Work to commence on January 3:

Divi Neguma Dept to support five million people

by Dhaneshi Yatawara

The newly established Divi Neguma Department will commence operations by January 3, 2014. The Department is to take the responsibility of upgrading the living standards of 1.8 million families, thus benefiting nearly five million people.

The department will be empowered simultaneously with the issuing of the relevant gazette notice January 3. As stated, the department will be established amalgamating the Department of the Samurdhi Commissioner General, Sri Lanka Samurdhi Authority, Department of Upcountry Peasantry Rehabilitation, Sri Lanka Udarata Development Authority and the Sri Lanka

Southern Development Authority. “This step is to accelerate the Government development work avoiding the possible space for duplicating in steps taken by these institutes,” said Director General of the Regional Development Division of the Economic Development Ministry Chandra Wickramasinghe. “All these institutes work towards eliminating poverty from the country. It is the view of the Government under the ‘Mahinda Chinthana’ vision for tomorrow that to bring attention to low income families in the society and implementing relief programs enabling them to achieve a sustainable standard of living jointly with nutritional assistance programs. This is to see a country where poverty is minimal,” Wickramasinghe said.

Following the passing of the Divi Neguma Bill with a majority of 117 votes in parliament on January 8, 2013 in accordance with the recommendations made by the Supreme Court, 27,000 persons employed by the Samurdhi Authority and the five affiliated organisations will become entitled to all the salaries and benefits given to other government employees.

Timely initiative

Eliminating poverty is the biggest challenge any government, would face amidst the heavily fluctuating prices of the market. In such a backdrop rather going on mass scale it sounds more effective to strengthen the smallest unit of the society, the family. Stronger the family unit is, stronger the society would be.

In such a situation the ‘Divi Neguma’ national development drive is a timely initiative to face the challenges of the modern world. Strengthening people to face high cost of living and gaining food security the Divi Neguma is expanding its wings to serve more people who have less resources to live.

“The objective of Mahinda Chinthana is to bring up everyone and every family whether they live in the cities, towns, plantation areas or villages to the same level,” said Economic Development Minister Basil Rajapaksa during the recent budget debate in parliament.

Economic development is needed not only for today but for all times, he said, addressing the parliament during the recent budget debate and added that the economy should not be allowed to collapse.

“Per capita income in Sri Lanka in 2006 was US dollars 1241. By 2012 it went up to U.S. Dollars 2923 - a two fold increase. By 2016 our target is to make the per capita income U.S. Dollars 4000,” Minister Rajapaksa said.

In 2006 there were 1,916,594 Samurdhi beneficiaries. By 2013 it was reduced to 1,476,607 It means the number was reduced by 439,987. The former Samurdhi beneficiaries have been economically strengthened to earn higher incomes without depending on relief assistance. Percentage-wise the reduction is by 22.9 percent.

“It is due to the country’s development that the number of Samurdhi beneficiaries has decreased. Divi Neguma and Gama Neguma have all contributed to it,” the minister said.

Cottage industries

‘Divi Neguma’ is not a project only to promote home gardening. It is the first phase of the project. ‘Divi Neguma’ targets identified three backward communities - i.e. estate community, urban slum dwellers and the fishing community.

Since self-employed persons make a silent but considerable contribution to the National Economy a program was launched this year to raise living standards and strengthen them on a professional level.

Recently the Cottage Industry division of the ‘Divi Neguma’ national program identified 77,637 beneficiaries. Equipment and raw materials have been provided to 12,535 beneficiaries out of 18,601 following a special training conducted under this program. Under the phase five program of the Divi Neguma which began on October 11 this year, another 4,901 persons will become beneficiaries of this scheme by the end of this year.

Garment production, kitul and palmyrah production are among the leading cottage industries while the rest include products associated with food items, fruits, mushrooms, leather, coir, ornamental flowers, chemicals, silver, brass, batik and handicrafts.

A total of Rs. 16,439 million has been given to 202,987 people for launching projects under the micro-finance credit scheme and ‘Divi Neguma’, according to Minister Rajapaksa. By this year, the number of project loans given in the agricultural sector is 77,059 and the amount is collectively Rs. 5,870 million. Of this number the loans given to the fisheries industry is 3,000amounting to Rs. 456 million.

To the livestock industry loans worth Rs. 812 million has been issued up to this year. To the household industry 41,073 loans have been issued amounting to Rs. 2,600 million.

With the increase in rural people engaging in growing crops at a more commercial scale, there was a considerable price reduction of many vegetables seen in the market across the country.

Based on the general price list of the Census and Statistics Department, the price of a kilo of leeks was seen reduced from around Rs. 114 to around Rs. 87. The price of kilo of beetroot was reduced from around 95 rupees to 80 rupees. The price of a kilo of radish was reduced from 41 to 36 rupees. The price of kilo of tomatoes was reduced from 109 to 41 rupees.

The main objective is to make poverty-stricken people participate in the development process and bring its benefits to all segments of society.

By now 12,533 cottage industries have started under the ‘Divi Neguma’ program and about 30,000 small entrepreneurs have been trained for setting up such industries. A system has been introduced to provide the capital and financial facilities they need through State Banks.

The livestock sector has seen much progress under ‘Divi Neguma’ and thousands of farmers have newly entered this area. The beneficiaries have been provided with 1.7 million chicks for poultry farming thus contributing Rs. 4,320 million to the national economy.

The number of subsidiary crop exporters who have benefited from ‘Divi Neguma’ is increased to more than one million. The program has also made an immense contribution to increase liquid milk production and fish consumption per person per day.

With the establishment of the Divi Neguma Department Government's aim is to make Sri Lanka a poverty-free country where food security will be ensured and micro finance, physical and social infrastructure facilities will be provided to strengthen livelihoods and development at community level.