SRI LANKAN JOURNAL OF AGRICULTURAL ECONOMICS
Volumes 22 Number 2. 2022
Author - R. Vidanapathirana, A.K.A. Dissanayake , G.G. De L.W. Samarasinha , W.H.A. Shantha , M.A.C.S. Bandara , M.T. Padmajani and N.P.M.N. Dias
ABSTRACT
The use of pesticides and fertilizers in modern agriculture causes a negative impact
on the environment. This occurs mainly with an increase in toxic residue through the
food chain and animal feed, triggering numerous health problems. With such adverse
implications, the farming community is becoming increasingly aware of alternative
agriculture systems such as organic farming. This review paper attempts to bring
together different issues in recent developments in organic farming by employing non
systemic literature review. The key issues emerging in organic farming include yield
reduction in conversion to organic farming, lack of raw materials for organic
fertilizer production, lack of awareness of technical skills among farmers, soil fertility
enhancement, certification constraints, and marketing and policy support. It has been
argued that organic farming is productive and sustainable, but there is a need for
strong support for it in the form of subsidies, agricultural extension services and
research. Therefore, adopting organic farming as a gradual process by establishing
proper strategies to ensure an adequate supply of organic fertilizer through increased
production and availability by a well-developed distribution mechanism in the country
is suggested.
AUTHORS
Author – R. Vidanapathirana, A.K.A. Dissanayake, G.G. De L.W. Samarasinha,W.H.A. Shantha, M.A.C.S. Bandara, M.T. Padmajani and N.P.M.N. Dias
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Author - S S Niwarthana1, M Thibbotuwawa and H S R Rosairo
ABSTRACT
This study was conducted to estimate the socio-economic impact of the chemical
fertilizer ban and organic fertilizer adoption on the paddy sector in Sri Lanka. It
aimed to find the answers to several questions related to the sudden policy change
including the challenges faced by the paddy sector, the impact on farmer income and
farm productivity, and food security changes of the country. This study used both
primary and secondary data and evaluated the impact of the chemical fertilizer ban
using Value Chain Analysis and propensity score matching methods. The study finds
a drop in paddy production and yield levels due to the ban on chemical fertilizers.
However, there is no significant impact of the organic fertilizer adoption program on
farm yield or income based on the matched sample as shown by ATT results primarily
due to the quick reversal of the ban. Value chain analysis showed that the farmers
have faced severe challenges due to the inorganic fertilizer ban including poor access
to necessary fertilizer, the lack of adequate raw materials for producing organic
fertilizers, low quality of available organic fertilizer, insufficient training and
extension services related to organic fertilizer and lack of incentives for organic
farming. Therefore, future organic policies should have a comprehensive action plan
to address the aforementioned challenges. The study further suggests going for an
integrated plant nutrition management (IPNM) approach with site-specific
application techniques to maximize fertilizer use efficiency and harmful effects.
AUTHORS
Author – S S Niwarthana1, M Thibbotuwawa and H S R Rosairo
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T.P. Munaweerage , M.A.C.S. Bandara , G.G.de. L. W. Samarasinha , W.H.A. Shantha , H.J.C. Jayasooriya , R.M.M.H.K. Rambodagedara , M.B.F. Rifana , R.M.D.H. Rathnayaka , and D.T.P.S. Dharmawardhana
ABSTRACT
In May 2021, the government of Sri Lanka imposed a ban on chemical fertilizer and
other agrochemical imports aimed to foster financial and environmental
sustainability within the agricultural sector. However, the swift enactment of the
policy without comprehensive analysis instigated uncertainty and unrest among
farming communities, and the ban was revoked in November 2021. This policy brief
elucidates the performance of agricultural production in Sri Lanka in response to the
aforementioned policy change, highlighting the need for well-informed and balanced
approaches to support sustainable agricultural development. This study was
conducted from August to September 2022, to determine the policy’s short-term
impact on the production of paddy, vegetables, other field crops, and potatoes. The
findings shed light on a significant yield reduction that persisted in agriculture
production, due to inadequate application of essential plant nutrients at the
appropriate time. These results underscored the challenges of pursuing a complete
transition to organic farming, as it proved unsustainable and posed a threat to the
livelihoods of a vast community. While the necessity for environmentally and
economically sustainable fertilizer policies remains evident, the research suggests
that extreme measures such as total bans or restrictive licensing may not be viable in
the short term.
AUTHORS
T.P. Munaweerage, M.A.C.S. Bandara, G.G.de. L. W. Samarasinha,W.H.A. Shantha, H.J.C. Jayasooriya, R.M.M.H.K. Rambodagedara,M.B.F. Rifana, R.M.D.H. Rathnayaka, and D.T.P.S.Dharmawardhana
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Author - P Korale-Gedara, K Udani , H W Shyamalie and J Weerahewa
ABSTRACT
The objective of this study is to test the asymmetry in price transmission along the tea
supply chain of Sri Lanka. Using monthly export prices, Colombo Tea Auction (CTA)
prices, and producer prices for 2001-2020, the presence of asymmetry was tested for
market pairs, export market-CTA, and CTA-producer markets. A non-linear
autoregressive distributed lag (NARDL) model was used as the analytical technique.
The empirical results of the study suggest that CTA is not integrated with the export
market but integrated with the producer market. This suggests changes in the
international markets are not transmitted along the tea supply chain. The price
transmission process between CTA and the producer market is asymmetric in both
magnitude and speed. The response of green leaf prices in the producer market is
marginally higher and faster when the tea price in the CTA decreases than it
increases. Further studies are needed to identify the root causes for the non-
integration between the CTA and the export market and the asymmetry in the price
transmission process between the CTA and the producer market.
AUTHORS
P Korale-Gedara, K Udani, H W Shyamalieand J Weerahewa
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