Rescuing agriculture

Sri Lanka’s agriculture sector has had a tough 2016. The start of the year brought floods, worse than usual, followed by drought and given preparations by the Government to import rice the prognosis is for the arid climate to continue in 2017 as well. Buffeted by climate change, dwindling resources and inconsistent policies the sector, which employs 70% of Sri Lanka’s workforce, just simply cannot catch a break. 

A point that has been underscored by the sector recording negative growth of 1.9% for the third quarter of 2016, in fact the limping sector was partially responsible for the country recording only 2.7% growth in the second quarter as well.  Manufacturing managed to stage a recovery after the floods but agriculture has clearly struggled to make its mark and is in danger of sliding further into disarray as the Government shrinks its fertiliser subsidy.    

As pointed out in a report released by the Institute of Policy Studies (IPS) earlier this year, Sri Lanka, even after 67 years of independence, does not have a sustainable agricultural policy. The major factors, which need focus in any reform effort, have special reference to the achievement of three strategic thrusts relevant to the sector – i.e., eradication of poverty, food security and sound ecosystem management.

Among policies that should be given attention are; the land policy, irrigation policy, policy on technology transformation, marketing policy and climate change policy.  Sri Lanka’s current liberal economic environment, agriculture policy should be directed towards transforming traditional subsistence agriculture to one which maximises productivity. 

The Government should also give priority to improving processing, marketing and down streaming activities to increase value addition to agricultural products, providing more employment opportunities in rural areas, and thereby increasing food security and lowering agrarian poverty. High priority should be placed on achieving a broad based shift from traditional low value to modern high value agriculture, accompanied by sustained improvements in productivity and competitiveness through policy reforms, which will launch the agriculture sector into a significantly higher growth path. 

The reforms in factors of production such as land and labour should be undertaken with a view to enhance agricultural productivity and efficiency. In addition, modernising the systems of agricultural R&D, technology and extension – focusing on livelihood improvement, rural development, food security, improving agro-based industries, initiating commercial agriculture and preparing the sector to face global challenges –should be done with the participation of the private sector. 

Resources from agricultural subsidies that are argued to be fiscally unsustainable, economically inefficient and environmentally unsustainable such as fertiliser subsidy should be gradually released for more productive agricultural investments. Participation of farmer organisations and the private sector as partners in agriculture development is recognised as essential for equity-based development. 

Enhanced youth involvement in agriculture should be sought through promoting agricultural entrepreneurship training, encouraging scientific farming and promoting agro-enterprises. Improved diversification, especially the restricted agriculture export base, is essential for transforming agriculture into a sustainable industry.  While there have been some isolated policy documents at various stages, even today, Sri Lanka does not have a sustainable agricultural policy. Sustainable agricultural policy does not necessarily mean one that does not evolve over time. It can drop obsolete policy strategies and add some modern policy actions, avoiding ad hoc policy changes from time to time.