Presented at the Pulses for Sustainable Agriculture and Human Health” on 31 May-1 June 2016 at NASC, New Delhi, India. The conference was jointly organised by the International Food Policy Research Institute (IFPRI), National Academy of Agricultural Sciences (NAAS), TCi of Cornell University (TCi-CU) and Agriculture Today.

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. 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. 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. 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. 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. Measurements
 Domestic Resource Cost (DRC)
 Effective Protection Coefficient (EPC)
 Nominal Protection Coefficient (NPC)
 Private Profitability
 Social Profitability
Green gram Black gram Cowpea

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. 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. 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. 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. 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. 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. THANK YOU