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Sri Lankan government plans for local cocoa to go global

Sri Lankan government plans for local cocoa to go global

The Morning: Sri Lanka Government plans to provide State-owned lands on lease basis for cocoa cultivation in order to support the confectionery industry of the country to become an export-oriented industry such as Ceylon Tea and Ceylon Cinnamon, said President Ranil Wickremesinghe.
He made these remarks during the 30th Annual General Meeting (AGM) of Lanka Confectionery Manufacturers Association (LCMA).
The President stated: “We need to be export-oriented. Why not focus on the confectionery industry when we have the potential to do so. We (Government) are in the midst of discussions to grant lands in Matale, Kandy, Mawathagama, Dodangaslanda only for local companies and local companies with foreign shareholders to intercrop with cocoa”.
He added that it is not only to improve the harvest but also for confectionery manufacturing.
President Wickremesinghe also said that the Government is in the process of having discussions with the Governments of Ivory Coast and Ghana to receive cocoa for plantation.
Morver, Sri Lanka is in negotiations with India for the Economic and Technology Cooperation Agreement (ETCA) said the President elaborating that customs duty is a concern as removal of such will provide Sri Lanka a bigger global market share for trading.
“We have already allocated capital of Rs. 8 billion for research (for confectionery industry development) since we need an (export-oriented) industry,” he elaborated.
In addition, President Wickremesinghe awarded eight local manufacturers who contribute largely towards domestic consumption and LCMA President Prof. Samitha Perera also presented a souvenir to President Wickremesinghe.
According to the World Population Review, Cote d’Ivoire is responsible for 30% of the world’s cocoa while brands like Cadbury and Nestle mostly source their cocoa from this country. Ghana is such a top producer of cocoa. However, its operational costs have become a problem in recent years, leading to cocoa smuggling to the Ivory Coast. Indonesia is relatively new to the cocoa industry. Other nations that are top producers of cocoa include Brazil, Cameroon, Dominican Republic, Ecuador, Mexico, Nigeria, and Peru.

OSL take:
Sri Lankan authorities are currently looking at expanding the country’s export crop portfolio by aggressively uplifting the production of a host of new export crops. Sri Lanka has for some time been focused on expanding the export crop portfolio from the traditional export crops ranging from tea, rubber, coconut and spices. The many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries have also helped boost the country’s export crop sector. The government of Sri Lanka has introduced many incentive schemes to businesses/investors looking at engaging in the sector while carrying out promotional campaigns to promote local products while also exploring new foreign markets. Given the growth and business potential in Sri Lanka’s export crop sector, foreign businesses/investors could confidently explore the growing opportunities in the sector. Foreign businesses could also look at forming partnerships or joint ventures with local businesses engaged in the sector with the aim of further expansion.

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Article Code : VBS/AT/20240214/Z_5

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