Opportunity for Ceylon cinnamon

Sri Lankan exporters received a rare bit of good news recently when the European Union granted the Geographical Indication (GI) certification to Ceylon cinnamon. This would allow competitive market access for Sri Lankan cinnamon which would also enable the product to be differentiated from other completive products that are branded as cinnamon.

Sri Lanka has been well-known throughout history for some of the finest cinnamon in the world. It is said that one of the driving forces for the initial wave of colonial intrusions into the country was to obtain the monopoly for the trading of cinnamon which was highly valued in Europe not only as a spice but also as a food preservative and a medicine. Currently, the cinnamon plantation covers an extent of approximately 40,000 hectares, with the involvement of over 350,000 families. Sri Lanka produces nearly 25,000 metric tons of the product and accounts for 90% of the world market for what is called “True Cinnamon.” The spice is exported to over 70 countries and contributes over 55% to the spice industry of the country. 

A Geographical Indicator or GI is a sign used on products that have a specific geographical origin or possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place. For long years Sri Lanka has maintained the ‘Lion Logo’ for ‘Ceylon Tea’ as a GI. However due to many unscrupulous individuals misusing this logo by blending cheaper teas from other origins and due to the inability of the Government and other stakeholders to defend the ‘Ceylon Tea’ logo against such infringements, that marker has increasingly lost its value.

Now that Ceylon cinnamon has obtained this much-coveted GI certification, the Export Development Board, the Spice Council and other stakeholders must ensure that the quality that is expected of the product is maintained. The stakeholders also should invest in capacity building in branding the product aboard and on legal expertise in defending the brand against violations. It is also a good moment to reflect on value addition to the product which is still exported in bulk. 

Mexico which is the largest buyer of Ceylon cinnamon, uses its access to the United States to re-export cinnamon products in numerous forms after significant value addition. As the tea industry evolved towards building local brands, innovating and adding value to Ceylon teas, it is now necessary for the cinnamon industry to also move away from mere bulk exports in the raw format. 

While Government intervention and support is welcomed, it is best that these innovations are led by the private sector. Governments have a duty towards opening access to markets through free trade and preferential trade agreements, and through initiatives such as obtaining GIs, but it is the private entrepreneurs who should take the greater onus on exploiting these trading opportunities. As seen in the tea industry, the unnecessary intervention of the State can create crony networks that are detrimental to the whole export industry.

While the Government authorities, the Spice Council and the private entrepreneurs who were involved in obtaining the GI status in the EU for Ceylon Cinnamon should be congratulated and thanked for their efforts, it is imperative that this opportunity be utilised in the most astute manner to further expand export markets and reap maximum benefits to the country from this uniquely Sri Lankan product.