The floriculture sector brought in revenue of USD 16 million in 2020 had set a target of doubling its exports to USD 32 million in 2024. Unfortunately, these figures have to be reworked due to the present crisis in the country.
The floriculture sector which consists of cut foliage, rooted plants, tissue culture plants, cut flowers and landscaping plants had mixed results during the pandemic. Cut foliage which consisted of the largest export turnover got a severe beating due to the increased air freight rates, so did the rooted plants to a lesser extent.
“Most exporters managed to pass on the additional freight to its customers and the industry managed to show recovery from the initial shock. The plant tissue culture products showed a significant growth during this period due to its low freight to sales cost and the increasing demand for floriculture products from all over the world during the pandemic,” Dilip de Silva, CEO, Serendib Horticulture Technologies (PICTURED) told Daily News Business.
The fertilizer and chemical shortages during the pandemic period affected the production of floriculture products significantly.
“Most importing companies claimed from the exporters due to quality issues resulting due to the inadequate fertilizing and the lack of chemicals and pesticides to control pests and disease.” Subsequently due to the massive lobbying carried out by the agriculture sector and the relaxation of import restrictions, at present after two years, he said that the industry is still struggling to get back its quality and the confidence of the market .External factors such as the Ukraine war has reduced the demand for tropical green plants significantly, due to the high energy costs in Europe.
“The present economic crisis in the country has affected the recovery of the industry. One of the biggest cost components is the cost of electricity. This is especially true to the tissue culture plant production. The increase in the electricity tariff will increase the cost of production by 5-10%. This increase will have to be borne by the exporter.”
Amidst all these difficulties the exporters have managed to drive this industry through, earning the much needed foreign exchange to the country, De Silva said.
“It must also be stated that the government’s interest in the floriculture export industry is insignificant. This is an industry which has about 95% of its inputs locally and only around 5% is imported.”
He said further that the government should give more emphasis on developing the export of floriculture due to its very high net inflow of foreign exchange.
“What is also more important is that the export of floriculture products has the highest revenue per square meter of land when compared to any other agricultural commodity that is exported.” He added that it is high time that the government agencies such as the Department of Agriculture, Export Development Board, BOI and the Finance Ministry, look at it as a key industry to get the country out of this economic crisis.
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