Spice, allied products turnover to reach US$ 500 mn by 2015
The demand for value added cinnamon products such as cinnamon leaf oil, bark oil, crushed cinnamon and ground cinnamon for confectionery and other food related industries has increased in the world. Sri Lanka is planning to double cinnamon export earnings by increasing value addition of cinnamon.
Sri Lanka is the largest supplier of cinnamon exports to the world spice market, producing about 85% of international output. However, Sri Lanka ranks well below in value added cinnamon exports to the world market. Other competitor countries make huge profits by adding value to cinnamon exported from Sri Lanka, while Sri Lanka is losing profit due to exporting more raw cinnamon.
The annual spice export contribution to the total GDP is only around 0.5 % and plans are underway to enhance export income from spice exports to 10 % of the Gross Domestic Product (GDP) by 2022 with foreign donor funding.
In a bid to enhance spice exports, it is important to introduce new crop types, improve productivity and quality, enhance value addition and by- product development, research and development, explore new market opportunities, products valuation and processing activities and others.” Ministry of Minor Export Crop Promotion senior official told Daily News Business.
EDB Chairman and CEO Bandula Egodage told Daily News Business that spices especially cinnamon exports are performing well and Sri Lanka is the topmost exporter of cinnamon, producing about 85% of international output. "We are currently working on obtaining the certification for Geographical Indication Process (GIP) for cinnamon. This will help us to consolidate our position in the global market"he said.
Source: Daily News