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Comparative advantage of cultivation of pulses in sri lanka

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Comparative advantage of cultivation of pulses in sri lanka

  1. 1. COMPARATIVE ADVANTAGE OF CULTIVATION OF PULSES IN SRI LANKA Viraji Jayaweera Department of Agricultural Economics and Business Management Faculty of Agriculture University of Peradeniya
  2. 2. Outline  Importance of pulses  Sri Lankan condition  Objectives of the study  Measurements  Data and data sources  Green gram  Black gram  Cowpea  Conclusions and recommendations
  3. 3. 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
  4. 4. 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 1980/811985/861990/911995/96 2002 2005 2006/072009/102012/13 AxisTitle 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)
  5. 5. 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
  6. 6. Measurements  Domestic Resource Cost (DRC)  Effective Protection Coefficient (EPC)  Nominal Protection Coefficient (NPC)  Private Profitability  Social Profitability Green gram Black gram Cowpea
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. THANK YOU

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