Call to provide incentives for fruit and vegetable growers in rural areas

Rs. 10,000m targeted for 2010

by Surekha Galagoda

The Sri Lanka Fruit and Vegetable Producers Processors and Exporters Association (SLF&VPPEA) has called upon the government to provide incentives for private sector entrepreneurs who start businesses with organised farmers in rural areas such as Moneragala, Ampara and Hambantota districts in the Southern and Uva provinces.

President of the SLF&VPPEA Sarath de Silva said that his association has presented these budget proposals to the government. De Silva said that this scheme could be extended to the north, north central and eastern province too.

The association has called upon the government to consider reimbursing 50% of the cost on entrepreneurs who invest on soil testing laboratories and agro technology cells. These facilities are essential to address issues such as wasteful use of fertiliser, wrong and excessive use of pesticides and control pre and post harvest losses and improve the quality of export products. The association proposes to reimburse the cost on a project-by-project basis.

He said assistance should be given to agro businesses that work with a minimum five-hundred outgrowers engaged in the fruit zoning collective agriculture projects and have forward buying contracts investing in model farms.

The measures proposed are introducing small, medium and large agriculture machinery preferably those assembled in Sri Lanka to reduce labour, cost and maximise efficiency. VAT and other duties should be removed, he said.

Individuals or companies that invest in introduction of new varieties or high yielding strains, of Citrus, Pomegranates and Grapes for import substitution, to be given a grant per acre of minimum Rs. 200,000 per acre (Minimum two acres).

Companies who find new markets and establish Sri Lankan outlets for commercially grown fruits and vegetables in these new markets, those who emphasize parallel production, processing packaging, and marketing to be recognised for their achievements by providing financial grants for their projects and those who engage in branding Sri Lankan products abroad expanding markets to be recognised and given incentives.

Those who work with government officers and expand on FTAs overcoming non tariff barriers such as quarantine, provide incentives, motivated and provide incentives to entrepreneurs getting ISO and HACCP certification and 50% of the cost of these to be borne by the government.

Projects that develop self-sufficiency in water by introducing rain water harvesting and storage systems to be recognised by reimbursing such projects after evaluation on completion by 50% of the cost.

This will save the country and the government investment in infrastructure and construction of canals, as each agriculture project in the country will have its water needs catered by themselves.

On the logistics side the SLF&VPPEA requests the government to shift the export of fruits and vegetables from air to sea transport, assist the introduction of refrigeration, sea vessels to Male, Seychelles, and Mauritius - initial cost to be borne by the government.

The association has called for the removal of all duties on refrigerated trucks, Cold Rooms, Pre Cooling and Cold Chains on specific projects in addition to providing a special terminal for perishable export at the BIA which is urgently needed with all facilities for all perishables fruit and vegetables, meat products, poultry products, fish products, fish chilled, fish frozen, live fish, flowers and plants, provide special freight rates on budget airlines for perishable exports.

He said that the export of fresh and processed fruits and vegetables earned Rs. 3,183 million in 2005. Up to now the sector earned Rs. 3,451 million from exports. The target for 2006 is Rs. 4,000 million while for next year it is Rs. 4,500 million. The target for 2010 is Rs. 10,000 million and self sufficiency in fruits and vegetables.

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