The Hon. B. Ariyawansha

¶ 01 [4.33 p.m.]

¶ 02 Hon. Presiding Member, today much was said about imports, exports, tourism, and vehicle imports. For economic growth, we must develop exports. We recall President Ranasinghe Premadasa’s 200 Garment Factory Program which brought apparel to the village level, yielding great benefits. He also supported minor export crops like cinnamon and pepper, strengthening the rural farmer when tea, rubber, and coconut were the main export crops.

¶ 03 The agarwood (gaharu) industry recently became a good income earner. Even on marginal lands, agarwood could be cultivated as the plant tolerates drought. But the industry has collapsed: boilers built then are now closed; when domestic prices dipped, substitutes were imported from countries like China, destroying the industry. When prices fell to Rs. 2,000–2,500 per kilo of agarwood oil, farmers quit. Yet some still persist in large extents—especially around Panamura in Embilipitiya DS, Katuwana in Matara, and Kolonna. When oil later rose to Rs. 12,000 per kilo, farmers in Hambegamuwa, Monaragala joined. Over the last few years many have exited again and the crop has declined. I propose we encourage farmers to revive agarwood cultivation since it can bring export income. Today agarwood oil has risen again to about Rs. 9,000 per kilo. Previously support was given to buy and plant saplings; please reinstate such assistance or a program to develop the industry.

¶ 04 I also spoke earlier about cloves (karunka). We are thankful that re-exporting has been stopped; as a result, the farmgate price is now around Rs. 680 per kilo. However, there are delays at the Ministry of Agriculture in issuing export permits—after allowing two containers, exporters face delays obtaining fresh approvals, hurting both traders and farmers. Cloves bring substantial foreign exchange. Earlier, re-exports from countries like Indonesia depressed prices; that has now been halted and we appreciate it. But alongside stopping re-exports, please provide exporters with required facilitation so the industry can grow.

¶ 05 Thank you, Hon. Presiding Member.