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| Sunday, 24 July 2005 |
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Lanka's clove exports net Rs. 1.3 b in 2004 Sri Lanka's exports of cloves during 2004, jolted by the zero tariff structure of the Free Trade Agreement with India, increased to Rs. 1.3 billion (Rs. 100 to a US dollar) from exports valued at Rs. 0.5 million during 2003. Clove exports increased by 87 per cent to 2,977 tonnes during 2004, compared to the previous year, according to Customs statistics. Clove production increased by 58 per cent to 3,745 tonnes in 2004, the annual report of the Spices and Allied Products Producers' and Traders' Association (SAPTA) says. SAPTA, known as the `voice of the spice industry' has 115 members and covers commodities such as cinnamon, pepper, cloves, cardamoms, nutmeg, mace and vanilla and other agricultural crops and derivates such as cashew, arecanuts, cocoa, coffee, essential oils, oleoresins, herbal products and organic products. Cinnamon, the most important crop in the sector netted in forex of Rs. 4.7 billion in primary form. Sri Lanka, with 25,500 hectares under cultivation, is the world's largest producer and exporter of cinnamon accounting for over 90 per cent of global output. There is much potential for Sri Lanka to increase cinnamon exports in value added form instead of shipping it as a primary product, the report says. The proposed Cinnamon Development Fund is expected to support further development of the cinnamon industry, especially expansion of value added products. Cinnamon production during 2004 increased by 6 per cent and farm gate prices and export prices rose marginally during the year. Sri Lanka's total exports of spices and allied products for 2004 was Rs. 8.0 billion, from a quantity of 21,818 tonnes, compared to forex of Rs 7.2 billion, from an export volume of 24,296 tonnes during 2003. Export earnings from pepper declined by 40 per cent to Rs. 883 million, while volume fell to 4,679 tonnes from 7,859 tonnes during 2003. Backed by Sri Lanka Cashew Corporation (SLCC's) assistance, towards cultivation, marketing and processing, the cashew extent under cultivation reached 35,646 hectares and production by 5 percent during 2004. Projections are that the cashew industry will grow in the future. Exports of cashew kernel during 2004 declined from 73 tonnes to 62 tonnes, while value of exports declined from Rs. 49 million to Rs. 43 million during 2004. During the year cashew prices were firm. Raw cashew nut prices went up by Rs. 100 per kilo and export quality kernel reached Rs. 700 per kilo. The trade says that traditional cashew peelers and processors are going out of business as raw cashew nut are not available throughout the year. Therefore the future of the cashew industry which provides employment for 25,000 rural people could be in danger, the report said. Vietnam is the world's largest cashew producer and exporter with a yield of 2,470 kilos per hectare. In 1961 Vietnam had only 1,000 hectares under cashew, while production was over 700 tonnes. In Vietnam the yield per hectare is 2,470 kilos per hectare, Sri Lanka's yield per hectare is 350 kilos. Thus, it is timely for the private sector and government authorities to rectify the situation and safeguard this largely export industry, the report says. E.L. |
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