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Limited production bar to to export of fruits

by Elmo Leonard

While Sri Lanka's exports of fruits and vegetables yields around Rs 3 billion (Rs 99 to a dollar) annually, demand from overseas, cannot be met due to limited production, Sri Lanka Fruit and Vegetable Exporters' Association (SLFVEA) President ,Sarath De Silva said.

Sri Lankans were capable marketeers and if production was increased, markets could be found, he said.

The island's exports of fruits and vegetables began by chance in the early 1970's to Sri Lankan expatriates in the Middle East, and then grew to meet the needs of the tourist influx into the Maldives. Since then exports had grown from four, to 52, De Silva said, at a seminar on exports of fruits and vegetables to EU countries, conducted by the Sri Lanka Institute of packaging (SLIP) and National Packaging Centre (NPC) in association with International Trade Centre (ITC) UNCTAD, Geneva. The SLFVEA president's presentation was on `problems faced by the exporters, and solutions proposed.'

"Only a few exporters are in production, while what is needed is model farms, rather than dependance on ad hoc suppliers. Land is difficult to obtain, hampered due to demand from tea, rubber and coconut plantations, and for housing and development. "While even developed countries are taking to fruit and vegetable exports, the cost of labour and production is minimal in India, China, Indonesia, Kenya and Bangladesh; Sri Lanka's cost of production is high," De Silva said.

He urged exporters to avoid using cheap, inappropriate packaging material as bamboo baskets for exports. Since ply corrugated cartons could be purchased at a lower cost from India, he appealed to the local packaging industry to offer a better carton, at a lower price. This prompted, SLIP President,, Dharmatilake Ratnayake, to summon a meeting of the SLIP membership, at a later date.

In a bid to cut down the 40 percent waste from harvest, exporters should use a cold chain for transfer of fruits and vegetables, De Silva proposed.

Banks considered the financing of agricultural activity as fruit and vegetable as high risk, but estimated garment exports, lucrative, he said.

Sri Lanka's national carrier, was more interested in growing into a regional airline; some of its larger aircrafts were flying with empty cargo space, which could be filled up, if local exporters' cargo fares were subsidised, de Silva said. India, Australia and South Africa, were subsidising their fruit exports, one way or the other. In India, regional governments were subsidising transport, electricity, cost of deep well pumps, etc, in a bid to afford employment opportunities to rural Indians.

Export Development Board (EDB) had given high priority status for the export of fruits and vegetables, and a National Agri-Business Committee, was in the process of formulation, which augurs well for the industry, De Silva opined.

Sri Lanka has come a long way since, pineapple was the only crop commercially available, but, there is a long way to go, and only a few model farms are in existence, although a large variety of fruits and vegetables are being exported. The tissue culture industry had to improve output, for exports to increase. Dependence on seasonal rains had to be dispensed of, and protected agriculture with irrigation, would take over in the coming years, De Silva said.

Professor Samir Elsayyard, senior export packaging consultant, ITC, had travelled to many parts of the world, promoting exports of fruits and vegetables. Everywhere he went, he found fruit and vegetable exporters lobbying with their governments for more assistance and subsidies.

He spelled out the many packaging procedures, the industry should follow to be successful in the European market, too technical for this article.

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