Increased demand for processed foods

Industry seeks active state support:

Indunil Hewage

The local processed food industry authorities emphasize the need to implement manpower development, infrastructure development initiatives and private and public sector investments to sustain the industry.

Commenting on the present status of the local processed food industry, Sri Lanka Food Processors Association Past President Dhammika Gunasekara said land fragmentation, lack of agricultural raw materials and adverse weather patterns hampered the growth of the industry to a great extent in the first five months.

“Though we see an increased demand for processed food products in the face of increased tourist arrivals and the rapid urbanization process in Sri Lanka, the industry is unable to cater to the entire market demand. Reducing agricultural post harvest losses and making limited resources to optimum utilization will be the immediate and advisable measures that need to be taken by the relevant authorities,” Gunasekara said.

Access to finance is the major problem faced by many agricultural product export companies and many of these companies are not in a position to get listed in the Colombo Stock Exchange due to capital restraints.

Those who manage to get listed in the SEC obtain a lower price for their issued shares as the agriculture industry is considered a subsidized sector and highly sensitive to climatic changes.

“The whole picture of the global processed food industry is changing in the face of increasing food and oil prices and crop failures and governments have to inject more incentives to the global agriculture industry.

The present scenario will impact on the local processed food industry to some extent,” Gunasekara said.