Local canned fish industry thrown into doldrums

The Sri Lankan market is once again getting inundated with foreign canned fish flowing into the country and nearly 17 new unmonitored local canned fish manufacturers have sprouted recently following no proper regulatory requirements jeopardizing the established local canned fish industry which provides livelihood to over 1 million people, cautioned Canned Fish Manufacturing Association of Sri Lanka (CFMASL).

The association alleged that over 30 containers of canned fish to the tune of USD 90 million have been imported by 31 unregistered companies in the recent past according to various media reports. This is in the backdrop where the association purchases over 100,000 kilos of fish per day from local fishermen and was producing the country’s minimum daily requirement of 250,000 cans per day. The association also noted that canned fish has not been included in the 300 banned item list of imports.

The government must support and protect the local canned fish industry which saves the country over USD 70 million annually and put an end to imports of canned fish from overseas without delay, CFMASL President Shiran Fernando told the media in Colombo. He said a kilo of Linna fish which was Rs 200 has now increased to Rs 700 and his association purchases fish from local fishermen for a price of Rs 700 to Rs 1,000. He therefore requested the government to subsidize the canned fish through Sathosa, so that Sathosa outlets can give them to the people for a cheaper rate. He said the cheapest source of protein those days was canned fish and at Rs 700, people were now unable to buy it which has resulted in a drop of sales and nutrition levels. He therefore requested the government to give subsidies to State institutions and cooperatives to buy canned fish from local producers instead of following tender procedures and importing canned fish from overseas.

“Every container that is imported is one container of unemployment for our country because the labour is foreign, label is foreign, can and fish is foreign.” He however said when compared to the locally manufactured can, every single part of it is manufactured in Sri Lanka. Fernando said they have written to the Ministry of Fisheries recently highlighting these serious issues and were expecting a quick response to protect the local industry its stakeholders, fishermen and their dependents.

CFMASL Secretary Kapila Balasooriya speaking at the briefing said the CESS on an imported canned fish was still around Rs 28 and this should at least be doubled to give the local manufacturer some sort of protection particularly after the appreciation of the dollar against the rupee.