggrieved over the current developments, desiccated coconut powder manufacturers have sought the intervention of the Union Government.

"These imports have caused serious injury to our industry. Therefore, we have urged the Union Finance Minister, Mr P. Chidambaram, and the Union Commerce Minister, Mr Kamal Nath, to raise the customs duty to 150 per cent. In addition, we have also asked them to check under-invoicing by traders," he said.

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