Achievements
Socio-Economic Research
Cost and returns of crop production
The cost and returns data of yala 2003 and maha 2003 /2004 for paddy and subsidiary food crops were published in April and October 2004 respectively. The data includes average yields, gross and net returns, and total and unit cost of production. The data are useful when making crop production and marketing decisions at the farm level as well as policy decisions at national level. The Centre organized a national seminar on “ Economic aspects of food crop production” in February 2004, with the participation of DOA and PDOA officers, university academics and representatives from other government and private sector organizations.
Yala 2003 report revealed that the unit cost of production of paddy (major irrigated) chilli, red onion, big onion and potato was Rs. 10.50 , 84.80 , 20.70 , 11.88 and 29.20 per/kg, respectively.
Economic and financial aspects of the fruit processing industry in Sri Lanka
Availability of information on the fruit processing industry is vital in investment decision making and exploring new opportunities in marketing (local and foreign) as well as in developing new technologies. This study was an attempt to observe the present status of the fruit processing industry and analyze the economic and financial returns of different fruit products. In the process of data collection, secondary data and field level data (obtained from a sample survey) were collected from the districts. The study revealed that different types of fruit products generate different levels of net returns and require high levels of capital investment. Majority of the producers
reported that they face various production as well as marketing difficulties.
Assessing seed paddy availability for maha 2004/2005
A survey was conducted to asses seed paddy availability for maha 2004/2005 in the paddy producing districts of Kurunegala, Anuradhapura, Polonnaruwa, Hambantota, Gampaha, Kandy, Mahaweli ‘H’ and Mahaweli ‘C’ zones. The report with following recommendations was presented to the Hon. Minister of Agriculture, Livestock, Land and Irrigation.
Impact of Granary Area Programme (GAP)
A study was initiated in 2004 to collect qualitative information to analyze the impact of GAP in Polonnaruwa district. The information collected for yala 2004 revealed that 41 percent of farmers have received only technical guidance, and 21 percent have received 50% fertilizer subsidy. Considering the method of receiving technology aspects, 79% have received by attending training classes, while 63% have received in their own field. According to farmer responses which is highly subjective the technology adoption is as follows; for timely planting 65% have adopted from 95% knowledge receivers, for land preparation 63% have adopted from 74% knowledge receivers and for organic fertilizer use 58% have adopted from 81 % knowledge receivers.
Agricultural Policy Research
Policy implications of state investment on rice research and development
The DOA is the only institution in Sri Lanka responsible for the development of high yielding rice varieties and dissemination of rice production technologies. Presently, these rice varieties cover over 98% of the cultivated extent in the country and contribute towards achieving self-sufficiency. This was possible due to large-scale state investment for rice research and development. This study examined the social welfare aspects of this investment in terms of equity and efficiency. The analysis of consumers’ and producers’ surplus indicates that consumers are the major beneficiaries of rice research and development programmes. Low price elasticity of demand and supply has increased consumers’ welfare at the sacrifice of producers’ benefit. The social benefit cost ratio was estimated to be at
2.61. The external and internal rates of return were 412 and 25 percent respectively. The high social rate of returns suggests that financing rice research and development programmes utilizing revenue obtained by government taxes is rationalised in terms of its contribution to economic development. The study brought out evidence of
inadequate resource allocation for agricultural research.
Enhancing sustainable development of diverse agriculture in Sri Lanka
This study provides a descriptive and quantitative analysis of the current status of CGPRT crops and identifies the constraints in developing diverse agriculture in Sri Lanka. The open economic policy introduced in 1977 and the liberalized trade policies of the mid 1990s, had adverse effects on the production of these crops. Analysis of DRC ratio estimates indicated that while rice production is not competitive under rainfed condition, mung bean and cassava have a comparative advantage. Therefore, some of the marginal rice lands could be cultivated with potential CGPRT crops so that farmers can get additional income. Although, CGPRT crops are grown in almost all regions, specialization quotient estimates demonstrated regional specialization. The Simpson’s Diversity Index of 0.67 in 2003 indicated greater horizontal diversification
of food crops. Vertical diversification was seen mainly in maize and soybean, which are used in animal feed and human food industries. The development of agro-
based industries would increase the utilization of these crops and create off-farm employment particularly to the younger generation.
The impact of liberal economic policies and the expansion of the services sector on Sri Lankan agriculture
This study analyzed the impact of the liberal economic policies and expansion of the services sector on Sri Lanka’s domestic agricultural sector. The results of the study show clear links between trade and macroeconomic policies and the domestic agriculture. The expansion of the service sector exerted negative influence on domestic agricultural sector offsetting the beneficial effects of investments in research and infrastructure development. The domestic agricultural sector responds well to changes in trade policy and exchange rate depreciations while wages significantly influenced agricultural supply responses. The impact of the changes in the economic environment on surrounding agriculture resulted in falling returns, inducement of farm mechanization, leading to de-agriculturization. Greater emphasis has to be given to macroeconomic stability and to the search for new adaptable technology in response to the changes in relative prices.
Resource use and Environment Studies
Economic assessment of resource utilization in government seed production farms
This study analysed resource utilization in the government seed farm, Polonnaruwa, based on data maintained at block level for maha 2002/2003 and yala 2003 seasons. Profit function analysis revealed that land deployment and labour and fertilizer costs were significant factors affecting farm income under the prevailing management system. The findings indicated the need to improve efficiency of land, labour and fertilizer usage in the government seed production system. Labour and fertilizer contributed to 65% of the total cost of production of paddy and both factors substantially affected productivity. Average yield of paddy obtained at Polonnaruwa farm was estimated as 3.2 and 3.8 t/ha during maha 2002/2003 and yala 2003 seasons respectively, which is lower than yields obtained by farmers in the district and the CIC seed paddy farm Hingurakgoda. Some of the strategies proposed to increase land and labour productivity and fertilizer use efficiency of the government seed farms are: investment on land development, enhancement of irrigation systems, timely planting, soil fertility improvement, crop- livestock integrated farming, mechanisation and introduction of innovative administrative and financial management systems, all of which require sufficient subject funding.
Project formulation and co-ordination
Following concept papers were prepared, in collaboration with Institutes and Centers of DOA, and were submitted to the Ministry of Agriculture, Livestock, Land and Irrigation for obtaining funds from donor agencies.
World food and national programme
The SEPC was involved in organizing the world food day national programme on 16 October 2004 at the Ministry of Agriculture Livestock, Land and Irrigation. A docket was prepared on Bio diversity for food security with the assistance of FAO and the Ministry and distributed among farming community, school children and field level agricultural officers.
South-South Co-operation (SSC) between Sri Lanka and China
The SEPC assisted the Ministry to prepare and finalize the details to get the services of Chinese Experts /Technicians under the SSC programme. It was decided
to implement this programme in the Hambantota and Kurunegala districts.
International year of rice - 2004
The United Nations Organization (UNO) declared 2004 as the international year of rice. SEPC coordinated in preparing the action plan of activities/programmes for the
national programme.
Joint Agricultural Working Group (JAWG) on agricultural co-operation with Thailand
The Hon. Minister of Agriculture Livestock Land and Irrigation signed two MOUs on Agricultural cooperation and application on sanitary and phyto sanitary. measures. A joint agricultural working group was established to implement the provisions of the MOU/TOR. The SEPC convened the JAWG meetings and prepared the work plan for 2005.
Preparation of planning documents
Following planning documents were submitted to MALLI during 2004.
SEPC staff served in various committees involved in national level planning.
Co-ordination of DOA seminar programme and publication of proceedings
In order to disseminate the knowledge gained by DOA officers trained overseas, to a larger scientific community, seminar programmes are organized by the Centre. Four seminar programmes were organized and fifty presentations were made with 300 participants attending. The Centre publishes the proceedings of these seminars.
Crop forecasting programme
An early warning system was established in the DOA with the participation of SEPC, NRMC, Extension and Training Centre and Provincial Departments of Agriculture to provide information on national food insecurity vulnerable areas/groups and drought. A separate programme was initiated to improve quality and availability of
agricultural data.. The forecast for yala 2004 revealed a large drop in crop production (rice, chillie, red onion, maize, soybean, black gram, gingerly, potato and vegetables) by 25 - 58%, due to drought. Changes in rainfall data showed that the drought conditions of 2004 yala season was a cumulative result of erratic rainfall of the previous
maha and current yala seasons.
Agricultural Information and Data-Base Management
Agricultural statistics (AgStat.)
A booklet on Agricultural Statistics comprising the salient features of information on food crops was complied in April 2004. The booklet contains information on subjects such as socio-economic data, land use types, extent and production, import and export, and wholesale and retail prices. This information is useful for researchers, policy planners, students, educationists, administrators, farmers and entrepreneurs.
Computerized database
The SEPC collected statistics and information on imports and exports from Department of Customs, extent and production from Department of Census & Statistics and prices from HARTI, and prepared a computerized database for all major crops.
Monthly progress reports
Monthly progress reports were compiled on target extents and achievements for each district.
Reports