Spice industry to aim for US$ 5 b by 2020 with holistic approach

ADB works with Government to spice up industry with US$ 300 m 10-year skills development plan

 

By Cheranka Mendis

The local spice industry is an evolving sector with much potential to grow to bring in the ambitious target of US$ 5 billion in 2020, if the industry works together with the Government to develop the industry with a holistic approach – such as the City Cluster Economic Development model of the Asian Development Bank (ADB).

ADB Country Director Rita O’Sullivan yesterday acknowledged that the complex industry was riddled with issues in the region and that a united stakeholder force was the foremost solution for the problems.

Addressing the Annual General Meeting of The Spice Council held for the ninth consecutive year, O’Sullivan identified that in the local context, issues facing the industry range from skill development and financing to the lack of latest technology.

“There is no complete exploitation of the precious commodity,” O’Sullivan noted.

With skills development being among the primary concerns, she revealed that ADB was currently working with the Government to design a 10-year US$ 300 million intervention for skills development.

“The last intervention built a number of institutes with hard infrastructure and good technology. What we later found was that the teachers were not engaged as discussed with Government due to issues with the salary scales.”

The bank is now working with the Government to come up with a different method of skills development, which aims at giving a good standing to those working in the spice industry and to eradicate the social stigma attached to spice workers.

Towards this end, the bank has developed a series of soap operas for children and the targeted work force (early ’20s) with 10 episodes, portraying those working in the industry as heroes and heroines. “This is one of the things we have tried and have been quite successful with,” she said.

Financing is also a key issue for those in the industry. As a bank involved in both private and public lending, O’Sullivan noted the importance of setting up investment funds to help the sector as the individual operations within the industry are too small for bigger banks such as the ADB. She requested the local banks to follow suit to help those who require financial assistance, especially at the SME level.

The ADB is also looking at City Cluster Economic Development, where the primary and secondary industries are linked to an urban city/town concept. “Here we are not simply looking at packaging and marketing. We are looking at where the workers are coming from, how they travel, schools, hospitals, etc., for the employees to work more efficiently. The philosophy is to have towns or cities linked to primary and secondary industries.”

This has been introduced to the local rubber sector, she said. Under this initiative, a Sri Lanka Rubber Secretariat has been set up, which is operated by a group of industry experts and the development of a 10-year master plan which focuses on technological development and workforce development into the sector is now being looked at. “It is a work in progress for the rubber industry.”

O’Sullivan also added that the bank was looking at an area approach, rather than an industry approach and was aiming to develop the Trincomalee area for sectoral development. A master plan to develop it is currently under progress. Opportunities will arise in putting up critical infrastructure, IT requirements, water, road, and port development.

“While congratulating The Spice Council for the present level of development, I would like to place on record that the idea of working together is critical,” she asserted. “We hope that with the support of the ADB and the successful lessons of the City Cluster Development, the industry will be able to develop itself across all segments.”