Fillip for research in food processing

By Lalin Fernandopulle

There will be tax reductions for research and development in the food processing industry, said Industry and Commerce Ministry Secretary Dr. Anura Siriwardena at the launch of the 13th edition of the Pro Food Pro Pack and Agbiz exhibition which will be held at the BMICH from August 22-24.

He said updating technology and innovation is vital to sustain the food processing industry to face competition in the international market.

Lack of innovation and redundant technology has impeded growth in the industry.

Siriwardena said that income from processed food exports last year was around US$ 67 million and revenue from exports of rice and cereal products was US$ 47 million.

Sri Lanka Food Processors Association President Hamilton Diaz said growth in the food processing and packaging industry has been slow in the recent past due to the weak purchasing power of consumers.

He said that high prices of consumer goods has adversely affected the food processing industry which recorded a steady growth during the past few years.

The food processing and packaging industry makes a vital contribution in promoting local brands and boosting exports. The flood of foreign products in the local market has been a hindrance to promote Sri Lankan products and safeguard the industry. “The Food Processors Association has lobbied on several occasions to minimise imports to promote local brands and develop the industry,” Diaz said.

Consumers are compelled to buy a lesser quantity and fewer products than what they usually purchased due to the staggering prices of goods. The escalation in prices of milk powder, rice and other essential items have burdened the low income consumer, said an official of the Food Processors Association.

Maubima Lanka Foundation Chairman Ariyaseela Wickramanayaka said that Sri Lanka spends a large amount of its foreign exchange on import of milk powder which is a surplus in the country of manufacture. We also spend a staggering amount on import of sophisticated mobile phones.

“A change of mindset is essential to stop consuming foreign brands and save foreign exchange,” he said.

Diaz said that there was a 30 percent growth in participation at the exhibition last year with around 200 companies exhibiting products.

This year too we envisage growth with more participants and exhibitors. Around 25,000 visitors attended the exhibition last year.

Local and international companies from India, China, Malaysia, Dubai and Pakistan are expected to take part in the exhibition this year.

The theme of this year's exhibition is ‘From the Farm to the Kitchen'.

Lanka Exhibition and Conference Services (Pvt) Ltd, General Manager Aasim Mukthar said that the exhibition will be a one-stop shop for farmers and processors to meet consumers. This year's exhibition will comprise seminars, workshops, cooking studios and culinary competitions.