Spice industry calls for additional land to increase production

Friday, 8 July 2016 00:00 - - {{hitsCtrl.values.hits}}

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The country’s spice exporters insisted the Government release uncultivated land to growers in order to increase production and exports, asserting it as the ‘need of the hour’ to capture a higher market share in the international trade.

“Now the need of the hour is to try and increase the production. The Government has a lot of land in its possession, but nobody wants to part with it. But if the Government could allocate two to three hectares to growers of spice, it would significantly support the production,” Spices and Allied Products Producers’ and Traders’ Association (SAPPTA) Founder Chairman Gulam Chatoor told the Daily FT.

He stated that the Government is on the look out to provide an underutilised estate for spice growers, but urged that it should be done in a more fast-tracked manner.

He pointed out insufficient production as a huge drawback in the industry, noting that it hinders them from looking at new export markets or value additions.

While commending the Government’s decision to withdraw Cess imposed on spice exports as a step in the right direction, Chatoor asserted industry players must increase their focus on cultivating pepper with it being recognised as a potential crop to increase export numbers, both in terms of earnings and quantities, and capture a greater market share.

“Pepper is the easiest spice to grow as its gestation period is only three years, and it is easily marketed within the local and international markets. If Sri Lanka could capitalise on the supply of pepper to the export market, we can easily double the market share, because our pepper quality is good, we have been in the business for decades and we know how to market,” he stressed.

Apart from additional land, fertilisers at subsidised prices and planting materials may also help the industry to operate at an optimum level, generating more foreign exchange for the country, he added.

Sri Lanka’s spice industry accounts for about 10% of the world production, which is insufficient compared to the competitors such as Vietnam, India, Indonesia and Malaysia.

“Our production is about 32,700 tons as against world production of 362,000 — that is just nothing compared to the world production. Under the Indo-Lanka FTA 60% of our spices goes to India,” he said.