Spice industry targets US $ 1 b

Sanjeevi JAYASURIYA

The cinnamon industry could contribute more in terms of foreign exchange if measures are taken to overcome the dearth in cinnamon processors, an industry expert said. The cinnamon sector plays an important role in the spice industry and with plans to reach US $ one billion mark by 2020, the sector could be the major contributor.

However, the shortage in cinnamon processors will hamper the progress of the sector where immediate action is needed to attract young blood into the sector, Spice Council Founder Chairman and Steering Committee Chairman Sarada De Silva said.

There is a high global demand for local cinnamon which the industry is unable to meet at present. With the expected volume increase the cinnamon sector is poised for a robust growth and there are employment opportunities for the youth, he said at a validation workshop held on Friday in Colombo.

The proposed Cinnamon Training Academy will facilitate to overcome the quality issues and meet the market demand where over 13,000 metric tonnes are exported annually. However, the country needs to increase the production as there is a demand twice the supply.

With sufficient cinnamon processors, good agromatic scientists and efficient production process the sector could harness its true potential.

However, volume increase is critical for the industry in the long-run.

The government imposed a cess levy on non-value added products as per the cinnamon sector request and this fund will be utilized for sectoral development.

The sector plans to make 50 percent of exports in value added form by 2015 thereby increasing the export earning.

“We need the best possible interventions by the government and encouragement to increase the required number of cinnamon processors.

The measures taken to uplift the social standard of the people involved, especially the cinnamon processors and proper training will have a positive impact on the industry,” de Silva said.