Farming community needs respect, courtesy of choice and appropriate
rewards
Hopefully the heavy rains will cool the passions which have recently
polarised Sri Lankan society and it would be appropriate to now leave
behind all the politics and settle down as a nation to offer community
its best chance.
Through the years the nation's farming community have always
delivered come what may. They have kept the nation fed through very bad
times and have adjusted to the free market forces admirably. The Sri
Lankan farmer is probably one of the world's least subsidised and we
could be proud of them.
When chemical fertiliser has been steadily increasing in price they
have drawn on their traditional wisdom of utilising on farm resources to
compliment less and less chemical fertiliser application.
They have taken on the technology revolution in style going for
second hand machinery from countries like Japan and cost effective
machines from China, India and Thailand. Energy and water utilisation
has improved leaps and bounds and yields have gone up due to the use of
high breed seeds and positive inputs from the Private sector input
suppliers.
The country's Agri-Business community specialised in input supply
Large, Medium and Small have also played a vital role to sustain rural
agriculture. Offering numerous services may it be products or services,
the private sector has also made inroads into extension services.
Recently economic advisor to President Mahinda Rajapakse Nivaard
Cabraal referring to the slide of the stock market has made a statement
about the economic fundamentals being in place. We wish to inform
Cabraal that where the nations Agri-Business is concerned the
Fundamentals and Policy is definitely not in place. Subsidising the
consumer with cheap food while feeding subsidised chemical fertiliser to
our farmers has been the winning tag line even according to the Mahinda
Chinthanaya. Whatever one may say, our agri-produce is mostly taxed
indirectly.
As a tax paying citizen of this country, the farmer deserves more
respect. When he switches on electricity he pays tax when he uses his
phone, he pays tax and when he does almost anything of his daily chores
such as brushing his teeth, bathing or having a cup of tea he is taxed.
In fact when his hard-earned money gives him the opportunity to feed
his family with chicken he pays Rs. 28 of tax for every kilogramme.
Our neighbouring countries such as Maldives (2 Million +), Thailand
(12 Million +), Malaysia (8 Million +) and little Singapore (7 Million
+) have been able to attract high end consumers as tourists to their
countries annually creating bountiful and rewarding markets for their
farming community.
These tourists also act as emissaries for their food cultures and
carry the comparativeness of local foods far and wide creating export
markets. Governments in these countries have followed these trends and
"Thai Kitchen of the World" is one of the most successful national brand
tags which has driven demand for the countries agri-foods sector and
built up a formidable brand platform for their SME's to perform on.
Just imagine if we could attract two million tourists to this country
increasing annual food consumption by 10% at the top end of the market.
In our opinion farm incomes will rise by 15%, 200,000 new jobs in Agri-
Business will be created and probably a 20% jump in exports of Sri
Lankan ethnic foods.
All stake holders in national agri-business need to sit down and
talk. The politicians, public servants, the private sector and the rural
community are the key players and have some connectivity through the
National Agri-business Council who would be most willing to facilitate
this process.
We need to come up on the short-term with something, which could
build the trust among the parties. The farmer should not be seduced with
short-term handouts but rewarded with wider market access, better
infrastructure and better prices, letting them have the courtesy of
choice of being short-sighted and using premiums on chemical fertiliser
or on consumer friendly production driving better sustainability.
Subsidies paid on fertiliser imports will also kill enterprise and
the private sector who is the main importer would be more than happy to
indirectly benefit and not bother to fully utilise their resources to
innovate.
Being a small compact island Agri-Economy, the country has the
potential of becoming one of the world's preferred food suppliers to the
well informed, demanding and affluent upper end global consumer.
While FDI's has been the most preferred by consecutive governments we
do have an aging middle class who may be happy to invest some of their
savings in return of a relaxed lifestyle in a wonderful rural setting
and would probably be delighted to be contributing to the national
effort provided the correct environment is created. For all this to
happen we need sustainable peace and not a fragile ceasefire in place.
Mario de Alwis, Chairman national Agri-Business Council (NAC) |