by sachinthani
- April 18, 2023
- 469
The nation of Sri Lanka has achieved a notable milestone with the receipt of its first-ever Geographical Indication (GI) certification from the European Union (EU) Commission, specifically for the product Ceylon Cinnamon. This is a significant accomplishment for Sri Lanka, which has long dominated the market in its most popular exports. The GI certification was granted under the Sri Lanka Scheduled Tribes Act No. 5, which is designed to promote the development of products unique to a geographic location. This marks the first time that Sri Lanka has received GI certification for any product other than tea, rubber, or coffee. The achievement is a major milestone for manufacturers seeking to establish an international presence in the global spice market.
The Geographical Indication (GI) establishes a vital connection between a specific geographic region and the name of the product, where a particular quality, reputation, or other feature is distinctly attributable to its unique geographical origin. Ceylon cinnamon, or Cinnamomum verum, is a staple in various Sri Lankan dishes and has numerous uses, such as cooking, baking, and flavoring. In addition to being a culinary delight, Ceylon cinnamon possesses antioxidant properties that help prevent heart disease, cancer, and other health issues.
Ceylon cinnamon’s unique aroma, quality, health benefits, and ultra-low Coumarin value have earned it a strong reputation in the global market. Sri Lanka dominates the international market for Cinnamomum verum products, with 80-90% of world production originating from the country. The remaining production comes from Seychelles, Madagascar, and a handful of other nations.
The GI registration seeks to differentiate Ceylon Cinnamon in the EU market from its lower-quality substitutes. GI certification will serve as a source of competitive advantage, increasing market differentiation, product turnover, and allowing for a premium price from consumers. The enhanced competitive position of Ceylon Cinnamon in the EU market will have a positive impact on Sri Lanka’s exports.
The EU recognizes and promotes the use of Ceylon Cinnamon because it is a natural ingredient, with Ceylon Cinnamon Powder and sticks being the most popular products consumed by people. Additionally, many value-added products are available in retail markets. This official recognition of Sri Lanka’s Ceylon Cinnamon in the EU market has improved the country’s relations with the EU, aiding the country’s trading status by enabling it to export its products. This step is a positive development for the economy and will further cement Sri Lanka’s status as the world’s leading exporter of cinnamon.
