Abstract

The study was carried out to determine profitable market existence for tobacco, paddy and big onion cultivations. The research was conducted in Galewela DS division in Matale district. Tobacco, paddy and big onion were considered major cultivating crops in the area during the Yala season. The market existence for each crops were evaluated using market window analysis. “Market window” refers to a period of time when the prices received by producers for selected crops were greater than the production costs. Profitability and economic efficiency of each crop was measured in order to identify most suitable crop for the season. Cost of production and budget for each crop was prepared using primary data obtained from the field survey in Galewela DS division. Historical prices were collected from economic centers of Dambulla, Meegoda and Ceylon Tobacco Company. Results revealed that profitable market exists for each crop. There was no market existing for tobacco green leaf before 2009 and the profitable market was emerged for paddy after year 2007. Market for big onion cultivators was profitable during studied time period (2003 – 2009) but volatile in its pricing pattern. Highest profitability and the economic efficiency were observed for big onion cultivation. Study revealed that most economic crop for Yala season was the big onion. DOI: http://dx.doi.org/10.4038/suslj.v11i1.5890Sabaragamuwa University Journal 2012; V. 11 No. 1 pp 95-108

Highlights

  • Farming is the main livelihood income generating activity in the most parts of the island

  • There can be identified a wide gap between farm gate price and market prices of big onion and paddy

  • Research was carried out to find out the profitable market existence for the common crops in yala season in

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Summary

Introduction

Farming is the main livelihood income generating activity in the most parts of the island. Water scarcity conditions in Yala season make impossible to cultivate paddy in all fields and limited into selected areas. Yala paddy cultivation in Galewela area has been limited mostly for the household consumption of the farm families. Two kinds of big onion growers can be identified in Galewela area as farmers who have their own cultivated land and farmers who cultivated in rented/ hired fields These tenant farmers have established cottages in their fields and live throughout the cropping season. These farmer organizations do not have proper link and develop communication system with the Department of Agriculture in order to get extension services for the particular farming community in the region Their irrigation systems and water management activities were poor and unorganized and conflicts during dry period were common

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