Sunday Dec 15, 2024
Sunday Dec 15, 2024
Tuesday, 17 December 2019 00:00 - - {{hitsCtrl.values.hits}}
The Confederation of Micro, Small and Medium Industries (COSMI) has hailed the Government’s decision to restrict the re-export of a dozen types of spices, the Industry and Commerce Ministry said in a statement yesterday.
It quoted COSMI President Nawaz Rajabdeen praising the move as encouraging Sri Lanka’s export crop growers and Small and Medium Enterprises (SMEs). More than 50% of Sri Lanka’s agricultural exports are spices and allied products.
“The Government’s decision to stop importing pepper, dried areca nut, tamarind, cinnamon, nutmeg, mace, cardamom, cloves and ginger by a gazette is praiseworthy. The Government seeks to encourage local cultivators of minor export crops and small- and medium-scale industrialists. We also praise the subsequent gazette notification in which the import of spices for re-export was banned,” he was quoted as saying.
“The entire sector suffered during the last 10 years as a few favoured parties were given the opportunity to import spices and re-export them without any value addition. It badly affected our local cultivators and MSMEs. Although the relevant department issued a condition for value addition, no such value addition was seen to be made.”
On the directive of Prime Minister Mahinda Rajapaksa, the Government banned the importation of spices and minor crops on 5 December to protect and encourage minor export crop growers and Small and Medium industrialists.
Sri Lanka’s re-exports have increased over the last decade. In 2007, only 1.46% of Sri Lanka’s total exports were identified as ‘re-exports’ but a decade later in 2017 such re-exports doubled to 2.88% of total exports. The value of all re-exports (including spices) jumped by a massive 400% in 2017 compared to 2007.
More than 50% of Sri Lanka’s agricultural exports are spices and allied products. Year-on-year export of spices and allied products declined in 2018 by 11.53% to $ 361.1 million from 2017’s $ 408.17 million. In 2018, the major market for Sri Lanka’s spice exports was Mexico followed by India and the US.
COSMI was formed this year and it aims to revive and foster MSMEs in Sri Lanka.
