Agri business, a money spinner for Lanka

Shirajiv SIRIMANE

Founder Chairman, International Foodstuff Company, Sarath De Silva feels Sri Lanka should promote more international marriages in a bid to find a way out of the ethnic problem. He unfolds his vast experience in the agricultural industry speaking to this column.

The Sinhala Only policy that happened several decades ahead hindered mixing up of races. Due to this the Northern people felt that they were isolated and this also would have aggravated the ethnic conflict. In the good old days, the country’s focus was mostly on the Western, Central, North Western, Sabaragamuwa and the Deep South as the rulers mainly governed from there.

“One of the main things needed to bring about a solution to the ethnic conflict is to give the Northerners the feeling that they are also a part of Sri Lanka. Inter racial marriages is an ideal solution for it. After all, the Tamils and Sinhalese eat, pray and dress alike,” said the man who moves Sri Lanka towards agriculture model farms, out grower concepts and most importantly towards new varieties. He was also instrumental in convincing the Thai Government to obtain special permission to get several varieties of fruit and vegetable seeds out of the country.

Many shopping in the supermarkets purchase fruit and vegetables that were not seen decades ago thinking that they are imported where as fruits like dragon fruit, royal Thai guava, Thai longen and zukini, sweet pepper, sakata, flat beans, asparagus and many more are grown locally.

During his teens, agriculture was not his forte as his first appointment was related to accounting. Born to a family of teachers, his first appointment was at Ford Rhodes in the accounting field and moved to Ceylon Match Company. Lalith Hewawitharana, who was like a godfather to him assisted him to obtain credit of Rs. 50,000 to enter the stock market and in other businesses. By 1973 Sarath was able to form his own export company and later his own farms.

Today in addition to holding top positions in various Government and private sector holdings, he is a key player in Sri Lanka National Agri Business Council and the Sri Lanka Fruit and Vegetable Producers, Processors and Exports Association.

The social responsibilities have also been important in his life. Projects such as the model farms in the Central, Southern and Northern Eastern regions of Sri Lanka where more than 2,500 farmer families were affiliated fall under this. His efforts to change the subsistence farmer to a commercial farmer in the Walawe basin and introducing new perennial crops Thai guavas, year round drumsticks, papayas, passion fruit and dragon fruit are commendable. This model farm concept introduced by him is well recognised and accepted by the Government of Sri Lanka.

Q: How do you see the agricultural industry today?

The industry excluding paddy is a Rs. 18 billion industry with exports amounting to over Rs. three billion. The apple, orange and grapes imports alone amount to over Rs. 5 billion.

Q: What role does the Government play in it?

Looking back at the 30 years I was involved in the agricultural sector I think that every Government wanted to promote the industry. However the red tape is something any Government could not overcome and it’s still a problem when it comes to obtaining land.

However I am happy to note that more intellectuals like doctors’ engineers’ company directors and lawyers are now looking at the industry with glee.

The industry is no longer looked down upon and this is very healthy. I think the main reason for this is that people have come to realise that lot of money could be made from agriculture.

The ‘would be’ global food crisis also brings in new entrepreneurs to the industry.

The introduction of supermarkets which has created an increased demand, new technology, minimising of post harvest losses and export potential have encouraged more people into the industry. I think it’s fair to say that if this present trend continues Sri Lanka can be self sufficient in agriculture by 2015.

Q: How did the model farms and outgrower concept came about?

In 1985, I started exporting fruits and vegetables. I had to go almost house to house to collect products and knew that a new concept has to be introduced. Then I provided seeds, technology and requested farmers to grow for me. Today I am proud to say there are over 2,000 outgrowers and over 17 model farms.

I also found out that credit should be given to farmers without collateral and this dream was met when I joined Lankaputhra Bank as a director.

Q: What are the emerging markets?

Our products which were first exported to the Maldives is now going to the Gulf, Europe and beyond. With the rapid development in India only a few people know that there is a demand for high quality fruits which gives and opening for Sri Lanka.

Q: What do you think of provincial councils?

This was introduced to share power and to create competition among councils. This is very successfully happening in other countries as competition increases productivity.

Q: What do you think of the tax structure?

Tax is a social responsibility of en entrepreneur and we must pay. However I think the freight charges are very expensive and this is an area that has to be looked at.

Q: Can you recall an unforgettable experience?

When I was travelling on a domestic flight in Taiwan it suddenly crash landed and I was hospitalised and had no way of contacting my home front.

When I was up and above I found that my luggage was misplaced.

Q: Where would you like to spend your holiday?

I love any place where there is a possibility to grow. If it’s overseas I like Thailand and Malaysia since there is so much to learn from them.