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| Sunday, 20 November 2005 |
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Budget proposes measures to boost agriculture by Surekha Galagoda The country has now diversified into other sectors but the past, present and the future of the country depends on agriculture which has unfortunately been neglected for many years said Treasury Secretary Dr. P.B. Jayasundera addressing the Sri Lanka Fruit and Vegetable Producers, Processors and Exporters Association (SLVPPEA). He said that the Finance Ministry realising the value of agriculture has made a genuine attempt through the agricultural cluster and the budget to translate and transform the ideas of the private sector to a practical level to achieve the goals of the private sector so that all people could reap the benefits. At present the agricultural sector is shifting from primary to exports and vast quality improvements can be seen. Earlier rice had to be cleaned but now the quality had been improved so that no cleaning is required. The quality has made the premium difference but still the price is very competitive. Dr. Jayasundera said that Sri Lanka could increase the agricultural GDP by 40% without increasing one unit of production merely by eliminating the post harvest losses. In the event the pre harvest losses are eliminated another 20% could be increased. He said that tremendous efforts have to be made to develop agriculture apart from the plants and seed materials and the budget has proposed various measures for it. At present fertiliser is overused. We in the public sector are of the view that there is tremendous potential for Sri Lanka to grow in agriculture. It is a heavy agenda but we will manage it, Dr. Jayasundera said. He said that once the elections are over the agricultural sector would come under his direct purview. Dr Jayasundera said that at present the country has the right opportunity due to various reasons such as the GSP+ system introduced by the EU to give tax concessions to 7,000 items, educated farmer community, required organisational changes, finances, efforts, tax free environment, consolidation and a dedicated private sector. Therefore make use of these opportunities to uplift the conditions of the rural poor, as this will help the country achieve the desired growth rates, he said. SLVPPEA President Sarath De Silva said that their vision is to increase the export turnover from Rs 3-6 billion, implement the budget proposals and offer islandwide farmer collaborations and Samurdhi organisations to our membership. He said that the 66 model farm project will continue while funds have been allocated to develop dedicated agricultural product zones, developing seeds and planting materials, increasing credit, quality improvements in agriculture and priority on organic agriculture, developing the cashew industry and income tax exemptions for agriculture and processed agricultural products. The barriers to developing our markets include rising cost of production, lack of air cargo space to Europe, increasing cost of freight due to fuel surcharges, local cost of transport, competition from emerging highly subsidised export agriculture countries in South Africa and Australia and hidden subsidies on exports by the state governments competing with each other in large countries such as India and China. |
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