The escalating prices of fruits and vegetables in Sri Lanka have compelled citizens to pause in front of stalls and supermarket aisles, prompting them to reflect on their affordability.
A 2021 study by Arutha, a Colombo-based policy think tank, indicated that a family of two adults and two adolescent children should budget between Rs. 46,000-73,000 monthly in order to adhere to a diet endorsed by both the World Health Organisation (WHO) and the Ministry of Health.
In 2024, amid economic crises and recovery, the aforementioned budget is likely to have increased. In such circumstances, the availability of imported fruits and vegetables at exorbitant prices in local commercial markets raises concerns about their affordability for citizens.
Apples, oranges, mandarins, grapes, pomegranates, sweet tamarind, and plums are the main imported fruits, while there are numerous locally-produced seasonal fruits like ambarella, durian, guava, Indian gooseberry, lovi, mangosteen, rambutan, and wood-apple. There is an option for local fruits to be cultivated and introduced to the local market at affordable prices.
This situation also applies to imported vegetables including onions, garlic, potatoes, and leeks, vis-à-vis locally-produced vegetables like ash plantain, breadfruit, jackfruit, gotukola, kangkung, bitter gourd, brinjal, and cucumber.
Considering the variety of local options, the question arises as to why Sri Lanka is unable to focus on reducing or even substituting imported fruits and vegetables with locally- and seasonally-produced ones, since this would enable distribution to the local market and reduce food expenses endured by the people.
Domestic supply issues
Speaking to The Sunday Morning, independent economist Rehana Thowfeek said that Sri Lanka did not produce sufficient quantities of fruits or vegetables to be supplied to the local market.
“Imported fruits and vegetables incur high costs attributed to import tariffs. For instance, fresh grapes face a total tariff rate of 40% (excluding VAT and SSCL), apples 30%, and various berry types exceed 50%. The same applies to vegetables.
“Regarding fruits, we are limited to producing tropical varieties while lacking the capability to cultivate apples and mandarins domestically. Therefore, importing these fruits becomes necessary, yet imposing excessively high tax rates on them is deemed unfair,” Thowfeek further said.
Meanwhile, University of Ruhuna Faculty of Humanities and Social Sciences Department of Economics Senior Lecturer Dr. Nandasiri Keembiyahetti highlighted that even for local seasonal fruits and vegetables, the harvesting season depended on various environmental conditions, leading to fluctuations in supply throughout the year.
“This variability is inherent in seasonal crops. During harvesting season, there is often an abundance in the market, but in the off-season, scarcity becomes evident. Consequently, importing certain fruits becomes necessary to maintain a consistent supply throughout the year,” he added.
Taking long-term action to cultivate these vegetables and fruits in greenhouses, rather than in an open environment, could mitigate seasonal fluctuations to some extent, Keembiyahetti pointed out. This approach had the potential to reduce the quantity requiring importation, he said, while stressing that until such methods were implemented, some level of importation remained unavoidable. “It’s a natural course of action, and, as a consequence, we may experience price hikes depending on the world market and fluctuations in exchange rates,” he concluded.
Challenges in local production
Export Development Board (EDB) Director – Export Agriculture Janak Sanjeewa Badugama addressed several aspects related to the challenges of local fruit and vegetable production, importation, and market dynamics.
He highlighted that imported fruits like apples, oranges, and grapes were the primary imported items due to insufficient local production, while addressing the possibility of other options for sourcing fruits and vegetables, such as producing them in Sri Lanka through proper processes. However, these choices remain limited or not comprehensive enough to fully replace or substitute certain imported fruits.
“Local production faces multifaceted challenges. At present, fruit and vegetable cultivation in the region is geared primarily towards domestic consumption. While there have been efforts to introduce new crops to the local market, their quantities fall short of meeting the rapidly growing demand and they prove inadequate substitutes for imported varieties,” Badugama said.
He further said that the sector was hindered by quality concerns, notably in the case of grapes, where the absence of widespread commercial cultivation had led to compromised quality. Additionally, the disappearance of grape and orange cultivations long ago in Nuwara Eliya has contributed to the overall challenges faced by local producers.
Cultivations for certain fruits like mangoes and jackfruit had potential but were yet to reach mature commercial levels while facing resistance from the community due to taste preferences for fresh produce, he said.
Limited quantities of bananas were available for export, but their quality was low, Badugama pointed out. Despite the introduction of Good Agricultural Practices (GAP) for the purpose of sustainability, challenges depended on farmers’ capabilities, he further noted.
Moreover, post-harvest losses in Sri Lanka posed a significant challenge, ranging between 35-40%, primarily attributed to inadequate storage facilities, transportation limitations, and a lack of effective strategies for proper harvesting and storage, Badugama highlighted.
This issue was exemplified by specific instances – such as incorrect harvesting practices for mangoes – which further contributed towards the higher overall losses in the post-harvest phase, he said, while stressing that addressing these storage-related issues was crucial for minimising wastage and ensuring a more sustainable and efficient agricultural supply chain.
Demand for high-quality products
“In terms of market dynamics and consumer demand, the importation of fruits and vegetables is primarily influenced by the preferences and demands of consumers as well,” Badugama noted. However, a significant challenge persists in the form of market availability issues, specifically the difficulty in finding high-quality produce within local markets.
This underscores the need for comprehensive strategies that not only address consumer preferences but also tackle challenges related to the availability of top-quality produce in the market. Policies in this regard should carefully take into account alternative options for local consumers, he explained.
In addressing the challenges of local fruit and vegetable production, there was a notable emphasis on Government policy and the vital role of proper cultivation in Sri Lanka, Badugama further noted.
When The Sunday Morning spoke to a senior source at the Consumer Affairs Authority (CAA) regarding the possibility of a price reduction of locally-produced fruits and vegetables sold locally, he said: “To bring down the prices of vegetables and fruits, we need to address post-harvest considerations.
“Post-harvest losses, particularly of fruits and vegetables, are estimated at around 40% in Sri Lanka. Additionally, a few supermarkets have already implemented a 10% price reduction. Consequently, there is a potential to further decrease the prices of fruits and vegetables.”
When contacted, Ministry of Agriculture and Plantation Industries Director Media W.M.D. Wanninayake attributed the prevailing fruit and vegetable shortage to farmers being unable to cultivate most of the products due to the prolonged drought.
Consequently, local fruit and vegetable production was low, including fruits such as pineapple, papaya, and banana, which were also experiencing a shortage, he added. “Production is very limited, leading to a necessity to import fruits and vegetables to meet the demand in the country.”