Export crop earnings soar sharply in 2021

• Plantation Industries Minister Dr. Ramesh Pathirana says coconut export revenue was $ 900 m, rubber $ 1 b, spices $ 500 m in 2021
• Govt. to set up Coconut Export Zone in Hambantota 
• Believes 2022 will see a great revival in tea cultivation as many initiatives will be rolled out 
• Plans to cultivate in every plot of land that can be cultivated this year 
• State Minister Janaka Wakkumbura says total export merchandise earnings increased to $ 12 b in 2021
• State Minister Arundika Fernando says import restrictions have opened eyes of public to appreciate ‘Made in Sri Lanka’ products

 Plantation Industries Minister Dr. Ramesh Pathirana said export crops have seen a significant growth in 2021 and the sector would be further encouraged.  

“Last year, we had the highest export earnings in the history of the plantation sector. Rubber exports generated billions in dollars. We earned $ 900 million from coconut exports and $ 500 million from spice exports. 

“When we came to power, the people were not interested in rubber latex cutting. But, at present, a kilo of rubber is Rs. 500, a kilo of pepper which was Rs. 200-300 has now exceeded Rs. 1,000. There is a huge growth in every export crop,” he said at a discussion on the programs to be implemented during this year with State ministers and heads of institutions.

In addition, the Minister said a new coconut export zone will be created in the vicinity of the Hambantota Port this year with an investment of Rs. 15 billion following the high international demand for coconut and allied products.

“As per the data available, Dr. Pathirana believes coconut and allied products will soon become the leading export crop in the country. “Currently, coconut has a very good price and demand. 

Therefore, the Government is taking steps to create a new coconut export zone in the vicinity of the Hambantota port. The funds allocated for this project for 2022 is Rs. 15 billion. We hope to use these funds for projects with financial viability. Also, the money should be allocated fairly to each institution involved,” he stressed.

The Minister also said that fertiliser necessary for these crops are being received, adding that free tea plants, tall shade and short shade plants and water supply facilities will be provided free-of-charge this year. “We believe that there will be a great revival in tea cultivation during this year, to make this year a golden year for the tea industry,” Dr. Pathirana said. 

For the past two years, the President's primary responsibility has been to save the lives of the people from the COVID pandemic. “Let’s march forward this year by correctly aligning what we missed last year. We all have a great responsibility to bring the country forward from where it is, making the policy statement a reality,” he added. 

Dr. Pathirana also emphasised the need to grow every crop that can be grown in the country.

State Minister of Development of Minor Crops including Sugarcane, Maize, Cashew, Pepper, Cinnamon, Cloves, Betel Related Industries and Export Promotion Janaka Wakkumbura said total export earnings increased to $ 12 billion last year from $ 10 billion, insisting that the export income should be further expanded in 2022.

He also pointed out that the Government took steps to prevent the importation of ethanol and turmeric, saving a lot of crucial foreign exchange to the Government. “At present, we have an excess of turmeric. These turmeric stocks will be sent to foreign markets this year. We made sugar and made a profit. In addition, two sugar factories will be opened during this year,” Wakkumbura outlined on future plans. 

State Minister of Coconut, Kithul and Palmyrah Cultivation Promotion and Related Industrial Product Manufacturing and Export Diversification Arundika Fernando said the import restrictions have opened the eyes of the people to appreciate Made in Sri Lanka products.

“We did not have faith in local products. We imported milk and fed it to the children, but did not implement a program to produce local milk. Sometimes we spend a lot of money to import things that are not essential to the country. We always depended on the garment industry, worker’s remittances and in recent times we have been dependent on the money from the tourism industry. 

“But with the spread of the COVID, we have lost all those sources of income and today we make money from the plantation sector. Last year our export earnings increased from exports of tea, coconut, rubber, cinnamon and pepper,” he explained.

He called on the officials to make 2022 more productive to ensure there is steady contribution from the plants sector for nation building efforts.

Plantation Industries Ministry Secretary Ravindra Hewawitharana, State Ministry Secretaries, Department Heads and officials were present at the occasion.