Reviewing International Encounters (RIE)
Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/19550
Browse
2 results
Search Results
Item The Changing Terms of Trade in the Small Farming Sector in Sri Lanka: Special Reference to Paddy and Vegetable Cultivation(Reviewing International Encounters 2015, Research Center for Social Sciences, University of Kelaniya, Sri Lanka, 2015) Henegedara, G.M.Decline farm output prices relative to the prices of farm inputs and consumer food items become a core factor of the dropping farm income of small farmers in Sri Lanka, particularly in paddy and vegetable cultivation. Though the dropping farm income is a common problem in many agricultural countries, its impact is very crucial for a small country like Sri Lanka where nearly 30 percent of the labour force is occupying directly or indirectly in agricultural activities. Hence, the main objective of the paper was to review factors influenced for drooping TOT in the small farming sector and assessing its implications on the economy. The methodology of the paper was based on deductive method and used both primary and secondary data. According to price data analysis, parity ratio between paddy and consumer items has declined continually in the recent past. Farmers have to pay nearly 2 kilo of paddy to purchase one pound of bread in 2012, while it was one kilo in 1984. Similarly, the required paddy amount for receiving one packet of milk powder (450gram) has increased from 7.03 in 1984 to 10.2 in 2012. As the farm inputs, the parity ratio between paddy and fertilizer has declined tremendously over the past. However, the effect on vegetable farmers is insignificant due to price fluctuations. Government intervention has made some policy measures, granting fixed output price and input subsidy programs. Under the rapid globalization scenario, the issue has become more complicated and thus dropping farm income is not simply a matter related to domestic production factors; it also linked with the global market. It indicates the need for comprehensive sustainable agricultural policyItem Price Volatility of Vegetable Farming in Sri Lanka: A Review of Causes and Effects of Up Country Vegetable Farming(Reviewing International Encounters 2018,The Research Center for Social Sciences (RCSS), University of Kelaniya, Sri Lanka, 2018) Henegedara, G.M.Fluctuation of vegetables price is one of the key issues in sustaining small farming agriculture in Sri Lanka. It affects greatly to the economy both in terms of producers’ income and consumers’ welfare i.e. farm income and food security of the nation. Thus, nearly 500,000 small farm families involve in vegetable farming in Sri Lanka and often they suffered from price fluctuations. Subsequently, vegetable production pattern and supply chain also change leading imbalance food consumption and government expenditure. The causes attributed to the issue are related with uncertainty, information asymmetry and lack of resources. Thus effects of the issue are related with low production, irregular supply, frequent price fluctuation and changing producers and consumer welfare. Thus, causes and effects become the prime issue of sustainable vegetable farming in Sri Lanka. Diagnostic and descriptive literature described causes and effects of price fluctuation. Thus Cobweb theorem has diagnosed three price fluctuation patterns such as constant, convergent and divergent fluctuations and tested empirically in several countries. This paper aims to review factors influenced in price fluctuation of vegetable farming in Sri Lanka in view of Cobweb theorem and to predict consequence effects. The methodology of the study was based on quantitative data analysis. Both survey data and secondary data were used for the analysis. The study findings accepted the facts of cobweb theorem indicating a convergent type of price fluctuation in up country vegetable production that determined sale prices on the prices of previous season. The study predicts consequence effects to be addressed by policy makers and recommends suitable policy options to minimize the price fluctuation