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Turmeric shortage in Sri Lanka

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 – Venkatesh Iyer

 

NEW DELHI, Sept 2: Households in Sri Lanka are facing the problem of high price resulting from short supply of turmeric, one of the main constituents in Sri Lankan cooking. Reports indicate that the prices of turmeric, capped at maximum retail price of LKR 750 (Rs. 295) per kilogram, is actually selling at 4-5 times higher in the open market. Importers and traders are apprehensive as a kilogram of turmeric is sold at LKR 4,500 (roughly Rs. 765) in the black market.

 

The Rajapaksa Government in April at the start of the Corona pandemic had placed on hold import of non-essential items including turmeric to take care of the draining foreign reserves due to the trade imbalance in exports and imports. President Gotabaya Rajapaksa had expressed his keen desire to specialise in domestic agriculture boosting local production. 

 

The Government having the knowledge of both the shortage in availability and the artificial price hike, issued a media statement through the office of the President stating that the government would not rescind its decision of import restriction.

 

Rajapaksa while addressing a cabinet sub-committee yesterday on the cost of living, said even though the people of Sri Lanka were facing temporary problems, the government was taking steps to strengthen the agricultural economy and help the farming community. He said to regulate exchange parity rates and to get rid of the high debt burden on farmers, imports should be restricted.

 

It was only two days ago The Sri Lankan Navy busted an effort to smuggle Turmeric through the seas of Kalpitiya and recovered 1428 kilograms of dried turmeric.

 

 

Sri Lanka import around 5,000 tonnes of Turmeric from India and as per a report in a local weekend newspaper Sunday Times, Sri Lanka produce about 2,000 tonnes of processed or dehydrated turmeric wherein its estimated requirements are 7,000 tonnes.

 

The requirement of Turmeric as a spice is two-fold. Majority of households require it for self-consumption wherein few of the traders import it for export purposes. 

 

Recently a group of Sri Lankan businessmen representing various companies importing turmeric for export-related business, met Dr Bandula Gunawardana, the Minister of Trade, and sought his help. The Minister had agreed to raise the issue in the cabinet meeting but on condition that the relaxation of import could be granted only for export and not for domestic consumption.

 

Meanwhile, a group of turmeric importers have also written to the President and the Prime Minister. A copy was released to media seeking release of one million kg of turmeric imported from India and stuck at Colombo port. 

 

The importers pointed out that in the last six months, the Government had allowed a clearance of only 19 containers (342 MT) which is far less than the demand for turmeric in the local market, leading to a severe shortage of the spice. 

 

The shortage, they say, was also encouraging a black market for turmeric. The importers say if the consignment in the Port was released, turmeric could be sold at the Government-fixed price and would help the consumers. They had also promised to pay the necessary demurrage and assist local turmeric farmers in the future.