Cinnamon (Cinnamon Verum. Sys C. Zeylannicum) indigenous to Sri Lanka at all elevational Levels in almost all types of soils in the wet and intermediate Zones. An average annual rainfall of 1250-2500 mm is favorable with 20-30 degrees centigrade of temperature. Cinnamon is also cultivated in India , Buruma, and the Malaysian peninsula. Sri Lanka produces the large quantity and the best quality in the from of quills. Cinnamon is the dried bark of Cinnamonum Varum. The quality of the bark is greatly affected by the soil and ecological conditions. Cinnamon bark oil, obtained by steam distillation of the bark, is used in perfumery and for flavorings barked goods, sauces, pickles and confectionary, beverages of the coca-cola type and in some dental and pharmaceutical preparations. Cinnamon leaf oil obtained by steam distillation of the leaves has a different composition and is a source of Eugenenol. It is also used as a flavoring and perfumery.

Compounds isolated from Cinnamon, called polyphenolic polymers, may become the key natural ingredients in a new generation of products aimed at lowering blood sugar levels, according to USDA scientists.

Sri Lanka Cinnamon has recognition by the World Customs Organization (WCO) as a unique agricultural produce with distinct characteristics.

Cinnamon Extent
Out of the total extent (with scattered trees) of 84,542 hectares under EAC reported in the Census of Agriculture 2002, Cinnamon accounts of 26,954 hectares or 32% and out of the total extent (without scattered trees) of 67,378 hectares Cinnamon reported 26,854 hectares or 39.9% It is seen that a notable increase of Cinnamon during the last two decades when compared with the corresponding figures of 21,000 hectares the previous Census of Agriculture 1982 and 24,678 hectares reported in the Survey on Agriculture Crops & Livestock 1993. The aggregate extent of over 21,000 hectares was reported in the districts of Galle , Matara, and Ratnapura which is about 80 % of the total Cinnamon extent in the country.

Production

Estimates of Cinnamon Production 2002 – 2008

Out of the total extent of 29,571 hectares in 2008, the extent in production was estimated 28,092 hectares in the Island. If the total production based on exports & domestic consumption of the year 2008 was 15,953 Mt., then the average yield could be estimated at 568 Kg per hectare.

Cinnamon Exports

Source: Sri Lanka Customs

Major Destinations of Cinnamon from Sri Lanka

Source: Sri Lanka Customs

Cinnamon Exports Volume & Value by Type 2006- 2008

Source: Sri Lanka Customs

Price Behavior of Cinnamon

Annaual Average Farm Gate & Auction Prices of Cinnamon Quills 1995 – 2008

Cost of Production of Cinnamon

Production costs vary widely depending on the management level. Broadly speaking the cost of cultivating export crops can be spilt into two categories: establishment costs and production costs. Establishment costs tend to be high especially as export crops take 3-4 years to come into production and a further 2-3 years to reach full production capacity.

The costs of establishment vary widely depending on many factors the most important being the plant density associated with a particular type of cropping system. Fertilizer is the main material input in maintenance and a major determinant of yield.

Related Information ( 8th Year Establishment of 2008 Prices)

ITEM	Unit	Value
Average Productivity*	Kg./Ha.	685
Average No. of Plants / He.	No.	9,000.00
Average Fertilizer Use	Kg./Ha.	900
Labour Cost**	Rs./Ha.	42,000.00
Total Variable Cost	Rs./Ha.	97,000.00
Gross Returns	Rs./Ha.	54,000.00
Returns above Variable Costs	Rs./Ha.	39,000.00
Cost of Production	Rs./Kg.	282.20

* Productivity Survey- 2003
** Labour Cost is valued by using Rs. 400/= per man-day.