PA raises concerns over decision to import spices
View(s):Sri Lanka’s globally renowned spice industry, long celebrated for its authenticity, quality and heritage, is now confronting one of its most pressing challenges. The Planters’ Association of Ceylon (PA) has voiced grave concerns following the Government’s decision to permit the importation of spices under a new regulatory framework that grants “approved enterprise” status to selected companies, the association said in a media release.
While the stated objective is to process these imported spices into value-added products such as oil extracts and oleoresins for re-export, industry stakeholders fear that this move could severely dilute the reputation of pure Ceylon spices, disrupt local markets and open the door to smuggling and adulteration of Sri Lanka’ famed spices.
The PA argues that this policy undermines decades of effort invested in positioning Sri Lankan spices as premium, high-quality produce in the international market. Without urgent action from policymakers, the decision could deal a severe blow to farmers, exporters and the island’s long-standing reputation as the home of world-class spices.
Sri Lanka’s cinnamon, pepper, nutmeg and cloves are globally recognised for their distinct flavour and authenticity, commanding premium prices in international markets. However, the new import scheme threatens to disrupt this delicate ecosystem.
Imported spices, cultivated under different environmental and commercial conditions, benefit from cheaper production costs and wider economies of scale. Introducing these products into the Sri Lankan market, even under the guise of re-export, creates the risk of spillover into domestic supply chains. Local farmers would then face unfair competition as imported products enter the market at lower prices, dragging down demand for genuine Ceylon produce.
The PA noted that previously in 2016, large volumes of imported pepper allegedly found their way into Sri Lanka’s export streams, leading to allegations of smuggling and dilution of the country-of-origin certification. India, Sri Lanka’s largest export destination, responded by tightening restrictions, which severely impacted local producers. The PA warns that this cycle could repeat, leaving thousands of farmers vulnerable to price crashes and lost livelihoods.
Countries like India, which currently import significant volumes of Sri Lankan spices under preferential tariffs via the ISFTA and SAFTA agreements, are highly sensitive to irregularities. If Sri Lanka is perceived as re-exporting foreign-grown spices under its own origin certificate, it could trigger retaliatory measures, as seen in the pepper crisis of the past. Already, reports suggest that India has raised concerns over the recent approval of import licenses, with containers facing clearance delays at Indian ports.
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