Cinnamon industry which brought Rs.9000 million income has collapsed – Ajith Kumara MP

Cinnamon industry which brought Rs.9000 million income has collapsed – Ajith Kumara MP Monday, 12 January 2009 16:56

CINNAMON, TEA AND RUBBER PRICES IN THE WORLD ARE COLLAPSING AND THAT HURTS THE FOREIGN EXCHANGE INCOME OF SRI LANKA.

The cinnamon industry which brought more than Rs.9000 million income for Sri Lanka has collapsed says convener of Cinnamon Producers United Union, Parliamentarian Ajith Kumara. Speaking at a media meeting in Colombo today Mr. Ajith Kumara pointed out that developing cinnamon industry would be a big boost to Sri Lankan economy.

“A main issue that the cinnamon industry is confronted with is the absence of a fixed price. There is no fixed price in the country and no one knows what price a kilo of cinnamon is sold in the world market.

Even if the land and the cinnamon growers labour is not considered the cost of production of one kilo of cinnamon is Rs.450. The government made a big noise saying a relief package would be given. However, there are no proposals to reduce the cost of production. Fertilizer price should be reduced to bring down the cost of production. The government pledged to give a fertilizer subsidy to all cultivations. However, there was no fertilizer subsidy for cinnamon. With the price of fuel coming down in the world market a metric ton of urea has come down from US$843 to US$296. Hence, it would be a boon to cinnamon producers if fertilizer could be given at world market price.

Sri Lanka has the best cinnamon in the world. However, we supply only 10% of the world market requirements. There are quite a few ministers for agriculture. But there is no programme to find new markets for agricultural products.” Said Mr. Ajith Kumara.

The Cinnamon Producers United Union put forward a series of proposals to develop cinnamon industry. They are:

1. The government should mediate to establish a fixed price for cinnamon

2. A fertilizer subsidy should be given to cinnamon growers

3. Adequate subsidy should be given when planting and replanting

4. Taking into consideration the demand and price the government should mediate in finding new markets

5. The government should mediate in introducing technology to qualitatively increase the yield and make available facilities to utilize this technology

6. Mediation in getting social assurance and acceptance to those involved in cinnamon trade

7. Allocating reasonable funds for cinnamon industry from the annual budget

8. The government mediation in reducing interest for bank loans for those involved in cinnamon industry, specially those involved in growing and exporting of cinnamon

9. Mediation by the government to solve issues cinnamon exporters confront

10. Government mediation in value added products from cinnamon




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