Maize cultivation in a daze

Nimal Wijesinghe Anuradhapura Additional District group correspondent

Large scale maize cultivation in the Anuradhapura district is in a crisis due to absence of a proper marketing system, Farmer Organizations said.

They urge the Government and the private sector to form a joint mechanism for a guaranteed price of Rs. 28 per kilogram in the Maha season.

The organizations point out that banks have been indifferent and reluctant to grant loans to the maize cultivation due to the outstanding arrears of previously granted loans.

This condition has arisen as the majority of 19 private sector maize purchasing companies entered agreements with farmers promising to buy a kilo of maize at Rs. 28 or higher price have dishonoured the agreements. The banks have filed action against the farmers, they said.

The Bank of Ceylon, Anuradhapura has to recover Rs. 148 millions from the farmers on loans granted in the 2008/2009 Maha season. The banks have denied fresh loans to several small scale maize purchasing companies owned by local businessmen who obtained bank loans as they have failed to settle the previous loans. The present condition sheds doubts on cultivating 100,000 acres with maize in the Anuradhapura district in next Maha season.

During the last Maha season, the maize farmers in Anuradhapura cultivated 80,000 acres and yielded a record harvest of nearly 120,000 metric tons.

They sold a kilo at Rs. 20 to 23 suffering huge losses.