Sri Lanka’s spice export industry is facing challenges due to the re-export of low-grade imported produce falsely labelled as local, Deputy Minister of Agriculture and Livestock Namal Karunaratne told Parliament on Tuesday (06).
Karunaratne revealed that exporters have been importing refuse-grade pepper from Indonesia and Vietnam, mixing it with Sri Lankan produce, and exporting the blend under a “Made in Sri Lanka” label, a practice that has severely dented both pricing and demand in international markets.
“If you take dried areca nuts, pepper and cinnamon, prices have dropped significantly due to these practices. At times, farmers are unable to sell their produce. The industry is facing consequences due to the lack of proper oversight,” he said.
The Deputy Minister warned that such activities have tarnished Sri Lanka’s image in key markets, notably India, which maintains a limited quota for Sri Lankan spices under the Indo-Sri Lanka Free Trade Agreement (ISFTA).
He stated that the influx of substandard exports has weakened demand and “driven down prices,” negatively affecting genuine producers.
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