Sri Lanka cocoa price hike may prompt imports

July 02, 2010 (LBO) – Sri Lankan cocoa prices have shot up owing to cop failure and heavy demand for cocoa beans might prompt the confectionary industry to resort to imports, a trade body said. The Spices & Allied Products Producers™ and Traders™ Association (SAPPTA) said the price for a kilo of grade one cocoa beans shot up to 400 rupees.

There is a high demand for cocoa beans locally, it said in a report.

This due to a marginal crop failure during the year. Due to limited availability of cocoa beans, the confectionary industry might import cocoa beans to meet their requirements.

The main cropping areas are in Malawana and Hapugastanne in the central hills.

Cocoa prices had been around 340 350 rupees a kilo in late May and 305-330 rupees in mid-March and as low as 270-290 rupees a kilo in early January and late December, according to SAPPTA market reports.

In early June last year prices had been around 250-270 rupees a kilo of cocoa beans for the three main grades.

Sri Lanka™s cocoa crop has been limited owing to neglect of plantations when prices had been low and the trade has been trying to encourage small farmers and plantations compani