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Food crisis: Farmers’ distribution conundrum

25 Sep 2022

By Maneesha Dullewe     The burden of Sri Lanka’s unprecedented economic crisis has disproportionately affected the rural masses, with farmers bearing the brunt of it. As farmers continue to confront fertiliser and pesticide issues, fuel shortages, and exorbitant price hikes in all agricultural inputs, the agriculture sector is buckling under the strain of drastically-reduced harvests and distribution issues.  With an agricultural output well below average levels owing to the severe macroeconomic crisis that has seen food prices pushed to record levels, the food security situation in the country has deteriorated significantly, with reduced crop production playing a part in limited food availability and access.  For instance, an estimated 6.2 million people in Sri Lanka are facing moderate to severely acute food insecurity, with the situation likely to deteriorate without immediate assistance, the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP) warned in a new report issued this month. Continued lack of adequate provision of agriculture inputs, including chemical fertilisers and pesticides, along with locally-produced organic fertilisers and agriculture supplies could jeopardise the 2022/’23 Maha season production as well.    Packaging and transporting woes   In this context, W.M. Gunawardene, a vegetable farmer from Welimada, explained to The Sunday Morning that amidst a host of other issues, vegetable farmers also had to contend with a lack of efficiency in packaging and transporting produce.  However, he noted that a major issue facing vegetable farmers was the lack of a guaranteed price system for their products: “People are unable to bear the sudden fluctuations in vegetable prices and this is caused by the transport issue. However, these exist as sub-issues in comparison with the primary issue of fertiliser and pesticide shortage and their exorbitant prices.” “If the only concern of farmers was related to transport, they would have found some kind of solution to it. However, almost everything is an issue,” he noted, explaining that fuel being expensive had driven up costs of harvesting vegetables as the machinery now cost more.  In addition, commissions charged by economic centres have also increased, often unfairly, leaving farmers with nothing to show for their labour while allowing middlemen in the agricultural supply chain to profit. With all these accompanying charges and costs, farmers were not experiencing the benefits of increased vegetable prices, he noted.  Meanwhile, All Island Farmers’ Federation Convener Namal Karunaratne stated that vegetable farmers were facing obstacles due to exorbitant transport costs and shortage of fuel, sharing his personal experiences with farmers at the grassroots level. “In the village of Galenbindunuwewa, there are fields of abandoned ‘elabatu’ and brinjals, with the produce still on the plants, all yellowed and ripened. The reason is the lack of diesel to transport this harvest.” Significantly, the cost of a kilogramme of brinjal at Pettah’s wholesale market as of Thursday (22) stood at Rs. 300.    Vegetable harvests drop   Recent news reports have further highlighted decreases in vegetable harvests for the Yala season, as a result of the Government’s organic fertiliser policy. For instance, onion yields are reportedly poor in the Polonnaruwa area, with local farmers not being able to receive an adequate price for their harvests.   Karunaratne said that the lack of diesel had also affected the water motors and the tractors used for harvesting. He further emphasised that the problems faced by vegetable farmers were unique and required separate attention from those of paddy farmers: “Vegetable farmers don’t have a specific season to cultivate, unlike paddy farmers who have two cultivation seasons. Accordingly, vegetable farmers cultivate constantly and vegetables typically have a 45-day cultivation cycle. The reason fresh vegetables are always available is because of this constant cycle of cultivation.” However, with the current transport costs, farmers are struggling to ensure that they recover the production costs they invested in their cultivations. “The cost of lorries used for transport has increased exponentially. Previously, it used to cost farmers about Rs. 50 to transport one unit (typically a gunny bag of vegetables) over an average distance. It now costs about Rs. 400 to transport one of these units. Farmers cannot bear these increased transport costs, especially for heavier vegetables such as pumpkins,” he explained. Karunaratne noted that the challenges faced by farmers did not stop at this, since the transport cost meant that traders no longer came to purchase vegetables. Moreover, the consumption of vegetables has also dropped, given the public’s reduced purchasing capacity and limited meal intake.  Moreover, amidst increased production costs, farmers were not earning sufficient amounts to sustain themselves, leading to vegetable farmers abandoning their livelihoods at a rapid pace, Karunaratne shared.    Economic centres affected   Meanwhile, All Island Joint Specialised Economic Centres Association and Manning Market Trade Association Chairman Aruna Shantha told The Sunday Morning that the inadequate diesel quota provided for food transportation activities was causing great difficulties to traders.  Food transportation at economic centres had dropped by about 40-50% due difficulties in sourcing diesel, he noted. “Our traders and farmers carry out transportation activities for the week with the 50 litres of diesel they receive. We need to transport vegetables to outstation areas throughout the week,” he said, emphasising that this was an insufficient quantity of fuel to support the work that needed to be done.  Accordingly, trade at economic centres was no longer as profitable as it used to be, he said: “Today’s production expenditure is not what it used to be about three to four years ago. Production costs of vegetables have surged by at least 300%, with inputs such as fertiliser, seeds, fuel, and kerosene also having increased exponentially. Therefore, we are not receiving an income commensurate with the production costs that we invest.”  Shantha emphasised that although large-scale farmers would be able to manage somehow, smallholder farmers were being pushed out of farming due to the rising costs of production. Under these conditions, in order to avert a further deterioration of food security conditions and to enable the restoration of agricultural production, the FAO has noted that livelihood assistance targeting smallholder farmers should remain a priority, ultimately boosting the resilience of the agricultural sector. Meanwhile, attempts by The Sunday Morning to contact Minister of Trade Nalin Fernando on the issues faced by farmers and traders in distributing produce proved futile.       ==BOX== Paddy production declines   According to the Food and Agriculture Organization, the aggregate production of paddy for 2022 is forecast at three million tonnes, a 42% decline Year-on-Year and the lowest level since 2017,  when a severe drought affected paddy crops.  The low yields are being attributed largely to the reduced application of agrochemicals as a result of the import ban introduced in 2021.  All Island Farmers’ Federation Convener Namal Karunaratne confirmed the decline in paddy harvests, noting that the present Yala season harvest yield was about 40%, with farmers unable to receive sufficient compensation for their harvest.  “Paddy is being bought from farmers at a pittance. The Government has also stopped purchasing paddy. In the market, the paddy farmer is being asked to sell paddy at Rs. 80-90, which means farmers are unable to recoup their production costs.”   


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