Cinnamon exports to hit $1 b

By Gayan Kanchana

Cinnamon is unique to Sri Lanka and holds the monopoly for cinnamon in the export market. It is well known that cinnamon cultivation is the only monopoly that Sri Lanka holds.

Sri Lanka produces and exports over 90 percent of the world’s true cinnamon, Spice Council (TSC) Chairman, Sarada de Silva said.“Ceylon Cinnamon has the potential to increase value-added exports to hit $1 b by 2020,” he said at the launch of UNIDO (United Nations Industrial Development Organisation) backed Enhancing the compliance and productive capacities and competitiveness of the cinnamon value chain in Sri Lanka, last week in Colombo.

“Cinnamon is grown, harvested, processed and exported with value-addition by the private sector. More than 70 percent of the producers are smallholders who own less than one acre of land.

The cinnamon industry is a source of income to over 350,000 families in Galle, Matara, Hambantota, Ratnapura and Kalutara district. Now many other districts have started cultivating cinnamon,” he said.“Policies implemented under the Mahinda Chinthana since 2005 have resulted in the cinnamon sector benefiting and gaining much prominence.

With the separation of cinnamon from cassia in the Harmonised System (HS) Code in 2007 and the launching of the Ceylon Cinnamon Lion logo last year has enhanced demand and the price has increased from $ 5 in 2009 to $ 10, ” de Silva said.

The Minister of Industry and Commerce, Rishad Bathiudeen said, “Sri Lanka’s cinnamon exports has to increase with other exports, if we are to achieve the $ 15 b target by 2015. I am thankful to the World Trade Organisation and the Treasury for granting almost $ 11 m in funding, the rest being funded by UNIDO.