Abstract:
Cinnamon is the best foreign exchange earning spice. Therefore its price, quality, production etc depends on the international market. Still Sri Lankan Cinnamon industry is characterized by small — holdings, primitive technology, high cost of production and unorganized marketing system which has adverse impact on export promotion. Though we are famous for 'True Cinnamon", yet we have not been capable of meeting the most basic quality standards for Cinnamon.
The objective of this study is to analyze the status of processers and export firms in positioning GMP for their processes when producing Cinnamon for export markets. Specific objectives are identification of constraints which processers and export firms tend to face in setting up GMP for Cinnamon processes and identification of grounds for not gaining price increments for GMP holding Cinnamon products.
For the first sample 75 Cinnamon processors Were selected in Galle district, using simple random sampling method. Second sample was the Cinnamon exporting companies and 25 were selected randomly in Colombo district. Chi-Square test and Descriptive statistics were used to analyze.
Cost of processing, material wastage, awareness of GMP, market information recovery, buyer inquiry of quality standards and benefit awareness of quality standards were identified as facts influencing on implementation of GMP for processors. For Cinnamon exporting companies, quantity of exports, business status; major product of exportation, buyer inquiry of quality standards and benefit awareness 'of quality standards were identified as facts influencing on implementation of GMP. Lack of awareness on selling point and less processing quantity in GMP ,,holders were constraints in implementing quality standards by processors. Less awareness on processing and poor monitoring of Cinnamon processing were 5bserved as constraints of exporters. Hence there is not yet a proper demand for GMP, Cinnamon exporting companie's has been unable to offer a higher price for GMP owned products.
Key Words: Cinnamon, Quality standards, GMP, Exporting companies, Processors
