Marketing paddy harvest the main issue
by Gamini Warushamana
Favourable weather conditions and government policies created a boom in
paddy farming in the country in 2005. However, in many parts of the country
marketing the harvest has become the main issue despite government
intervention and farmers are in crisis, sources said.
According to the National Accounts 2005, released by the Department of
Census and Statistics (DCS), during the previous year paddy production had
increased by 23.4% against a negative growth of 14.3% in 2004. Total paddy
production for 2005 was 155.6 million bushels.
This is the highest production recorded after independence and the
production is 0.9% above the domestic demand, the DCS report said.
Fertiliser application increased by 17.5% in 2005 over the previous year
mainly as a result of fertiliser subsidies.
The extent of paddy cultivation has increased by 20.4%. Government's
encouragement to cultivate abandoned lands, small tanks renovation program
and subsidies are the reasons behind this development.
In the Kurunegala district, the cultivated extent has doubled. However,
the government's intervention is not effective enough to influence the
market prices in many areas. Sources said that in some areas the open market
prices are around Rs.9-11 per Kg.
The problem is the excess supply during the harvesting season. The remedy
proposed by experts is to shift the farmers from paddy to other crops which
they say is more profitable. However this is not easy, said Residential
Project Manager of Mahaweli L zone Wanigatunga Perera.
He said that their attempt to shift the farmers to other crops in the
upcoming Yala season failed and all farmers are ready to cultivate paddy.
Paddy cultivation is relatively easy specially with new equipment being used
today. Subsidised fertiliser is another reason. Marketing is a big issue for
other crops as well in this conflict affected border area.
"You need an efficient market for these products and not the government
alms or subsidies. For instance in the Dambulla area farmers do not
cultivate paddy but produce vegetables and other crops, because marketing is
not an issue," he said.
As violence increased during the last few weeks outside traders are
reluctant to come to the area and paddy prices have dropped to Rs.10-11/Kg.
Poor roads are another issue and Perera said that marketing vegetables,
fruits and other products are more difficult in this area.
Perera said the government has already purchased 240,000 Kgs of paddy
from the Maha season harvest. Purchasing stopped in April and he is
expecting another Rs. 2.5 million from the Treasury.
Last week's open market prices of paddy in Mahaweli B Zone were recorded
at Rs. 11.75 for Nadu and Rs.13 for Samba. The Mahaweli authority and
Co-operative Societies purchased paddy at the beginning. The Mahaweli
Authority has already purchased a stock to the value of Rs.27 million and
has now stopped purchasing.
The total estimated production of the last Maha season in the Zone was
72,000 tonnes and 60,000 tonnes will be released to the market. Government
targeted to purchase only 3,000 tonnes. Officials said that in the Yala
season too 100% of the land will be used to cultivate paddy.
In Mahaweli H zone, the open market price is Rs.12-12.50. Government
agencies have purchased a small portion at the recommended price but today
all warehouses are full. The Marketing officer in Mahaweli B Zone said that
the present open market prices are not too low and the government's
intervention is effective in the market.
We purchase high quality paddy at the government's recommended price of
Rs. 16.50 for Nadu and Rs.17 for Samba. But in the open market, quality is
not an issue, he said.
Director, National Accounts of the DCS D. Amarasinghe said that
continuation of this positive trend in the agriculture sector is very
important because the sector is crucial in rural poverty reduction.
Agriculture is the main source of income for the rural masses, he said.
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