Sri Lankan economy and agricultural sector
By Dr.C.S. Weeraratna-March 21, 2017, 8:10 pm
csweera@sltnet.lk
Our trade deficit has continued to increase from Rs. 545 billion in 2010 to almost Rs. 1500 billion in 2016. Persistent trade deficit has a significant negative impact on the economy of the country and exacerbates the problems the people are forced to face. It is essential that the government implement appropriate strategies to narrow the trade deficit. In this regard the role played by the agriculture sector needs to be given due cognizance.
During the first four decades since independence, the food production sector, especially the paddy sub-sector has developed rapidly. The late D.S. Senanayaka took a keen interest in promoting cultivation of food crops mainly paddy. With more "peace" in the country a larger extent of asweddumized lands have been cultivated with paddy. At present (except Maha 2016-17) around 1250,000 ha are cultivated with paddy annually producing nearly 4430 kg per ha. The corresponding values ten years ago were 730,000 ha and 3,600 kg/ha respectively.
Development and cultivation of high-yielding rice varieties, increase use of fertilizers, improved management practices could be attributed to the success in the rice sub-sector.
However, the average per hectare yields and the extent of field crops such as chllies, green gram, ground nut, potato etc. have not increased to any appreciable amount during the last decade. The expenditure on importing food has increased appreciably from Rs.150 billion in the year 2010 to around Rs. 220 billion in the year 2015. The present expenditure on food imports is likely to be even more due to the depreciation of SL rupee.
A few years ago, a former Minister of Agricultural Development Chamal Rajapaksa appointed an Advisory Panel to make proposals to develop the agricultural sector so that there is a quantitative and qualitative increase in crop production at a lower cost with no damage to the environment. At the inaugural meeting of this Advisory Panel on Agriculture, consisting of 36 professionals in the agric. sector, forty four recommendations were made. These recommendations were mainly on development and use of better varieties of seeds and planting material, effective control of weeds, insect pests and diseases, better water management, and water conservation, proper use of inorganic and organic fertilizers, controlling soil degradation and appropriate land use, promoting agro –industries, and carrying out relevant agric. Research and use of their findings. A National Agric Policy was developed in 2007 with the involvement of a number of officers from several ministries. The main objective of the policy was to increase the productivity of the agric. Sector. A few years ago, a review of the Council of Agric. Research Policy (CARP), which has a critical role in the development of the agric, sector, was done by five senior agricultural scientists in the country. They made several recommendations to improve the productivity of the Agric, Sector, During the last few years numerous programmes such as "AMA', " Waga Sangramaya" and "Govi Sevana " were implemented. In August 2015, Centre for Development Research & Interventions conducted a programme for formulating sound national policies in which a large number of professionals took part. They made a many recommendations to improve the production and productivity of the agricultural sector. All these activities/programmes, appear to have not made any appreciable positive impact on the agricultural sector of the country indicated by increasing expenditure on food.
Although hundreds of research projects related to agriculture are carried out by faculties of agriculture , Dept of Agriculture, etc. there appears to be no organized system to utilize the research findings in our efforts to increase productivity in the agriculture sector. There is very little liaison/interaction among the relevant institutions, and the agricultural research carried out in the country appears to have no appreciable positive impact on the food production level in the country. .In a developing country such as Sri Lanka, a primary objective of scientific research must be to utilize locally available resources. Research priorities, need to be based on the needs and problems in the production sectors. However, in spite of organizations such as the Council for Agricultural Research Policy (CARP), National Science Foundation (NSF) the agricultural research efforts in Sri Lanka appear to have not being directed towards development of technologies to utilize local inputs in crop production
The low productivity of crops except paddy can be attributed to a number of factors. Among these are non-availability of good quality seeds/planting material, soil degradation causing a decline in soil fertility, high incidences of pests and diseases, water shortage, high costs of inputs such as seeds, fertilizers, pesticides, and labour, insufficient value addition/processing and difficulty of marketing at reasonable prices. In addition, ineffective research and extension, lack of planned crop production, insufficient attention to under-utilized crop varieties which have a potential in the local/overseas markets, ineffective utilization of agricultural by-products also have contributed to the deterioration of the agricultural sector.
As a result of the deteriorating agric. sector, the expenditure on food imports has increased. At present it stands at Rs. 220 billion. It is ironical that most of these crops can be locally produced. Partly due to the heavy expenditure on food crops, our trade deficit has continued to increase from Rs. 545 billion in 2010 to Rs 1200 billion in 2015. To improve our faltering economy it is essential to bring down this trade deficit by reducing imports and increasing exports.
Reducing Imports;
Among the food items imported in 2015 are sugar (Rs. 34 billion) milk (Rs. 34 billion) , lentils (Rs. 20 billion) onion( Rs 16 billion), maize (Rs. 10 billion), herbs such as katuwelbatu, thippili used for ayurvedic drugs etc. Most of these can be locally produced and expenditure on imports of these items can be thus reduced. For example, sugar production in the country has not increased by any appreciable amounts during the present decade. Kanthale sugar factory remains closed while a plan to cultivate sugarcane in Bibile remains shelved.
With regard to milk production we have around 1 million cattle consisting of mostly indigenous cattle. Their productivity is low (1-3 liters/day) mainly due to the poor nature of the breeds and inadequate low quality feed supply. The dairy industry has a potential to contribute considerably to Sri Lanka’s economic development. Milk production also plays an important role in alleviating nutritional poverty and it is a source of extensive employment opportunities. If milk production can be increased, an appreciable amount of foreign exchange spent on milk imports can be reduced and improve the nutrition status of the people.
Although we say that we are self-sufficient in rice ( a carbohydrate) a large amounts of wheat flour (another carbohydrate) is imported at a cost of around Rs. 45 billion. Annual wheat consumption in the country has increased from 38 kg/per person to nearly 80 kg/per person.
There are many tuberous crops such as innala, sweet potato, yams which can replace a part of the wheat flour we import.
Increasing Exports
Sri Lanka has a wide variation in soil and climate with 46 agro-ecological zones, each characterized by specific climate and soils making it possible the cultivation of a number of different types of crops which have a considerable export potential. These are, horticultural crops such as cashew and other fruit crops,. floricultural and spice crops (eg. pepper,cinnamon, cardamom etc.) Increase in production of these crops and development of industries based on them and exporting the products would increase our export earnings and employment opportunities.
Hence, improving the agricultural sector is essential. It will bring about numerous social benefits, increase our food security situation, make food cheaper resulting in higher calorie intake and better nutrition level, reduce the expenditure on food, and increase employment opportunities.
Agro-industries
A large number of crops cultivated in Sri Lanka, including rice have considerable potential in various agro-industries. Rice and other crops such as cassava, horticultural and floricultural crops, medicinal herbs, cane, bamboo, sunflower, castor etc. have a considerable industrial potential but are not cultivated to any appreciable extent .There is an urgent need to develop agro-industries in Sri Lanka, which will have a tremendous impact on unemployment and rural poverty. However, there appears to be no proper long-term plan to develop agro-industries, except for some ad-hoc projects. The Ministry of Industries and agriculture should implement an effective Agro-Industrial Development Programme which undoubtedly would improve employment opportunities and incomes in the rural areas.
There has been rhetoric on agricultural development during the last few years. It is meaningful and effective actions that are necessary. Increased agricultural production could be conceived of as an effective strategy for poverty alleviation, food security, reduction in unemployment, increase in foreign exchange earnings and rural incomes and improvement in income distribution. A concerted effort is necessary by all stakeholders to make the agriculture sector achieve sustainable development. It is essential that the government is committed to increase agricultural production by formulating and implementing a realistic agricultural development plan.
