Corporate
investments encouraged in Sri Lanka’s spice industry
The spice industry is trying to encourage plantation companies and
large corporates to invest in the sector while making a special
effort to penetrate the big US market, Sarada de Silva, chairman
of The Spice Council (TSC) said last week.
The
industry is also working on a programme to obtain protection for
“Ceylon Cinnamon” through a certification mark registration
under the Intellectual Property Rights law both locally and in the
major markets, he told the spice conference organized by The Spice
Council.
This
is to be done in collaboration with the National Intellectual Property
Office of Sri Lanka, the Export Development Board, Department of
Export Agriculture, Sri Lanka Standards Institution and The Competitiveness
Program (TCP) of USAID.
“The
industry is also seeking protection under geographical indications
for Ceylon Cinnamon under the TRIPS agreement of the WTO.”
The world market for imported spices and culinary herbs is valued
at just over US$ 2.3 billion, with India accounting for 30 percent
of exports, said Derryck Cox, former chairman of American Spice
Traders Association International Group.
The
US market alone imported 232,861 tonnes of spices in 2002 with a
total value of $513 million. De Silva said Cox will select 5-6 spice
firms for a programme to enter the US market and TCP plans to arrange
meetings with leading spice importers and processor there.
The
Spice Council with the assistance of TCP is working on a project
to develop model villages of Good Agricultural Practices and Good
Manufacturing Practices in all major spice producing districts.
The first village which will be developed is Thibbatukanatta in
Matale District starting next year.
It
is intended to provide farmers with quality preserving post harvest
processing equipments to get the maximum benefits from the spice
cultivation.
The project will also help organise farmer collectives and buy back
arrangements to provide economic stability and forecasting ability.
It also intends to streamline dissemination of market information
and other important information to farmers.
Dr.
Palitha Wickramasinghe, director of Sri Lanka’s Department
of Export Agriculture told the conference that the island’s
spice industry suffers from a number of structural problems.
“About
a quarter of spice cultivations are old and have reached senile
stages,” he said. A majority of the spice holdings is in the
stage of a plateau where yields are stagnant. “About 25 percent
of holdings are in the yield declining stage and this is a point
for concern in view of maintaining a stable production in the spice
sector,” Wickramasinghe said.
“The
productivity of such holdings may decline further and therefore
rehabilitation of such holdings becomes an important strategy for
the sector development.”
A
larger proportion of the production base consists of low yielding
varieties while the agriculture sector in general is facing a scarcity
of labour, which results in disproportionate increases in the cost
of labour.
The
second important issue is the small size of spice cultivations with
almost all the holdings being less than two hectares in size. Wickramasinghe
said the department is working on development of tissue culture
technique for large scale multiplication of cardamom and that it
has identified three cardamom cultivars having yield potential of
over 700 kg/hectare/year. The spice conference was held at the same
time as the World Spice Festival which featured Sri Lanka’s
famous spices.
The
eight-day festival, organised by the Sri Lanka Tourist Board (SLTB),
was held at Colombo’s leading hotels and restaurants along
with a ‘Spice Bazaar’ and a ‘Chai’ tea-based
recipe competition for participating hotels and restaurants, sponsored
by Dilmah. The food promotions featured unique dishes created by
top guest chefs from around the world.
The
dishes drew on both a fusion of Sri Lankan spices and the signature
spices of the countries or regions represented at the festival including
Thailand, Indonesia, Africa, China, Australia, India and Malaysia.
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