• SL’s cinnamon export strategy expands to China through MOU signed in 2023
• DCD selects 3 local producers for quality inspections to meet Chinese market standards
• Exports expected to begin by next year, aiming to tap into $ 1 b Chinese demand
• Annual cinnamon exports currently valued at $ 350 m
• DCD aims to elevate cinnamon as a major commercial crop

Plans are underway to commence the export of Ceylon Cinnamon to China by next year in terms of the Memorandum of Understanding (MOU) signed with China in 2023 as a first step in capitalising on the $ 1 billion Chinese market, the Department of Cinnamon Development (DCD) reveals.

Speaking to The Sunday Morning Business, DCD Deputy Director (Administration) K.D. Chathuranga Gunasekara revealed that the department had entered into an MOU with China last year to provide for the export of Ceylon Cinnamon to China. 

According to him, Sri Lanka predominately exports its cinnamon to Latin American countries such as Mexico. 

He added that with the signing of the MOU last year, they were hopeful of creating a path for Ceylon Cinnamon to be exported to China in order to capitalise on the approximately $ 1 billion demand in the Chinese market.

Gunasekara further stated that the DCD had recommended around 10 local cinnamon producers, from among whom three had been selected by Chinese officials.

“After signing the MOU with China, they have selected around three of our manufacturers. Unlike our other markets, we can’t just directly import cinnamon to China; there are certain quality standards they expect us to meet. 

“Accordingly, they have carried out inspections and upon being satisfied with quality, in consultation with the Chinese Embassy, they have informed the Chinese buyers that we are qualified to export to China,” he said.

He further revealed that the three selected cinnamon producers had yet to commence exporting to China and that they were still finalising the agreements. Accordingly, exports to China are expected to commence by next year.

According to Gunasekara, Sri Lanka’s annual cinnamon exports stand at around $ 350 million at present.

The DCD was established in terms of Budget Proposal No.16 of 2023 as a dedicated department for the development of cinnamon for the purpose of elevating it from a minor export crop to a major commercial plantation crop. Subsequently, the National Cinnamon Research and Training Centre, previously under the Department of Export Agriculture, was transferred to the DCD.