Spice and allied sector targets $1b in 2020

Minister of Industry and Commerce Rishad Bathiudeen said that export of substandard products will ruin the Sri Lanka's reputation in the international market as a supplier of high quality spices to the world.

The Export Development Board (EDB) has already facilitated Good Manufacturing Practices (GMP) to the cinnamon industry to improve the quality of cinnamon, he said.

Minister Bathiudeen was addressing the Annual General Meeting of the Spice Council recently at the Taj Samudra Hotel, Colombo.

The EDB has already assisted 20 cinnamon processing centres to upgrade them to Good Manufacturing Practice status to improve the quality of cinnamon.

"I wish to request the exporters who are not following standards of international compliance and food safety methods to adhere to them in order to safeguard our position in the international market. The Spice Council can also provide some guidelines to the members to follow. What is more important is that we need more exports of value-added products in the spices and allied products sector. Only few exporters are engaged in export of value-added products. Essential oils, oleoresins are some examples. Export of organic spice products is another sub-sector which has substantial potential. This is because the Japanese and European markets are now very health conscious" Minister Bathiudeen said.

Minister Bathiudeen said: "The Spices and Allied products sector has been identified as one of the potential sectors to achieve US$ 1 billion target in 2020 by the EDB. Also, the government has decided to increase its investments in minor crops to sustain the efforts of the Ministry of Minor Export Crop Promotions.

Further, spices and allied products sector also contributes a considerable amount of foreign exchange to the national economy. During January-August 2011, the spice sector has recorded 25% growth, indicating export earnings of US$ 153 Mn compared to the same period in 2010. During the year 2010 too, the export earnings accounted for US$ 165 Million."

Minister Bathiudeen invited the industrialists to take part in Sri Lanka Expo 2012" from March 28-30, 2012 organised by the EDB at the BMICH. This event is organised with the objective of promoting Trade, Investment and Tourism.

It is targeted to attract 1,000 top buyers from key export destinations to visit Expo 2012. In addition to buyers, Ministerial delegations, prospective investors and media personalities are expected to attend the event.

It has also been proposed to organise a symposium with exclusive speakers from overseas to address on global trade and specific industry trends. I take this opportunity to invite you to participate in this exhibition and showcase your products and skills to the international buyers." Speaking of the Mahinda Chinthana Framework, Minister Bathiudeen said: "According to the Mahinda Chintana Policy Framework, the Government's aim is to give greater access to the rural farmers to our export earnings and enhance their living standards.

I am most happy to commend Economic Development Minister, Basil Rajapaksa's efforts to develop our backyard economic units through the effective Divi Neguma Project. As you are aware, Spices are grown mainly in home gardens in addition to inter-cropping with perennial crops contributing to the rural economy and income generation for the small farmer clusters, which is a key focus of the Mahinda Chinthana.

Also present on the occasion were Basil Rajapaksa, Minister of Economic Development, Reginald Cooray, Minister of Minor Export Crop Promotions, and Sarada de Silva, Chairman of the Spice Council.