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Cinnamon Industry In Sri Lanka

992 Words4 Pages

Objective of the Research Specific objectives of the study  To analyze current situation of the cinnamon industry in Galle district.  To evaluate relationship between cinnamon supply and demand from 2000.  To identify reasons for decreasing cinnamon cultivation.  To identify the influence of the identified factors for the industry in Galle district. Literature Review Cinnamon Cultivation Cinnamon (Cinnamomum zeylanicum) is one of the world's oldest spices. Sri Lanka is the main provider of cinnamon. The volatile oils obtained from the bark, leaf, and root bark vary significantly in chemical composition. Both gas-liquid chromatography and quantitative infrared spectrometry have recently been used to study changes in the chemical composition …show more content…

Normally production cost is high in Sri Lanka, cultivators have to pay 50% of income for peelers and high cost for maintains. Technology also not efficiently achieved for cinnamon industry. Demand is the rate at which consumers want to buy a product. Economic theory holds that demand consists of two factors: taste and ability to buy. Taste, which is the desire for a good, determines the willingness to buy the good at a specific price. Ability to buy means that to buy a good at specific price, an individual must possess sufficient wealth or income. Both factors of demand depend on the market price. When the market price for a product is high, the demand will be low. When price is low, demand is high. At very low prices, many consumers will be able to purchase a product (Whelan, 1996). Cinnamon demand or amount of cinnamon export depended on several factors such as, export price, production of cinnamon in Sri Lanka, exchange rate, GDP and cinnamon export in last year. Only export price is significantly affected on cinnamon export and other factors are not significantly affecting on cinnamon export (Sutarmo Iskandar, …show more content…

Among several spices Sri Lanka currently emphasizes on cinnamon, pepper, clove, cardamom, nutmeg and betel. Spices are important commodities both in domestic and overseas market historically as well as currently. Recognizing the importance of the sector, the Government of Sri Lanka has provided various types of incentives for cultivation and processing of spices since 1972 with the inception of the Department of Export Agriculture (Herath,

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