Overhaul policy

Thursday, 8 March 2012 00:00 - - {{hitsCtrl.values.hits}}

FOOD is an intrinsic part of human life. People need to eat to live so it is no surprise that governments are made and toppled over food prices. In Sri Lanka, food policy has been convoluted and often one sided with little understanding of how infrastructure support systems are essential to maintain low prices.

Take for example the growth of paddy. As we all know, Sri Lanka’s self-sufficiency has come at a high price for farmers and consumers. In the 1970s the Government concentrated on popularising only a handful of rice varieties that were earlier grown by rural farmers even though over 100 existed at the time. This meant that the crop was heavily dependent on fertiliser and organic farming became seriously sidelined.

It also resulted in more diseases that had deeper effect since biodiversity was completely ignored in the rush for nationalised paddy farming. A disease that could kill one kind of rice could spread to hectares in a matter of weeks as the same kind of paddy was farmed everywhere. In addition, the new threat of climate change has forced agriculture officials to think of different technology approaches to meet the same levels of production.

During this season some 83, 000 hectares in the north were harvested. While this is a positive developed Sri Lanka’s rice surplus, even after decades, is still at one million metric tonnes, showing that productivity has been ignored. Given the challenge of food security Sri Lanka needs to grow different kinds of food rather than limiting itself to one crop that on top of being expensive also cannot be exported since countries like India dominate the international market.

Consumers and farmers get the worst part of the deal as the latter does not get a fair price for his product. Consumers pay large amounts as the infrastructure in Sri Lanka has not concentrated on farmer to market needs. Railways, which are an efficient mode of connecting economic centres with cities, have been ignored. Sporadic reports draw attention to thousands of kilos of vegetables destroyed due to low prices even though in cities people still complain of high cost of living.

In the latest report the Government has decided to increase the taxes on potatoes. The thinking is that local potato farmers will benefit but without proper storage facilities all that happen in the farmers have to sell their harvest at rock bottom prices and consumers have to buy it at high prices. This annual event is orchestrated by the Government with no thought on a sustainable solution.

Before the Government spends billion on infrastructure projects that are not necessary for the country (extra airports and transmission towers for revolving restaurants being key) it should work to lift farmers out of poverty. This is not protectionism, supporting of small holder farmers to have better technology, access to markets and funding can make a huge difference in rural poverty as well as food prices. It can also secure food security in Sri Lanka.

An overhaul of policy would also mean that eventually the Government can cut back on subsidies that are draining its budget. Then the need for publishing ill-researched articles about food prices dipping on Government websites would also end.