By Chanaka de Silva
Ceylon Finance Today: The reduction of the duties in imported canned fish has threatened the local fishing industry, a frontline local manufacturer charged in an interview with the Ceylon FT.
Sri Lanka is a country which is surrounded by the sea and now the country is surrounded by imported canned fish from China. The fish canning industry in particular is threatened by the new duty reduction of Rs. 50.00 per kilo on canned fish imports. This leaves the both local fisherman and the canners in a bind as some canning factories have already closed down unable to face the competition, Tess Agro PLC CEO Shiran Fernando told Ceylon FT.
If this situation remains unchecked the whole fisheries industry is at the risk of its stakeholders migrating to other professions as the one lucrative industry becomes non profitable, he cautioned. He also pointed out that the local fisheries industry was badly hit by a long drawn out war, which prevented fishermen from going out to sea, by which local fish prices sky-rocketed. However, now even if the war had ended, fish prices have not reduced. Furthermore, though now there were ample fish stocks there was not a large enough stock to influence the reduction of fish prices, he said. He also said that the recent reduction on canned fish had further aggravated the issue. If this was not monitored fast, new comers into this once very lucrative profession will keep away, he said.
This will only keep the fish prices high, and kill the local fish canning industry, he said
The recent duty reduction on the imported canned fish directly affects the local small fishermen. These fishermen who support their families with the small fish caught get good prices when their stock is purchased by the canners. The large seagoing trawlers that catch the Kelawalla for export is not affected by this.
Ceylon Finance Today: The reduction of the duties in imported canned fish has threatened the local fishing industry, a frontline local manufacturer charged in an interview with the Ceylon FT.
Sri Lanka is a country which is surrounded by the sea and now the country is surrounded by imported canned fish from China. The fish canning industry in particular is threatened by the new duty reduction of Rs. 50.00 per kilo on canned fish imports. This leaves the both local fisherman and the canners in a bind as some canning factories have already closed down unable to face the competition, Tess Agro PLC CEO Shiran Fernando told Ceylon FT.
If this situation remains unchecked the whole fisheries industry is at the risk of its stakeholders migrating to other professions as the one lucrative industry becomes non profitable, he cautioned. He also pointed out that the local fisheries industry was badly hit by a long drawn out war, which prevented fishermen from going out to sea, by which local fish prices sky-rocketed. However, now even if the war had ended, fish prices have not reduced. Furthermore, though now there were ample fish stocks there was not a large enough stock to influence the reduction of fish prices, he said. He also said that the recent reduction on canned fish had further aggravated the issue. If this was not monitored fast, new comers into this once very lucrative profession will keep away, he said.
This will only keep the fish prices high, and kill the local fish canning industry, he said
The recent duty reduction on the imported canned fish directly affects the local small fishermen. These fishermen who support their families with the small fish caught get good prices when their stock is purchased by the canners. The large seagoing trawlers that catch the Kelawalla for export is not affected by this.
Small fishermen who do not have traders to purchase their stocks are directly hit. We produce a high-quality product that has earned its place in the local market. But the Chinese imports come in without any quality assurances only a cheap price. Formerly there was a SLS standard that demanded the can should contain 60 percent of the can weight should be fish. That condition no longer exists for the importers, he noted.
He also said that the locally manufactured product was far superior to any imported fish can and said that they were willing to take the challenge to prove it. Our fish cans have been designed to provide a nutrition meal for especially the factory workers who live in boarding houses and do not have proper meals. The government should impose quality conditions on the quality of the product it lets into the country to be consumed by our people. For instance, they can specify certain criteria such as the drain weight of the can, the factory that it is produced so that there will be a quality product in the market.
While we are faced with non- refundable VAT, the importers do not have to pay any of these charges. The canning industry sources everything locally. From the spices to the labels to the can and to the fish. However the Chinese canned fish are generally about one year old when they are brought here and released to the market for consumption, as against our products that are a maximum of 2 month old he said.
Our industry purchases the 'Linna' for canning from directly from the fisherman paying cash. Last season we paid the price of Rs. 250.00 per kilo for their catch. If this price of the imported can fish is not checked we have to drop our purchase price. This will discourage fishermen going out to sea, he said.
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He also said that the locally manufactured product was far superior to any imported fish can and said that they were willing to take the challenge to prove it. Our fish cans have been designed to provide a nutrition meal for especially the factory workers who live in boarding houses and do not have proper meals. The government should impose quality conditions on the quality of the product it lets into the country to be consumed by our people. For instance, they can specify certain criteria such as the drain weight of the can, the factory that it is produced so that there will be a quality product in the market.
While we are faced with non- refundable VAT, the importers do not have to pay any of these charges. The canning industry sources everything locally. From the spices to the labels to the can and to the fish. However the Chinese canned fish are generally about one year old when they are brought here and released to the market for consumption, as against our products that are a maximum of 2 month old he said.
Our industry purchases the 'Linna' for canning from directly from the fisherman paying cash. Last season we paid the price of Rs. 250.00 per kilo for their catch. If this price of the imported can fish is not checked we have to drop our purchase price. This will discourage fishermen going out to sea, he said.
www.dailynews.lk
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