• EDB Export Agriculture Director Janak Badugama  

Research Institute of Organic Agriculture (FiBL) statistics from ‘The World of Organic Agriculture’ report record that organic farming is practised in 188 countries, with at least 4.5 million farmers managing more than 96 million hectares of land organically. 

In 2022, global sales of organic food and beverages approached approximately € 135 billion and the market is constantly growing. With such growing global demand, Sri Lanka has significant opportunities to expand in the organic agriculture sector.

In May 2021, Sri Lanka imposed a ban on the import of chemical fertilisers and agrochemicals in order to promote organic agriculture. However, this approach proved unsustainable, resulting in decreased agricultural productivity and severe economic challenges. 

Although the ban was lifted in November 2021, its effects lingered, with a 35% drop in fruit and vegetable production and a 50-60% reduction in paddy and maize yields during 2020-’21. Additionally, tea, the country’s largest foreign exchange earner, saw nearly a 50% decline. In retrospect, the 2021 organic farming disaster highlights the need to practise gradual sustainable agricultural solutions. 

To effectively meet the rising global demand, it is essential to establish a credible and sustainable organic agriculture system. According to the Export Development Board (EDB) and its National Organic Control Unit (NOCU), this involves not only enhancing organic farming practices but also ensuring that these practices are recognised and certified according to international standards. 

Speaking to The Sunday Morning, EDB Export Agriculture Director Janak Badugama and NOCU Assistant Director Madhumali Mudalige discussed their joint efforts aimed at creating a thriving organic agriculture sector that meets global market demands and contributes to long-term sustainability.

Following are excerpts: 

EDB Export Agriculture Director Janak Badugama

What are the global marketing prospects for organic agriculture and how can Sri lanka differentiate its organic products in the global market?

We have observed a continuous increase in the global demand for organic products in various parts of the world, specifically in the European region and the US. Organic products themselves are a key differentiator in the global market. 

However, we need to compete with various countries like India and Indonesia. Our ability to compete is limited by factors such as production costs, quantities, quality, and pricing. Therefore, it is ideal to focus on niche markets and the organic agriculture sector offers such opportunities. The European Union (EU) has already announced that it is focusing on organic product consumption and domestic cultivation to a great extent.

Why adopt organic agricultural practices?

Organic agriculture avoids chemicals. All products have specific guidelines on how chemical fertilisers should be used under Good Agricultural Practices (GAP). Currently, our challenge is the excessive use of chemical fertilisers by the agricultural community in Sri Lanka, which is concerning as the world moves away from such practices. 

Researchers indicate that Sri Lanka is a country that leads in excessive chemical fertiliser use. Continued overuse could significantly impact productivity, and by around 2080, we would be moving into a red zone, where cultivating certain products becomes impossible. Organic production presents a viable solution to address these issues. 

The 2021 shift to organic farming was unsustainable due to poor planning. A country cannot transition from conventional to 100% organic agriculture overnight or even within a year, especially with limited land. Certain chemicals must be used properly within prescribed limits. Conversion from conventional to organic farming can take years, depending on the crop. 

The Government should establish a long-term sustainable plan for organic agriculture,  implementing it gradually in phases with defined objectives. This is not a new concept for Sri Lanka, but the market may have gradually deviated due to international market influences.

Chemical fertilisers inevitably leave residues in our food. International standards set minimum tolerable levels, but domestic products sometimes exceed these limits. We need to adhere to these regulations. The EU has announced that our leafy vegetables contain a significant amount of chemical residue. Unauthorised chemical use risks international trade restrictions. 

How are farmers facilitated in organic agriculture? 

It’s important to link our farmers with the ground-level operations as well as facilitation. There are specific governing bodies and development authorities for certain crops like coconut and cinnamon. When we support our farmers, it’s important to foster a collective and combined effort. While we disseminate knowledge, it’s important for the relevant ministry to support and develop this network in order to operationalise initiatives. 

What are the main challenges organic producers face when accessing the global market?

Regarding the international market, a prominent challenge is the ever-changing certification requirements. There are around 40 different certifications which are also very expensive and strict. 

A small-scale producer is not in a position to comply with these international certifications because of the cost and the process involved. One solution is developing farmer clusters, which will reduce the cost of certification. 

Likewise, there are other complications that should be resolved. Another challenge is the traceability requirement. In future, all our agricultural products will require full traceability requirements encompassing the entire process. 

We have developed an action plan which includes both awareness improvement and consumption improvement. It’s important to ensure that the products available in the domestic market are aligned with organic standards. For this, we need to educate our stakeholders on the concept of organic agriculture itself. We are still at the initial stage when it comes to the domestic market. 

What is the future of organic agriculture?

Primarily, we need to develop expertise in organic agriculture. Technologically, it’s a complex process and we must identify markets and devise strategic plans for improvement. There are methods available even with limited resources, and this is an evolving field. 

We should remain undeterred and improvements must start from the grassroots level for sustainability to be achieved. Additionally, we should emphasise value addition, as quality is a crucial factor. We will activate our action plans over the coming years, engaging all stakeholders.

NOCU Assistant Director Madhumali Mudalige

What is the role of the NOCU in terms of promoting organic agriculture? 

As the regulatory authority for organic agriculture, we aim to protect Sri Lanka’s credibility and uphold its image in the field. When a product is sold or exported under the ‘organic’ label, it must genuinely meet organic standards. 

To achieve this, we are focused on establishing a truly sustainable agricultural system in Sri Lanka. We conduct numerous awareness programmes aimed at educating stakeholders about market demands and certification processes. Additionally, we facilitate market surveillance to ensure that export products genuinely originate from certified organic sources. 

Compliance with specific certification regulations is crucial when exporting organic products. For instance, exports to the EU must adhere to EU agricultural regulations. Globally, there are around 40 certifications. The EU and the US are among the main markets Sri Lanka is catering to. 

What can be done to increase the presence and availability of organic products in the local market?

The NOCU launched the National Organic Certification Mark (NOCM) last year and our goal is to ensure that all products sold in the local market carry this certification in future. This will eventually become mandatory, requiring products to adhere to Sri Lankan organic standards. 

Certification must be obtained from a third-party accredited body that can certify according to these standards and this body must also be recognised by the Sri Lanka Accreditation Board. This is how we intend to close the gap in the local market.

However, we face challenges due to low domestic demand for organic agricultural products given the high cost of living. Currently, the shelf space allocated to organic products in supermarkets is limited, but we believe that through certification and education, especially of retailers, we can increase the presence and availability of organic products in the market. 

What is the future of organic agriculture exports?

Currently, Sri Lanka exports around $ 0.5 billion worth of organic products annually and demand continues to rise consistently. We do not see a reduction in demand as Sri Lanka can offer unique products as a tropical island. 

The growing concern for health, ethics, and environmental sustainability, especially in foreign markets, drives this demand as organic products assure there is no damage to the ecological system while maintaining fair practices. We can easily capture the markets in the coming years, but we need to develop the capacity to meet global demand.