A significant resurgence has been reported in the agricultural export sector during the first half of 2024, surpassing performance in the preceding two years, Secretary to the Ministry of Agriculture and Plantation Industries, B.L.A.J. Dharmakeerthi said.
Addressing a press briefing at the Presidential Media Centre yesterday, he attributed this growth to decisive actions taken to counter the decline in agricultural export earnings observed in 2023 compared to 2022.
Underscoring the remarkable achievement of this progress despite challenging climatic conditions in the agricultural sector in recent times, he elaborated that proactive measures implemented during 2023 facilitated substantial sector growth in the initial six months of 2024.
Providing specific examples of the sector’s recovery, Secretary Dharmakeerthi said for instance, tea exports surged from USD 407.6 million in April 2023 to USD 450.5 million in April 2024. Similarly, coconut exports rose from USD 212 million to USD 263 million over the same period. Rubber exports also showed robust growth, climbing from USD 299 million to USD 335 million by April 2024. Additionally, cinnamon export income increased from USD 53.3 million to USD 56.1 million, while pepper export income rose from USD 13.3 million to USD 14.0 million during the corresponding period.
He said the agricultural sector, known for its volatile nature, faced challenges last season due to decreased tea production, leading to heightened demand for fertilizers. Responding swiftly, a special program was launched to ensure an adequate supply of fertilizers. As part of this initiative, arrangements were made to subsidize fertilizer costs by Rs.2000 per 50 kg bag. Currently, 10,000 metric tons of tea fertilizer has been distributed to growers, with plans underway to allocate the remaining 20,000 metric tons through collaboration with tea factory owners and other stakeholders.
In efforts to bolster tea production, Secretary Dharmakeerthi said a subsidy project supporting replanting and new cultivation across 745 hectares has been ongoing since 2022, with Rs.140 million disbursed to 324 growers thus far. Additionally, a new initiative has commenced in 2024 to plant 800,000 tea saplings, backed by an allocation of Rs.60 million.
Under the financial oversight of the Sri Lanka Tea Board, the Small Tea Estate Development Authority is set to implement a direct tea cultivation project, with Rs.750 million earmarked for this purpose.
Currently, coconut shell and coconut-related products have contributed equally to foreign income as coconut milk products. In 2022, coconut-related exports generated a record income of USD 817 million. Despite a decline in coconut production in 2023 due to whitefly disease, effective regulatory and control measures ensured a country income of USD 700 million. As of April 2024, earnings reached USD 263.06 million, marking a 24% increase compared to the previous year.
In terms of rubber cultivation, he said new plantings covered 921 hectares in 2022 and 2023, while replanted areas spanned 2,743 hectares. Plans for 2024 include cultivating 1,135 hectares of rubber, with 605 hectares newly planted and 415 hectares replanted. A provision of Rs.149 million has been allocated for supplying necessary plants for this expansion. Starting in 2023, the department discontinued the previous rubber cultivation subsidy system, opting instead to provide free plants as subsidies to growers.
Following are updates from five key agricultural export sectors in Sri Lanka;
- Sri Lanka Tea Board Chairman Niraj De Mel;
Under the Memorandum of Understanding between Iran and Sri Lanka, Sri Lanka commenced the repayment of its USD 250.9 million fuel debt to Iran through tea exports starting on August 05 last year.
As per the agreement, Sri Lanka aims to settle this debt through tea exports. To date, Sri Lanka has repaid USD 55 million of this debt. In the first four months of 2024, Sri Lanka exported 4.1 million kilograms of processed tea to Iran, marking a threefold increase compared to the amount exported during the same period in 2023.
- Coconut Development Authority Chairman Prof. Roshan Perera;
The Regional Development Bank has launched the “Kapruka Jaya Isura” loan scheme aimed at supporting coconut-related producers to enhance product quality, efficiency, and quantity. The scheme offers subsidized interest rates of 6%, with loans ranging up to Rs.3.5 million initially and plans to increase this limit to Rs.10 million. In 2022 and 2023, approximately Rs.53.4 million and Rs.35.7 million, respectively, were disbursed under this scheme.
In 2024, 752 coconut-related producers and 636 exporters have registered for 1,012 products. Additionally, a whitefly control program was initiated in October 2022 to combat the impact of whitefly disease on coconut and king coconut production. This program treated 1,051,323 trees, conducted 3,046 awareness programs, and distributed 700 liquid sprayers to growers, amounting to an expenditure of Rs.85.50 million.
Additionally, efforts have been made to establish a coconut triangle in the Northern Province, alongside traditional areas. This initiative aims to meet coconut consumption and export demands while enhancing living standards in the region. To date, 489,077 coconut trees have been utilized for this project.
Moreover, job opportunities are being created by promoting Kithul and palm products for both domestic consumption and foreign markets.
- Rubber Development Department Director General, C.C.Muahandiramge;
In 2024, the Rubber Development Department plans to establish 115 hectares of new rubber cultivation in Monaragala, Ampara, and Badulla, areas not traditionally used for rubber cultivation. The project is allocated Rs.18 million and aims to increase local rubber production by 86,825 kg.
Additionally, the Rubber Research Institute has launched a project to identify suitable clones for these areas, with an estimated budget of Rs.19.25 million. As of now, Rs.17.74 million has been spent, testing 14 existing clones and planning to test 22 more in the future. Ultimately, about 10 clones are expected to be recommended for interim use.
Starting January 01, 2025, rubber and rubber-related products exported to European Union countries must be verified as non-contributing to deforestation. Products that do not meet this verification will not be approved for export. The Rubber Development Department is responsible for ensuring compliance with the EU Deforestation Regulation (EUDR) and provides the necessary facilities to support this. Given that the European market accounts for over one-third of Sri Lanka’s rubber export revenue, adhering to this regulation is crucial.
- Cinnamon Development Department Director General, Janaka Lindara;
The Department of Cinnamon Development was recently established as part of the 2023 budget proposal to advance cinnamon cultivation. Its primary goal is to promote the Pure Sri Lankan Cinnamon brand internationally. The headquarters is located near the Galle Pinnaduwa Expressway entrance and aims to benefit cinnamon exporters, growers, and industry stakeholders.
The first phase of the Cinnamon Gate project has an estimated cost of Rs. 224,909,704.31, with Rs. 21,857,211.80 spent by May 31, 2024. To enhance productivity, the department launched the Pure Sri Lankan Cinnamon project in May 2024, focusing on modern cultivation methods, post-harvest technology, and value-added industries. The project costs Rs.35 million rupees and aims to benefit around 1050 direct and 101,000 indirect beneficiaries in key cinnamon-growing districts.
During President Ranil Wickremesinghe’s visit to China in October 2023, a MoU was signed to export Sri Lankan cinnamon to China, opening a new market and increasing foreign exchange earnings. This new export project, involving selected exporters and farmers, has an estimated cost of Rs.1 million rupees.
- Export Agriculture Department Director (Development), R. K. W. Ranketh Kumbura;
The Department of Export Agriculture has implemented numerous development programs across the Ampara district and the Central, Sabaragamuwa, Western, Southern, Uva, Wayamba, North Central, and Eastern Provinces. These programs aim to boost production and export capacity, increase foreign exchange earnings, and maintain the quality of export agricultural products.
The initiative covers the cultivation of 15 crops, including cinnamon, pepper, coffee, cocoa, nutmeg, cloves, cardamom, vanilla, turmeric, ginger, areca nut, betel leaf, saffron, citrus, and lemongrass. Development programs for these crops are ongoing.
Additionally, the department provides technical knowledge for export agricultural crop cultivation through various programs. These include new cultivation programs, small-scale gardening, productivity promotion, areca nut cultivation, crop value chain development, and turmeric and ginger cultivation. Online training programs have also been offered. So far in 2024, nearly 1500 farmer training programs have been conducted. (Newswire)