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By Channa Kasturisinghe

Multi-climate zones and different types of soil found in Sri Lanka favour the production of high quality varieties of spices, aromatic plants and herbs. Sri Lanka's spices are famous for their inherent qualities and have been sought after by consumers and processors throughout the world for centuries.

Sri Lanka's present contribution to the sector is $ 100 million annually. It is only 0.05 percent compared to the world trade in spices, their related products and herbal health care products which is estimated to be $ 200 billion per year with an annual growth rate of over five percent.

Our exports consist mainly of unprocessed primary products while the export of value added or processed products is below five million US dollars per year. Although there are many state institutions responsible for the development of this sector, no significant growth has been achieved during the past 25 years, whereas our neighbour India has achieved a ten-fold increase in revenue from this sector during the past decade.

The Government has identified the need for a strategic plan to uplift this sector from its present dismal state. In that light the Enterprise Development, Industrial Policy and Investment Promotion Ministry has set up a Sectoral Task Force to formulate five-year sectoral plans to increase productivity and competitiveness of this industry. The Sectoral Task Force for Spices and Allied Products presented its sectoral plan to Minister Prof. G.L. Peiris at a seminar on the theme `Strategies for Growth, How will the Industry Compete?' at a seminar in Colombo recently.

According to the five-year plan the Sectoral Task Force aims at establishing Sri Lanka as a major player in the global marketplace for spices and allied products which meet top quality standards and are produced in an environment-friendly manner.

The Task Force is targeting to increase the total value of exports of spices and allied products and health herbal care products to 500 million over the next five years. The targeted increase of unprocessed products will be US$ 200. Export values of Value Added products and herbal healthcare products will be increased up to $ 200 and $ 100 respectively. It has also planned to increase the export volume of value added products to 50 percent of the total exports. The Task Force recommends formulating standards for all spices and allied products and herbal health care products, acceptable to trade associations in the local and international market by the year 2003. It will endeavour to create and promote a brand for Sri Lanka's products in the next five years.

Recognising chilli as a major spice and making the country self- sufficient by 2005 saving $ 30 million per year is another objective of the Sectoral Task Force for Spices and Allied Products. In order to achieve these objectives the Task Force has proposed to issue a charter to a constitute autonomous Spices and Allied Products Council by an Act of Parliament. The Councils will encompass the entire gamut of activities conducive to the development of the industry, having a pivotal role in all aspects of regulation, promotion, research and development.

Its major functions would include strategic planning and providing advice on regulatory requirements, defining, prioritising and monitoring research and development, conducting training and awareness programs, establishing quality improvement systems and product promotion. The sector comprises all spices, allied products including herbs and aromatic plants which are grown or could be grown in Sri Lanka.

In addition there are value added products such as essential oils, oleoresins, spice blends and packs, herbal healthcare products which and produced using local raw materials and imported inputs.

Among the key problem areas which have been identified by the Task Force are low level of production and productivity, lack of a proper research and development activities, unfavourable regulatory and fiscal policies, lack of a mechanism of strict enforcement of industry quality standards and weak branding.

The Task Force is confident that the establishment of an independent governing council for the sector within this year will ensure the success of the proposed five-year plan. The sustainability of the Spice Cluster of The Competitiveness Initiative (TCI) of USAID and the implementation of the strategic initiatives and the final plan will be undertaken by this council. The Spice Clusters' underlying goals are to evolve into a group of independent actors representing a broad cross section of spice companies.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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