Terrence Abeysekera

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Reviving Sri Lanka's Food Sector Performance
Challenges and Policy Issues

• Terrence Abeysekera

Presentation Prepared for SLEA Peradeniya
University, Peradeniya October 3 2008
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Presentation Outline

• Focuses on three main areas
• i. Setting the Context (Background, conventional
  and counter views on the status of Sri Lankas
  food crop sector)
• ii. Past Trends Emerging Issues (Performance
  on the Ground Evidence at the macro level,
  producer level consumer levels)
• iii. Role of policy Policy options and scope for
  innovation

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1. Background in brief

• 20.0 million people
• Unemployment rate 6.9
• youth account for 16
• 70 live in rural areas
• Annual GDP growth 7.4
• Annual Ag. GDP growth 4.7
• Share of Ag. in GDP 16.8
• Per capita income US 1350

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2. Two Sets of Views on Sri Lanka Food Crop
Sector, Long-run Outcomes Two Sides of The Same
Coin?
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3. Sri Lanka Long-Term Economic Growth Patterns
by Major Sectors, 1980-2005
Source Central Bank Annual Reports, various
issues
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4. Changes in the Composition of Agriculture
Sector (GDP), 1980-2005
Source Central Bank Annual Reports, various
issues
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5. Reduction in Labour Absorption Capacity in Ag.
Sector 1990-2005
Source Central Bank Annual Reports, various
issues
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6. Sri Lanka Stagnation of Productivity in
Agriculture Sector, 1990-2005
Source Central Bank Annual Reports, various
issues
Constant 1996 Prices
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7. Outcomes in the Paddy SectorArea Cultivated,
Yield/ha Production. 1985-2005
Source Department of Census Statistics
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8. Changes in Extent Cultivated Under Non-Rice
Food Crops, 1985-2005
Source Department of Census Statistics
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9. Sri Lanka Changes in Food Crop Yields,
1985-2005
Source Department of Census Statistics
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10. Sri Lanka Production Trends in Major Food
Crops, 1985-2005
Source Department of Census Statistics
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11. Comparison of Imports Domestic Production
of Selected Food Crops, 1995-2005
Sources Department of Customs, Department of
Census and Statistics
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12. Total annual expenditure incurred for food
imports, 1995-2005
Source Department of Customs
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13. Presence of significant yield gaps in the
food crop sector (The gap between achievable
and actually achieved crop yields at the farm
level)
Sources Paddy-Rice Research Development
Institute Batalagoda, Maize Green gram- Field
crop Research Development Institute,
Mahailluppallama, Ground nut-Grain Legumes Oil
Crops Research Development Centre,
Angunakolapalassa
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14. Changes in Production Costs Producer
Incentives (profitablity) in Paddy Cultivation
(Major Irrigation system, 1990-2005)
Source Department of Agriculture, Peradeniya,
Polnnaruwa District Data
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15. Key Factors Impeding Sri Lankas Food Crop
Sector Performance Need to Focus on Policy
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16. Why Food Crop Sector Shows Lack-luster
Performance?
The Sector Improvement is Undermined by an
Inherent policy bias within the System

• Crop agriculture Vs. Animal husbandry
• Rice Vs. Non-rice Crops
• Production Vs. Marketing/Value addition
• Producer welfareVs. Consumer welfare
• Public sector Vs. Private sector
• Projects Vs. Policy
• Supply driven Vs. Demand driven
• The Sector development requires more innovative
  policies and
• shift in priorities

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17. Summing Up

• 1. Sri Lankas food crop sector is moving too
  slowly.
• 2. A number of initiatives are being taken to
  change the
• system.
• 3. But, application of more of the same
  prescription will
• not lead to a dynamic agriculture sector
  and expected
• results.
• 4. Sector improvement calls for well considered,
• innovative, more dynamic approaches
• 5. Emerging National and Global realities needs
  greater
• attention.

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Thank You