26 April 2017 10:39 am
By Shabiya Ali Ahlam
Sri Lanka having identified the spice sector as an avenue to expand its export earnings, the Spice and Allied Products and Traders’ Association (SAPTA) has urged the Primary Industries Ministry to increase focus on pepper, instead of cinnamon in fulfilling that goal.
Pointing out cinnamon is a “difficult commodity”, where volumes cannot be increased due to a number of issues along the processing chain, SAPTA Founding Chairman Gulam Chatoor stressed that in the current context “pepper is the commodity to concentrate on”.
While outlining to the ministry the means in which the national economy can reap the benefits from this commodity, Chatoor asserted that free trade agreements (FTA) and increasing exporters will not help the country achieve the set target for export earnings.
“In order to increase exports we need more production supported by greater productivity. Pepper is the right choice for this exercise,” he stated.
The ministry last year set an ambitious target for the spice sector to reach export earnings of US $ 1 billion by 2020.
With the gestation period for pepper being approximately three years, unlike in the case of other spices, where the periods are longer, he highlighted pepper is easily harvested unlike others.
In an effort to increase production and export volumes, Chatoor suggested the government to release land for cultivations along with providing planting materials and fertilizers, if necessary on credit, to be recovered from the sale of the product. The need to share advice and technical knowhow in increasing yields was also stressed.
Chatoor cautioned that if immediate action is not taken as outlined, “Sri Lanka will never be able to reach the target set.”
Given that corrective measures are taken on time, Chatoor expressed confidence that along with intensive efforts, Sri Lanka would be able to successfully expand its exports and would have “no difficulty” in marketing an extra 20,000 to 25,000 tonnes.
Pepper is the most traded spice in the world and Sri Lanka’s exports to the global market hover around 550,000 to 600,000 tonnes per year. Sri Lanka’s contribution to the global export for pepper is under 5 percent. In 2016, the export revenue from pepper stood at US $ 72 million.