Sugarcane industry will be out of doldrums soon - Reginald Cooray

By L.S. Ananda WEDAARACHCHI

Sri Lanka produces only five percent of her sugar requirement while rest is imported. Sri Lanka's local production amounted to 35 percent before the privatisation of sugar industry, said Export Crop Promotion Minister Reginald Cooray. The present predicament is due to the wrong economic policies pursued by previous governments, the minister said.

The Sunday Observer interviewed Minister Reginald Cooray on reviving the local sugar production.

Excerpts of the interview:

Q: Sri Lanka imports a number of food items at a tremendous cost although most of them could be produced locally. Sugar is one of the major imports. Could you explain this situation?

A: It is a dismal picture. Last year Sri Lanka Spent Rs. 35 billion for sugar imports alone and it is likely to go up this year due to escalation of prices in the world market.

Today local production has dropped to 5 percent though it had shot up to 35 percent in 1980s, local sugarcane cultivation goes back to 1840s. Around 25000 hectares of land were under sugarcane cultivation in Kantale, Hingurana, Pelwatta, Sevenagala and in Monaragala districts 20 years ago.

Export Crop Promotion Minister Reginald Cooray at the Sugarcane Research Institute, Udawalawe.

During the last two decades the extent of land under sugarcane cultivation has dropped drastically. Sugar is manufactured only in Pelwatta and Sevenagala factories at present.

Sugarcane cultivators also switched to other cultivations due to the instability of the sugarcane industry.

Q: What are the steps taken by your ministry to arrest this deplorable situation?

A: In the Mahinda Chinthana policy framework a target of 20 percent is set for the sugar industry in 2014.

It is necessary to expand the sugarcane cultivation acreage in Kantale and Higurana to 25,000 of land. Steps will be taken to ensure to achieve that we reach this target.

The refurbishment of the Kantale and Hingurana sugar factories and the motivation of small scale sugar cane cultivators are vital to rehabilitate the industry.

Q: Sevanagala and Pelwatta sugar factories are run by the private sector. The supply of sugarcane the main raw material input is not sufficient for the factories to work to their full capacity. Although their production capacity amounts to 60,000 mt only 35,000 mt could be produced last year. How do you explain the shortfall?

A: Sugarcane cultivators had given up their cultivation during the last 20 years due to several reasons. It is essential for the Sugar Cane Research Institute to introduce viable motivation program to bring them back to sugar cane cultivation.

Q: Former Minister Dharmadasa Banda proposed to set up a sugar factory in Ridiyagama - Uva-Wellassa - Bibile sugar belt. Has it been pursued?

A: Series of investment proposals are being studied by the Ministry of Economic Development and Ridiyagama Sugar Factory is one of them. A decision will be taken soon.

Q: Former Finance Minister Dr. N.M. Perera in his 1972 Budget emphasised the use of jaggery as a substitute for sugar. He was critical of the policy of imports where items could be locally manufactured or produced. Do you have any plans to popularise jaggery and its allied products?

A:Jaggery produced by the Sugar Cane Research Institute will be marketed islandwide soon under the brand name Rankati. According to the preliminary marketing surveys Rankati could attract a higher demand.