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Sri Lanka - Nonplantation crop sector policy alternatives (English)

This report is based on the output of two workshops in Sri Lanka, four background papers written by local consultants and the findings of a mission to Sri Lanka in November-December 1994. Growth from nonplantation agriculture remains stagnant and income low. The primary source of this growth has been Other Food Crops (OFCs - chilies, onions, potatoes, etc.). Assuming no data errors, OFC output is growing in intensity, as the total area under these crops has not grown. With 60 percent of Sri Lanka's population rurally based and mainly in the nonplantation sector, the sector's stagnation is of growing concern to government, particularly in terms of its implications for rural poverty. Despite its low returns per acre relative to OFCs and government support for more diversified crop-land use, low-valued paddy remains the dominant crop. Why this is so has been a dilemma. Examination of farm input and output markets and technology transfer shows no constraints. Price and trade policies, and rural credit markets are also not responsible. But land and labor markets are seen as major determinants of farmers' behavior. The study's policy recommendations are aimed at getting nonplantation agriculture moving again, assuming that sustainable growth with equity is the desired policy goal. Importantly, during the study it became abundantly clear that access to the off-farm market was far more important than size for creating equity in income-earning opportunities. Appreciation of the major role played by the off-farm labor market is key to understanding of farmers' behavior and provides the basis for the direction of the recommendations. This report first addresses the problem of the nonplantation crop sector poor performance. It then reviews the output and input markets. The third chapter of the report discusses the incentive policy. Chapter 4 reviews rural finance, chapter 5 land, chapter 6 farm family income and output adjustment, and chapter 7 technology generation and transfer.

Details

  • Document Date

    1996/03/20

  • Document Type

    Pre-2003 Economic or Sector Report

  • Report Number

    14564

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Sri Lanka,

  • Region

    South Asia,

  • Disclosure Date

    2010/07/01

  • Doc Name

    Sri Lanka - Nonplantation crop sector policy alternatives

  • Keywords

    farmer;Crop;Agriculture;regional rural development;council on agricultural;farm size;land market;labor force survey data;market value of land;central government agency;large scale irrigation;water property right;barrier to entry;subsistence farmer;wheat;rural credit market;seasonal price fluctuations;direct government intervention;cost of living;irrigation cost recovery;floor price;guarantee price;fruit and vegetable;allocation of land;state trading;loaf of bread;cost of production;rural financial market;animal feed ingredient;impact on poverty;information on price;low income household;minimum producer price;quantitative import restriction;industry and trade;cost of credit;finance and planning;full private ownership;obstacles to growth;sectoral policy objectives;price of rice;domestic producer price;adequate food supply;small island countries;balance of payment;expansion of export;relative interest rate;production of rice;improvement in productivity;private sector marketing;protection against import;agriculture and industry;private sector institutions;resolution of dispute;trade policy liberalization;minor irrigation scheme;weights and measure;wholesale market;Trade Policies;wholesale price;domestic price;sectoral growth;export crop;plantation sector;off-farm employment;small farmer;sectoral performance;private trader;wheat market;world price;market intervention;commercial agriculture;subsistence agriculture;farm family;Technology Transfer;agricultural market;farm income;quantitative restriction;factor market;rice price;long-term credit;land use;market force;extension service;retail price;physical losses;family labor;food crop;irrigation system;commercial basis;dominant crop;manufacturing industry;private land;rainfed agriculture;fertilizer price;incentive structure;rice production;price volatility;crop land;private hand;paddy land;rural area;commercial activity;ad valorem;plantation agriculture;high tariff;irrigation subsidies;poor farming;transport cost;irrigation investment;individual farmer;food price;Rural Sector;Direct Subsidies;rural market;agricultural output;intergenerational transfer;farm labor;equitable distribution;turnover rate;land sale;smallholder agriculture;direct subsidy;fiscal deficit;budgetary cost;commercial import;private market;flour mill;wheat mill;commercial farmer;market price;free water;intervention policy;outward orientation;financial benefit;land valuation;targeted program;farming activity;reform policy;rational choice;asset acquisition;diversified portfolio;irrigation policy;competitive basis;fixed investment;poor health;credit institution;loan contract;land title;loan portfolio;banking authority;credit discipline;freehold land;competitive market;irrigation costs;donor financing;fertilizer market;price competition;import protection;retail vegetable;harvest time;price rise;market participant;specific duty;tariff restriction;rice trade;opportunity cost;working capital;investment financing;social indicator;financial stress;alternative product;soft wheat;work order;food trading;storage capacity;moisture content;harvesting season;targeted food;subsidy system;food stamp;consumer demand;inventory management;transaction cost;Natural Resources;land utilization;production area;unit price;agricultural loan;Labor Market;price policy;output market;institutional framework;tree crop;food self-sufficiency;world rice;rural banking;market niche;Fixed Assets;crop agriculture;utilization rate;savings deposit;concessional loan;volatile international;rural life;land privatization;rural saving;credit program;farm input;constant term;gross exports;yield gain;total employment;basic food;urban agricultural policy;staple food;nutrition program;domestic production;commercial dimension;nutritional status;Rural Industry;water market;social dimension;import tariff;large farmer;commodity price;human capital;high wage;village survey;financial intermediaries;output growth;data error;primary source;commercial opportunities

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Citation

Sri Lanka - Nonplantation crop sector policy alternatives (English). World Development Sources, WDS 1996 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/639621468760765083/Sri-Lanka-Nonplantation-crop-sector-policy-alternatives