CIC Agri expands overseas business

By Lalin FERNANDOPULLE

CIC Agri Businesses has commenced business with Bangladesh and has signed two agreements with Dubai and Qatar- based companies to expand agricultural production in African countries said CIC Agri business CEO and Managing Director, Keerthi B. Kotagama.

He said that Bangladesh has a huge potential for agricultural growth and they would transfer new technologies and better management skills to farmers to improve their yield and hence income levels in all crop and livestock sectors.

CIC Agri Businesses entered into a strategic partnership with Rahimafrooz, a diversified business entity in Bangladesh last year.

Kotagama said that increasing food production is vital due to the sharp population increase which adds around 55 million people annually to the global population.The change of food habits in developing countries such as Brazil, Russia, India, China and South Africa (BRICS), climatic changes (drought/flood) destroys agricultural production.

The demand for food has increased and prices have shot up 100% compared to the prices five years ago due to agricultural production converted to energy (bio diesel and fuel) in USA and Europe.

This high price trend will continue. Sri Lanka will be adversely affected as it is a large importer of food items.

The country imports food items to the value of nearly Rs. 200 billion. The potential for the agriculture sector is very positive in Sri Lanka especially with the policy to discourage food imports by providing facilities to boost local production by way of the fertiliser subsidy, guranteed prices and taxes on imported food items.

CIC Agri Businesses sees huge prospects for growth in the dairy, rice and grain sectors this year”, Kotagama said

The depreciation of the rupee supports the agricultural sector as all agri-produce get higher realisation due to higher import prices. This will boost local food production. The devalued currency helps agri exporters with higher income.

“We have identified the area for grape wine cultivation in Kilinochchi and hopefully by end of 2014 the first harvest will be in the market. Soil testing has been completed and we are in the process of obtaining import permits to get down hybrid seed variety,” he said.

CIC Agri Businesses ventured into cultivation of grapes in the North which has ideal soil conditions for the crop.

Kotagama said that the company is negotiating to set up paddy and grain purchasing centres in the North targeting export markets. The company commenced red onion seed production in the North with a cold room facility at Vavuniya. “We are in the process of purchasing maize from around 1,000 out grower farmers who commenced cultivation last October. The company started seed production in the Vellankulam farm and out grower program to produce seed paddy.” he said.