Cinnamon Wholesale Price In Sri Lanka At Its True Market Value

Cinnamon is a highly prized spice that has been used in Sri Lankan cuisine for centuries. Known for its sweet and delicate flavor, cinnamon is a popular ingredient in a variety of dishes and drinks, from curries and stews to teas and baked goods. Consumers want to know why the cinnamon wholesale price in Sri Lanka is so high even though it is still popular in many markets around the world. The following post will provide you with a better understanding of Sri Lanka’s present cinnamon price situation and explain why Ceylon cinnamon is so unique.

1. Considerations regarding the market of cinnamon wholesale price in Sri Lanka

The price of wholesale cinnamon in Sri Lanka is fairly high because 90% of all Ceylon cinnamon in the world comes from this country. Indeed, Sri Lanka is the world’s leading provider and exporter of Ceylon cinnamon.

Exports of Sri Lankan cinnamon have brought in $175M, $216M, and $247M during the last three years, as reported by trend economy. The cinnamon wholesale market and client demand have not cooled despite being substantially hit by the Covid-19 outbreak. Cinnamon wholesale price in Sri Lanka is often between $10000 and $20000 per metric ton because of its delicate flavor, distinctive sweetness, and beneficial properties. The price is three to four times more expensive than other forms of cinnamon around the world, most notably Cassia. However, this variety of cinnamon remains a commercial favorite, particularly in the Americas. That’s also why there’s such a high demand for cinnamon in Sri Lanka right now, especially at the wholesale level.

2. Cinnamon wholesale price in Sri Lanka for both domestic and export items

In Section 2, we’ll compare and contrast the retail price for the local population to the wholesale price for export abroad, as well as provide an overall review of the products’ Sri Lanka cinnamon wholesale price.

2.1. Cinnamon wholesale price in Sri Lanka as calculated by products

You’ll find some collected statistics regarding the average wholesale price of several cinnamon items below.

Cinnamon products	Sri Lanka cinnamon wholesale price ($/MT)
Cinnamon sticks	10300 – 15400
Cinnamon powder	12300 – 17500
Cinnamon split	9500 – 12800
Cinnamon broken	7500 – 8500
Cinnamon cigarette	15000 – 21000

The table shows that the average cigarette cinnamon wholesale price in Sri Lanka is $18000/MT, whereas the average cinnamon broken wholesale price is $8000/MT. For the simple reason that, during the manufacturing process, some of the cinnamon sticks will inevitably break or not meet quality standards. The firm will then collect it and offer it for sale at a reduced price to individuals who need to purchase broken cinnamon.

Since making cinnamon cigarettes takes so long, their wholesale cost is the highest. As Ceylon cinnamon is more expensive to produce than Cassia cinnamon, the cinnamon wholesale price in Sri Lanka is generally greater than that of other countries.

2.2. Check the local and foreign buyers’ cinnamon wholesale prices in Sri Lanka

Cinnamon from Sri Lanka is highly sought for in the international export market. As a result, the price of exported cinnamon is rather high, yet it is nonetheless warmly accepted and frequently ordered.

Domestic cinnamon wholesale price in Sri Lanka ($/MT)	6500 – 15000
Exported cinnamon wholesale price in Sri Lanka ($/MT)	9300 – 21400

Sri Lanka, like many Asian countries, has a culinary tradition that is both longstanding and varied. They use a lot of vibrant colors and unique flavors to make their meal stand out. There is a potential market for spices in Sri Lanka due to the country’s residents’ penchant for using them in their daily cooking. Therefore the domestic wholesale price in Sri Lanka is reasonable for the Sri Lankan’ s income.

Ceylon Cinnamon, which comes from Sri Lanka, is a popular spice that helps boost the country’s lucrative export trade. Almost all of the world’s Ceylon cinnamon is produced in Sri Lanka, hence the cinnamon wholesale price in Sri Lanka is fairly high which has been proved by the value of exports. Sri Lanka’s capacity to self-sufficiently supply both domestic and foreign markets is partially explicable. Unlike Cassia cinnamon from other countries, Sri Lanka cinnamon exporters do not have many price competitors. As a result, Sri Lankan cinnamon suppliers have set their wholesale prices taking into account both the budget constraints and the fluctuating value of the rupee.

3. Justify the higher cinnamon wholesale price in Sri Lanka compared to other countries

See how the wholesale cost of cinnamon in Sri Lanka stacks up against the regional average and international markets in the table below.

Top Cinnamon Suppliers Nations	Average cinnamon wholesale price FOB ($/MT)
Sri Lanka	9300 – 21400
Other Ceylon cinnamon suppliers	14800 – 25000
Cassia cinnamon suppliers	2200 – 5600

As can be seen, the cinnamon wholesale price in Sri Lanka is four to five times that of Cassia cinnamon. However, when compared to other nations that sell Ceylon cinnamon wholesale, the wholesale price of cinnamon in Sri Lanka is fairer. In order to understand why Sri Lankan cinnamon goes on sale for a different amount than wholesale, we need to look at the following.

• Sri Lanka cinnamon’s properties and quality bring us a lot of surprises: Most Sri Lankan cinnamon is Ceylon cinnamon, which is rich in beneficial chemicals and low in coumarin concentration – elements that can be hazardous to human health. Ceylon is used as the main ingredient in making pharmaceuticals, so their value is very high, and so is the price of wholesale cinnamon in Sri Lanka.
• The vast majority of the Ceylon cinnamon marketed worldwide originates from Sri Lanka, where it is both harvested and produced: In order to ensure that their customers receive only the best Ceylon cinnamon, producers take their time screening and selecting the crop once it has been harvested, before sending it on to the various stages of processing. The Ceylon cinnamon wholesale price in Sri Lanka has a high price tag due to the lengthy and meticulous Sri Lanka cinnamon production procedure.
• Cinnamon from Sri Lanka is preferred to that from any of the other Ceylon countries: Sri Lanka’s cinnamon has a vast supply and a solid position on the worldwide market, so many clients choose and trust it; this drives up the price. Ceylon’s wholesale price is greater in other nations since their supply is limited. But Sri Lankan cinnamon’s identity is too high, making its price uncompetitive.

4. Determinants of the cinnamon wholesale price in Sri Lanka

Up and down price fluctuations are caused by a variety of factors, some of which provide bullish or bearish signals.

4.1. Cinnamon wholesale price in Sri Lanka can be affected by factors in the hands of Sri Lankan

The cinnamon wholesale price is not ‘overused,’ preventing an imbalance in prices. In order to develop the market and establish connections with potential clients around the world, the government has taken timely initiatives.

• Sri Lanka Ceylon cinnamon accounts for 90% of global exports: The Sri Lanka cinnamon wholesale price is relatively high due to its significant dominance in the global market. Hence the regular retail cost is also greater than cinnamons from everywhere else in the world.
• Ceylon cinnamon is highly rated for its excellent quality: Compared to other types of cinnamon on the market, Ceylon contains very little coumarin content. That is the reason why the cinnamon wholesale price in Sri Lanka is so high. It can be higher 3-5 times compared to the average cinnamon wholesale price of other countries which export cinnamon.
• Sri Lanka’s government is on board with lowering taxes and customs transportation fees to help get Ceylon cinnamon to markets across the world: As a result of these sensible and appropriate actions, cinnamon suppliers can save money on logistics. This could keep wholesale prices from rising too much, and please more customers.

4.2. External variables influencing the cinnamon wholesale price in Sri Lanka

Sri Lanka, however, is not immune to the turbulence of the markets that might be caused by unforeseen risk factors. Cinnamon providers must find swift answers to any unexpected difficulties that arise.

• The cinnamon wholesale price in Sri Lanka is predicted to climb three to four times over the next few years: Due to the rising global demand for spice, which has numerous uses beyond the kitchen (including in medicine and cosmetics).
• It’s tough for the transportation sector to function in the wake of the Covivirus 19 outbreak: During the pandemic, the already-high price of Ceylon cinnamon skyrocketed. As the export shipping process became complicated due to the need to disinfect and carefully inspect every shipment. Because of this newfound freedom of movement, the inventory fee has reluctantly gone up, raising the price of wholesale cinnamon in Sri Lanka high without anyone seeing the difference.

5. List of local suppliers provide cinnamon wholesale price in Sri Lanka

So, how can you avoid being duped when hunting for cinnamon suppliers? Here are some reliable Sri Lankan providers’ recommendations.

Cinnamon suppliers in Sri Lanka	Cinnamon wholesale price FOB ( $/MT)
Galuku Lanka Exports Pvt. Ltd	11300
Lak Cinnamon Planters & Exporters (Pvt) Ltd	17000
Hddes Extracts (Pvt) Ltd	21000

The price list is taken from go4worldbusiness

We can observe that the overall cinnamon wholesale price in Sri Lanka is quite high, averaging around 15000$/MT, many times higher than that of other categories. Various businesses supply the market with either simple raw processed products like cinnamon sticks, splits, and broken, or more complex products like cinnamon powder, cigarettes, and oil, which all have different wholesale pricing.

5.1. Lak Cinnamon Planters & Exporters (Pvt) Ltd

A company you should try at least once is Lak Cinnamon Planters & Exporters (Pvt) Ltd, which has been in business since 1991 and is known for exporting high-quality spices. This company has fair cinnamon wholesale price in Sri Lanka among others.

• All of the company’s products are grown, produced, and shipped under its own label. Their primary offerings are cinnamon in various forms (bail, cut, quilling, powder, oils, and firewood).
• Their wholesale price of cinnamon is quite reasonable with customers such as factories that wholesale to make spices and handicrafts.

5.2. Galuku Lanka Exports Pvt. Ltd

In 2000, Galuku Lanka Exports Pvt. Ltd came into existence. The company has endured many challenges and achieved many successes throughout the course of its lifetime to earn the respect it now enjoys. Among three suppliers Galuku Lanka Exports Pvt. Ltd has the most reasonable cinnamon wholesale price in Sri Lanka.

• The company provides loads of agriculture products. But cinnamon is the most outstanding item that makes great benefits for their firm.
• Their cinnamon are carefully inspected then manufactured after passing stringent quality control measures to ensure meet the wholesale customer needs.

5.3. Hddes Extracts (Pvt) Ltd

Hddes Extracts (Pvt.) Ltd first opened its doors in 1982. Today it is well-known as a business that specializes in the distribution of organic food and spices. The company takes great care and time perfecting its wares to ensure the cinnamon may be exported to countries with strict regulations.

• The company offers a wide variety of spices and seasonings, including organic cinnamon and other flavorful options.
• Among the other suppliers, the wholesale cinnamon price offered by Hddes Extracts (Pvt) Ltd is the highest. Due to the fact that they focus on cultivating and producing organic Ceylon cinnamon. Therefore it is totally understandable why their wholesale price is high.