Govt. to invest over Rs. 750 m to establish ‘Sathosa Organic Supermarket’ retail chain-By Charumini de Silva

Source:FT

• First outlet in Kollupitiya by next month; plans to establish retail stores in 24 main cities across the country
• Trade Minister to introduce a pricing formula to ensure consistent supply of goods, affordability of products
• Specialised retail chain will sell organic vegetables, fruits, treacle, palm sugar, bees honey, spices, dried fruits and eco-friendly crafts
• Intends to franchise Sathosa Organic Supermarket network to sub-cities, thereafter harnessing young entrepreneurs

The Government is investing over Rs. 750 million to step up its efforts to open and expand first-ever pesticide-free, State-run retail chain, the Sathosa Organic Supermarket network – covering all 25 main cities across the country.

The specialised chain will open its first outlet by next month in R.A. de Mel Mawatha (Duplication Road) in Colombo 3, under the banner ‘Sathosa Organic Supermarket’, with its logo in green.

“We have already finished the preliminary work of branding and registering the suppliers of organic food and other products. The first outlet in Kollupitiya will be opened for the general public before the end of October,” Trade Minister Bandula Gunawardane told the Daily FT.

Sathosa Organic Supermarkets will sell organic vegetables, fruits, treacle, palm sugar, spices, dried fruits and eco-friendly crafts.

The Trade Minister said a price formula will also be introduced to ensure a consistent supply of goods and affordability of the products.

“It is important to introduce a pricing formula to ensure that the farmers earn a decent income, whilst offering products to end consumers at an affordable price. In most cases, we have noticed that the intermediary agents or the retail chains selling organic products are the only ones that are benefitting. Hence, the price formula is necessary,” Gunawardane added.

According to him, the Government has estimated Rs. 30 million to establish one outlet including the cost of coolers, freezers, shelves, cashiers and other equipment.

“We embarked on this initiative keeping in line with President Gotabaya Rajapaksa’s efforts to promote organic product consumption, which is healthy and less impactful on the environment,” he added.

He said that the feasibility studies conducted also showed a shift in consumption patterns towards more organic products.

The Trade Minister is hopeful that the 24 outlets, too, will be established before the end of next year, with plans underway to franchise the Sathosa Organic Supermarket network to the other cities thereafter.

“Once 25 main cities get their Sathosa Organic Supermarkets, we want to franchise them to the sub-cities through new young entrepreneurs. This way, we not only connect villages to cities but also encourage youth entrepreneurs. It will also boost earnings of the organic farming community and inspire more to get into the sector as well,” Gunawardane said. 

As per the National Organic Control Unit (NOCU), nearly 400 companies and 30,000 producers are involved in organic agriculture currently, with 60,000 hectares of land being used for cultivation.