SAPPTA Chairman Karthik Ramachandran said that spice production has now depressed not wholly because of the global money crisis, but due to the drought in the first quarter this year.

"The incidence of disease had also taken its toll. Results achieved in 2009 would stem from such phenomena and alarming levels of production would have a telling effect on foreign exchange earnings from these products", he told the media last week.

Comparatively 2008 results were substantially better than present performances in spices production being extremely promising, he pointed out.

Spices & Allied Products Producers & Traders Association, (SAPPTA) celebrates 25 years in existence this year. It was primarily founded by exporters, producers, and processors to work in unison for enhanced trade and increase in forex earnings.

Present at the press conference were a Past Chairman, G. A. Chatoor, Past Chairman, M. C. M. Zarook, Past Chairman Chris Dassanayake, Vice Chairman, W. H. S. C. Fernando, and Past Chairman, S. A. Cader.

Ramachandran said exports for full complement of spices had placed trade on positive optional possibilities and formed an important cog in forex earnings. Sri Lanka is the world’s largest cinnamon producer and exporter. India too produced cinnamon and its production is substantial.

However, quality and standards achieved by local producers are unmatched and surpassed the best India could offer. Fact was that although India too produced cinnamon, and for that matter most spices found in Sri Lanka, quality achieved by spices produced and exported by Sri Lanka are outstanding.

Arecanut, cardamom, cashew, cinnamon, cloves, pepper and vanilla are included in the export compendium for spices earning about 16.7 billion rupees in exports. These results were achieved in 2008. Clearly, the best year on record. Cloves especially recorded outstanding results -- 5938 tons were exported earning Rs. 3.3 billion in foreign exchange.

Cinnamon production too declined in quantity but earnings were higher last year at Rs. 8.5 billion because of improved prices, Chatoor said

Cardamom pepper and cloves are three crops grown by the formal plantation sector, and reports are that these crops were substantially complementary to the export bag. 90 % production was exported.

Plantation companies growing these crops are continuing their production targets but in that instance too 2009 reportedly was not a good year.

Plantation Companies involved are Chilaw plantations and other Regional Plantation Companies (RPCs) including Balangoda, Kahawatte, Namunukula, and Malwatte. Additionally, private estates, P. W. Rodrigo, estates, Green Field Bio Plantations, Gamwasama Estate.

W. H. S. Fernando, of Malwatta RPC said his company had made preliminary arrangements for vanilla planting, but at this point in time had abandoned the project because of its costly outlay. Originally, it was that this company would plant approximately 30 hectares, but according to Fernando this was now only of historical importance.

It was further revealed by the press that vanilla was grown extensively by Madagascar but since that country had experienced political turmoil when 75% vanilla plantations were burnt, it was opportune that the plantations sector here should take advantage of this position and accelerate propagation of this crop, Fernando said. There were no immediate plans for its production notwithstanding its market value of $300 per kilo.

Zarook said he to had tried the crop on tracts of land in his holdings but was not too enthusiastic describing its progress.

Quite contrary to usual Export Development Board (EDB) minus views, SAPPTA was enthusiastic that the EDB is supporting them in their usual export package.

Ramachandran said SAPPTA promotes dialogue with state agencies and other policy making bodies and maintain a good rapport with the Department of Agriculture, EDB, and the Customs, to name few.