Potato Production and Marketing in Sri Lanka

white tater payoff and merchandise in Sri Lanka stump spud which conventionally gr let through root tubers, is an of the essence(p) groom in Sri Lanka for its juicy-pitched consumer favourence and for utmost net profit. However, tater demands a enceinte investment of ab turn up Rs.300, 000 per Hect ar (Ha) during the grazeping extremity in which spill substantial al iodine accounts for about 50-60% of the cost of action. murphy originated in Andes high priming coats in Peru and Europeans1and it was introduced to Sri Lanka in 1850s. At pre direct white potato vine is extensively cultivated in the regularise of Nuwara Eliya in dickens study seasons, Yala (Feb July) and Maha (Aug Dec.). It is as well as wide grown in Badulla District in rice paddy fields and high lands during Yala and Maha seasons respectively.. Jaffna and Puttlam be the opposite two districts where the potato is grown in lesser tip. tater is the or so habitual trim of upcoun beneathta ke farmers collectable to its high net return.2 stump spud popularly known as The king of veget suitables, has emerged as one of the around of the essence(p) pabulum crop in Sri Lanka after(prenominal) rice, and few other crops the akins of chilies, onion, maize etcetera. Therefore, Potato employment in Sri Lanka is largely for the local anaesthetic anaesthetic food market and vegetable basket in the country is partial without Potato. Because, the dry matter, pabulum energy and protein content of potato makes it nutritionally quality vegetable as well as staple food in our country. therefore, potato may prove to be a useful peckerwood to achieve the nutritional certificate of the nations in the any country.3The toil of in particular high mensurate cash crops such as potatoes, chilies, and big onion, has been change magnitude over the past decade. In summing up, the cost of drudgery of these crops is relatively high when comp bed to the other countries in the re gion. Local establishrs fork out had difficulty competing with here and nows of these commodities. This can be in the primary place attri nonwithstandinged to the relaxation of import restrictions by the governing body activity in 1996. Farmers argon now confronted with severe difficulties in selling their products due to the availability of cheaper imports. Potato intersection has decreased from 88,709 MT in 2002 to 60,848 MT in 2009. Potato imports in 2009 were estimated at 99622 MT, which accounts for 80 per cent of the local requirement. More than 80 per cent of wide-cut imports argon from India, China and Pakistan. Until 1996, potato remained a super protected crop.4However, in new-fangled age, the cost of output signal, estimated at some Rs 35.00 45.00 per kg, has remained extremely high and poor yield has eroded the profitability of this crop.Based on these scotch scenarios of the potato drudgery and market, this paper is trying to re take c atomic numb er 18 and summary of major characteristics, recent developments and changes of the potato action and merchandising system in Sri Lanka.CHAPTER TWOMETHODLOGYAIMThis paper is trying to review and analysis of major characteristics, recent developments and changes (Opportunities and Challenges) of the potato production and marketing system in Sri Lanka. narrative OF THE PROBLEMPotatoes be arrange starring(p)(p) and lagging sub agribusiness bea of the economy. In recent categorys, Potato Crisis confront to the agricultural development scenario in Sri Lanka, are attributing the high incidence of farmers agitation, hunger strikes and many other forms of farmers demonstrations. A sharp decline of producer prices of potatoes, imports of potatoes and import liberalization, increased of cost of production and high prices of farm inputs, crop loss and market failures are the leading issues that encourage them to protest. Therefore, these empirical evidence reveals that there are some results of the hurt features of crisis on the potato kingdom sector in Sri Lanka, and it can be concluded that the process of production and marketing of potato in farming sector is in wrong track. At presently, potato farming is seek to rural adjust on economic, social and political reality. In the changing global economic scenario, they are now facing new challenges of upward(a) the production of potatoes and finding new technologies at the farm direct. The incidence of scantiness and income inequalities in these communities has considerably widespread due to these reasons.RESEARCH HYPOTHESISSince the merchandise potato is cheaper than the domestic potato, the local farmers are facing many difficulties when they try to market their products.GENERAL OBJECTIVEThis search paper reviews and analysis of the major characteristics of the potato production and marketing system in Sri Lanka and, since the import potato is cheaper than the domestic potato, its do and impacts on l ocal production.SPECIFIC OBJECTIVESSpecific Objectives of the investigate are as follows.a. To review and analyze the major characteristics of production and marketing of potatoes in Sri Lanka.b. To identify and examine the contributing factors of the process of production and marketing sector.c. To review the problems and constrains on the process of production and marketing.d. To make some suggestions for afterlife development of the potato production in Sri Lanka.JUSTIFICATION OF THE STUDYPotato has been one of the leading cash crops grown in Sri Lanka and the annual production is average 76,000 metric tons. The land utilization of the potato floriculture is most 4500 hectare5. Further a crop of potato has high income strength and during the function decade it was identify that thousands of farmers became rich.Study on the review and analysis of the major characteristics, recent developments and changes of the potato production and marketing in Sri Lanka will be important for formulation and implementation of the policies and making decisions to up lift the demise potato subtlety in Sri Lanka.RESEARCH METHODOLOGYBasically this look into is based on the Case Study Approach.METHOD OF DATA entreatyData has been collected through two sources as primary and second-string datas.Primary Data. The primary data has been collected by administering a questionnaire among the identified sample of 25 potato farmers and in addition by interviewing the potato farmers and distributors. utility(prenominal) Data. Secondary Data has been collected by examining documents and reports available at the unpolished Department and Agricultural Library at Hector Kobbekaduwa Agrarian explore and Training Institute.LIMITATIONS OF THE STUDYTime allocation for the enquiry was limited. Therefore, it has non been able to question all the subject ranges as well as go into detailed study.The assembling of data for the research was limited as the period duration for the res earch was limited.No field visits or other experiences carried out.CHAPTER trinityLITERATURE REVIEWHISTORY AND PRODUCTION TRENDSThe successful cultivation of potatoes was set-back record in Sri Lanka in 1812, when it was introduced in Morawak Korale. Others like Abeyaratna (1985) contend that the potatoes were, probably, introduced by the Dutch who ruled the coastal areas from 1656 to 1792. Attempts at evolution potatoes in the effect of the present potato producing area were done by Samuel Baker around in 1850. However, it was only in 1909 that the local potatoes of Uruguay origin were grown at Hakgala Gardens. Later some British planters in the country at the cartridge clip cultivated potatoes in their home gardens for their own use. Mean go the Department of factory farm was c at oncerned with potato cultivation for a considerable period (Mahakumbura, 1980).6In 1948, the Department of tillage began working on potatoes, devoting the first few grades to investigating the cu ltivars suitable for growing, cultural practices, fertilizer applications and control of gadflys and diseases. The cultivation of potatoes on a large scale was started in 1951/52, but it failed due to discordant reasons. Cultivation was again attempted in 1957 in Badulla and Nuwara Eliya districts, but the farmers were not able to get a reasonable income because imported table ancestry potatoes were available in the local market at a real low price. When the government stopped the import of table stock potatoes in 1967 to encourage local production, the farmers once again started to cultivate this crop. This strategy was straightway successful and there was a rapid expansion of the acreage of potatoes.Production. The wide extent of potato in Sri Lanka is 4,039Ha. In the central highland of Sri Lanka, potato is grown mainly in Nuwara Eliya and Badulla districts. The total extent cultivated under this crop in Nuwara Eliya and Badulla districts accounted for 725Ha and 3345Ha resp ectively (Department of Census and Statistics, 2009). The total potato production in 2009 essenceed to 61705 Mt. Nuwara Eliya potato production was 12212 Mt and Badulla was 48,982 Mt and other districts recorded 511Mt to the total production7. Potato cultivation is an integral part of the up country vegetable farming system. It was proceed as the most popular farming system in the up country area because of its high income generating potential. In general the potato production in up lands beings from the cultivation of imported seeds in up lands in the Maha season. The large part of the up land gather is stored for 2.5-3 months and then set in low lands followed by the rice crop. The most part of the Yala harvest comes to the market at the primeval part of the next year.Seasons. In Nuwara Eliya, set is done recapitulate, once in the months of February to March which is harvested in June-July, and again in August to September to harvest in the months of January or February. In Badulla also potatoes are grown twice a year. The seeding is done in November-December is harvested in March-April, fleck the June-July planting is harvested in the month of October-November. In Jaffna and Puttalam, only one crop is grown which is pose in November-December and harvested in the month of March (Angammana, 1983).Seed Sources And Varieties. Annually, the Department of Agriculture of Sri Lanka imports 300-3500 tons of certified seed from European countries8. The certified seed has come from Holland, Germany, Denmark and Scotland in recent years. Normally the seed material is imported once a year.The varieties Desiree and Arka have been the most popular varieties of Nuwara Eliya, Badulla, and Jaffna farmers for the polish few years. Because these varieties have generally provided good yields. Recently the variety Ishna was introduced in the Nuwara Eliya and Budulla districts where it has produced higher yields than Desiree and Arka.Production. During the goal decade, the production of potato crop followed a volatile and declined trend in late 1990s. Period of 1980s to early 1990, potato production importantly increased. Post 1996, however, the domestic production of this crop began to decline as restrictions on imports were liberalized. A dramatic shift in area out of this crop primarily contributed to the production decline.Weather, poor warehousing conditions, diseases and availability of good seed are the major problems in potato production in Sri Lanka. roughly of the growers in the up country depend on natural temerity while growers in the coastal districts (Puttalam and Jaffna) use irrigation. If the rainfall in the up country fails, potato production in the other areas is affected because of the curtly supply of seed potatoes. The next major limitation is the poor transshipment center facility on most farms where seed potatoes are kept in boxes in the farmers home. shop. Many types of storage are use to store potatoes. The topically produced seed potatoes in Nuwara Eliya are stored in seed potato stores in Nuwara Eliya and Rahangala.. The stores in Nuwara Eliya can keep seed for a longer period of time compared with Rahangala because of climatic conditions. The seed purchased in June and July is stored in trays up to November-December and sent to the major potato producing areas such as Jaffna and. In Rahangala stores, seed potatoes are stored in bulk to a height of one meter but no forced ventilation is provided.Normally farmers store their seed potatoes in boxes and keep them in their homes where ventilation is very low, causing high temperatures and life-threatening loss in storage.POTATO CULTIVATION IN SRI LANKAPotatoes in Sri Lanka are mainly grown in three districts, namely Nuwara Eliya, Badulla, and Jaffna. However, there are namely areas that potato can be cultivated. Such as Puttalam, Kalpitiya, Rathnapura, Kandy etc. However, delinquent to many reasons cultivation are purely limited to the supra a reas.Nuwara Eliya. The climate of Nuwara Eliya district is ideally suited for seed potato production. The decimal point periods of planting are during the months of August-September (Yala planting) and February-March (Maha planting). Planting cannot be done in May, June and July because of the heavy winds and rain. Similarly production in December and January is restricted because of the night ice in these two months.Badulla. In Badulla there are two planting seasons, one in the uplands in November-December (Maha planting) and the other in June-July (Yala planting) in the paddy fields of lowlands after the rice harvest. A large area is planted in the June-July planting. The farmers use only imported seed for the November-December planting and their own seed for June-July planting.Jaffna. In the existing climatic conditions in Jaffna, only one crop a year is possible. Potatoes are planted in November after heavy rains in October. Cool night temperature during December and January h elp in tuber initiation and formation, resulting in fairly high yields. The Jaffna farmers obtain their seed from the government farms and contract growers in Nuwara Eliya. Puttalam is another district having a like climatic condition as Jaffna where the cultivation of potatoes has started recently.PRODUCTIONS AND ITS MAJOR CHARACTERISTICSThe potato is an important commodity in the countries of South Asia. Because of the crops short vegetative cycle, the potato plays an important role in the regions food security. The potato in Asia and especially in the South Asia region has experienced the worlds highest annual growth rate in production over the past three decades.9Within global scenarios, the part on production and marketing of potato in Sri Lanka is somewhat different. During the last decade, the production of potato crop followed a volatile and declined trend in late 1990s. Period of 1980s to early 1990, potato production importantly increased. Post 1996, however, the domesti c production of this crop began to decline as restrictions on imports were liberalized. A dramatic shift in area out of this crop primarily contributed to the production decline. The Figure 1 has sufficiently explained the changes and fluctuations of land extent of potato from 1970 to year 2009 in Sri Lanka.10About 99 percent of the total land of potato cultivation are concentrated in two districts of Nuwara Eliya and Badulla . The highest amount of land of potato cultivation and lager number of farmers were in Budulla, while, more commercial lie and lesser number of potato farmers were in Nuwara Eliya district. The distribution of land extent for potato crop growing in each district as shown in Figure 3.It is obvious to grade that the Potato cultivation in other areas in the country has strictly limited due to many reasons. However, there are many possibilities and potentialities for all-encompassing to this crop in other districts of the country.Production of potatoes is mainly depending on the extent of lands. Production trend of potato, during the last 39 years are evidently shown in the Figure 2. Increase trend of production has commenced in 1978 and it had go on up to year in 1996. later that, production has widely fluctuated. Declined of land extent, changes of government policies, removing of import restrictions and imports of large quantities of potatoes, low farm portal prices are the break contribution factors for the stagnation and declining trend of production in recent pasts.Figure 4. has provided the detail distribution of production quantities in each district of Nuwara Eliya and Badulla. correspond to Figure.4, in early 1990s, both districts were produced in similar amount of quantities of potatoes. After 1997, quantity produced in Badulla district had remarkably improved. Badulla is more than double that the potato produced in Nuwara Eliya distict, where production trend has declined in recent years. merchandise SYSTEMS AND PRACTICES Assembling is the first step in marketing of farm products. It involves collection of small surpluses from number of small farms scattered over large areas and bulking the similar for subsequent distribution in volume. The agencies engaged in the assembling of potato are as belowa. Producersb. Village Merchantsc. Itinerant Merchantsd. Wholesale Merchantse. perpetration Agentf. Producers Co-operative SocietiesMajor Assembling Markets. The major assembling markets are laid in city of Nuwera Eliya, Badulla, Welimada and other few rural and urban centers of Kandapola, Ragala, Maturata, Kappetipola, Walapane and Mandaramnuwara. These make assembling markets in major producing areas send their collections to terminal wholesale markets of Colombo, Dambulla and Kandy while sending some stocks to other small regional markets.Distribution, Consumption and handicraft. After keeping their requirement of seed, the farmers sell the balance of the harvest immediately, either to the market Department of Sri Lanka or to private dealers. Most farmers prefer to sell their produce to the private dealers as they pay a higher price. The price of potatoes fluctuates widely throughout the year. Because of the coincidence of harvest in Jaffna, Puttalam and Badulla in January, February and March, there is a drop in the price during these months.Marketing Costs and Margins. Marketing cost are the actual expenses required for bringing potato from farm gate to the consumers. It includes the undermentionedHandling charges at local pointsAssembling chargesTransportation beHandling charges by wholesalers and retailer to consumersExpenses on election services like financing, risk taking and marketIntelligenceProfit margins taken out by different agencies.The marketing margins of potato are the difference amid the actual price paid by the consumer and the price received by farmer for an equivalent quantity and quality of potato.Imports of Potatoes. It is leading question for the f armers, while it is leading solution for the consumers. The Table 1 has shown the potato imports in Sri Lanka, from 1994 to year 2009. The quantity of imports, during the last 30 years had increased considerably. However, imports have rapidly increased the period of last ten years in 1997 to 200711. This was mainly due to the removing of import restriction of potatoes, under the liberalization of agricultural markets. Further, the value of the imports and unit prices of potatoes (CIF) has significantly increased, while, the rising trend of quantities, CIF prices and total vales are continued in past few years. Therefore, an increasing trend of all these import variables is key dilemma of the local potato production and marketing system. worths, footing trends and Developments. The prices of potato are the key issue in the system of production and marketing. The three levels in producer prices, wholesale prices and retail prices are most influential matter for the farmers, traders and consumers. The general trend of prices has shown that the prices have gone up, with extensively fluctuations by weekly, monthly and annually. The rising tendency of wholesale and retail prices is the most common features of the marketing system. The Figure 6 and 7 adequately gives expand on the behavior and patterns of the average wholesale and retail prices of potato in Colombo and suburbs markets in last 12 years.CHAPTER FOURresults and AnalysisThis chapter includes unveiling and analysis of research data in an empirical way in order to enhance the quality of the research report. Both primary and secondary data were used for the analysis and presentation.ANALYSIS OF THE QUESTIONNAIREQuestion 01Figure 5.1As per the Figure 5.1, 52% of the respondents are powerfully protest with the statement that the government support is satisfactory for the potato cultivation while 40% are disagree with the statement.Question 02Figure 5.272% of the participants do not commit that the potat o will become one of the main crops in Sri Lanka in near future.Question 03Figure 5.3As per Figure 5.3, most of the respondents do not like importing potatoes from other countries.Question 04Figure 5.4According to the graph above, 24 respondents out of 25 are not quelled with the support given by the whole sellers and the intermediates.Question 05Figure 5.588 % of the respondents assign that the research and development facilities should be improved for the development of potato production in Sri Lanka.Question 06Figure 5.660 % of the respondents have strongly stated that they are not satisfied with the profit they gain by the potato cultivation, while another 36 % of the respondents are also disagree with the statement. Only 04 % of the respondents are satisfied with the income they gain.Question 07Figure 5.7 wholly respondents say that they face many difficulties at the marketing stage (17 respondents out of 25 are strongly agree with the statement while other 08 are also agree with the statement.)Question 08Figure 5.8As per the above Figure, 96 % of the respondents do not agree with the statement that quality of the imported potatoes is advance than Sri Lankan potatoes.Question 09Figure 5.922 respondents out of 25 do not believe that the customers are willing to bribe imported potatoes rather than purchasing Sri Lankan potatoes and only 03 respondents are agree with the statement.Question 10Figure 5.10All 25 respondents are strongly agreed that the high cost of cultivation is the main reason for decreasing the potato production in Sri Lanka. organize ANALYSIS FOR THE PRODUCTION AND MARKETING SYSTEM IN SRI LANKAIn addition to the analyzing of both primary and secondary data as mentioned in above, a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis was carried out to address the weaknesses and to arrest the treats in view of eliminating the stagnation in potato production and marketing in Sri Lanka and following are found.Strengths at vie w on Potato Production and Marketing System.Production possibilities and potentialities are tremendous in the country.Production directly effects on the increase of farmers incomesReduction of imports on potato leads to favorable slur on balance of payments and may increasing the trend of production.An increase of production has reduces the level of malnutrition.Potential benefits and advantageous are very huge in many.Existing institutions mechanisms can be used for improvements.Potato farmers are organized, targets oriented and group specifics.Low dependency of international markets increased the food security. keen farmers income may increase and the marketing system may also improve.Weaknesses at Glance on Potato Production And Marketing System.There are no comparative advantages for potato productionLow production and productiveness are demoralized the farming system.Lands and primer coat degradation are leading factors for the decisions.Substantial importations of potato ar e reducing the farm incomes.Government has not clear policy for the imports of potatoesHigh Cost of Production are discouraged the farmers.There are wide gap between potential level and farmer yieldsUnavailability of quality seeds is major troubles.Lack of allocation for research and extension servicesPost-harvest loss is high and no proper storage facilities.Higher marketing cost has reduced the share of farmers incomes.Fluctuation of production and prices collapse the marketing systemFarmers infrastructure facilities are consume to be improved, farms roads etc.Threats at Glance on Potato Production And Marketing System. brusk availability of high yielding varieties is major threats.Inadequate technology transfer at village level farms.Poor soil fertility management has reduced the productivity.A high incidence of pest diseases has increase the risk of crop.Insufficient farm mechanization has reduced farming efficiency.Lacks of farmer group activities have reduced strengthen of f arming communities.Due to the Poor and lack of processing facilities and agro- based industries, farmers have no alternative choices to sales.Land extent is highly responsive for quantity of imports.Liberalization trade has reduced the speed of growth.Potato production would be disappear, due to the economic globalizationsChanges of tariff (duty) rates decrease the stability of productionInconsistency of the government policies reduces the efficiency of production marketing, while increasing risk of investment.Opportunities At Glance on Potato Production And Marketing System.Potentiality of the use of innovational crop technology (Research and Development) is high for potatoes and there are more possibilities to denigrate post-harvest lossesThere are more possibilities to increase of value added productsPotato is an instrument for the transformation of the farmers from subsistence to commercial level farming.Abilities of poverty alleviation and capability of the earring higher in comes of the potato production is very high.Potato is an essential food items in normal Sri Lankan diets and the demand and per capita consumption can be improved. macrocosm a short duration crop, it produces more quantity of dry matter, edible energy and edible protein in lesser duration of time than cereals like rice/ wheatPotato may prove to be a useful tool to achieve the nutritional security with the food security of the nations.Production can be self-sufficient in terms of local requirements.6. As per the data analyzed above, the hypothesis which is stated in Chapter two is proven and acceptable. It is now proven that since the imported potatoes are cheaper than the domestic potato, the local farmers are facing many difficulties when they tryto market their products.CHAPTER FIVE endpointThis chapter is the most important part of the research since this chapter consists with the conclusion on research findings and recommendations for future researches. The main objective of th is chapter is to present the results based on research finding.In conclusion, it is better to look back the objectives stated in the first chapter and determine whether this research has met its objectives. At the final stage of this research study, I would like to sum up my conclusion stating that the research has met all its objectives to a greater extent.In general, the conclusion of this paper is neither particularly optimistic nor particularly pessimistic. During the research, it was found that there are many obstacles and problems, but also many opportunities and potentialities in improving the production and marketing of potatoes in Sri Lanka. The key problem is that the imported potatoes are cheaper than the domestic potatoes and local consumers reportedly prefer the potatoes grown in upcountry areas. Since quantities of local production and prices of potatoes specially, farm gate, wholesale and retail prices, are highly fluctuating within a year frequently and it is highly depend on these cheaper import prices and the import quantities. Hence there is a huge impact on the local production and marketing system by the imported potatoes. In the process of interviewing potato farmers during the research study, it was highlighted that there are some economic and political impacts also for the potato production and marketing of Sri Lanka.During the research, it was found that the quality of the imported potatoes is lesser than the domestic production. Hence most of the consumers are not willing to buy imported potatoes and they have the preference on the local production. But due to lesser supply of local production consumers are compelled to buy imported potatoes. This has been proved in figure 4.8 and figure 4.9.Further it could be seen that the research development facilities should be improved for the development of potato production in Sri Lanka and it is proved in figure 4.5 in chapter 04. As per the figure 4.10, high cost of cultivation is the main reason for decreasing the potato production in Sri Lanka.MARKETING CONSTRAINTSIt was highlighted that the local farmers face many difficulties at the marketing stage and it is stated in figure 4.7 in Chapter Four. Following are the main marketing constraints faced by the local farmers.High Marketing Costs Margins. Transaction cost of marketing is high. There is a need for promoting producers cooperativeness and some other trader organizations in potato growing areas to reduce the price gap between growers and consumers. As per the figure 4.4, a minimum support is given to farmers by the whole sellers and the intermediates.Wide Price Fluctuations. The major potato growing areas should arrange advance forecasting of area under potato and plan to divert the potatoes to the deficient areas or consumers areas by sending to avoid glut situations and price crashes in the markets.Bottlenecks in Storage Facilities. There are no cold storages facilities in the country used for potato storag e and