The Spice Council says it is following a study of the data and factors pertaining to the cinnamon oil industry over a minimum price for cinnamon leaf oil that could be decided on.
It was recently reported that the lack of a fixed price for cinnamon oil was threatening to weaken the local cinnamon oil industry. Cinnamon oil industry owners were also reported as having stated that they faced hardships with regard to procuring sufficient water and labour.
Chairman of the Council, DA Perera said that the price of a kilo of cinnamon leaves depended on the same lines as other commodities did on the supply and demand factor.
He added that at present the demand was high.
Other factors include the demand in the world market, the supply and the costs of utilizing labour that were involved.
“Whether one could set a fixed price or a minimum price or not would first have to involve a research study where data relating to the matter including the supply, the demand for it in the world market and labour costs, for the past two years would have to be considered and analyzed,” Perera pointed out. RLJ