Revitalising the spice industry

The world will indeed be dull place without spices, those magical ingredients that make meals appetizing and appealing. Sri Lanka is widely known as a land of spices and there is a good demand for our spice products from around the world. The emergence of several export-oriented spice manufacturing plants has helped cement Sri Lanka's reputation in this regard.

The import and export trade in whole spices in the world is around US$ 5 billion per year with an annual growth rate of over five per cent. Sri Lanka has become a major player in the global marketplace for spices and allied products. We reported in these pages yesterday that spices contributed Rs 9 billion to Sri Lankan export earnings last year.

Cinnamon used to be an also-ran in the spice sector, but now it has climbed to the top. This is all the more remarkable because it is grown only in a limited area in the South. Thousands of people depend on cinnamon in these areas for their livelihoods, from peelers to oil mill owners.

Cinnamon cultivation estimates were around 25,300 hectares in 2003. Last year, Sri Lanka exported 11,391 metric tons of cinnamon and the earnings amounted as Rs 4,727 million. Earnings from cinnamon bark oil and leaf oil exports amounted to Rs 244.7 million in 2004.

These are impressive figures, but there is still room for improvement. We still do not think of cinnamon as a leading spice variety. Further incentives should be given to cinnamon growers and oil mill operators. Sri Lanka should also look for new markets for cinnamon.

Apart from cinnamon, it is worth noting that almost all spices produced in Sri Lanka have fared well in the export markets over the last two years. There have been ups and downs but the overall picture remains positive. One factor worrying spice producers is the influx of foreign spices to the local market, which drives prices down.

There are only a few large-scale spice growers in the country. Cinnamon or pepper, it is more likely to be grown in a backyard rather than a big cultivation. In other words, home gardens account for the biggest slice of the production pie.

The farming methods of these small-timers must be improved, possibly with the infusion of new technology. New planting materials must also be brought into the picture to increase production. Encouraging more private sector companies to choose spice cultivation is also important.

A combination of these can revitalise the cinnamon industry and other spice industries. Age-old methods are still used for peeling cinnamon and extracting oil. In the meantime, youngsters of cinnamon growing families have turned away from cinnamon cultivation. The cinnamon training centre in Kosgoda should arrest this trend and ensure that a new generation takes over the business.

Spice growers and processing companies must be granted assistance under the privileges extended to the Small and Medium Sector, which has been recognised as a prime component of the economy. A better performance on their part will lead to bigger foreign exchange for the country.