WITHER EXPORTS IN THE NEXT FIVE YEARS · 1 Interactive forum on WITHER EXPORTS IN THE NEXT FIVE...
Transcript of WITHER EXPORTS IN THE NEXT FIVE YEARS · 1 Interactive forum on WITHER EXPORTS IN THE NEXT FIVE...
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Interactive forum on
WITHER EXPORTS IN THE NEXT FIVE YEARS
Organized by EASL
Spice Sector
FAZAL MUSHIN Director – Exports & Biz Dev.Link Natural Products (Pvt) LtdSri LankaE-mail : [email protected]
Agricultural sector - 2012
• Total land under cultivation : 2, 645,000 ha (42.2%)
• Agricultural contribution for total GDP : 9.27%
• Spice crop production : 74,104 ha / GDP 0.14%
Cinnamon
Pepper
Clove
Nutmeg & Mace
Cardamom
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Land Extent 2005(Ha)
2012(Ha)
% increase / Decrease
Nutmeg 1,070 978 -9%
Clove 7,779 7,612 -2.1%
Black Pepper 29,156 31,667 9%
Cinnamon 27,895 31,049 11%
Cardamom 2,888 2,798 -3%
Comparison of production of 2005 vs 2012
Production 2005(MT)
2012(MT)
% increase / Decrease
Nutmeg 1,865 2,002 7%
Clove 6,093 4,009 -34%
Black Pepper 14,265 18,604 30%
Cinnamon 15,895 17,165 8%
Cardamom 80 80 0%Source : SAPPTA Annual Report
Source : SAPPTA Annual Report
Growth of Production and export volumeNutmeg
Clove
Black Pepper
Cinnamon
Cardamom
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Local Consumption - 2012
Commodity Consumption (MT)
Nutmeg 327
Pepper 6,807
Clove 690
Cardamom 64
Cinnamon 5,211
Source : DEA
Productivity in 2012 (Sri Lanka)
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Commodity kg/Ha kg/Ha
Nutmeg 2,000 5,000
Clove 500 200
Black Pepper 600 1,700 - 2,550
Cinnamon 600 1,200
Cardamom 30 250
Source : SAPPTA Source : DEA Stats
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Average cost of production - 2012
Average Farm Gate Prices (Rs)
Commodity Cost of Production (Rs/kg)
Cost of Production vs farm gate prices (%)
Nutmeg 249.07 236
Clove 368.61 214
Pepper 230.86 260
Cinnamon 692.9 50
Cardamom 985.0 97
Commodity 2005 2006 2007 2008 2009 2010 2011 2012
Nutmeg 244.88 235.36 278.12 316.23 331.87 459.62 742.53 838
Clove 347.94 480.53 471.97 471.97 484.66 542.99 1,250.35 1,160
Pepper 116.89 165.38 306.6 324.92 287.43 342.14 691.9 832
Cinnamon 395.48 431.09 599.62 664.35 621.95 726.57 921.9 1,042
Cardamom 744.15 716.92 913.25 1,718.27 1,732.32 3,320.96 2,713.12 1,946
Source : DEA
Source : SAPPTA Annual Report
Export performance
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Export Value 2005(Rs bn)
2012(Rs bn)
% increase / Decrease
Total 9.4 30.2 221%
Export Volume 2005(MT)
2012(MT)
% increase / Decrease
Nutmeg 1,925 1,551 -19%
Clove 4,198 1,404 -67%
Black Pepper 7,821 10,825 38%
Cinnamon 12,365 14,435 17%
Cardamom 11 9 -18%
Source : SAPPTA Annual Report
Ex Rate 100.49 Ex Rate 127.60
Note: rupee value has been depreciated by 27%
Global Production of Spices and Sri Lanka's Contribution - 2012
Commodity Production (MT) SL contribution %
Pepper (Green, Light, Bold)
White pepper
Pepper light berries
342,590 3
Nutmeg BWP
Nutmeg whole
15,000 13
Cinnamon 15,000 90
Cloves 120,000 3.34
Source : Spice Board of India/ IPC
Growth of Export Volume
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Commodity 2009(MT)
2010(MT)
2011(MT)
2012(MT)
Nutmeg Oil 23 13 22 25Clove Oil 1.5 14 13 3
Black pepper Oil 0.05 5 8 12Cinnamon Leaf Oil 107 155 231 318Cinnamon Bark Oil 7 7 8 9Cardamom Oil 0 0.3 1 0.8
Growth of Export Value
2009(Rs Mn)
2010(Rs Mn)
2011(Rs Mn)
2012(Rs Mn)
Total 312.5 687.0 1,354 1,430Growth Y/Y % 120 % 97% 6%
Essential Oil
Major destinations of Essential oils
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•USA
•UK
•France
•India
•Germany
Major destinations of Spices
•India
•Germany
•Middle East
• North & South America
Total Spice sector value
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Sector 2009(Rs Mn)
2010(Rs Mn)
2011(Rs Mn)
2012(Rs Mn)
Spices12,287 20,175 23,446 30,202
Essential oil 312.5 687.0 1,354.0 1,430.0
Total 12,599.5 20,862 24,800 31,632
Growth y/y(%)
65 % 19% 27 %
** The industry vision is to reach 100,000 Mn by 2020
• Increase productivity
• Lack of long term backward integration & collectivization
• Lack of initiatives for moving up the value chain
• Marketing
• Legislative hurdles
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Challenges in the industry
Challenges in the industry
• Increase productivity
70% are small holder family farms 1 to 2 acers
Acceptable post harvest practices – GMP/ Quality parameters
Better agronomic practices
• Lack of long term backward integration & collectivization
Establishing effective supply chain and linkages between all players in the industry
Producers
Collectors
Exporters
Processers
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• Lack of initiatives for moving up the value chain
Focused R&D
Cost of Technology inputs
Product development
• Marketing
High cost of establishing brands
Private labeling
Organic products
• Legislative hurdles
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Challenges in the industry cnt..
• Increasing productivity
• Product diversification - Identify emerging new products / markets
• Develop a national strategy for whole / value added spices by public and private sector stakeholders.
• R & D and New Technology
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Strategy for Next 05 Years
Strategy for Next 05 Years
• Increasing productivity
Engage plantation companies to grow new crops and expanding the existing cultivation in
spices.
Introduce better agronomic practices to small holder farmers.
• Product diversification & Marketing - Identify emerging new products / markets
Market research
Establishment of brands & financial support
Private labeling contracts
Ground Spices , Spice mixes, beverages
Continuous support of participation in sectoral & brands (not the country wise)
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• Develop a national strategy for whole / value added spices by public and private
sector stakeholders.
Private sector allow to take a lead role in developing a national policy - market driven
Make relevant government agencies such as EDB, DEA accountable to stake holders
Ensure all CESS levied on spice is channeled back to the industry.
Allow imports of raw materials for value addition without hindrance.
Financial concessions & incentives to engage in agriculture & value addition, tax holidays, low
interest long term loans for establishing of brands, development of organic spices, essential oils,
oleoresins, extracts etc.,
Ensure maximum benefits to spice sector by negotiating existing or proposed FTAs
• R & D and New Technology
Encourage to develop new products for Fractions , Isolates and CO2
(Organic/Conventional)
Active ingredients for Nutraceuticals , Cosmoceuticals, Pharmaceuticals industry 22
Strategy for Next 05 Years cnt..
FAZAL MUSHIN Director – E & BDLink Natural Products (Pvt) LtdSri LankaE-mail : [email protected]
THANK YOU
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