Sri Lanka’s cinnamon exports show resilience amidst Covid 19 pandemic - Opportunity Sri Lanka
Sri Lanka’s cinnamon exports show resilience amidst Covid 19 pandemic

Sri Lanka’s cinnamon exports show resilience amidst Covid 19 pandemic

Spice Council of Sri Lanka Chairman D.A. Perera has reportedly stated that the manufacturing, supply chain and export industry of Sri Lankan spice is performing well amidst the prevailing Covid-19 pandemic.
“The exports of the spice industry increased in the first quarter with Rs. 26.3 billion worth of cinnamon exports being recorded in comparison to the previous year which was Rs. 13 billion,” Perera has told The Morning.
Commenting further, he has said that the demand for Sri Lankan cinnamon rose as a result of Covid-19. However, the pepper, nutmeg and clove niche of the spice industry have had an adverse impact in terms of production and with low demand from the global market.
“The prices of these products have risen significantly due to the prevailing Covid-19 conditions and we also expect the cinnamon prices to further increase locally and globally considering the scarcity of the spice in Sri Lanka and the present situation in the market,” he has further noted.
Perera has also noted that exports of the spice industry have reduced by 50% in its production. For example, nutmeg has been produced only at a 50% due to the climatic conditions and clove exports were reported only as 3,500 tonnes so far this year in comparison to 6,000 tonnes that was exported last year.
When inquired if the export target will be met by the spice industry, Perera has optimistically said ‘yes’ as the demand for it is continuously rising in comparison to last year.
“We will be able to achieve 20% more than last year. However, it’s too early to predict right now, as it’s a bit difficult as meetings are held online, production in several areas are paused and due to other external challenges,” he has said.
Perera has further noted that in his opinion, there is a global demand for the spice industry in Sri Lanka which will soar if it switches to an organic industry in the future.
“If we can convert all the spices to natural products, there will be a huge market as right now, the products are contaminated and use other artificial fertilisers, and this is my personal opinion,” he has added.

OSL take:

Sri Lanka’s spice exports have been recognised the world over for its high quality. Spices of Ceylon have been regarded in high quality even during the past centuries. Sri Lankan authorities are committed to developing the country’s spice industry and further strengthening the industry. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost Sri Lanka’s spice industry. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s spice industry and exports sector.

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Article Code : VBS/AT/20210531/Z_4

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