Sound market for organic agricultural produces
 

by Ramani Kangaraarachchiq

"Sri Lanka is very optimistic about becoming a major supplier of organic tea, spices, fruits, herbs and other selected produce and value added products in Asia as there is a huge untapped potential in the export market as well as in the local market.

If the stakeholders could make arrangements to overcome the main challenges in the sector this can be achieved by supplying good quality products while increasing the national income and contributing to the social welfare of small farmer producers. Sector Facilitator of Value Chain Promotion Component of GTZ Shanka Dharmapala said the lack of an apex industry body to provide leadership, develop and implement strategies, collect and disseminate information and data is one of the main challenges the sector is facing.

However the VCP is hopeful of achieving USD 20 million export target by 2007 compared to 12 million USD in 2003. This will be achieved by improving consistency of supply and reduction of cost of production to be competitive in the international trade, setting up of national standards, facilitating accreditation for organic certification and by positioning the industry in niche markets, Dharmapala said.

The Government allocated Rs. 10 million in the 2005 budget to establish model farms on a proposal submitted by the Export Cluster of the National Council for Economic Development (NCED) and the Export Development Board SL.

The growing concern about personal health also provides a favourable local market environment for the organic producers, he said.

Low supply base and high cost of certification, transition and production hinders international competitiveness, absence of a local certification body, database, co-ordinated research strategy training and technology and national standards for organic production method, lack of linkages between industry stakeholders are other challenges according to Dharmapala. However smallholder growers and processors, exporters and larger enterprises, SMEs engaged in packaging and value addition are targeted to be the primary beneficiary in this sector.

The Value Chain Promotion Component (VCP) of GTZ-Intergration and the International Trade Centre in Geneva reviewed the progress and challenges of the sector and formulated goals and key activities which are strategically important for the growth of the sector.