Canned fish industry to earn dollars

Sri Lanka’s canned fish producers are ready to increase production for the export market after, for the first time, making the country self-sufficient in canned fish.

The canned fish industry has been encouraged by the Finance Ministry’s move to increase the special commodity levy on canned fish imports to Rs.200 from Rs.100, industry sources said.

Local manufacturers will be able to export canned fish, if the government provides the necessary backing, Canned Fish Manufacturers Association of Sri Lanka President Shiran Fernando said.

He noted that local factories are currently producing 300,000 cans per day surpassing the daily demand of 250,000 and thereby there’s no need to import canned fish.

The industry can export canned fish earning much needed foreign exchange for the country while saving over US$ 70 million annually, he pointed out.

The production cost of manufacturing has been increased at present due to high prices of a kilo of Linna fish which increased to Rs. 700 at present from Rs. 200 sometime back to retailers.

Members of the Canned Fish Manufacturers Association are used to purchase 100,000 kilos of fish per day from local fishermen at a price of Rs 700 to Rs 1,000, he said adding that despite the ever increasing production cost they are selling their products at a reasonable price.

The market price is Rs 700 per can and the people cannot afford buy it resulted in a sales drop at present.

At present canned fish importers are mushrooming and the imported products flood the market making it difficult for local manufacturers to compete with them.

This situation compelled the local producers to cut down their local production and the price of canned fish is increasing haphazardly, he said adding that four canned fish manufacturing factories were in production and one factory has already closed down due to competition from cheap imports mainly from China.