A total of 17 oil and soap production companies in Inhambane, in the south of the country, may close down due to the lack of coconut on the market, the main raw material used for production.

According to Francisco Feijão, provincial director of agriculture and fishing, the reduction of coconut supply for the industrial sector is due to the increase of its commercialization in raw or fresh form, a market preferred by traders due to the price and ease of sale.

The copra (the dried pulp of the coconut) is sold to oil and soap production companies for five meticais a unit, and fresh coconut is sold in the streets and local markets for 12 to 20 meticais a unit, said the official quoted by the daily Notícias.

According to the authorities, the price of coconut in the local markets encourages the orchard owners, which leads them to reduce the supply to the processing industries.

In light of the situation, Francisco Feijão said there has been a reduction in the production of coconut derivatives in recent years in Mozambique, with one ton of crude copra oil produced in 2020, compared to about 6,000 tons produced in 2018.