The Ministry of Primary Industries targets a revenue of US$ 1.5 billion from spices and allied product exports in the next couple of years.
Minister of Primary Industries, Daya Gamage said the spice export sector has enormous potential to capture new markets and bring in the much needed foreign exchange.
He said cinnamon has anti cancer properties which has not been used to market the product and gain competitive advantage.
“Lack of funds to develop the crop, unutilised land and poor technology are some of the major obstacles to reach the full potential of the sector which takes pride in a centuries old trade which brought fame to the country as an exporter of high-quality spices,” the minister said.
Exports which was around 36 percent of GDP at the dawn of the century, has plummeted to around 14 percent.
Exports which have been on the decline for two consecutive years, picked marginally in May and in the following month.
The ministry has launched a loan scheme for the spice sector at an interest of 6.8 percent with a major component of the repayment being borne by the government.
The ministry will develop a software which will comprise a database on the sector.
Spices and Allied Products Producers’ and Traders’ Association President Vernon Abeyratne said there were many challenges faced by the spices sector, such lack of workers, especially cinnamon peelers, low yield and drop in global prices.
The price of a kilo of pepper has dropped to around Rs. 750 today due to the fall in prices in international markets with the rise in supplies from other countries.
“The members of the Association have not received the cess refund even though the cess was withdrawn,” Abeyratne said.
Besides being a colour, flavour and fragrance enhancer, spices have a host of health benefits. Cinnamon, pepper, cardamom, cloves, curry leaves, nutmeg and mace, turmeric, lemongrass and citronella, vanilla and ginger are exported from Sri Lanka.