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| Sunday, 20 October 2002 |
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Farmers to go high-tech by Elmo Leonard New technology would soon be introduced to Sri Lanka's farmlands through farmer communities, Minister of Rural Economy and Deputy Minister of Finance, Bandula Gunawardena said. The private sector, and banks in particular, would be encouraged to play a role in financing farmers, and assisting them to take up the production of new and more viable crops. The private sector and the Sri Lanka Export Development Board would be encouraged to identify markets for processed agricultural products, and meet such market needs, Minister Gunawardena said. New food technologies would be introduced to farmers. Rural schools which remain closed down would be used to teach agricultural methods to them. Agricultural seed would be produced here. Buying and trading centres for rural agricultural products would be set up, he said. The Minister made these announcements at the 'National Convention on Forward Markets' hosted by the Central Bank of Sri Lanka, and attended by private bankers operating in rural areas of the country. The convention was told that farmers in Sri Lanka, like those in all other countries, have been perturbed by wide fluctuations in prices of agricultural produce, between the season and off-season. In the season, prices often fall below the cost of production. Off-season pushes prices up. Governments throughout the world have been ineffective, over the years, in attempting to purchase agricultural produce at a price remunerable to farmers, and selling them at a profit. Thus, many countries have struck a balance, with the principle of forward sales contracts, and a healthy equilibrium between buyer, seller and consumer. The Central Bank introduced a programme called 'Govi Sahanaya' - relief to farmers - in 1999. The convention was intended to review the progress made in Sri Lanka through forward markets and introduce new measures. In the developed world, there are thriving forward markets for wheat, rice, cotton and sugar. These markets now function as futures markets organised by giant commodity exchanges, and help stabilise prices globally, it was said at the convention. Minister Gunawardena drew attention to recent disturbing news reports about onion farmers in Dambulla earning poor prices. He saw forward markets as a method to solve farmers' problems in a market-oriented manner. It involves facilitating farmers to sell their produce in advance at a pre-determined and remunerative price, by entering into a contract with a buyer. The contract is attested by a bank, which can offer credit to both parties. When farmers receive a square price and their income grows, they are encouraged to produce more crops of better quality, using the latest technology. |
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