Delays in settling cinnamon export payments highlighted

Anjana Samarasinghe

There is a three-month delay in settling payments for cinnamon exports from Sri Lanka, said Conevnor, United Union of Cinnamon Producers Ajith Kumara.

This is one of the major problems in the local industry and in Sri Lanka cinnamon producers are not aware of cinnamon prices in the international market. Cinnamon prices always fluctuate in the local market and there is a decline in cinnamon prices in the local market. The producers supply cinnamon for export unaware of international cinnamon prices, he said.

The price of one kilogramme of high quality cinnamon has dropped from Rs 1,200 to Rs 700 in the local market. Today cinnamon producers spend over Rs 400 to produce one kilogramme of cinnamon.

There is a huge demand for cinnamon in the international market and Sri Lanka produces only 10 per cent of cinnamon for the international market.

Sri Lanka produced original cinnamon to the international market, but has to compete with the cassia produced in countries such as China.

Sri Lanka needs to focus on promoting original cinnamon in the international arena. The government and Sri Lankan embassies abroad should take the initiative to promote local cinnamon worldwide and explore new market opportunities, he said.

A Research Centre has been set up in Kamburupitiya to assist the cinnamon industry. However, research information not been disseminated among cinnamon producers to improve the quality of cinnamon.

The country should allocate more funds on the cinnamon industry through the Budget.

There should be a special concessionary loan scheme for cinnamon producers and the fertiliser subsidy is another important factor to develop the industry, he said.