National Economy and Rice Cultivation Stranded or on course

By Ananda Ariyarathne-2017-09-28

Although it had been the foundation for our unique civilization, one wonders whether rice cultivation in Sri Lanka has the same level of significance it had in the past. It is still our staple food and takes the most prominent place on a list of minimum necessities of any household on a day-to-day basis. However, cultivation of rice in the future, especially when faced with the question of 'Food Security', is not a matter that can be ignored. It has to be carefully managed.

The Dutch who ruled the coast and lowlands were also interested in rice and they looked for ways of maintaining production.

Later, it became the responsibility of the British to import rice to feed the workers who were brought from South India where rice was the staple. It was then that imported rice became available regularly for local consumption. Intended initially for estate labour, it became a feature in the urban markets too. When locals got involved in administration under the British, a real enthusiasm for rice cultivation developed. The discovery by British archaeologists about the complexity of our ancient agrarian economy renewed an interest in rice cultivation.

As there are no indications about rice being imported in large volumes prior to the introduction of commercial agriculture by the British, it can be accepted that the rural economy produced enough for the needs of the nation, purely in a subsistence framework. The abundance of supplementary food items such as yams and fruits supported the main meals, while what was gathered from close by forests made the rural economies self-sufficient. The vigorous expansion of the plantations deprived villagers of the food sources from forests. This may not have upset simple villagers as they could buy their rice in the market.

Gradually, Sri Lankans became consumers of imported rice. However, by that time, the situation had deteriorated to problematic dimensions.

Not only did the urban areas become highly dependent on imported rice but also people had to get used to other supplementary food items. The only areas that did not seem to have been affected were the rural regions where food never became a problem, with the existing rice cultivation. Even after the World War II came to an end, the country had to depend on imported rice and how important that had been can be understood by the famous "Rubber-Rice Pact" with the People's Republic of China.

Understanding the 'Evolution'

Measures were taken to encourage rice farmers, including enactments to safeguard the welfare of the farmers and 'self-sufficiency' became the slogan and rallying call. Under various river valley development plans, cultivation was encouraged and in order to develop better varieties of rice,
research stations extended a commendable service. More high yielding varieties were offered to farmers and the Paddy Marketing Board (PMB) was formed to support cultivators. This solved two of the most important aspects related to 'post harvesting' needs, namely, storage in ideal conditions and assured prices.

It was further supported by the enormous 'processing plants' which converted paddy into rice ready for consumption. The PMB became a huge motivator for those who wanted to pursue a future in rice cultivation.

A solid foundation had been laid. All those measures, though they had some weaknesses, were better oriented towards turning the economy towards a path that gave priority to 'foreign exchange earning'.
The only logical way to stabilize the cost of living was to promote foreign exchange conservation through import substitution and strengthening foreign exchange reserves through increased exports. It was through the wise guidance given by Dr. N.M. Perera that set the most constructive framework for the economy to become productive in a very positive manner, under the leadership of Sirimavo Bandaranaike.

However, conflicts from within led to the end of the socialist stalwarts who excelled in whatever they handled. The concentrated efforts of the team led by Felix R. Dias Bandaranaike and Anura Bandaranaike gave the finishing touches to the end of the progressive path Sri Lanka was on.
As a nation with simple minded folks, Sri Lanka did not have well exposed, rational thinkers and a wealth of human resources to sort matters out by themselves. The need for guidance was always there and it was through the provision of such guidance in the form of directives and regulations monitored by government officials, that success was achieved.

Beginning of the end

The moment Sri Lanka became a free market, the regulations and regulators became unnecessary hindrances that prevented opportunities to maximize profits. The 'respect' that was instilled into the minds of people through regulations and constant monitoring, ensured the welfare of all in general. The disregard that started towards regulations and regulators resulted in semi-lawlessness which produced more manipulators than developers. The economy started turning into an aimless free-for-all.

In the same manner it affected all other economic activities, rice farming was also affected. All important aspects linked to it, from seed paddy, agricultural machinery and fertilizers, to pest control, ended up with complications connected to harvesting and the post harvest processing, storage and effective marketing.

Farmers struggled. The rising cost of living and steady migration of labour out of the rice growing villages, made the rice farmers' lot a more complicated one. The rising cost of labour and fertilizers also added to the burden.

Revenue cycles were negatively affected with the collapse of the effectiveness of the PMB as well as milling facilities. This made farmers fall victim to a new breed of speculators who came to the rescue of the farmers who had lost hope.

This process produced dealers who used ruthless methods to grab harvested paddy. Farmers who got into debt by trying to buy fertilizer and pesticides had no alternative but to give into manipulations by the 'dealers' who stepped into the vacuum created by the ineffectiveness of the PMB.

The ineffectiveness of regulations and regulators, plus the unwillingness of state controlling agencies made the lives of farmers more and more difficult. When natural disasters like floods and droughts affected the farmers, it became obvious they had to survive somehow as the government could not have come to their rescue anyway.

This scary situation was a result of the pathetically inefficiency of state agencies caused by the absence of sensible policy making and capable specialists who had to be on the spot and alert. It is not a case of administering old laws and regulations, staying within the same framework and adhering to the same routine procedures, anymore. Like a cancer, this misunderstood free thinking and baseless self-confidence have crept into almost all the sectors and therefore it shall never be free from the negative contamination in attitudes. As such, it has become a matter of national importance to have clear-cut policies based on the realities we have been facing during recent times.

'Main problems' affecting rice cultivation

High cost of cultivation is the beginning and the end of the story. It is the cumulative outcome of various factors that have directly affected the status of cultivation. The value lost due to inefficiencies and the consequent low productivity affects total activity.

Out of all those, the 'cost of human resources' is the most crucial. Rice Cultivation being a 'highly labour intensive' activity is an indispensable factor. It is of national importance. This is where the necessity to have a national plan becomes important. The other obvious feature is that there cannot be a solution only for 'rice cultivation'.

The cost of fertilizer is another factor that has a direct effect on rice cultivation. The prevailing rates are prohibitive on one hand and on the other, their environmental effect is beyond anyone's guess. It is followed by weedicides and insecticides. These three components have become inseparable in the overall cost of production. As all those are imported, there is a specific element in the cost of production that can be called a "dollar cost" and it is a hidden item that adds to the negative factors that cause discouragement.

End of road for 'rice' cultivation?

Yes, if the government does not change its stand. The free market specialists will say that those are market forces and cannot be changed. But, realistically, it is not that straight forward. If rice cultivation has to continue, then prices have to increase.

Ultimately, the consumers will be the 'shock absorber'. It shall be a justification of 'inefficiency'.
If, for a moment, the government authorities can start thinking in a different way and intervene, this will not continue to be a problem any more. But, it can become effective only if the government starts taking a direct role rather than watching the scene from a distance.

As the sole authority in the country, the government does not have to enact new laws to do such a thing. It should be ministerial decisions that would pass down the line through the already available Provincial, District and Divisional Secretariat level administrative mechanism. There are no barriers to start thinking provincially and setting targets and then getting the District Secretariats to implement the plan through the Divisional Secretariat down to Grama Niladhari Divisions.

Unemployed youth who are physically able, but have missed opportunities or never had any, can be mobilized into groups of 50 to become members of 'Labour Companies'. They can provide the labour required for cultivation, and to be engaged in other activities too. These 'Labour Companies' can agree with land owners on terms and conditions. The payment for their service can be made as a 'crop share' to be agreed mutually. That way, the land owner will not have a labour shortage and above all, he will not have to pay high daily wages to labourers.

The arrangement should be that such companies will pay its members who are also its employees, on a monthly basis. As there will be several land owners who would need such labour, the efficiency will increase labourers would work faster, so that they can take over more jobs. The same labour companies can undertake other assignments like cinnamon peeling, tea plucking and rubber tapping on a crop sharing basis.

The company should keep its employees occupied. Monthly salaries payable to members will be an issue only till crops are harvested. Especially in the case of rice cultivation, it will take a few months. As they can be engaged in other activities, crop sharing proceeds can be faster. The crop share can be converted into cash and deposited in the bank account of the labour company.

Making use of the same, they can start dairy units and poultry farms in every village, where the members can be occupied everyday throughout the year. This way, the labour problem in the rural regions can be solved.

The importance of community dairy centres and poultry farms can be measured and understood by the volume of bio-fertilizer that can be generated in the process. All such bio fertilizers can go in to rice cultivation and that way, the need for chemical fertilizers will not arise. Farmers will get less expensive bio fertilizers. Under 'crop sharing' agreements with land owners, all the aspects including pest control can be covered. Weeding paddy fields and using traditional eco-friendly pest control methods can eliminate the need for chemical insecticides.

Finally, by eliminating the needs for chemical fertilizers, weedicides, and insecticides, our farmers can cut down costs in a more meaningful manner. When the cost of production comes down, that benefit will be passed on to the consumers and their cost of living will be affected in a positive manner. Therefore, it can become competitive in the local market, easily.

These are some measures that can be taken easily. But the question is whether such a thing can happen without the positive mediation by the government or not. This shows that a free market or the open economy becomes meaningless words unless they are understood sensibly.

(The writer is a Management Consultant and Visiting Lecturer/ Examiner of SLIDA. He has authored three books)