Farmer-friendly policies boost crop yield

By L.S. Ananda WEDAARACHCHI

The Government's farmer-friendly policies such as fertilizer subsidy and supply of quality seeds have resulted in the bumper harvest in subsidiary food crops, said Wayamba Group Chairman S.H. Sadikeen.

The Wayamba Group, a trading company will export maize to Taiwan and Canada next week for the first time. The State sponsored ceremony to mark this historic event will be held on Tuesday at Peliyagoda under the patronage of Economic Development Minister Basil Rajapaksa.

"Sri Lanka is an agrarian economy. It has the agricultural base to be the granary of the East. The virgin fertile land, seasonal weather and a precious human resource are some of the valuable assets Sri Lanka is blessed with, Sadikeen said.

The Sunday Observer interviewed Export Development Board (EDB) Chairman Janaka Ratnayaka and Wayamba Group Chairman S.H. Sadikeen recently.

Excerpts of the interview:

EDB Chairman Janaka Ratnayaka

Wayamba Group Chairman, S.H. Sadikeen	EDB Chairman Janaka Ratnayaka

Q: Sri Lanka's export sector registered a remarkable progress during the past ten years. Do you have a plan to maintain the current or an advanced level of progress.

A: The EDB targets a US$ 15 billion worth of exports under its 2011-2015 strategic plan. This will be achieved by uplifting the small scale enterprises and extending support to large scale ventures.

Q: Sr Lankan entrepreneurs have explored new markets for Sri Lankan products specially the non-traditional products such as maize. What have you got to say on these new developments.

A: The time is rife for Sri Lanka to exploit business opportunities.

The year-end statistics for 2011 reveal a substantial improvement in exports compared to 2010. Sri Lanka's total exports in 2010 and 2011 were US$ 8,890 million and US$ 10,913 million, an increase of 22.75 percent.

The EDB strives to increase the country's exportable goods and services through diversification and inclusion of new products while consolidating the position of existing products and services.

Wayamba Group Chairman S.H. Sadikeen

Q: A few years ago Sri Lanka's maize production was not sufficient to cater to the local demand.

A: The Forward Sales Buying Agreement (FSBA) introduced by the Central Bank in 2002 is one of the major factors for the successful maize cultivation. Under this agreement we motivated 2,220 farmers in the Anuradhapura district for a systematic maize cultivation during the past few years.

The local demand for maize is 1,80,000 MT per year. The harvest during the first season amounted to 200,000 MT.

Q: What are your other exports?

A: We are in the export sector since 1993. We had gradually improved our business and had received the presidential export award for bulk exports last year.

Non-traditional agricultural items such as cinnamon, cloves and mace, cardamoms, nutmeg, sesame, pepper and spices have a great demand.

Q: What are the difficulties you have encountered in improving the export market for these items?

A: Our current problem is that we cannot cater to the demand. For example we cannot satisfy the Indian demand for arecanut, a by-product. We received an export order for "Karunka" an arecanut variety for 1,000 MT from Kerala. The systematic cultivation of spices such as nutmeg and others could have a better market.

Q: What are the steps taken to overcome this situation and ensure a successful cultivation of spices as a potential foreign exchange earner.

A: Economic Development Minister Basil Rajapaksa has often reiterated the importance of our exports. The current trade deficits between Sri Lanka and other countries could be bridged only through a strong export drive.

For example Sri Lanka imports amount to over US $ 490 million from India whereas Sri Lanka exports are only US$ 410 million.

In the interest of the future of the country the situation needs be changed without delay as stressed by Minister Basil Rajapaksa who encourages the local entrepreneurs to intensify their exports.

Minor Export crop promotion Minister Reginold Cooray has decided to launch an export drive for cinnamon and arecanut.

A fair price for the produce of the farmers is very important.

The price of a kilogram of maize has shot up from Rs.18 to Rs.35 within five years. We expect that the government will introduce incentives to boost exports.

Q: What is the vision of your company?

A: As a village-based business we want to offer the best price for the produce of the farmer. We anticipate to facilitate the local farmers access to the international market.

Q: What is your next project?

A: We are at present exploring an export market for our "Thriposha", an infant food produced in Sri Lanka.