Date post: | 13-Jan-2017 |
Category: |
Education |
Upload: | international-food-policy-research-institute-south-asia-office |
View: | 98 times |
Download: | 4 times |
COMPARATIVE ADVANTAGE OF CULTIVATION OF PULSES IN
SRI LANKA
Viraji Jayaweera
Department of Agricultural Economics and Business Management
Faculty of Agriculture
University of Peradeniya
Outline
Importance of pulses
Sri Lankan condition
Objectives of the study
Measurements
Data and data sources
Green gram
Black gram
Cowpea
Conclusions and recommendations
Importance of Pulses
Health Concerns
• Provide essential amino acids
• Cheap compared to animal protein sources
• Major source of protein for poor population in rural areas and for vegetarian population
Sustainable Agriculture
• Increase the organic matter content in the soil
• Fix atmospheric nitrogen to enrich the soil fertility
Sri Lankan Condition
Source: Department of Census and Statistics
Crop Production
(MT)
Imports
(MT)
Top Three Exporters to Sri
Lanka
Green gram 13,890 7,090 Australia, Thailand, Myanmar
Black gram 9,175 n.a. Myanmar, Singapore, Thailand
Cowpea 15,070 152,000 Myanmar, Brazil, Madagascar
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
1980/81 1985/86 1990/91 1995/96 2002 2005 2006/07 2009/10 2012/13
Axis
Tit
le
Share of Total Expenditure on Food and Drink
Average monthly household quantity consumed
Suitable to grow
in many
geographical
regions as a third
season crop
Source: Department of Census and Statistics, Trade Map (2013)
Objectives of the Study
1. To estimate the Domestic Resource Cost of cultivation of green gram, black
gram and cowpea in different districts in Sri Lanka
2. To investigate the effect of incentives provided for both outputs and
intermediate inputs on pulse produces
3. To investigate the private and social profitability of green gram, black gram
and cowpea cultivation in different districts in Sri Lanka
Measurements
Domestic Resource Cost (DRC)
Effective Protection Coefficient (EPC)
Nominal Protection Coefficient (NPC)
Private Profitability
Social Profitability
Green gram Black gram Cowpea
Data and Data Sources
Market and economic prices of
fertilizer, seeds, labor, machinery
and output
Opportunity cost of labor and seeds
Border taxes on output and
machinery
Economic prices were derived from the market prices by taking the effect of
import tariffs and para-tariffs on the output, subsidies on fertilizers and seeds,
and import tariffs and para-tariffs on agrochemicals and machinery
Cost of Cultivation reports of
Department of Agriculture
Department of Census and
Statistics
Central Bank of Sri Lanka
Sri Lanka Customs
Green Gram
Unit Districts
Hambantota Ampara Jaffna Monaragala Kandy Kurunegala
Private
Profit Rs./
acre 48,299 49,742 50,259 45,358 48,411 48,001
Social
Profit Rs./
acre 52,958 29,178 51,103 49,330 28,042 27,635
NPC Ratio 1.27 1.27 1.27 1.27 1.27 1.27
EPC Ratio 1.31 1.31 1.32 1.32 1.32 1.32
DRC Ratio 0.06 0.47 0.06 0.06 0.48 0.49
Black Gram
Unit Districts
Anuradhapura Vavuniya Ampara Monaragala Kandy Kurunegala
Private
Profit Rs.
/acre 28,729 14,004 29,347 28,139 30,587 30,342
Social
Profit Rs.
/acre 25,696 16,684 11,224 24,016 12,331 12,089
NPC Ratio 1.38 1.38 1.38 1.38 1.38 1.38
EPC Ratio 1.53 1.58 1.51 1.54 1.53 1.53
DRC Ratio 0.09 0.18 0.63 0.12 0.57 0.58
Cowpea
Unit Districts
Ampara Anuradhapura Jaffna Monaragala Kandy Kurunegala
Private
Profit Rs./
acre 97,443 32,882 11,996 18,955 31,740 -10,550
Social
Profit Rs./
acre 66,820 43,232 23,452 31,371 14,087 -19,336
NPC Ratio 1.27 1.27 1.27 1.27 1.27 1.27
EPC Ratio 1.30 1.33 1.37 1.35 1.33 1.52
DRC Ratio 0.30 0.07 0.12 0.10 0.68 2.82
Conclusions and Recommendations
Major determinants of the private and social profitability of pulse cultivation in
Sri Lanka
Spatial variability in opportunity costs of labor
Spatial variability in average yields
Pulse producers are protected from incentives provided for both outputs and
intermediate inputs
Cultivation the green gram, black gram and cowpea is socially profitable in all
the districts covered in the study, however cowpea is not socially profitable to
grow in Kurunegala district
Conclusions and Recommendations Cont….
The social profitability of growing pulses in Kandy, Kurunegala and Amapara
is smaller due to high opportunity cost of labor
The economic environment in Hambantota, Jaffna, Anuradhapura, Vavuniya
and Monaragala are more conducive for the cultivation of pulses
There is a divergence in private and social profits in Hambantota, Jaffna,
Anuradhapura, Vavuniya and Monaragala districts
It is recommended to provide of further incentives to the farmers cultivating
pulses in these areas
THANK YOU