UNIDO leads new project to expand global reach of Ceylon spices

From left: UNIDO Senior International Technical Specialist Dr. Jairo Villamil-Diaz, STDF Head Melvin Spreij, EU Delegation to Sri Lanka and Maldives Head of Cooperation Dr. Johann Hesse, Industries and Health Minister Dr. Ramesh Pathirana, Investment Promotion State Minister Dilum Amunugama and UNIDO International Development Officer Juan Pablo Diaz-Castillo

The United Nations Industrial Development Organisation (UNIDO) this week announced a new initiative to expand the global reach of Ceylon spices. In this connection, UNIDO organised a conference titled “Spice Horizons: Tracing the legacy of PGI Ceylon Cinnamon and the future of other PGI Products for Agricultural Export Development” to discuss the future of the spice sector. The event, organised with support from the Delegation of the European Union in Sri Lanka and the Maldives and the Standards and Trade Development Facility (STDF), will build on the success of Sri Lanka’s first-ever Protected Geographical Indication (PGI) for Ceylon Cinnamon in the European Union (EU). UNIDO also presented a new project proposal to expand the global reach of Ceylon spices and other agricultural commodities with PGI potential, such as pepper, coffee, pineapple, coconut, and cashew, where the PGI Ceylon Cinnamon model can be replicated and scaled up for quality-led export development. The key focus of the project is to enhance food safety, quality, and traceability in the spice and concentrates (S&C) value chains, boosting inclusive socio-economic development in the agri-food sector, and strengthening the reputation of “Ceylon spices” and other Sri Lankan products in export markets. The new proposal builds on the momentum of the PGI status of Ceylon Cinnamon in the EU, marking a significant milestone for the Sri Lankan spice industry. This transformative journey commenced in 2012 through a UNIDO implemented project funded by the Standards and Trade Development Facility (STDF), which laid the groundwork for the Cinnamon Training Academy in Kosgoda and put in place a comprehensive plan for the sector. In 2016, under a trade promotion project funded by the EU, UNIDO supported the sector to establish a geographic indication system and apply for PGI registration in the EU. “The EU has worked with UNIDO on several projects in Sri Lanka supporting the agri-food sector. We are happy to see tangible outcomes such as the Ceylon Cinnamon PGI materialise,” stated EU Delegation to Sri Lanka and Maldives Head of Cooperation Dr. Johann Hesse. “The proposed project will build on the success of the EU-funded ‘Best Standardised Practices for the Agri-Food Sector Development’ (BESPA-FOOD) project, implemented by UNIDO jointly with the Food and Agriculture Organisation (FAO).” The proposed project will draw on UNIDO’s 2023 ‘Value Chain Analysis on Pepper, Clove, and Nutmeg in Sri Lanka’ also funded by the STDF, which identifies the gaps in food safety and quality, starting from farmgate to distribution channels and right up to the retail market. The analysis outlines the necessary conditions to access international markets and gain a competitive advantage in international trade. UNIDO Senior International Technical Specialist Dr. Jairo Villamil-Diaz said: “UNIDO worked closely with the Department of Export Agriculture (DEA), the Export Development Board (EDB), the Spice Council (TSC), the Spices and Allied Products Producers’ and Traders’ Association (SAPPTA), and other key public and private stakeholders, tirelessly striving to secure the PGI registration for Ceylon Cinnamon. We also provided similar support for Ceylon Tea. Now, Sri Lanka can leverage these learnings to ensure that other spices, like pepper, cloves, nutmeg/mace, and coffee become integral parts of the global food supply chain.” In collaboration with the Ministry of Agriculture and Plantation Industries, Ministry of Industries, and State Ministry of Investment Promotion, the proposed project will guide Sri Lanka’s agricultural sector towards quality-led export growth, supporting upstream actors in securing quality-based price differentials, improving price predictability, and expanding access to premium markets. Additionally, UNIDO will continue to support the development of Ceylon Cinnamon, providing strategic guidance to further enhance the sector’s global standing, including in securing PGI registration in other high-end markets.