History of spice industry

Amyn Chatoor - Director, Saboor Chatoor (Pvt) Ltd.

The earliest evidence of spices by man, could be traced back to 50,000 B.C. The spice trade developed throughout the Middle East in around 2000 B.C. with Cinnamon, and Pepper, being the main spices used at that time, in the formative period of the industry. The Egyptians used herbs for embalming, and their need for exotic herbs, at that time, perhaps, stimulated the World Trade of Spices.

In the early days of trading Sri Lanka was known as a Spice Island

In fact the word Spices originated from the same root as species - meaning kinds of goods. By 1000 B.C. Spices were among the most luxurious products available in Europe in the Middle Ages. It was Vasco Da Gama and Christopher Columbus who described to investors after their return from their Voyages to India, the many new and unknown Spices available there.

Spices in Sri Lanka

In the early days of trading Sri Lanka was known as a Spice Island.

Spices today play a significant and vital role in the Sri Lankan agricultural economy in respect of export oriented trade. The important Spice Crops in Sri Lanka comprise cinnamon, pepper, cloves, nutmegs, and mace. Spices are cultivated in the hill country, and intermediate zones, of the country.

Sri Lanka is one of the exporters in Asia, when it comes to Spices. Sri Lankan Spices fetch a premium in international trade, compared to other countries, because of the "Preferential Tariff Agreement" signed by the Governments of Sri Lanka and India, where the duty component, in Sri Lankan Spices, is very negligible, compared to Spices from other origins where it is co

mparatively high.

This remarkable achievement by the Government of the day, has brought tremendous income not only to our motherland by way of export revenue, but also substantially increased.

Sri Lanka's Export of Spices (in volume), in the international arena, making our motherland to be a leader among the giants in the international industry in international trade.

Some of the other export destinations besides India are USA, UK, Europe, Germany, and Mexico.

I wonder how many are aware of the fact, that the only exporter of Cinnamon in the world today is Sri Lanka. This is something our motherland should be very proud of.

When one refers to cinnamon, it is common to interchange cinnamon with cassia, and vice versa, but this is a big error, and it should, never, ever be done. Cinnamon is far more superior product, in quality and fetches a premium in World Trade, compared to Cassia, which is freely available, the world over, and is a cheaper product too, in every sense of the term.

Business ethics

During the late 1950s and early 1960s, Sri Lanka's exports of Spices, developed rapidly from its primitive form, to modern technology, and we, as a nation, gained international respect, by the "World Giants".

Sri Lanka started attending International Conferences and Seminars in Spices, especially Pepper, and Spices became an International Commodity in the late 1960s, second only to Tea and Rubber.

The exports of spices were in the hands of a few established and reputed exporters who believed in doing business with morality, decency, high ethical standards, and more importantly their reputation, both locally, and Internationally, were very "sacrosanct" to them.

These were the values that were "etched" in their minds, and left an "indelible" mark, in an era, that dominated the export of spices.

They would never, ever, dare to do anything wrong or unethical at the expense of the reputation of their establishment, and the name of our motherland, - that is not to say that there was no competition among the exporters of the day, of course not, there was plenty of it, but it was " Healthy Competition", with no "underhand dealings" and " barbaric acts", with profit not being the sole criteria in business.

In brief, "Values" and "Business Ethics" transcended the barricades of trading.

This was the " Cornerstone "and " Principal " of business, during the " Golden Period of the Spice Industry", which even today, is accepted by the pioneers of the industry.

Mushroom exporters

It is very unfortunate, sad, and heart rendering, that business today, in the Spice Industry, has taken a dramatic turn to the worse, with " Mushroom Exporters" - a bunch of "unscrupulous elements", who would go to any extent, even to the point of " Selling their Parents", to make a fast buck, would spring up every year, having "absolute nonsense" ideas, living in " Fools Paradise", that the Industry can make exporters to become" Millionaires Overnight" and they just enter the business, without studying the ramifications and the methodology of doing business, as a result, they do exports, by buying produce, without any logic, and export some rubbish to fulfil their contract, and ruin the name of the industry, that has been built by "sheer hard work" and "sweat" by the people, who pioneered the export of spices, but also the name of our motherland gets tarnished in the process.

It is only at the end of the year, that one realizes their faults, when they see the "bottom line", being in the red, with tremendous losses, and debtors.

They are left with no alternative but to run away leaving everyone high and dry. In the process of they doing such gruesome acts, they not only ruin their own name, for which they don't care two cents, but they cause "Irreversible Damage", to the traditional exporters, who find trading, increasingly difficult, and strenuous, as the buyers demand conditions, due to the wrong doings of these so called "mushroom exporters", which ultimately we have to pay the " Heavy Price", of fulfilling our export orders, as it goes as "Sri Lankan Export of Spices", and not the "Exporter's Name".

This in brief is the "deft, brutally candid, gruesome, sad, and nerve wrenching true story" of the spice industry today, as told by the author, who has been an eye witness, to the events, of the industry since 1981.

It is my earnest hope and prayer that "Sanity", will prevail some day, and these so called "mushroom exporters", would soon realise, that there is enough profit, to be made by everyone, provided they do business, in the "Correct, ethical and Moral Way" - without doing it the way, they are doing it now - with "Cutthroat Competition", "Intense Jealousy, and Vendetta", with the sole objective, to cut his competitor, even at a loss.

This is no way business should be done. If only our Forefather's knew, the way business is being done today, "they would be turning in their graves three times over".