IMPLICATIONS OF ECONOMIC
POLICIES ON AGRICULTURAL EXPORTS
Rizvi Zaheed
Commercial Agronomy - New Technologies
& Best Practices
 Introduce the world’s best practices into commercial
farming in Sri Lanka – Private sector already introducing
Commercial Agronomy New Technologies & Best Practices
• Rainwater harvesting to be promoted with training and by adopting workable
models in Sri Lanka
• Solar Powered Irrigation systems - Cost of normal irrigation system for 1 acre
would be around Rs 300,000/- per acre and a solar powered irrigation system
would be double this cost. But significant saving in operational costs
5 Mn liter Capacity at
any given time
Captures 3 months
water requirement
MARKETING & SUSTAINABLE SUPPLY
CHAIN LINKAGES
• Export Agriculture & Supply Shortfalls Eg.
Pineapple – MG3 Varietal Development required – Farmgate Rs 60/- kg
required price. Farmer COP approx Rs 30-35/- kg
• Inadequate mechanisms to promote tested models
of nucleus farms – outgrower systems in identified
areas which promote sustainable farming. (Linking
small farmers to sustainable global and domestic agri value
chains)
• Promoting IT networks to link farmers to markets
• Crop Insurance
Market Access and Agri Value Chain Development
 Understanding markets
 Access to markets via sustainable agri value chains
Farmer Outgrower System – Fruits
- Sustainable supply of inputs for value added food
exports -
Good Agricultural Practices – SLGAP – Driver of
Quality and Market Acceptance
 Introduction of Sri Lanka Good Agricultural Practices
(SLGAP) across all of Sri Lanka both for local and
international consumers
 NAC and members are supporting the work that has
commenced by the Department of Agriculture in
partnership with the Private Sector. Training of Trainers
and broader groups of farmers
 Innovation in Agriculture –
Private sector periodically visiting
international innovation, high value addition product development & marketing
events. Need to expose Sri Lankan agri scientists, policy makers and farmers to
such latest new trends
Land Availability for Commercial Agriculture
 Most land is owned by the state and by
multiple government agencies and serious
difficulties are encountered by agri
entrepreneurs and farmers who desire to
engage in Commercial farming
 Any ordinary citizen or agri entrepreneur who
has a project for commercial agriculture must
be able to go to a one-stop land agency or
investment agency and be able to obtain the
required land, even on long lease
Thought Leadership and Vision for Commercial Agriculture
in Sri Lanka
 Thought leadership to articulate and lead the new paradigm into
commercial and sustainable agriculture – Sustainable Agri Value
Chains
 Thought leadership must of necessity come from within the
bowels of the agriculture sector in Sri Lanka involving
policymakers and all agriculturalists
 Patronage of the highest in the land and the leaders of
agriculture must be aligned with the common vision for rapid
commercialization of agriculture and the attendant benefits for
all segments of society in Sri Lanka
Choice of Crops and Planting Materials /Seeds
 Commercial agriculture should be done on a “grow to
market” paradigm
 The Department of Agriculture must support even more
the introduction of the required high yielding seeds and
planting materials in a facilitative and speedy manner with
due safeguards to any aspect that could affect the ecology
or the environment.
 An effective pathway is needed for farmers and all
agriculturalists to access the required seeds and planting
material in a timely and facilitative manner.
CLIMATE CHANGE IMPACTS & FARMER
STRATEGIES
• Diversifying crops – High value added crops for
processing for local and export markets
(Eg Murunga – currently 10-50 MT produced / month - )
• Localized weather forecasting systems - Early
warning system for excessive rain and floods
• Water use patterns – Need for collaborative research
• Drip & Sprinkler Systems – How to make affordable for
farmers
• Smart Agriculture – Protected Agriculture, Urban Agriculture,
Home gardening
Farmer Outgrower System Moringa Cultivation
Value added food products for local
and international markets
IMPACTS OF TAXES AND LEVIES ON
THE AGRICULTURE SECTOR
• VAT on agri equipment (15% drip irrigation
systems sprayers local and imported and UV
Polythene and on Shade Nets 5%)
• Impacts of Imposition of Sugar Tax on Fruit
Based Drinks
• Facilitate the 200% Tax deduction for Research
& Development expenses
Way Forward
– Understanding successful commercialization models in Sri Lanka
and the Region
– Replicating Successful Models: (Linking Sri Lanka & the Region)

Local farmer outgrower models : Vegetables, Fruits, Flower
and Seed production

Global agri supply chain development
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Export-oriented vegetable and fruit production
Cut flowers and young plants for global markets
Spices and derived food/other products
Virgin Coconut Oil and other coconut based products
Partnerships bring amazing synergies….
Ministry / Department of Agriculture in
partnership with stakeholders can bring rapid
change to Agriculture in Sri Lanka
Thank you