Spices and Concentrates

Sri Lanka, the ‘Spice Island,’ has always been renowned for its spices and its extracts or concentrates. The spices and concentrates (S&C) sector play a valuable role not only in boosting export earnings, but also in enhancing the rural economy and social development. The S&C industry in Sri Lanka is composed of a large variety of products, ranging from bulk spice products like true cinnamon to value added essential oils. The sector is dominated by smallholders, and over 70% of cultivated land is smallholdings and home gardens. Sri Lanka exports around 30,000 tons of various kinds of spices annually.

The tangible potential of the spice sector in Sri Lanka has been recognised by making it a priority sector in the National Export Strategy. The Spice sector strategy was established through consultations between private and public-sector stakeholders in the industry. The overall aspiration of the National Export Strategy is to position Sri Lanka as a trade hub in the region driven by investment & innovation. Thus, the sector strategy for spices seeks to propel the industry to greater heights by establishing Sri Lanka as the key export destination for spices in the region.

Based on global trends in the growing S&C sector, Sri Lanka should set the following priorities, with short, medium, and long-term goals. Short-term is defined as immediately to one year, medium-term as one to three years, and long-term is beyond three years.

Short-term goals:

• Diversify into production of spice mixes and spice-based sauces.

Medium-term goals:

• Increase market penetration in existing markets by improving product quality, enhancing packaging and labelling and increasing production volumes.
• Diversify into new markets, alongside existing ones, with spice mixes and spice-based sauces.

Long-term goals:

• Produce organic and Fair-Trade spices and their extracts for existing and new markets.
• Encourage multinational pharmaceutical companies to invest in joint ventures with local enterprises for development of medicinal and high end food products.

The following is a delineation of the proposed vision and strategic approach in this direction. All stakeholders of the S&C sector value chain in Sri Lanka agreed on the following vision statement:

“To be the leading exporter of high-quality, value added spices and concentrates meeting world standards”

For the latest Spices and Concentrates insights please visit (https://www.srilankabusiness.com/spices/

Spices and Concentrates Plan of Action activities under implementation

Key thematic areas receiving implementation supported via the Spices and Concentrates Plan of Action

Spices & Concentrates key progress milestones

• Ceylon Cinnamon GI Association established
• Ceylon Spices Master Brand established and launched at the Anuga Food Fair 2019
• GAP standardization code of practices for cinnamon, pepper, and coffee finalized
• The Department of Export Agriculture app created and launched in 2019