Sri Lanka is renowned as one of the world’s four cinnamon centers. If you want to learn about cinnamon price in Sri Lanka. The following information will help you figure out why cinnamon is so expensive in Sri Lanka.
Table of contents
An overview of cinnamon from Sri Lanka
A quick introduction of origin will assist you to find out the reasons behind the price of cinnamon in Sri Lanka.
Definition and characteristics of cinnamon from Sri Lanka
Ceylon cinnamon, also known as Cinnamomum Zeylanicum or Cinnamon Verum, is a native cinnamon of Sri Lanka that accounts for 80 to 90% of the global supply. Ceylon cinnamon has a rich, welcoming aroma and a sweet flavor, and its quills are soft brown in color, all of which contribute to the low price of cinnamon in Sri Lanka. Depending on the width of the quill, Ceylon Cinnamon is classified into four different grades: Alba, Continental, Mexican, and Hamburg. This classification is linked to the cinnamon price in Sri Lanka.
Distribution of cinnamon from Sri Lanka
This part contains information on major cinnamon imports and domestic distribution in Sri Lanka.
- Ceylon Cinnamon is cultivated in Sri Lanka’s Western Coastal region for the domestic market. Negombo and its surrounding communities provide the top mark Ceylon Cinnamon. The cinnamon export price in sri lanka varies by region.
- According to Tridge, the top importers of cinnamon from Sri Lanka in 2020 were Colombia, Guatemala, Spain, India, and the Netherlands, with 28.4 percent, 26.9%, 10.9 percent, 9.1 percent, and 8.0 percent, respectively. Sri Lankan cinnamon only accounts for a little portion of the worldwide cinnamon commerce.
Why cinnamon price in Sri Lanka is expensive
Latest figures of the price of cinnamon in Sri Lanka and other countries will be provided in this section to help you gain the market price of cinnamon.
Latest cinnamon price in Sri Lanka
In the last three months of 2021, cinnamon export price in sri lanka was relatively stable, though slight fluctuations in Heen type. In general, Alba cinnamon price in Sri Lanka is the highest among others from $16.97 to $17.66 because this is a high-segment product type. By contrast, as a low-segment product, Goroso cinnamon price in sri lanka 2022 is quite low, fluctuating from $6.51 to $7.23. The price of Heen type in Sri Lanka, after witnessing the drastic changes, tends to increase in the future with approximately $12.42.
Comparison between cinnamon price in Sri Lanka and others
Among top cinnamon producing countries in the world, cinnamon price in Sri Lanka is the highest. The wholesale price of cinnamon exporters in Sri Lanka ranges from $10.24/kg to $11.57/kg, but cinnamon prices in Indonesia and China span only from $2.25/kg to $3.64/kg. The origin of cinnamon in various nations is the source of these significant differences. While Ceylon cinnamon is the most common in Sri Lanka, Cassia cinnamon is widely used in Indonesia and China.
The reasons behind the expensive cinnamon price in Sri Lanka
This section below will dig deeper into the reasons why Sri Lanka cinnamon is so expensive. There are two main reasons behind it, which is also the specialized traits of cinnamon from Sri Lanka.
Cinnamon price in Sri Lanka and production time
The exorbitant cinnamon price in Sri Lanka partly comes from its long hours of harvesting and delicating production.
- Generally, it takes 4 years to harvest Sri Lanka cinnamon after it is planted. Moreover, the reason behind this expensive price results from the meticulous care of farmers in the whole years after harvest.
- The rigorous step leading to the high value of Sri Lanka cinnamon is the processing which includes long-hour processing such as Stripping the inside and the outside of the bark up to the thin standards, drying under the sun, etc.
Cinnamon price in Sri Lanka and Coumarin Content
Cinnamon is a panacea for people’s health in general. Cinnamon containing too much coumarin, on the other hand, poses a risk of liver damage, appetite loss, and other side effects. The cinnamon price in Sri Lanka is the most costly since it is the safest. Cinnamon from Sri Lanka has the least quantity of coumarin, at 0.017 gram per kilogram, or 0.02 percent, but cinnamon from other nations has a coumarin content of 0.4 to 0.8 percent.
See more: Cinnamon wholesale price and what you should know
Elements impacting cinnamon price in Sri Lanka
There are many factors which contribute to the price of cinnamon in Sri Lanka. The next paragraphs will analyze the main elements impacting Sri Lanka cinnamon price including supply, demand, SPEC, government policies and unexpected events.
Supply element impacting cinnamon price in Sri Lanka
According to the latest report of FAOSTAT, the total production of cinnamon from Sri Lanka ranked four in the world map, with 22910 tonnes accounting for 9.5 percent of the total cinnamon production. In recent years, the areas for cultivating cinnamon in Sri Lanka have tended to dwindle due to the dominance of Cassia cinnamon. The tightness of supply is the factor leading to the soar of cinnamon price in Sri Lanka during the last three years.
Demand elemnt impacting cinnamon price in Sri Lanka
Cinnamon from Sri Lanka continues to be in high demand in recent years.
- Because Sri Lankan cinnamon is used in so many Mexican cuisines, Mexico has become one of the world’s largest consumers of Ceylon cinnamon. Due to its ultra-low Coumarin level, it is favored by customers above other versions.
- Consumers in nations such as Belgium, the United Kingdom, and Italy have expressed interest in the product owing to its distinct flavor and health benefits.
However, because of the scarcity of supply, there is a supply-demand mismatch, resulting in an increase in the price of cinnamon in Sri Lanka.
SPEC element impacting cinnamon price in Sri Lanka
Cinnamon price in Sri Lanka in particular and the whole cinnamon market price is heavily dependent on SPEC – specification of cinnamon products. In general, the thinner the quill is, the more costly thecinnamon export price in sri lanka. Besides, moisture and essential oil amount are contributors for the cinnamon prices in sri lanka today. Except for cinnamon oil and cinnamon powder oil goods, moisture levels of 10% to 12 percent are qualified, and essential content of 2% to 5% is specified. Sri Lanka cinnamon price will change depending on whether this figure is greater or lower.
Government policies impacting cinnamon price in Sri Lanka
Government policies play a key role in determining price of cinnamon in sri lanka because of the policies related to tariffs, taxes, logistic charges, etc.
- In 2018, according to OEC, the average tariffs for Sri Lanka in cinnamon was 29.9 percent, the highest among top producing countries while the average tariffs of Indonesia, China, Vietnam are only 4.73 percent, 6.56 percent and 18.6 percent respectively. This high tariffs is the contributor for the increase in the price of Sri Lanka cinnamon.
Unpredictable events impacting cinnamon price in Sri Lanka
The unpredictability of the weather has a significant influence on the cinnamon price in Sri Lanka. Sri Lanka has been hit by a series of severe droughts in recent years, particularly in 2016 and 2017, resulting in minimal water availability, while cinnamon grows best in warm, humid climes. The rise in Sri Lanka cinnamon is mostly due to this occurrence.
Companies providing competitive cinnamon price in Sri Lanka
Because the price of Sri Lanka cinnamon is extravagant, looking for reliable companies is needed to take into consideration. Here are the list of companies recommendations providing the best cinnamon price in sri lanka today.
Ceylon Cinnamon Corporation
The Ceylon Cinnamon Company was formed in 2002 and is based on the south coast of Sri Lanka, near Galle, next to a strip of hills that has been recognized for generations for producing “True Cinnamon.” Today, the Ceylon Cinnamon Corporation manages an 800-acre cooperative and seeks to supply the most reasonable price of cinnamon in sri lanka. The Ceylon Cinnamon Corporation was founded out of a love for Sri Lanka’s distinctive crop, its underappreciated health advantages, and the prospect of building a thriving co-operative. This company not only farms its own 30 acre plantation, Gradely Estate, but also collaborates with regional organizations to help other producers of this indigenous spice guarantee a prosperous future and reduce the needless cost of cinnamon price in Sri Lanka.
See more: Cinnamon exporting countries and their cinnamon exporters
New Lanka Cinnamon (Pvt) Ltd.
New Lanka Cinnamon, which was founded in 1980 and began exporting in 2010, is a top cinnamon production, manufacturing, and distributing company, offering the best cinnamon price in Sri Lanka. The enterprise is located in the Galle District’s Karandeniya electoral district. New Lanka Cinnamon is regarded as the leading company with the most competitive price of cinnamon in sri lanka, with an export capacity of 1,000 metric tons annually, more than 100 staff members contributing, as well as several standardized certificates such as ISO 22000 certificate for Food Safety Management Systems.
Rathna Producers cinnamon exports (Pvt) Ltd.
Rathna is a firm that has been in business since 1985, supplying Ceylon cinnamon to over 50 nations across the world. Rathna offers the best cinnamon price in Sri Lanka with excellent quality, as evidenced by numerous awards such as the Century International Quality Era Award by the Business Initiative Directions (BID), the 26th International Award for Food and Beverages by the Trade Leaders Club, the Highest Value Added Exporter – Presidential Export Award 2014 and 2015, and so on.
In conclusion, the article below has analyzed the causes of the expensiveness of Sri Lankan cinnamon price. Hopefully, this article has given you a different insight into the price of cinnamon in Sri Lanka. Besides, if you are looking for cinnamon from Vietnam, Hanoi Cinnamon will be your best reliable partner. Here is the contact of Hanoi Cinnamon.
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Contact
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