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| Sunday, 28 November 2004 |
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Business |  |
| News Business Features Editorial
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More incentives to export fruits, 'veggies' by L. S. A. Wedaarachchi It is essential to implement a systematic incentive scheme to improve the export of fruit and vegetables whereas all the incentives which were given to fruit and vegetable exporters in the eightees, were gradually reduced and finally scrapped during the last few years. The government incentives and assistance are being stressed by leading fruit and vegetable exporters commending the recent Budget proposals presented in Parliament last week by Finance Minister Dr. Sarath Amunugama who was hailed by all sectors of society for his bottom-to-top Budget proposals. "It is impossible to compete with our neighbouring countries such as India in the fruit and vegetable trade. Indian exporters have to bear only US$ 25 per fifty Kilos as the freight charge from India to Europe whereas Sri Lankan exporters have to pay US $ 75-three times the Indian freight charge to export fruit and vegetables from Sri Lanka to Europe a veteran exporter said. Quintus Kurukulasooriya who operates his business from Europe. "No country in the world can beat Sri Lanka when it comes to pineapple and mangoes in respect of their taste. Sri Lanka has a marvellous opportunity for its fruit and vegetables, in the world market specially in the Europe market such as Switzerland, Netherland, Chekoslovakia and Austriya. 'But we don't get a better deal since our price factor is higher due to the high freight charges, he said. Quintas Kurukulasooriya emphasised the golden opportunities available to organic products in the European market. He has already developed a 200 land in Soragune for organic fruits and vegetables. His collecting and packaging centre at Mirigama air freights pineapples, mangoes and vegetables weekly to Europe. T. S. Randiligama, Chairman and CEO of Kore-Lanka Agricultural (Pvt) Ltd also stresses the above mentioned pints and further said that he exported vegetables to Korea and Singapore and in recent years he gave up vegetable exports due to high freight charges and non-incentive policies of the government. "Collecting vegetables from small scale growers, transportation from upcountry to warehouse near Katunayaka BIA, Packing and freight by air to the sebeduled destination are not an easy operation, Randiligama says. However, since the earnings of vegetable exports mostly go to village-level farmers, the government must consider seriously the need for offering incentives and assistance to vegetable and fruit exporters, he added. "It is the practice of international organizations based in the developed countries to discourage the governments of developing countries not to grant incentives to exporters and farmers in the developing countries. As India and Thailand implemented, Sri Lanka should adopt exporter-friendly policies and should introduce incentives and assistance to vegetable and fruit exporters, he said. The Finance Minister Dr. Amunugama's pro-poor pro-development Budget proposed assistance for organic product exports and model farms for fruit and vegetables. Internationally-recognized Sri Lankan businessmen, T. S. Randiligama praised the above mentioned timely proposals for the development and improvement of the vegetable and fruit export sector in Sri Lanka. According to the Budget speech, it is expected to launch a private public partnership program having participation with fruits and vegetable producers and exporters, the BOI, EDB and the Mahawali Ministry to expedite the national export drive of fruit and vegetables. Lands have been identified for long term leases for prospective investors who are required to set up nucleus farms in identified locations. They will be developed as outgrower systems to promote high quality fruits and vegetables. |
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