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Thursday, 17 April 2014 00:00 - - {{hitsCtrl.values.hits}}
The country’s minor exports produced a major rebound last year both in terms of higher production and earnings.
Spices led the revival with exports earnings up 39% to $ 355 million in 2013 whilst other minor agricultural products exports saw a 33% jump to $ 101.3 million, according to Central Bank data for 2013. Export of vegetables too saw a hefty 87% increase to $ 25 million albeit from a low base.
The performance of these sectors helped to propel overall agricultural exports by 10.7% to $ 2.58 billion in 2013. They also cushioned the impact from dip in rubber exports (by 43% to $ 71.3 million) and coconut by 2% to $ 204.6 million. Agriculture sector’s export mainstay tea saw its earnings grow by 9% to $ 1.54 billion.
The Central Bank in its 2013 Annual Report said “the performance of minor exports rebounded during the year”.
The production of cinnamon, pepper, cloves, cocoa, arecanut, nutmeg, betel and cashew recorded a growth during the year while production of cardamom declined.
Pepper production recorded a 50.5% growth, achieving the highest production of pepper in recent history due to favourable weather conditions in the flowering and fruiting period and the expansion of productive extent with increased newly-planted extent.
The export demand for pepper remained high benefitting exporters during the year. However, a decline in pepper farmgate prices by around 12% was also observed.
Production of cloves also grew significantly by 54.4% to 6,190 metric tons in 2013 over the previous year, helping clove growers to reap the benefits of increased farmgate prices of cloves.
Cashew kernel production increased by 3.6% to 2,072 metric tons in 2013 supported by an increase in matured extent of cashew in recent years and higher farmgate prices.
The increase in cinnamon production was marginal at 2% during the year, largely a result of an increase in matured extent.
Central Bank said export earnings from other agricultural products such as spices, vegetables, unmanufactured tobacco, minor agricultural products increased substantially in 2013, contributing to the overall growth in agricultural exports.
Earnings from the export of spices rose by 38.8% to $355 million in 2013. This was mainly on account of an increase in earnings from export of pepper by 82.9% to $128 million and an increase in earnings from export of cloves by 169.4% to $50 million.
“An increase in planting due to favourable prices and incentives given through the ‘Gama Neguma’ program as well as improved extension services provided by the Department of Export Agriculture contributed to the significant growth in export of spices during the year,” the Central Bank said.
Earnings from export of unmanufactured tobacco rose by 13% to $ 47.6 million and minor agricultural products by 33.3% to $ 101.3 million mainly due to favourable weather conditions.
