By Madhusha Thavapalakumar
Following sustained lobbying by spice manufacturers the Government is expected to obtain geographical indications (GI) within the European Union which could increase the prices of Ceylon spices in the global market at least by five times.
Department of Export Agriculture Special Research Director Dr. J.M. Seneviratne told The Sunday Morning Business that four cultivations were selected to obtain the GI requirement, out of which, laboratory works on cinnamon was already sent to the EU.
“We selected cinnamon, tea, coffee, and pepper. We’ve already proposed cinnamon for GI, highlighting all of its unique features, proving them with lab reports. Cinnamon GI will possibly be given within less than a month,” Seneviratne noted.
According to Seneviratne, GI for the rest of the three products would be obtained within next six months and upon obtainment, all four can be sold in international markets for much higher prices than at the moment.
“If we get GI, we would be able to maintain the traceability and quality of our spices. Once the final product reaches the global market with its very unique identity, we will get higher prices for our products. By higher, I mean five to six times higher,” Seneviratne added.
Subsequently, the laboratory works on pepper have been initiated now which is comparatively complicated when compared to that of cinnamon, according to Seneviratne.
Despite being cultivated in multiple areas around the country, Ceylon cinnamon’s characteristics match across the regions, whereas pepper’s characteristics differ from region to region. The Department of Export Agriculture believes that obtaining GI would be extremely helpful in such cases instead of naming the products using a general name, e.g. only “Ceylon pepper”, as each one has a different taste depending on the regions it originates from.
“In Sri Lanka there is Kolonna pepper, Bibila pepper, Matara pepper, and many more. They all taste different but still have that high piperine content unique only to Sri Lanka. In this case, we have to identify the pepper from each and every area and do the lab works,” he noted.
GI for pepper is expected to provide relief for farmers who have been struggling financially, majorly due to their biggest importer, India, slashing their Minimum Import Price (MIP) on pepper exports and also due to the drop in global prices.
As the EU would only provide GI for farmer associations, not for the Government, the export entities are now in the process of forming separate associations for GI implementation. The work is expected to be completed by mid-October.
“We have associations, but we do not have any solely for GI implementation. We are forming associations now.
There is already the Ceylon Cinnamon Geographic Indication Association (CCGIA),” Seneviratne noted.
Highlighting the mere reliability on selected Asian markets for spice exports, he noted that this new requirement would help manufacturers tap into new potential export markets and expand Ceylon spices’ global footprint, especially in the European region that pays comparatively better prices for Sri Lankan exports.
However, as the GI alone will not reap the desired benefits, the Department of Export Agriculture drafted the Good Agricultural Practices (GAP) book for pepper, cinnamon, and coffee planters which is now being reviewed by Sri Lanka Standards Institute (SLSI).
Department Director General Dr. A.P. Heenkende told The Sunday Morning Business that upon completion of the book, it will be provided to the farmers who engage in spice plantation. The farmers who follow the GAP will be identified and be provided GAP certification, which will enable them to export to European markets.
“We will issue them a license. They can show the license and submit their production for exports. We are planning to implement this from 1 January. What matters to the European market most is good standards,” Dr. Heenkende noted.
With the adoption of GAP and obtainment of GI, the Department of Export Agriculture hopes to end the re-exporting racket in hopes of maintaining Sri Lanka’s spices’ very own global significance for its superior qualities in the global market and also reaching spice export targets. The National Export Strategy (NES) aims to achieve an export target of $ 880 million from the spices and concentrate sector by 2022.
The GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that is attributed to that origin. In order to function as a GI, a sign must identify a product as originating in a given place. In addition, the qualities, characteristics, or reputation of the product should be essentially due to the place of origin.
Following sustained lobbying by spice manufacturers the Government is expected to obtain geographical indications (GI) within the European Union which could increase the prices of Ceylon spices in the global market at least by five times.
Department of Export Agriculture Special Research Director Dr. J.M. Seneviratne told The Sunday Morning Business that four cultivations were selected to obtain the GI requirement, out of which, laboratory works on cinnamon was already sent to the EU.
“We selected cinnamon, tea, coffee, and pepper. We’ve already proposed cinnamon for GI, highlighting all of its unique features, proving them with lab reports. Cinnamon GI will possibly be given within less than a month,” Seneviratne noted.
According to Seneviratne, GI for the rest of the three products would be obtained within next six months and upon obtainment, all four can be sold in international markets for much higher prices than at the moment.
“If we get GI, we would be able to maintain the traceability and quality of our spices. Once the final product reaches the global market with its very unique identity, we will get higher prices for our products. By higher, I mean five to six times higher,” Seneviratne added.
Subsequently, the laboratory works on pepper have been initiated now which is comparatively complicated when compared to that of cinnamon, according to Seneviratne.
Despite being cultivated in multiple areas around the country, Ceylon cinnamon’s characteristics match across the regions, whereas pepper’s characteristics differ from region to region. The Department of Export Agriculture believes that obtaining GI would be extremely helpful in such cases instead of naming the products using a general name, e.g. only “Ceylon pepper”, as each one has a different taste depending on the regions it originates from.
“In Sri Lanka there is Kolonna pepper, Bibila pepper, Matara pepper, and many more. They all taste different but still have that high piperine content unique only to Sri Lanka. In this case, we have to identify the pepper from each and every area and do the lab works,” he noted.
GI for pepper is expected to provide relief for farmers who have been struggling financially, majorly due to their biggest importer, India, slashing their Minimum Import Price (MIP) on pepper exports and also due to the drop in global prices.
As the EU would only provide GI for farmer associations, not for the Government, the export entities are now in the process of forming separate associations for GI implementation. The work is expected to be completed by mid-October.
“We have associations, but we do not have any solely for GI implementation. We are forming associations now.
There is already the Ceylon Cinnamon Geographic Indication Association (CCGIA),” Seneviratne noted.
Highlighting the mere reliability on selected Asian markets for spice exports, he noted that this new requirement would help manufacturers tap into new potential export markets and expand Ceylon spices’ global footprint, especially in the European region that pays comparatively better prices for Sri Lankan exports.
However, as the GI alone will not reap the desired benefits, the Department of Export Agriculture drafted the Good Agricultural Practices (GAP) book for pepper, cinnamon, and coffee planters which is now being reviewed by Sri Lanka Standards Institute (SLSI).
Department Director General Dr. A.P. Heenkende told The Sunday Morning Business that upon completion of the book, it will be provided to the farmers who engage in spice plantation. The farmers who follow the GAP will be identified and be provided GAP certification, which will enable them to export to European markets.
“We will issue them a license. They can show the license and submit their production for exports. We are planning to implement this from 1 January. What matters to the European market most is good standards,” Dr. Heenkende noted.
With the adoption of GAP and obtainment of GI, the Department of Export Agriculture hopes to end the re-exporting racket in hopes of maintaining Sri Lanka’s spices’ very own global significance for its superior qualities in the global market and also reaching spice export targets. The National Export Strategy (NES) aims to achieve an export target of $ 880 million from the spices and concentrate sector by 2022.
The GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that is attributed to that origin. In order to function as a GI, a sign must identify a product as originating in a given place. In addition, the qualities, characteristics, or reputation of the product should be essentially due to the place of origin.