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Securing Premium Pricing for Exports Through Origin Recognition
Securing Premium Pricing for Exports Through Origin Recognition
Nov 20, 2025 |

Securing Premium Pricing for Exports Through Origin Recognition

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01. Conference examines role of geographical indications in promoting regional products

The value of local tea, spices, and other region-specific products could be increased through stronger legal protection through geographical indications (GIs), according to Dilani Hirimuthugodage, a Research Economist at the Institute of Policy Studies (IPS), and other experts at the conference “Perspectives on Geographical Indications in Sri Lanka.

Geographical indications offer a legal framework to protect these location names and ensure only authentic products can use them. Citing growing international demand for traceable and genuine goods, the conference argued GI protection could create economic value for producers and protect Sri Lanka’s product reputation from misuse.

02. Introduction to GIs

While location names have long been used to refer to certain goods, Dr. Delphine Marie-Vivien, a Researcher in Law at the French Agricultural Research Centre for International Development (CIRAD), says GI became an official Intellectual Property Right (IPR) through the World Trade Organization in 1995. Since then, WTO members like Sri Lanka have had the legal basis to register and protect such names.

GI status is intended to prevent misuse and fraud by ensuring that only products genuinely made in the designated region, following agreed standards, can use the protected name. This gives producers exclusive rights to use that name, helping maintain quality and reputation.

Dr. Marie-Vivien said that GIs have shown to boost product value, improve rural incomes, support tourism, and preserve traditional practices. Though the process requires coordination among stakeholders and clear production rules, the benefits take both economic and reputational form, making it a strategic tool for countries with unique regional products like Sri Lanka.

03. How GI shifts pricing power to producers

The primary economic benefit of GI status is its ability to secure higher prices for certified products, leading to increased income across the value chain. Expanding on this, Hirimuthugodage, explained how GI registration creates value by reducing the information gap between producers and consumers. This is achieved through quality certification, outlined in a detailed “book of specifications” that defines production methods, origin, and standards. Due to this assurance, consumers are more willing to pay a premium for products they trust.

Citing research from the EU, Hirimuthugodage noted that GI-labelled goods typically sell at an average more than double the price of comparable non-GI products.

This pricing advantage allows producers in countries like Sri Lanka to compete on volume as well as on quality and authenticity. By ensuring that only genuine, traceable products carry the GI label, Sri Lankan farmers and processors can secure a stronger position in both local and international markets. This shifts more economic value back to the source communities and strengthens rural livelihoods in the process

04. Lessons from Asia’s GI leaders

Across Asia, geographical indications have been leveraged to enhance agricultural exports and ensure fairer returns for producers. In a presentation, Hirimuthugodage highlighted how countries such as Cambodia, Indonesia, and Thailand have used GI recognition to trans form distinctive local products into trusted international brands.

Hom Mali Rice, Thailand
Registered in 2013, Hom Mali Rice went on to show a 40% rise in export value within five years.

Kampot Pepper, Cambodia
After registering the GI in 2010, Kampot Pepper experienced strong growth. Within a decade, the price of black pepper rose by around 200%, while white pepper increased by around 160%.

Muntok White Pepper, Indonesia
Following GI registration in 2010, Muntok White Pepper’s local price showed a growth rate of 475% within five years, while production tripled.

05. Building a quality assurance framework for the world

A GI should be able to maintain consistent quality and ensure that every product meets clearly defined standards. For Sri Lanka’s ongoing EU GI registration of Ceylon Tea, this process involves several key steps: setting production criteria, creating a control plan, and establishing a traceability system to verify authenticity from field to export. Hirimuthugodage highlighted that certification and independent inspection protect credibility and market confidence, in turn allowing regulators to monitor compliance and prevent misuse of the GI label.

Dr. Marie-Vivien noted that such systems also formalise the link between the product and its place of origin, while strengthening collaboration among producers, exporters, and institutions. More than a legal formality, this frame work builds international trust, reassuring global consumers that the Ceylon Tea they buy is genuine, high-quality, and ethically produced. The result of this investment is higher prices, stronger branding, and long-term sustainability for Sri Lankan producers.

06. The role of traceability and digital platforms

Implementing GI systems requires strong infrastructure, especially in fragmented agricultural sectors. Upul Priyantha, (Acting) Director of Promotion at the Sri Lanka Tea Board (SLTB), highlighted key steps in the Ceylon Tea GI project, including defining control plans and setting up traceability systems. Hirimuthugodage stressed the importance of an online GI registry for public transparency. These tools are vital to verify product origins, prevent counterfeit goods, and maintain the integrity and reputation of GI-certified products in the market.

07. Protecting Sri Lankan trademarks

The need for stronger protection is driven by years of misuse that have weakened the value of Sri Lanka’s most recognisable brand. Upul described the long-standing effort to safeguard Ceylon Tea, known worldwide for its quality for over 150 years.

Despite the Sri Lanka Tea Board registering its Lion Logo trademark in more than 100 countries, it continues to face frequent infringements. Priyantha cited several infringing brands, such as Saudi Arabia’s Khadeer Tea, which carries the Ceylon Tea logo but is blended and packed outside Sri Lanka. The SLTB is also aware of other infringements and branding conflicts in Egypt, Russia, Kazakhstan, Pakistan, Morocco, and more. Such altered or counterfeit products mislead consumers and negatively affect the Ceylon Tea brand.

Priyantha says this shows how vulnerable well-known names can be without adequate legal protection.

As Dr. Marie-Vivien noted, registering Ceylon Tea as a Geographical Indication would extend protection beyond the logo, covering the name itself and ensuring that only tea that meets the defined standards can legally use the Ceylon Tea label.

08. Monitoring and implementation

Effective Geographical Indication protection depends on both strong national legislation and international recognition. As a member of the WTO, Sri Lanka is already obliged to recognise and protect Intellectual Property Rights, including GIs, under the 2003 Intellectual Property Act, as noted by Hirimuthugodage.

Legal provisions will not be enough, however. The conference’s position was that genuine protection would require active enforcement.

The ongoing process to register Ceylon Tea as a GI in the European Union, supported by Agence Française de Développement (AFD) and other parties, reflects the level of institutional effort needed. To be effective, Sri Lanka’s legal framework must be matched by strong monitoring systems that guarantee product authenticity and traceability.

Hirimuthugodage recommended strengthening institutional frameworks by creating a dedicated GI Division within the National Intellectual Property Office (NIPO) and forming a multi-stakeholder GI Council with the NIPO, EDB, and producer groups.

She also proposed introducing a nationally recognised GI logo and government incentives like India’s “One District, One Product” (ODOP) programme. Encouraging public-private partnerships is key, she said. A comprehensive approach would ensure GI development becomes a core part of national economic policy, promoted by both government and industry collaboration.

Sri Lanka’s potential GIs

Hirimuthugodage highlighted several Sri Lankan products with strong GI potential, including King Coconut, and Cashew. Securing GI recognition for these could help producers capture higher-value markets, move away from bulk commodity pricing, and enhance rural economic development by encouraging farmers to expand cultivation of GI-registered crops.

Notably, this shift has begun: In February 2025, Sri Lanka launched its domestic GI registry. This followed the EU GI registration of Ceylon Cinnamon in 2022.

Further, higher incomes from GI products stimulate investment and value addition within production areas, while protecting traditional knowledge and landscapes.

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