Spice exports up, but industry worried over fertiliser shift

•  Growth seen in pepper, cloves, nutmeg and cinnamon; 25% increase in prices compared to 2020
•  Targets $ 250-300 m export earnings by year-end
•  Industry expresses concerns over “sudden” ban on chemical fertiliser without proper study

By Charumini de Silva

Export of spices is on the up, but industry is concerned over the “sudden” decision to shift towards 100% organic fertiliser without a proper study.

“The demand for spices and essential oils has seen a significant increase in demand compared to last year,” Spices and Allied Products Producers and Traders’ Association (SAPPTA) Immediate Past Chairman Vernon Abeyratne told the Daily FT.

Export earnings from spices and essential oils increased significantly by 115% to $ 137 million from $ 63.49 million during the first four months of 2021 compared to the corresponding period of last year, Export Development Board (EDB) data showed.

“The growth was mainly seen in export of pepper, cloves, nutmeg and cinnamon. We also have noticed a 25% increase in prices compared to last year. More than the volume, it is the value that has gone up,” Abeyratne explained.

He believes the increased demand is due to the shortage of spices and essential oils in the global market, with few origin countries such as India, Vietnam and Indonesia being affected by bad weather conditions.

“Sri Lankan spices are higher in demand and has an edge in terms of its quality – for its unique flavour, aroma and multifaceted medicinal substances, especially for Ceylon cinnamon. The high demand could also be due to the COVID-19 pandemic, where a lot of people have shifted to consuming more herbal infused food and beverages.”

Abeyratne said they are looking at around $ 250 to $ 300 million export target for the year. Sri Lanka’s top markets for spices and essential oils include the European Union (EU), the US, Middle East and India.

Abeyratne however expressed concerns over the “sudden” decision to ban the chemical fertiliser without a proper study. “We are not opposing the decision, but the shift from chemical to carbonic fertiliser could be done gradually without rushing it and with proper research,” he said.

“Sudden decisions like this affects the yield resulting incompetent in the world marketplace. If we do not get the same or more harvest as predicted because of å change in fertiliser, it will adversely affect our harvest and our customers. This will lead to us losing our customers and an advantage to competing markets. I do not think any of us want that happening during this pandemic, where many of us are already grappling with enough issues as it is.”

Abeyratne added that high freight charges and travel restrictions within the country have also caused difficulties for the producers and suppliers.