Poor quality vegetables and fruits from small farmers
Poor quality vegetables and fruits produced by small farmers has affected Sri Lankan exports of these products and compelled exporters to set up their own collecting centres and farms, over the last decade.
Other shortcomings are inadequacy of supplies and non-conformity to export standards.
This was stated by S Gnanaskandan, Chairman, Lanka Fruit and Vegetable Producers, Processors and Exporters Association (LFVPPEA) at its 31st AGM held in Colombo last week, where he was re-elected for the third consecutive year.
LFVPPEA is now affiliated to the Ceylon Chamber of Commerce (CCC) and the CCC has worked out a scheme with the World Trade Organization (WTO) to ‘Improve the Safety and Quality of Sri Lanka’s Fruits and Vegetables’ where the farmers and extension officers would be trained on cultivation techniques to meet the quality export standards.
The grant for this two year programme is US$600,000. The successful completion of this extensive training programme would eliminate the fear of the small farmer pushed out of the export market.
Mr Gnanaskandan said that foreign investment is essential in the economy and to achieve a high rate of growth, large inflows of foreign investments is needed which in turn would benefit the agriculture sector.
Agriculture is a high risk sector, he said, requiring protection and an incentive structure, to yield a better rate of return. He stressed the importance of implementing a suitable macroeconomic policy and the maintenance of a predictable investment climate in the country.
He noted that $10 billion worth of fruits and vegetables were exported in 2011, but in 2012 export revenues dropped by three per cent.
The other constraints their members have faced are – the nature of economic downturn, international competition, exchange fluctuation and export produce shortages. He said that the exchange rate policy and export financing are important factors and it is clear that the rupee is overvalued with respect to competitor countries.
He said that in a highly import dependent country such as Sri Lanka however high exchange rates trigger inflation and thus this is a highly sensitive issue.
Mahinda Yapa Abeywardena, Minister of Agriculture, spoke as chief guest saying there is a substantial budgetary allocation for agriculture and requested the members of the LFVPPEA to make use of these allocations to upgrade the quality of farm products ad increase the exports of them.
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