The Canned Fish Manufacturers Association (CFMASL) says they are able meet the demand for canned fish in the local market with ‘a little encouragement’ from the government. Hence there’s no rationale for inviting foreign manufacturers to enter the canned fish manufacturing market, they stressed.
CFMASL President Shiran Fernando at a press briefing said with a little encouragement from the government they could produce the daily requirement of approximately 175,000 tins. In such backdrop he questioned the need in inviting foreign manufactures to the country. Fernando said the State already has to spend US$64 million annually on canned fish imports and these colossal sums could be saved by encouraging local producers.
The reduction of import duty on canned fish from Rs 102 to Rs 50 per kilo and Rs 26 on a tin of imported canned fish in 2015 has had a very negative impact on the local canned fish industry and the government should take necessary action to redress this situation and protect the local manufacturer.
Local can fish producers are facing a huge crisis, said CFMASL Secretary Kamal Addara Arachchi. The situation was alarming because local can fish producers make a huge contribution to the local fisheries industry and the country’s GDP. Addara Arachchi said local producers found it difficult to compete with the prices of imported can fish from the beginning and the government had levied a Rs 102 per kilo tax on imported fish to remedy the situation. With this tax the local producers were able to compete with can fish importers and remain in the industry. However with the relaxing of this tax on imported canned fish local producers have been facing a dilemma and the imbalance created was jeopardizing the local fish can industry. He however said that the Government had earlier agreed to purchase their products and sell them through the Sathosa network granting a Rs 20 concession for each can. Although they promised to purchase a million cans a month it did not happen and they were only able to sell around 600,000 to 700,000 cans to Sathosa. He therefore requested the government to increase the concession given by Sathosa by a further Rs 20 in the wake of the rise in fish prices and introduce a price mechanism for canned fish too.
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