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| Friday, 16 January 2004 |
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Lanka highest cinnamon exporter to world market by Steve A. Morrell Cinnamon production in Sri Lanka has topped 85% of the world's requirements making the spice industry a major income earner and an important contributor to export earnings, according to the Spices and Allied Products Producers' Association (SAPPTA). Chairman of the Association M. C. M. Zarook, and past Chairman Chris Dassanaike told the Daily News that the spice trade was gradually staking its identity in the export market and has now been recognised as a potentially strong export commodity which could claim its place as part of Sri Lanka's export industry not far behind the more glamorous plantation industries of Tea and Rubber. SAPPTA has a membership of over 110 representatives which include exporters, producers, processors, dealers, brokers, and service providers. The bulk producer representation is from the rural sector concentrated in Galle and Matara who produce high quality cinnamon. Apart from maintaining world standards Sri Lanka has re-established its position as the market leader in sustaining strict quality standards to satisfy end user markets in Germany, Japan and the US. They said that weather patterns are compatible with the climatic demands of the crop, and has resulted in the salutary situation of conserving top level quality production. The trade dates back to 1872 which prospered and expanded till nationalisation of the Estate sector in 1976. They said that after re-privatisation, there was an upsurge in market demand mainly attributed to the open economic policy of the Government which has facilitated concentrated efforts to ensure product improvement and mobilisation of support from the Colombo Brokers' Association (CBA). At the last auction on January 9, top quality cardamoms, LG (Light Green) fetched Rs. 1,500 per Kilo. The next best grade LLG (Lanka Light Green) fetched Rs. 835 per kilo. Cinnamon prices too indicated all-round improvement in demand, the best grade C5-SP sold at Rs. 510 per kilo. Weekly spice auctions offer cashew, cloves, cocoa, coffee, mace, nutmeg, green chillie, black and white pepper, and essential oils. Statistics compiled by Sri Lanka Customs revealed that this sector exported 25,895 million metric tonnes realising foreign exchange amounting to Rs. 9 Billion. Annual production however was in excess of this figure. According to the Central Bank report, production stood at 36,112 metric tonnes. Attractive prices prevailed during the last two years, with cardamom sustaining healthy income levels averaging Rs. 1,252.29 per kilo. The progressive increase in global demand has encouraged growers to improve agricultural practices, particularly cloves. Consequently clove production increased by 64% recording a growth of over 4 million kilos, increasing export earnings by Rs. 2.7 Billion. At present the area under spice production stands at 95,521 hectares. Although spices have contributed to the national income the sector needs organised support financially and through expert input. As in Tea, the smallholder contribution has been of importance in sustaining and improving the sector. Zarook and Chris Dassanaike said that this aspect of the industry required intensive influx of funds and training. There are now 10 Plantation Companies, including The Janatha Estates Development Board (JEDB) who are members of SAPPTA. Of these, Wayamba Plantations Ltd., has commenced spice cultivation and would add this crop to their commercial crop collection, they said. |
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