Sri Lanka’s Agriculture Faces Major Financial Losses Due to Crop Theft: Industry Urges Immediate Government Intervention

The Planters’ Association of Ceylon (PA) is urging the government to recognize the organized theft of valuable agricultural crops as a significant economic issue. The association warns that ongoing losses are hindering investments, diminishing export competitiveness, and jeopardizing the livelihoods of farmers.

In Sri Lanka’s plantation regions, the systematic theft of high-value crops such as pepper, ginger, cardamom, cinnamon, vanilla, and avocado has escalated to a level that the industry can no longer ignore. Both Regional Plantation Companies and smallholder farmers have reported substantial losses that can obliterate entire growing seasons. Farmers are incurring expenses amounting to millions of rupees on security measures, which adversely impacts their international competitiveness. The Association notes that many farmers and estate managers have abandoned plans to expand their high-value crop production, believing that the potential profits do not outweigh the risks involved.

The PA estimates that crop losses in the sector could reach into the millions, although it is currently seeking verified data from its members to ascertain the exact figures. What is apparent, according to the Association, is that the financial repercussions extend well beyond the loss of the crops themselves.

The organized nature of these thefts is alarming. Members of the Association indicate that incidents often coincide with full moon phases, allowing thieves to work in natural light without the need for flashlights. A coordinated group can harvest a section of cinnamon in just a few hours, clear a cardamom plot in a single sweep, or collect 40 to 50 kilos of pepper from one vine before dawn. Once the crops are taken from the fields, they enter informal supply chains, making them nearly impossible to trace.

One company is reportedly spending around Rs. 20 million to secure a single crop over a three-month period. These expenses are not reflected in any government assessments of agricultural competitiveness, yet they are persistent and solely borne by the producers. For estates competing against lower-cost producers from countries like Vietnam, India, and Kenya, this situation exacerbates financial strain, resulting in lost revenue for the companies and reduced tax income for the state.

The PA highlights that the crop most affected by a decline in investor confidence is pepper. Several growers who had initiated trials for this high-value crop, which has strong export potential, have retracted their expansion plans due to ongoing thefts. Cardamom has faced similar setbacks. One company that planned to cultivate 18 hectares had invested years in security measures before deciding that the costs were unsustainable, ultimately not continuing the project.

The government has publicly expressed its commitment to increasing agricultural exports from Sri Lanka and attracting investment in the sector. However, the PA asserts that achieving this goal is impossible under current conditions, which render high-value crop production too risky for farmers.

Current laws regarding agricultural theft exist in Sri Lanka; however, the PA is concerned that the penalties associated with such offenses do not correlate with their economic impact. In many instances, the fines are a mere fraction of the value of the stolen goods, providing no real deterrent against repeat offenders. When the consequences of theft are less costly than the crime itself, the law loses its effectiveness.

Efforts to utilize technology for protection have also been insufficient. CCTV systems are hindered by power outages, fingerprint access controls have been bypassed, and drones encounter practical challenges in shaded and windy environments. The protective infrastructure, including fencing and equipment, has itself become a target for theft.

In light of these challenges, the PA is calling on the government to amend and rigorously enforce penalties for agricultural theft, ensuring that fines and sentences reflect the true value of the stolen crops and serve as a genuine deterrent. They are also advocating for the creation of a traceability system for high-value crops within informal supply chains, facilitating the identification and prosecution of stolen goods once they leave the fields. Furthermore, the association is urging for crop theft to be formally recognized in national agricultural policy, with appropriate resources allocated for enforcement.

The PA is in the process of gathering verified data from its members regarding the extent of losses across both smallholder and estate operations, with plans to present this information to relevant government ministries.

“Sri Lanka possesses the climate, land, and agricultural expertise to be a significant contender in high-value crop exports. However, we cannot realize this potential if a farmer can invest nine months into a crop only to lose everything the night before payment. This is not a trivial issue; it is a systemic problem that requires a systemic solution,” stated the Planters’ Association of Ceylon.