By: Staff Writer
September 18, Colombo (LNW): A government decision to allow spice imports under a new “approved enterprise” scheme has sent shockwaves through the plantation sector, with mounting suspicion that the policy is less about boosting exports and more about paving the way for a handful of powerful players to dominate the spice trade.
The Planters’ Association of Ceylon (PA), in a strongly worded statement, warned that the new licensing framework could become a smuggling pipeline, dragging down prices of locally grown cinnamon, pepper, nutmeg and cloves, while tarnishing the internationally trusted Pure Ceylon Spices brand.
Officially, the move is justified as a strategy to process imported spices into value-added products such as oil extracts and oleoresins for re-export. But industry insiders allege that this narrative masks deeper motives. They fear that politically connected businesses will profit from importing cheaper raw material, blending it with local produce, and quietly releasing it into domestic and export channels.
History offers a cautionary tale. In 2016, large consignments of imported pepper allegedly entered the export stream under dubious classifications, prompting India Sri Lanka’s largest buyer—to clamp down on Ceylon spice imports. Farmers bore the brunt, with farm-gate prices collapsing and livelihoods wiped out overnight. The PA warns the country is on the brink of repeating the same debacle, this time with official sanction.
Several exporters, speaking on condition of anonymity, questioned the opaque nature of the approvals. “Nobody knows who these ‘approved enterprises’ are or on what basis they were selected. The secrecy itself raises red flags,” one exporter remarked. “This is how smuggling is legitimized through loopholes dressed up as policy.”
The danger extends beyond economics. Imported spices, grown under different environmental and sanitary standards, could introduce pests and diseases into local plantations. Once established, such infestations could devastate crops and cripple national food security. Yet, critics ask, where is the robust inspection regime to prevent such outcomes?
International markets are already reacting. Reports indicate delays in clearing spice consignments at Indian ports, amid suspicions that foreign-grown produce could be passed off under Sri Lanka’s country-of-origin certification to exploit tariff concessions. Should such fears be confirmed, India and other trading partners could retaliate, eroding hard-won export credibility across multiple commodities.
The Planters’ Association also drew parallels to the areca-nut fiasco, where hasty policy changes enabled cross-border rackets, international disputes, and a collapse in local prices. The concern is that once consumer trust in Pure Ceylon Spices is lost, no marketing campaign or policy reversal will be able to restore it.
Critics argue the bigger question remains unanswered: who stands to gain from these imports? Farmers and small-scale producers see little benefit, exporters warn of reputational ruin, and consumers face the risk of adulterated products. “This decision does not protect farmers or strengthen our brand it protects a select few enterprises whose names remain hidden,” a veteran industry analyst observed.
With livelihoods, food security and an iconic global brand at stake, the Government’s silence on the identities of license-holders and the safeguards against abuse is only fuelling suspicions. Unless transparency is enforced and farmer interests safeguarded, many fear that a centuries-old industry could be bartered away for the benefit of a privileged few.
