A recent discovery by Seylany has brought to light an interesting trend. The discovery suggests a significant decline in Sri Lanka’s cinnamon exports to Pakistan – a market traditionally known for it’s use of spices, especially cinnamon. In stark contrast to the shrinking Sri Lankan export numbers, data from Pakistan’s Trade Information Portal (TIPP) showed for 2023, large imports of cinnamon from China and Nepal. To apply context, cinnamon exports from Sri Lanka to Pakistan in 2023, based on data from the SLEDB, was just 1kg.
Sri Lanka’s Export Decline: A Puzzling Trend
According to data from the Sri Lanka Export Development Board (SLEDB), Sri Lanka’s exports of cinnamon to Pakistan have dropped dramatically over the past few years:
- 2019: 174,956 kg valued at 13,646,613 LKR
- 2020: 143,353 kg valued at 15,086,004 LKR
- 2021: 10,110 kg valued at 1,119,217 LKR
- 2022: 20 kg valued at 127,499 LKR
- 2023: 1 kg valued at 2,221 LKR – (Source: SLEDB via Seylany)
The sharp decline from 174,956 kg in 2019 to just 1 kg in 2023 is particularly striking, considering Pakistan’s well-known consumption of cinnamon in both traditional dishes and herbal remedies.
Pakistan’s Shift to Chinese and Nepali Cinnamon
Meanwhile, Pakistan’s Trade Information Portal (TIPP) shows that other suppliers appear to have filled the gap. In 2023, Pakistan imported:
- 87,500 kg of cinnamon labeled as Cinnamomum zeylanicum Blume from China, valued at 161,100 USD.
- 5,000 kg from Nepal, valued at 8,200 USD.
These numbers reveal a stark contrast. Sri Lanka – home to the globally prized Ceylon Cinnamon – has nearly lost its share of the Pakistani market, which is now being served primarily by Chinese exports.
But one question that perhaps could be raised is, is what Pakistan importing as Cinnamomum zeylanicum Blume, really Ceylon Cinnamon?
Cinnamomum cassia, also called Chinese cassia, Chinese cinnamon, or just broadly referred to as cinnamon, is another variety of cinnamon that is widely popular globally as well.
So is Pakistan mislabelling it’s imports of cinnamon as Cinnamomum zeylanicum Blume or is China really producing and exporting Cinnamomum zeylanicum Blume? That is an interesting view point to really consider.
Missed Opportunities and Untapped Potential
Either way, Seylany believes this decline in Sri Lanka’s exports is not a reflection of reduced demand but an opportunity really really waiting to be explored. With Pakistan’s clear preference for cinnamon,there is significant untapped potential for Sri Lankan cinnamon to reclaim its position.
In contrast to Pakistan’s place in Sri Lankan cinnamon exports to Pakistan,
“…Mexico ranked #1 in export value, amongst a list of 87 countries Sri Lanka exported to. Mexico’s percentage of imports of Cinnamon from Sri Lanka for the Gregorian year 2023 was 44.913358%.” – Cinnamon Export Stats from Sri Lanka to Mexico for 2023 (Seylany.com)
Seylany strives to understand the underlying challenges behind these shifting trade patterns. Whether it’s logistical barriers, market access issues, or a lack of awareness, it’s clear that re-engaging the Pakistani market is a promising opportunity for growth.
Next Steps: Repositioning Ceylon Cinnamon
Perhaps to regain lost market share, Sri Lanka could study/investigate some of the following:
- Analyze Barriers: Investigate trade challenges and supply chain disruptions that may have affected exports.
- Raise Awareness: Launch campaigns highlighting some of the benefits of Ceylon Cinnamon compared to other varieties.
- Explore Partnerships: Collaborate with distributors and restaurateurs in Pakistan to reintroduce Sri Lankan cinnamon.
The contrast between Sri Lanka’s 1 kg export figure to Pakistan, and the tens of thousands of kilograms imported from China, perhaps points towards an urgent need for strategic action.