A Livelihood and Market Study of Resettled Communities in the Eastern Province Assessing conditions in selected Grama Niladari Divisions of the Batticaloa and Trincomalee districts Mohamed Munas Gayathri Lokuge
September 2013 Study Series No. 6 DirectFigure market 4.5: Mapping linkages of constraints and potential solutions of the vegetables and Thefruits monopoly sector of the collector/wholesaler can be reduced by facilitating direct market linkages with the wholesale markets within and outside the district. The improvement of support services asConstraints discussed above (suchCauses as transport andPotential ice plants) will be Institutionsessential in direct marketing. The involvement of the private sector, for exampleSolutions hotels andImplementing restaurants, Solutions could be sought to market other high value fish products. Increase seed production capacity of local DOA, DOAS, VI. Non-farm livelihood sub-sector agriculture authorities - Development Unavailability of DOA and DOAS Organisations sufficient good quality The presence of the non-farm sectorseed isand minimal planting in recently resettled communities, but the Development material Introduce seed strong state drive towards improving the much needed supporting infrastructureOrganisations, for the production at local level SMEs and the interest shown by some of the large private companies investing in DOASthe area, especially in agro-based industriesNo fertilizer show incentives potential for introduction/improvement of this A Livelihood and Market StudyPromote use of organic ResettledDevelopment for fruits and vegetable sub-sector. The recommendations regarding the agro-based industriesfertiliser have beenOrganisations discussed cultivation under theCommunities relevant sub-sectors andin thisthe section Eastern provides recommendations Province for the enterprises that are related to non-farmInsufficient activities. awareness Assessing conditionsand exposure in selected to the GramaPromote Niladari use of organicDivisions Development Strengthening the state servicesorganic and farmingmotivated and its individuals/groupsfertilizer who want Organisationsto start up of the Batticaloapotential marketsand Trincomalee districts enterprises Slow returns of Introduce mix cropping Development For the business enablingLack of environmentperennial in fruit the crops two districtsand to inter-cropping be made more conduciveOrganisations for investment and businessproduction and start-ups, the local authorities that are the main points of contact Crop diversification and productivity Under-utilisation byof the Development of such ventures will have to be strengthened, in termsinter-seasonal of knowledge about business land Organisations registration, taxation procedures and dispute resolution especiallyvegetable cultivation related to land and being more motivated in carrying out Mohamedthe necessary Munas procedures.Initial capital Building support the capacities of Development to introduce micro interested individuals to start upGayathri and manage Lokuge enterprises should alsoOrganisations be done irrigation systems simultaneously and through a continuousInsufficient irrigationconsultative process. Promote vegetables Development Promoting the industries and enterprises that are present inwith the low communitieswater requirement Organisations The enterprisesA that Publication are already of thepresent Centre in the for areas Poverty such Analysis as reed-based (CEPA) production, clay Increase extension and cement brick making, agro-based industries such as rice mills, curd makingDOAS, and DOA, other officers and provide small-scale businesses such as restaurants,September shops,2013 sufficientsalons resources and forbakeries Developmentshould be Lack of extension Vegetables better functioning Organisations strengthenedand Fruits with necessary knowledgeservices for fruit on and business planning, business management, customer service and improving marketabilityvegetable cultivation of their products.Capacity building of the Development extension officers Organisations Introducing new enterprises Enterprises that have proved to be successful and have a relatively established clientele in Provide vegetable Lack of processing Development the respective locations which are outside the communitiesprocessing that machineryare targeted by the project machinery Organisations should be introduced to the communities on a pilot basis withat community strong level capital and technology support. Some of these enterprises are handlooms, small garments and shoe making Lack of knowledge factories, as well as information andabout communication potential value technologyIncrease awareness related on businesses such as Development mobile phone repairing and communicationaddition opportunities centres, threepotential wheeler/motorbike value addition repairing and Study Series No. 6 – 2013 Organisations construction-related activities suchavailable as carpentry in the region and masonry.methods Lack of value for vegetables and fruits addition Incorporating lessons learnt fromInsufficient other projects support to that are working within the two districts in Provide capital support expand the traditional Development trying to promote enterprises for traditional food methods of fruit and Organisations Given the relatively experimental nature of the new enterprisesprocessing methods proposed, it is strongly vegetable processing recommended that the lessons from similar projects on enterprise development within the Development region be studied. Some of these Insufficientprojects, investment identified through the study, are the USAID-CORE 13Introduce new Organisations, projects, the entrepreneur groupson promoted new technology by Nucleustechnology, and for Rebuilding value LivesDept. through of Sustainable Development Projectrelated by Berendina to value addition Micro Financeaddition Institute14 . Industries, DOA, DOAS
Source: Study data 13 More details availabe atwww.nucleus.lk,Supported accessed by theon August Asia 2010 Foundation 14 More details available at www.berendina.org, accessed on August 2010
9141 ©Linking4.3 Centre Dairy with forand tourism Poverty livestock industry Analysis 2013 TheLivestock expanding and poultry tourism are industry undertaken in the as Easta subsidiary can create livelihood a market activity, for farm often and serving non-farm as a produce,supplementary both value activity added to paddy and non-value production. added. Cattle The rearing potential is the of linkingmost common up the vegetables livelihood Firstandsource, otherpublished although field –crop 2013goat producers, rearing andthe poultryinland fishis also producers undertaken and the by livestocka significant producers number with of theproducers. booming In thetourism Batticaloa industry District, in the livestock region rearingshould isbe an encouragedimportant source through of income the service in all providersthe target thatGNs supplybut it hasthe alocal relatively and foreign low presence tourists inwith the food Trincomalee and accommodation. District. Cattle Bees are Nationalhoneyreared andmainly Library smoked for of dairy, drySri Lankafish and could most– Cataloguing also poor be householdsexplored of Publication as rearproduce two Data withor three a potential head of niche cattle market as a amongsubsidiary the activity.local and In foreign Eravur tourists. Pattu, large herds belonging to wealthier householders are lookedMunas, after Mohamed by villagers for a wage during the paddy cultivation season. 5.4 FutureA livelihood trends and and market important study of livelihoods resettled communities of the target in communitiesthe eastern province : FigureAssessing 4.6: Mapping conditions of inactors selected and grama value niladari of the divisionsproduct ofalong the Batticaloathe dairy andvalue PotentialchainTrincomalee future districts trends / Mohamed Munas and Gayathri Lokuge. - The following elements were identified as potential income generating activities in the target Colombo : Centre for Poverty Analysis , 2013 villages. The opportunities and constraints in engaging in these activitiesCha narege discussed in in Actors Dairy detail in the sub-sector analysis. Product Value 102p. ; 21cm..- (Study series ; No. 6) o High value traditional paddy cultivation Wo iISBNthCashin t h978-955-1040-69-7 ecrop com cultivationmunity (vegetables and fruits) and processingLoca l (freshmarke tfruit drinks, dill, Consumers pickle) Fresh milk Rs. 42.00 Wo ii.thValue in331.2 the addition DDDC23S/dist rbased i ct on milk (curd, yoghurt) ii. Title Retail market o Ouiii.tsDeepi dLokugee d iseastri c ,tfishing, Gayathri culture jt au fishing (shrimp, sea iv.bass, Series crab), support services for the fishing sector (ice plants, boat repairing/manufacturing,P afishstu rtransport)ised Rs. 1 2and0.00 value 1.addition Conditions (dry offish, employment canned fish) UHT Rs. 120.00 - 190.00 o Non-farm based livelihoods (maintenance and repair, ICT-based services, retail trade, Traders based mini garment factories) Purchase price Rs. 22.00 Copyrighto Support of thisservices publication to the belongs tourism to industry Tthera dCentreer s(accommodation, for Poverty Analysis. restaurants, Any part adventure of this . in the community book tourism)may be reproduced with due acknowledgement to the authorSelling and pric epublisher. Rs. 42.00 . outside DS/District The5.5 ConclusionCEPA Publication Series currently includes Studies, Edited Volumes, Working Papers Local curd processors andIt will Briefing take a Papers.considerable The interpretations time for recently and resettled conclusions families expressed toL odevelopcal inpr othisc etheirs sStudyor capacity(cu arerd) those and of the individual authors and do not necessarily reflect the views or policies of CEPA or the ventureYoghu rintot an dnew cu rareasd of production. Therefore, it is recommended that small producers publication sponsors. Processors Purchasing price Rs. 40.00 bep rencouragedocessors ou totsi dbuilde th eon their existing skills, and that they are supported to move up the valuecom mchainunit ieofs their existing forms of livelihood. In the divisionsPro fstudied,it Rs. 25 .00agriculture and Photographsfisheries were used the mainin this forms publication of livelihood, are attributed with animal to CEPA husbandry, staff. home gardening, brick making,Large caetc.ttle hprovidingerd alternative means of earning additionalFarm g atincomes.e price There is Producers ISBN:considerableown e978-955-1040-69-7rs (ou tpotentialside the to add value to their operations within the existing context, and also toc makeommu usenitie ofs) the potential changes that can be brought in throughLocal ve nthedo rdevelopments Rs. 22.00 of Alltourism enquiries in the relating two districts. to this publication should be directed to: Local small hCentreolders for Poverty Analysis Milco Rs. 26.00 - 35.00 29 R G Senanayake Mawatha, Local Processors Rs. 40.00 DAPH Colombo 7, Sri Lanka Veterinary SuTelrge ons : +94 (011) 4690200, 2676955-8 Fax : +94 (011) 2676959 Min. of Livestock and Cost of production per litre Email : [email protected] (Under extensive system, Rural CommuWeb:nity www.cepa.lk Development Dry zone) Inputs PrintedLocal mby:on ey Mudranalenders Printers (Pvt) Ltd. Rs. 9.23 NGOs 69/2, Ward Place, Colombo 7, Sri Lanka. Source: Department of Census and Statistics, Department of Agriculture, Central Bank, HARTI, Primary data * Sale prices and profits are based on primary data collected during the study.
9242ii ReferencesTheMohamed main actors Munas involved is a researcher in the dairy at thevalue Centre chain for are Poverty mapped Analysis in Figure and 4.6. holds The a Mastersinput and in serviceEconomics providers from arethe mainlyUniversity men, of however, Colombo. women Munas play is a thesignificant thematic role champion in production for andthe localArunatilake,migration level processing.thematic N., Gunawardena, area. None His of researchthe A., vulnerable Marawila, related groups trainingD., inSamaratunga, the and sample experience were P., directly Senaratne,includes part poverty, ofA., the & dairyThibbotuwawa,conflict, value livelihoods, chain, M., but 2008. fisheries,the Analysispresent migration engagementof the fisheriesand ofeconomics. womensector inin SriHethe Lanka: sub-sectorhas over guided eightshows case years that studies theof FHHsforexperience value can chainbe in targeted carrying development in out promoting research in conflict-afffected the on sub-sector. poverty related environments. The lack issues. of engagement HeWashington also has of experience D.C.:FHHs USAID.can bein dueOnline.conducting to the Accessed current evaluations August free rangingin 2010,conflict cattle affected management areas of Srisystem, Lanka. but the introduction of improved breeds
DCS,The conditions 2010. Estimated prevailing paddy in the production studied communities and excess/scarcity constrain of their paddy ability by seasonto achieve and this by district.level of Colombo:production. Department Well-to-do of farmers Census canand usuallyStatistics. afford Online. high Accessed yielding Maybreeds 2013, that they
4393iii AcknowledgementsHowever,De Silva, D.,providing 2009. “Ruralimproved institutions” breeds will in Ratnayake,mean changes I & Fernando,in the management P. (eds.), Opportunitiessystems and costfor the of productionproductive perpoor: litre. perspectives It will necessitate on agriculture intensive and orrural semi-intensive livelihoods inmanagement Sri Lanka. ThesystemsColombo: authors and Centre athank higher for the Poverty cost Agency of Analysis. production for Technical Chapter per litre Cooperation6, pp.in comparison177-211. and Print. Developmentto extensive management(ACTED) for providingsystems as the shown funds in and the support following for table.this study The inmain November reason 2010.for this They is the sincerely higher labourthank Azraand AbdulfeedDiprose, cost Cader R., in Abdulandthe Priyanthiintensive Cader, A.,Fernandosystems. & Thalayasingam, forThe their increase input P., intoin 2010 yield the (unpublished). contentwill be 2-5of the times Conflict-sensitivity,publication. greater which makesdevelopment the introduction effectiveness, of improved inequalities, breeds and more conflict profitable in forSri theLanka: producers. Understanding aid Thanksprogramming, are also voice extended and actionto Basith in Inadeenlocal conflict-affected and a group of environments. research assistants Oxford: who Centre collected for secondaryTableResearch 4.8: ondata Cost Inequality, and of conductedproduction Human data ofsecurity collectionmilk (perand at litre)Ethnicity institutional in the(CRISE), anddry communityzone Oxford by managementUniversity levels in bothand thesystemColombo: Sinhala Centre and Tamil for Poverty languages. Analysis (CEPA).
TheDistrict authors Secretariat-Batticaloa, are grateful Managementto Dr. 2008. Muttukrishna Statistical System informationSarvananthan, of BatticaloaDevelopment District. Economist and Zone/District Principal ResearcherIntensive of the PointSemi-intensive Pedro Institute Extensive of Development, Prof. Amala de Silva, District Secretariat-Trincomalee 2008. Statistical information of Trincomalee District. DepartmentDry Zone of Economics,23.3 University14.51 of Colombo and9.23 Mr. Asoka Gunawardena, Former Chairman, Finance Commission of Sri Lanka and the Sri Lanka Administrative Service for Source: Department of Animal Production and Health, 2009 reviewingSiriwardena, the P.various P. G. draftsS. N., of2004. this document.“National Aquaculture Sector Overview – Sri Lanka” in National Aquaculture Sector Overview Fact Sheets. Rome: Fisheries and Aquaculture Milk yield can be increased by improving the traditional methods of management practices Department, Food and Agriculture Organisation of the United Nations. Online. Accessed June 2013. ofThanks the herds, are due and also, the qualityto Ms. of Tushani the feed Kalugalagedera, in terms of fodder for andher patiencepasture land. and Monitoringdedication ofin http://www.fao.org/fishery/countrysector/naso_sri-lanka/en. thesewriting new up managementthe final version, practices Chaturanga to see whetherWeerasekera, the recommendations without whose encouragement are implemented this is final product would not have been possible, and Roshni Alles for editing the final document FAO,imperative 2007.Fisheries for increasing institutional the yields. analysis Existing and stock capacity can beassessment upgraded towith the good Ministry quality of and preparing it for print. Fisheriescross-breeds and andAquatic the Resourcesincreased productivityof Sri Lanka. would Rome: in Food turn andencourage Agriculture the smallholdersOrganisation toof theengage United in dairyNations. farming. Online. Accessed August 2009, The Asia Foundation is gratefully acknowledged for providing the funding to print this study.
TrainingRengasamy, and S., capacity n.d. A students’building ofguide livestock to sub-sector/value producers does chain take analysis place forthrough livelihood the intervention.government andOnline. NGOs, Accessed but it Juneis not followed up by the provision of the necessary capital 2013
4494iv PrefaceFinancialRIU, n.d. Theservices value chain approach to poverty reduction and development of livelihoods. ResearchCurrently, Intothe milkUse. collectorsOnline. Accessed are the easiestMay 2013, source of credit for small farmers. Thus, even
TheseIn the communitiesabsence of value were addition,also more trading vulnerable is the to step external in the shocks. value chainEven whichduring canthe provideconflict theyhigher had returns. engaged The in lacktraditional of capital livelihoods. to invest However, in the thesetrade sectorsprevents have the not producers reached fromtheir optimalengaging potential in trading. and this already existing skill base is the biggest advantage these resettled communities have, and should be capitalised upon and made to be more competitive with the support of new technology. The following sectors were identified as potential income
9545v generating“The milkactivities we produce in the target passes villages: through high three value hands traditional before paddyit reaches cultivation; the market. cash crop cultivationThe producers(vegetables are andmainly fruits) Tamils and and processing the milk is (freshsold to fruitthe Muslims.drinks, dill,The pickle);Muslims value additiontraders based sell on the milk milk (curd, to the yoghurt); Sinhala deepshop seaowners.” fishing, culture fishing (shrimp, sea bass, tank Rain Rain Rain Rain Minor water water water crab), support services Source for the fishing sector (ice plants, boat repairing/manufacturing,FGD, Eravur Pattu fish transport) and value addition (dry fish, canned fish); non-farm based livelihoods (maintenanceIn Trincomalee, and the repair, government ICT based is expanding services, theretail milk trade, collection mini garment centres factories);and carrying support out a servicesminimal levelto the of tourism processingCultivation industry with (accommodation,the aim of preserving restaurants, the nutritional adventure level tourism). of the milk. A lack Yes Yes Yes of capacity of these processing centres to deal with large quantities of milk makes the producersBased on study sell the findings, excessYes / No itmilk is apparent collected that to private starting companies completely such new as livelihood NESTLE oractivities MILCO. in But an increasingenvironment the thatWater capacity is in a stageof the of centres revival requiresis risky. Thus, a continuous such initiatives supply need of milk to be and undertaken a strong marketwith alternatives link, because that people the processed can fall back and on packeted if these newmilk livelihoodsneeds to arebe consumednot successful. within Niche 48 Tube Tube wells areas for support and growth were identifiedWells within the existingWells sub-sectors (such as cash hours of production. Source crop cultivation or culture fishing) while also identifying niche areas where the traditional Demandsectors can for benefit fresh using milk the same skill base – for example, the need to explore the potential Atfor present,introducing the highincreasingDrinking value trendtraditional of powdered paddy varieties. milk consumption The study hasalso led looked to poor at areasdemand where for freshcommunities milk/liquid can milkbe linked even to Yes though expanding theYes nutritionalindustries suchvalue as of tourism Yes the latter in the is higher.region. Awareness about the benefits of consumingYes / No liquid/fresh milk is essential to change the attitude and consumptionIn addition, interventionspattern of the do rural not and always urban need communities. to take place in the target communities. Interventions at a different point in the value chain can create positive backward impacts that No No can enhance“When wethe visitlivelihoods the farm Yes of families,the target they communities. give us powdered milk for us to drink even
though they have Yes / No fresh milk at home. They think that it is a dishonour if they give The possibilitythe visitorsElectricity of freshlinking milk” up with the regional hubs where more trade and manufacturing enterprises are situated should also be explored in order to maximise spillKPI, over Batticaloa effects. In the studied areas, most of these enterprises were located in the more urban areas such as ItKaththankudi should be Urban noted, Council however, and Trincomaleethat in the and future, Batticaloa the Municipaldemand forCouncils fresh/liquid as well asmilk in consumptionpopular tourist will destinations increase when such theas Pasikuda, income of Kalkuda the households and Nilaweli. increases It is recommended over time. This that is anthe opportunitydevelopment that initiatives the smallholders link target inbeneficiaries the dairy industrywith these at thehubs domestic to act as level raw canmaterial take 96 advantagesuppliers of of. fresh fruit, vegetable and milk for processing enterprises and also to provide small garments and other small industries. This would also help overcome the lack of physical space for expansion in someFrequency of of these hubs such as Kaththankudy. Value addition public transport Traditional forms of curd are made and marketed locally. It is not transported outside the About 4 - 5 buses About both daily, operate and CTB private one but No CTB bus, the on bus private road. Kinniya - Wan-ela - Bus service twice a day evening) and (morning does not function but regularly. Belikkadato day a Twice Horowpothana from regionAn important mainly point because to take of the into lack account of a good when transport designing/implementing network. The lack livelihood of capacity interventions to invest infor technology recently resettled and the communities, lack of electricity is that within a conflict the recentlysensitive resettled approach communities is crucial throughout are seen asthe bottlenecks project cycle. for Therevalue addition.should also be continuous monitoring, consultation and follow-up with the communitiesConnectivity on the assistance given to them in order to ensure the sustainability of the support.“If there It isis alsovalue important addition to for share the themilk, success it is possible stories ofto certainsell the communities Rs. 40 worth with of other targetmilk communities at Rs 100.” so as to learn and replicate successful initiatives. District Level Workshop, Batticaloa Conflict affects economic development and value chains in different ways – disrupting Distance to Yoghurttransport, production destroying was infrastructure,the main road not being done restricting in any mobility, of the studied and affecting communities relationships but it isbetween one of theactors value-addition in the value chain.techniques The study which found requires several minimumcross-cutting capital issues support. faced by Thiscommunities can be 1 km to Kinniya-Kantale km 5 main road. road Kinniya – Wan-ela the village. runs through 45 km to Horowpothana introducedengaging in through the different the SMEs/farmer livelihood sub-sectors organisations identified at the incommunity this study. level. Farmer Private and sectorfisher individualsgroups’ roles outside in the thevalue community chain should who be are expanded capable andof investing strengthened are engaged as they arein producing the main flavouredproducers milk,in these but communitiesit is not done and at thecurrently community have limitedlevel. power and roles within the value chain. Communities should be empowered to engage in value addition and marketing and Privatetrained sectorin these involvement areas as well is seenas in onlyquality in milkcontrol. collection Training and on marketing new and effectiveof fresh milk.production Large scaletechnologies value addition and methods such as of making facing/coping yoghurt with and potential cheese and hazards flavoured and environmental milk is done beyond issues theshould reach also of be the provided. target communities. The community The level following production quotation groups reflects should the also present be part level of the of valuevillage addition level SMEs at the formed community to market level. the local produce to external markets. Infrastructure improvement is crucial – with the need for improved rural roads, public transport facilities,
electricity supply,D.S & G.N Divisions physical market centres and rehabilitation of minor tanks. Access to Kuchaveli, Thiriyai Kuchaveli, Aayiladi Kinniya, Gomarankadwala, Mylawewa ANNEXES Table 1: Infrastructure availability of study communities - Trincomalee District financial services should also be improved for the sub-sectors to be sustainable. Data Discussion Group Focus Source: Micro-credit
46vi should“Sometimes be provided that for farm-basedmiddle man as collects well as 5,000 non-farm-based to 7,000 litres producers of milk andduring enterprises, the day with customisedand makes micro-credit the curd for and the sells needy, it back productive to us in poor the evening.”farmers and vulnerable groups, and
for community awareness raising efforts on the--- financial services availableFGD, Eravur and Pattuapplication water water water & rain rain & rain & rain & procedures. Source Minor tank Minor tank Minor tank Minor Other livestock BothThus, backyard there is considerablepoultry and freespace ranging and potential goats are for found livelihood in the improvement two districts. and Farmers expansion with
Cultivation among conflict-affected, resettlement communitiesNo in the North and East. However, based on Yes Yes higher capital engage in broiler production, for which there is a high demand Yes that cannot be the assessment of this study, it will take a considerable time for recently resettled families to
met by the currentYes / No production. develop their capacity and venture into new areas of production. The study recommends that Poultrysmall producersWater is imported are into encouraged the two districts, to build fromon their areas existing where skills, production and that is on they a large are supported scale and pricesto move are up thecheaper. value chainThis ofdepresses their existing the formsprices of and livelihood. discourages There ispoultry considerable farming potential on a Wells Wells Sabha in milk in and the and water is water Drinking Drinking to add value to theirSource operations within the existing context, and also to make use of the providied providied and wellsand
commercial scale in the studied districts. containers Tube wells Tube by soldiers soldiers by potential changes that can be brought in through the development Pradeshiya of tourism in the two DAPHdistricts. and NGOs are encouraging poultry production in the two districts, by interventions to Drinking
increase the availability of young chickens, andNo by providing micro credit for poultry keeping, Yes Yes Yes especially among families that have been recently resettled, as a secondary/temporary income source. YoungYes / No chickens are more readily available in Trincomalee where there is a hatchery at Uppuveli, even though this is also insufficient to meet the demand for birds if
poultry is done on a commercial scale. In Batticaloa, the DAPH is aiming to provide mini hatcheries to identifiedNo producers. No No No Yes / No Electricity There is a high demand for mutton in the local market, so goat rearing takes place as a supplementary activity in most households and provides continuous income for families and reduces the impact of seasonality of crop cultivation. The main constraint to goat farming is the lack of improved breeds. 97 In conclusion, removing constraints related to productivity, value addition and institutional support and marketability would increase the returns to farmers. The diagram mapping
constraints in Frequency of the sub-sector summarises the constraints discussed above and points towards interventionspublic transport that could be potential solutions. No bus services, No bus foot, by travel residents three and cycle, bike, wheeler etc. services and No bus foot, by travel residents & boat. cycle No issues on transport (CTB available Transport but does not & private) regularly. function Connectivity Distance to the main road 12 km (Vaharai- 12 km (Vaharai- Batticaloa) junction 12 km Kiran Village situated on Chenkalady – Maha Oya (Badulla Road) main road 500 m D.S & G.N Divisions Vaharai, Madurankernykulam Poolakkadu Kiran, Pullumalai Pattu, Eravur Vellaweli, Vilamthottam Table 2: Infrastructure availability of study communities - Batticaloa District Focus Group Discussion Data Group Focus Source:
47vii TableFigure 3: 4.7: Profile Mapping of vulnerable of constraints groups withinand potential the study solutions sample of the dairy and livestock sector
Location Sex TypeConstraints of CauseCauses of Age EducationPotential WelfareInstitutions Vulnerability widowhood, statusSolutions benefitsImplementing disability Solutions Government Kunjan katkulam Female Disability Attacked by 56 RehabilitateNo schooling pastureSamurdhiDepartments, plus wild elephant land keroseneDevelopment stamp Poor management Organisations practices, poor Kunjan katkulam Male Disability By diseasequality feeds 65 No schooling CompensationDAPH, and Introduce improved & elderly elderly welfareDevelopment grass varieties paymentOrganisations Low Low milk productivity yield Pirambadiththeevu Male Disability By Poorarmy quality 52 IntroduceNo datasuitable goodNo benefitsDevelopment breeds quality cross breeds Organisations
Pirambaditheevu Male Disability By shellSmall attack holdings 40 Grade 4 Samurdhi
Wilamthottam Male Elderly Not applicable 78 Grade 2 Samurdhi and compensation Lack of extension Provincial Lack of officers, Increase human Agriculture, extension Aayiladi Male Disability By crocodileveterinary 68 Graderesources 4 Samurdhi,support boat, of services attacksurgeons net by tsunamiDevelopment Lack of Organisations institutional relief and tricycle Provide micro credit Development support Long procedure by rotary club facilities Organisations Lack of credit Wilamthottam Female Elderly Not applicable 60 No schooling Samurdhi facilities Complicated Facilitate formal credit Development documentation through discussions with Organisations Kiran Female Widow Natural neededdeath 34 relevantGrade institutions; 2 Samurdhi, of husband rural banks, NGOs Rs. 10,000/= as a loan by a NGO Diary and Improving access Development Livestock Lack of electricity Kallarawa Female WidowInfrastructure Natural death 59 Gradeto power 6 A houseOrganisations by Red related of husband Cross, solar panel Lack of good constraints Local quality transport, Improving roads by ZOA Authorities roads Low level of Wilamthottam Male Elderly Not applicableUnavailability of 80 Grade 3 Samurdhi,Development elderly value addition Technological Technology transfer technology to the Organisations, constraints through training welfare payment communities and personalDAPH Provision of initial capital Lack of paymentDevelopment by GN of Lack of capital to purchase equipment equipment Organisations and start up SMEs Rs. 10,000/=
Aayiladi Female Widow Husband 42 No schooling Samurdhi kidnapped Improve milk collection Development Lack of physical infrastructure and Organisations, market centres Infrastructure establish sales outlets Local Authorities Source: Centre for Poverty Analysis, 2010related constraints Improvement of rural Local Poor roads roads Authorities Lack of information Creating links with local Poor Limited exposure about canteens, restaurants, Development marketability to the market potential milk bars and hotels for Organisations mechanisms markets direct marketing Selling the Delayed process DAPH, Office milk to the Regularising cooperative of payment in the Bearers of middlemen at management systems a lower price cooperatives Cooperatives
Source: Study data
9848 Fisheries Contents Inland fisheries and marine fishing are two very important livelihood activities in the two 1.districts. Introduction Within ...... the fisheries sector, the majority of people are engaged in the marine1 fishing sub-sector. The topography of the Batticaloa District with its tanks and lagoons 2. Conceptual Framework and Methodology ...... 3 makes it more conducive to inland fishing in comparison to Trincomalee. 2.1 The value chain analysis: Approach to the study ...... 3 4.4 2.2 Inland Value fisheries chains in a conflict affected context ...... 3 Inland 2.3 fishing Conceptual is an allframework year activity-dependent ...... on the fish stock, while marine fishing is4 seasonal. Families engaging in both inland and marine fishing supplement their incomes 2.4 Methodology ...... 6 through secondary livelihood activities such as livestock rearing and the cultivation of paddy 3.and The other Context: crops. Batticaloa For example, and KunjhaankatkulamTrincomalee Districts in the...... Madurankernykulam GN division in7 Batticaloa 3.1 Implicationswas studied ofto demographicbuild the inland characteristics fishing value ofchain. the studyThe division districts has ...... 60 households7 that are engaged in inland fishing who also engage in secondary livelihood options such as 3.2 Poverty and income inequality ...... 11 paddy cultivation, bee honey collection and home gardening. 3.3 Poverty and welfare in study divisions of Trincomalee and Batticaloa ...... 12 Among 3.4 the Vulnerability studied GNs ...... the most number of fishermen engaged in inland fishing are from13 Ailiyadi and Nadoothu in Kinniya DS division and Kithulwewa and Madurankernykulam in the 3.5 Impact of conflict on livelihoods in Trincomalee and Batticaloa ...... 16 Batticaloa District. In Punanai East and Poolakkadu in Batticaloa, inland fishermen engage in fishing3.6 throughoutInstitutions the ...... year. Kithulwewa employs a number of fisherman; as high as 101 18in 4.inland Value fishing Chain from Analysis April forto September,Key Livelihoods during in theBatticaloa off season and forTrincomalee paddy cultivation...... 21 4.1 Paddy ...... 21 Fresh water capture fishing has been identified as a potential area for support to enhance the 4.2livelihoods Vegetables of the andrural fruits poor ...... by both state and non-state entities in the conflict affected37 areas 4.3 of the Dairy country, and livestock due to ...... its nature of providing quick returns and nutrition value as42 a protein supplement. Fishing provides the communities with a secondary source of income, 4.4 Inland fisheries ...... 49 which in turn helps them maintain a mixed livelihood portfolio which is more capable of mitigating 4.5 Marine the impact fisheries of external ...... shocks to income. Inland fisheries can be integrated with56 the 4.6agriculture Non-farm system livelihoods and can ...... be promoted as a rural livelihood option, working through62 the already existing government structures of agriculture and irrigation. These factors and 5. Policy Opportunities and Recommendations ...... 67 the presence of a large percentage of inland water bodies in the provinces suggest that the inland 5.1 fisheries Policy sub-sectorand Institutions has potential ...... to grow in the East. 67 5.2 Natural hazards and coping methods ...... 71 Table 4.9: Number of tanks by type in the East 5.3 Recommendations ...... 73 District 5.4 Future trendsPerennial and important livelihoods Seasonalof the target communities ...... 92 5.5 Conclusion ...... Functioning Abandoned Total 92 Batticaloa 18 206 96 296 References ...... 93 Ampara 53 181 87 268 Annexes ...... 96 Trincomalee 10 428 196 624 Source: Statistical Information, North East Provincial Council 2005 and MFAR, 2007 and DS Batticaloa, 2011
In these recently resettled areas of the country, fresh water capture fishing is practiced in seasonal tanks, using basic techniques for both home consumption purposes as well as for an increasingly expanding local market. In other words, subsistence is the main objective with excess catch being sold, thus it is mainly traditional/indigenous small scale techniques which are used in fishing. Among the 3 districts in the East, Batticaloa has the highest percentage of freshwater fisher folk whereas Ampara has the highest percentage of production, which makes the labour productivity of Ampara higher. The use of better fishing techniques as an outcome of training programmes given to the freshwater fisher folk under the Gal Oya scheme and the possibility of fishing during the dry season because of the
49ix Listpresence of Abbreviations of a higher number of perennial tanks could be a reason for the higher productivity rate in Ampara. The example of Ampara could be applied to the fresh water fishing in ACAPBatticaloa and Trincomalee Assistance toand Conflict apart Affectedfrom enhancing Persons the productivity through technology transfer, infrastructure development and institutional strengthening, overall strategies such ACTED Agency for Technical Cooperation and Development as balancing of resources through environmental conservation and reducing gender AIimbalances within Agriculture the sector Instructor should also be considered in order to develop the sub-sector. CBO Community-Based Organisations CEPAThe current market Centre analysis for Poverty identifies Analysis the potential to increase the production and CFSproductivity of the Consumer fresh water Finance fishing Survey sub-sector through a better supply of quality high DAPHdemand fingerlings, Department improved of Animal irrigation Production and andconnectivity Health infrastructure, resource management through collective decision making regarding the tank and the fish stock and DCS Department of Census and Statistics provision of fishing equipment mostly to the identified vulnerable groups. The sub-sector DOAshows a demand Department for certain types of Agriculture of traditionally processed dry fish which seems to have an DOASassured market and Department this could of be Agrarian further Servicesdeveloped by increasing the quantity of fish that is DOFprocessed and introducing Department the of Fisheriesproduct to markets outside the district in the longer term. DSFresh fish also seems Divisional to haveSecretariat a high demand locally, but exploring markets outside the FAOdistrict should be Food facilitated and Agriculture to ensure Organisationlong-term sustainability of the United of Nationsthe sub-sector. FGD Focus Group Discussion Fish production FHHs Female-Headed Households The price of fresh fish is about Rs. 100-200. The cost of input is minimal given that the GNproducers use traditional Grama Niladari non-motorised Division methods of fishing. In a context where the buyer GoSLcomes to the village Government and offers of Srithem Lanka the retail price, there are minimal costs (in terms of HIESlabour and transport) Household and almostIncome the Expenditure whole income Survey could be counted as profit. Given the IDMChigh market demand, Internal increasing Displacement the production Monitoring and Centre productivity of the sub-sector should be KPIencouraged since Key itPerson would Interview give higher returns to the producer. However, resource management mechanisms should also be encouraged; otherwise competition and damage LTTE Liberation Tigers of Tamil Elam to natural ecological systems could result from the drive to increase production. MFAR Ministry of Fisheries and Aquatic Resources MOPThe main constraints Muriate-of-Potash identified for increasing productivity and production were the MPCSmalfunctioning tank Multi-Purpose and unavailability Cooperative of Societiesquality input. Fingerlings, fishing craft, fishing OFCsequipment and labour Other Fieldare the Crops main inputs in inland fishing. PLR Paddy Land Registration The poor quality of the tank is an impediment to continuous fishing. Currently the tank in PwDs Persons with Disabilities the studied community contains only about 100 acres of water, but rehabilitated, could SMEsexpand to 600 acres. Small Itand dries Medium up during Enterprises the dry season, and the villagers control the flow of TSPwater using sand Triple-Super-Phosphate bags as there are no sluice gates. Responsibility for the maintenance of the tank rests with the Provincial Council, not the Department of Irrigation. As discussed at the DS level workshop and in the interviews with government representatives, at present, the government and NGOs are providing support for tank rehabilitation as part of the resettlement plans for these communities. The tank rehabilitation should integrate the producer groups as well so that they, through the fisher societies can contribute towards tank maintenance and management. They should be made aware of water resource management systems and be included in the strategising and planning of these interventions so that the ownership remains with them in the long term.
It has been observed that the most common management measures adopted in seasonal village tank culture consists largely of stocking with fingerlings and their subsequent harvesting. At present, the community claims that they have been informed by the relevant authority that the stocking rate is 100,000 per season (6 months) and they claim that they harvest 1,000kg per season, which could be considered average according to the records. Supplementary feeding of the fish is not practiced. According to research done by the FAO,
50x 1.it has Introduction been demonstrated that, by the addition of inputs (such as fertilizer and feed) and employing higher stocking rates, productivity can be improved (FAO, 2004). However, Thesupplementary Centre for feeding Poverty can Analysis only be (CEPA) considered was incontracted the longer by term the forAgency these communities,for Technical Cooperationgiven their lack and of Development capital and new(ACTED) technology. to identify and study potentially profitable economic activities in two conflict-affected districts, Batticaloa and Trincomalee, with a special focus placedThere areon theissues geographic with the areassupply in ofwhich fingerlings ACTED andworked. stocking. The studyThe Departmentwas conducted of Fisheriesin 2010, onesupplies year the after fingerlings, the end andof the fundsthirty toyear purchase war. The them analysis are provided aimed byat theproviding Provincial an understandingCouncil. Farmers of arelivelihood still not patterns able to produceand market their opportunities own or even andstart constraints up nurseries in thedue studied to lack regions.of technology This includedand capital, the potentialso all the to fingerlings target the are most imported vulnerable from people outside in thethese district regions, i.e. suchfrom placesas female-headed such as Dambulla, households, Puttalam the orelderly Ampara. and Thepeople distance living andwith the disabilities. mode of transport result in a high fingerling mortality rate. The specific objectives of this study were to: “We do not have good quality high demand fish like Viral and Sungan. The dried 1. Examinefish of thesethe forces kinds adversely are expensive.” or positively affecting the economic environment. 2. Identify the economic, social, cultural, technological,(Case study, political, PWD, F,religious, Vaharai) and environmental factors which may impact livelihood activities. Producers feel that stocking is insufficient, stocking frequency is too slow and they are 3. Analyse the existing legislative and/administrative structures for economic enhancement. dissatisfied with the types of fish that are placed in the tank, because they are not the 4. breedsIdentify that theare majorin high constraints demand and and have practical a high solutions value. The adopted breeds with that regardare currently to access being to placedservices in the (location tank are specific), not the mostincluding suitable strategies to the adopted prevailing by conditions.rural producers. These breeds are not capable of breeding naturally and they eat the fingerlings and eggs of naturally breeding Thetraditional geographical breeds. areas The ingrowth which ofthis the study fingerlings was conducted needs to had be been managed affected carefully, by conflict without and hadwhich resettlement inland fishing populations. cannot be Thesustained. main livelihoods Promotion of of the seasonal studied tank communities aquaculture were with paddy easy cultivation,low-cost start fishing, ups, thevegetable presence and of fruit high cultivation nutrients anddue dairyto water and retention livestock. and The human study mappedactivity, outand theland-based different miniprocesses nurseries involved such inas the in Rajawewaaforementioned and Kirawana livelihood in sectors Ampara, and are carried potential out asolutions value-chain for the analysis. lack of good quality fingerling closer to the communities.
TheInland findings fisheries would are usuallyprovide organiseddevelopment around organisations fisheries societies with insights that try into to theensure specific that livelihood-relatedbenefits accrue equitably, challenges the and use needs of inappropriate of resettled communities. fishing equipment is controlled, over fishing is prevented and marketing is facilitated. The societies also engage in maintaining the Thetank. study The 60comprises families ofin fivethe sections.Kunjaankatkulam This first, village is an introductionare registered to withthe study; the society. the second The sectionsociety hadlooks 25 at boats, the conceptual so fishing wasframework, a joint activity methodology and only and one limitations member fromof the a familystudy; wasthe thirdpermitted section to participatedescribes the in fishing.context Thisin Batticaloa controlled and over-fishing Trincomalee and Districts resource in depletion.studied areas; The thepresence fourth of section a strong provides well-functioning a detailed analysisfisher society of value can chains be an for opportunity key livelihoods for implementing in the target areasnew strategies. and section five provides policy and development intervention opportunities and recommendations. Resource depletion caused by over-fishing is a major constraint for inland fishing. In the absence of regulation and regulatory bodies controlling the type of fishing equipment being used, communities have adopted their own regulatory mechanisms. In the Kunjaankatkulam village, the fishing society regulates the use of equipment, and the police and army posts in the area are also alert about the use of illegal fishing gear. During the time the communities were under LTTE control, the LTTE took measures to regulate fishing practices.
The vulnerable groups and the close relatives that support them are engaged in the production stage of inland fishing at a basic scale. They seem to be at the lowest end of the value chain with regard to the quality of equipment they use and the quantity of fish they can catch. The constraints that were discussed in the above sections with regard to the quality and quantity of fingerlings and the dilapidated status of the minor tank were reiterated by these vulnerable groups as well.
511 There are FHHs, PwDs and those that support these vulnerable groups that use basic fishing methods such as fishing with a rod and small nets mainly to supplement their income. In addition to the constraints mentioned at the community level, the lack of capital to purchase fishing gear was mentioned as a constraint by the respondents and they did not have access to boats.
“I cannot do any work because of my pain. Husband engages in fishing but he does not have proper fishing gear. He has an old net which he continues to repair and use. He does not have a boat, if he has a boat; he can increase the quantity of fish that he catches. Our lake is not deep enough and we do not have quality fish. If the tank is rehabilitated, we can increase our profit.” (Case study, PWD, F, Vaharai)
FHHs that engage in fishing are members of the fishing society, but paying up the membership fee was not strictly required of them. They use the same marketing methods as the rest of the fishing community, selling the fish catch to the highest bidder through the fishing society.
Using the zonal plans drawn up for the East by the MFAR in line with the 10 year plan for the fisheries sector, culture fishing can be developed beyond the model farms that have already been created. The water bodies available in these areas increase the potential for culture fishing. The export demand for cultured high-value breeds would mean a higher price for the fishermen. Demand for high-value fish and fish products such as lobsters, sea cucumber, sea bass, oysters and shrimp exists in the international market and local production could be geared towards supplying these products. However, the quantity of exports of shrimp and prawn in the country has decreased and this presents an opportunity for culture-based fisheries to be developed in these areas.
The culture-based fisheries suit the vulnerable groups such as FHHs with the initial capital costs financed either through micro-credit systems or livelihood assistance projects. The amount of heavy manual labour required for culture fishing is relatively less, which makes it ideal for vulnerable groups. Awareness creation with regard to the profitability of the culture fish industry should be undertaken among the private sector encouraging them to invest in these coastal regions. However, culture fishing should be introduced and managed with caution, using clear resource management mechanisms in order to minimise the possible damage to the environment.
Value addition Inland fisher folk can make more money by processing certain types of fish. The fish producers who participated in this study have identified the type of fish that can bring them higher returns and the method of processing fish which is in more demand. They have found out that there is no demand for salted dry fish, so they use the traditional method of smoke drying fish using firewood, which incurs minimal cost and can last for about 3 days. The fish that has a high demand is Sungan and Viral dry fish, which gave producers (at the time of the study) Rs 800 and Rs 600 per kilo respectively.
“If we dry 3 kilos of fish, it becomes 1 kilo of fish. Therefore, we only process the fish for which there is a good demand and a high price. A kilo of dry fish normally sells at Rs. 300 per kilo. It is more profitable to sell this fish as raw fish” (FGD, Vaharai)
52 2.Because Conceptual of the high Framework demand there and isMethodology little need for storage. However, during the peak season, the non-existence of ice plants limits producers’ ability to send fish to markets 2.1outside The the value-chain region, which analysis: results Approachin certain fishingto the communitiesstudy processing the fresh fish Airrespective value chain of therefers value to thatthe sequencethey get for of theiractivities efforts. that At arethe timeundertaken of the study,in relation producers to a particularwere selling activity normal that salted creates fish value. to middlemen It could includeat half thea set market of primary price. and Dry support fish is producedactivities thatin remote an enterprise areas and performswhere accessibility to turn inputsis a problem. into value-added Lack of awareness outputs, on takingthe part note of theof consumerfishermen needs,in marketing and producer and in benefits.choosing Asthe the types product of fish passes that throughhave a goodseveral demand stages inof the valuemarket, chain, coupled the valuewith ofpoor the transport product increasesfacilities forces(Rengasamy, producers 2009). to sell the dry fish to the middlemen and they cannot demand a good price for their produce. “Value chains encompass the full range of activities and services required to bring a product orVulnerable service fromgroups its conceptionare part of tothe sale value in its addition final markets—whether process with fresh local, fish national, using the regional same ormethod global” of smokethese dryingactors fish.and stakeholdersThose that cannot are supported engage in bycatching a range fish of due technical, to their business physical anddisabilities financial prefer service to engageproviders in (Sapersteinprocessing fish. & Campbell, 2007).
It is important“I have experience to see the of horizontal making dry and fish vertical since my links childhood. of the value So, I chain.can do Thethat relationshipwork. betweenSometimes different my players husband at the will same bring level fish of tothe make value dried chain fish. is considered But our village a horizontal tank link. Identifyingdoes nothorizontal have enough linkages fish.” can help recognise joint constraints that require collective action and collective production which generates economies(Case study, of PWD,scale F,for Vaharai) small scale producers. The vertical linkages through the value chain are visible. Vertical linkages are perceivedThe existence as a ofcombined a good marketeffort to for move smoke-dried the products fish orand services the technological along the different know-how levels they of thehave value acquired chain untilthrough it reaches experience the final and market. traditional The aimknowledge is to benefit can playersbe capitalised at all levels on, alongespecially the forchain. the Valuevulnerable chains groups are often because focused value on addition creating requires market littlelinks mobility. or strengthening existing market links for the products along the supply chain (Research into use website1). “If I catch the fish I will not sell them. If I sell that, the profit is less. I will make The activitiesdry fish. relatedThat brings to a valuemore chainprofit. of The a single traders livelihood come to can my behome contained to buy withindry fish. a single groupSungan or divided and amongViral are different good for producers, dry fish. Buteither these from fish a aresingle less geographical in the tank.” location or spread over wider areas, which can be linked to create(Case synergiesstudy, PWD, (Research M, Vaharai) into Use website). Each type of livelihood may have different value chains since the actors/stakeholdersIntroducing higher ofvalue the livelihoodsfreshwater vary and for brackish different water sectors products or sub-sectors. and supplying the technological and initial financial support will move the fishers away from the less profitable 2.2traditional Value freshwaterchains in afishing conflict-affected sector. The existingcontext knowledge and experience of capture Conflictfishing such affects as crabseconomic and brackishdevelopment water andprawns value can chains be seen in asdifferent an opportunity ways. Transport to expand is disrupted,this sub-sector. infrastructure As highlighted is destroyed in the livelihoodor inaccessible sector and study security for USAID concerns funded restrict CORE mobility. project Power(May 2009), relationships Tilapia, Milkfishalso tend and to Carp shift species rapidly areas seendoes asthe easier policy and environment, less expensive affecting in the stabilitygrowth phaseand the and enabling less prone environment to diseases for businessin comparison and enterprise. to prawns, Often,although interventions they fetch ofa governmentslower price in andthe marketdonors thantarget the short-time prawns. Thehorizons. local market Most importantly, which prefers conflict fresh destroysfish without the trustice should between be targeted different for actors these in types the value of aquaculture. chain. These methods of higher value culture fishing was, at the time of the study, already in their pilot phases throughout the Eastern UsingProvince, a value mainly chain in theapproach Batticaloa in post-war District, settingsand steps requires should the be following: taken for segmentingscaling up andthe marketincorporating to make the use lessons of existing learnt fromopportunities the pilot andphases. generating early momentum, re-building the horizontal and vertical links in the chain, providing participants with access to support servicesMarkets such as transport, finance and marketing, and working to regain trust between the differentFreshwater actors. and brackishThere is water a need capture to work fish withas well government as culture agenciesfish is seen to tobuild compete the policy with environmentthe marine fish for infostering the local economic market anddevelopment has shown and export with differentpotential. private-sector Tilapia and Milkfish actors whowithout can ice be should encouraged target theto investlocal market, in upgrading with transport different from stages the ofeastern the value districts chain. to theIn contextsmore urban where areas economictaking minimum activity time. has Thebeen culture severely fish suchconstrained as shrimp and and institutionscrab could considerablytarget the tourism weakened, industry strengthening and also the value export chains market. may Privatehave tosector be involvementpart of wider, in multi-sectorbuy-back systems efforts. should be encouraged and the links should be facilitated where possible into systems where the company would supply the fingerlings and the feed and buy back the produce from the farmers at a competitive market price.
1.Source: http://www.researchintouse.com/nrk/RIUinfo/valuechain/valuechain.htm
533 ThisDue studyto the takes lack a ofpost-conflict market centres, approach and to becausedeveloping of thethe value lack chainsof transport in the focusfacilities districts and ofconnectivity, Batticaloa andproducers Trincomalee. tend to These sell their districts, produce together to middlemen with Ampara or collectors in the Eastern at a lower Province than andoptimum all of price.the Northern The exception Province is have in Kunjaankatkulam, been affected by wherealmost there three is decades a fisheries of war society, between and thewhere Liberation producers Tigers are ableof Tamil to sell Elam their (LTTE) fish toand the the buyer Government who offers of theSri highestLanka. Cessationprice. Here of overtthe buyer hostilities offers in them the East the inmarket 2007 priceled to and a post-war also pays situation an additional prevailing Rs. in 10 the per region, kilo to even the beforefisheries the society. war ended The strengthened in May 2009. fisheries ACAP (Assistance society in turnfor Conflict can look Affected to start Persons)up seasonal was tank the ACTEDfish culture. project which selected sites in which to work in the North and East, mobilised communities and identified infrastructure which were priority for reconstruction. The study wasDiscussions part of theat the process district of level identifying workshop the revealedlivelihood that, sectors the ofmiddlemen the selected buy recently the fish resettledfrom the communitiesfishermen for and Rs. areas90 and for sell support it to theand retailer value addition.for Rs. 190 and the retailer charges Rs. 290 from the consumer. Similar to the marine sector value addition process, the middlemen are 2.3seen Conceptual to be involved framework in the input supply and they also purchase the harvest at the end. AMiddlemen conceptual bring framework the ice boxes; derived store from the value-chain fish in these analysis boxes andto identify transport key the aspects produce that to contributethe market. to Theincreasing lack of the the profitability producer’s of understanding existing and expanding of the market, livelihoods the waslack usedof market here. Interventionscentres in close to proximitycreate a value-chain and the lack market of connectivity system need in termsto link of producers transport to infrastructure the market. Theymake shouldthe producers work with sell thetheir intermediaries produce to the (in middlemen other words or thethe collectorprocessors, at a marketinglow price. and sales personnel, etc.) to produce the goods that are in demand, in a way that enhances the profitabilityThere is a high and (and market increasing) power of local the demand producer for and inland benefits fish, prawnsall the stakeholdersand dry fish thatalong is notthe chain.salted. A local level market centre integrated into a regular market for the other crop produce as well could be a potential intervention to replace the ad hoc fresh fish sales that Inare this taking analysis, place the by keythe elementroad side. is theThe end-market rapidly developing - local, national,tourism industryregional orwas global. seen Eachas a sub-sectorpotential market is analysed for these using products. the value-chain Quality assurance approach. mechanisms Product market, for potential market partnershiptrends, key componentswith the private of thesector sub-sector, should be and introduced an analysis and brandingof the relationship strategies suchbetween a trade the name different and stakeholderslabelling will bein essentialterms of in their the longerrole in term the insectors targeting are nichecrucial markets. elements of a sub-sector analysis. These stakeholders may vary for different value chains. The constraints and opportunitiesStrengthening in the terms fishing of technology, societies to market identify access, new markets, institutional improving policies, market finance linkages, and credit, and andcollective input marketingsupply also of formfresh a fish part as of well the as sub-sector dry fish will analysis. bring higher returns to the producers.
AlthoughIn summary, adapted the attached by many, diagram the underlying maps the concept constraints, of the causes value and chain potential remains solutions the same. for Thethe inlandvalue-chain fisheries analysis sector. for the paddy sub-sector, undertaken by Oxfam GB with the Agrarian Services Department, takes a conventional approach to value chain development by considering all the relevant stakeholders of the paddy value chain. This study was localised to the Batticaloa District so that specific livelihood support and improvement recommendations could be provided. Another study on the fisheries sector in Sri Lanka, conducted by USAID uses the value-chain approach to understand how conflict can influence the fisheries sectors’ ability to compete (Arunatilake et al., 2008). The Livelihood Gap Analysis conducted by ILO in 2008, provides detailed information on livelihood needs and infrastructure gaps of the selected resettled Divisional Secretariats (DS) in the Batticaloa District.
Available literature (including literature on the aforementioned research) was used to map the stakeholders and their functions along the value chain, to identify some of the constraints and opportunities discussed in Section 5 and to frame the recommendations based on the study analysis.
Sub-sectors for the value-chain analysis of this study were identified using the information gathered through existing secondary and primary data. The farm and non-farm livelihood options of the study target group were mapped as a first layer and the most prominent livelihood types were chosen as sub-sectors for the analysis. The important sub-sectors identified for this market study were paddy, vegetables, livestock, inland fisheries, marine fisheries and non-farm livelihoods (brick making). At the time of the study the tourism
544 sectorFigure was 4.8: a growing,Mapping but of not constraints the prominent and livelihood potential sector solutions and most for survey inland respondents fisheries didsub-sector not identify it as a livelihood option. However, the study does point out the links the identified sub-sectors could have to the tourism sector for market expansion and diversification. Constraints Causes Potential Institutions Solutions Implementing Solutions Value chains exist within particular contexts, and the framework in Figure 2.1 describes the contextual factors that can influence the operationLack of technology of the and valueExplore chain the atfeasibility all levels. of There are capital for local fingerling breeding at Development social, cultural, environmental, political andfingerling institutional production factors,local levelwhich are Organisationscritical to consider when enhancing the livelihoods of vulnerableHigh mortality rate groups in in a conflict-affected area. The Lack of fingerlings participation of vulnerable groups will also be transportationaffected by their own human, social, financial Unavailability of Facilitate financial and Development and physical assets, and their level of motivation.fingerlings in high technical support to Organisations demand. Eg: Viral existing local breeding centres Figure 2.1 Conceptual frameworkLack of fishing of theLack studyof capital to buy Development equipment to Supply of fishing equipment fishing equipment to vulnerable groups Organisations, vulnerable groups NAQDA Social and Low Production Recently resettled Providing micro credit as Development Cultural and ECONOMIC Aspectscommunities of Exis withtin lowg Liveinitialliho capitalods to selected Organisations Lack of capital and capital groups Factors productivity technology to engage in culture fishing Lack of awareness and DOF, Provide training on new Development exposure on culture methods of fish culturing Education Consumfishingers Organisations Development Health Rehabilitate minor tanks Organisations, Dilapidated tanks Poor maintenance of and mobilise community the tanks Local for maintenance Government Networks Fisheries Depletion of fishing MarkeLacktin ofg resource& Awareness creation about Societies, management and resource management Social stock Sales Development Inland illegal fishing methods and stop over fishing Organisations eFisheriesxclusion Infrastructure Local InfrastructLackure of transport Poorly maintained Improve the rural roads and Services facilities rural roads and Services Authorities Link to existing local Development markets such as pola' Organisations √ InformatLackion of market ProLowce sexpectedsors returns √ Connectivity √ Technologycentres by decision makers Establish and t rsalesans poutletsort at urban centres within the Development √ Electricity √ Finance Organisations Marketing district and linking the Political and constraints a fornd water √ Landproducers Institutional capture fish, culture fish Increase awareness about Factors and value Lack of private sector Lack of awareness culture fishing with the aim DOF, added fish investment in Proaboutduce potentialrs for of promoting investment & Development marketing culture fish culture fish introducing quality control PolicOrganisationsies Environmental mechanisms Factors Create and/or strengthen Resource Lack of bargaining Promote collective fisheries societies allocDevelopmentation power of the marketing integrated with the Organisations Natural communities farming groups resources InLackpu tofs awareness Social Lack of branding for about methods of Introducing trade name Development value added products increasing and packaging protOrganisationsection Climate marketability change Source: Study data Potential Areas of Growth
Expanding existing livelihoods New l ivelihoods
555 2.44.5 MethodologyMarine fisheries The marinemarket fishinganalysis sector largely in Sriused Lanka a qualitative comprises methodology of two sub-sectors- which was the coastalcomplemented sub-sector by secondaryand the deep-sea quantitative sub-sector. data and The resources. country’s Publishedcoastal fishing data fromsub-sector government is facing websites, constraints and agenciesrelated to as resource well as depletion.ACAP data On were the usedEastern and coast a short the literature fishermen survey are facing was alsothis, conductedalbeit to a withlesser the degree, purpose than of thecollating fishermen background from the information Southern relatingcoast because to value-chain the Eastern analysis. and SamplingNorthern coastwas undertaken have not experiencedusing quantitative as much data over-fishing both from theas otherACAP regionsproject anddue Districtto the Secretaryrestrictions Statistical on fishing Information during the sheetswar. However, (Section the3 provides lifting of the fishing criteria restrictions used for in sample these selection).areas will see more and more people getting into the industry.
TheAs shown initial datain the collection following phase graph, focused the highest on gathering percentage district of levelfisher data folk - inrespondents the country were are representativesfrom Trincomalee of andthe governmentBatticaloa, 18% departments and 15% of respectively, agriculture, andagrarian they services,produce 8.36%fisheries, in livestock,Batticaloa andand at9.44% the provincial in Trincomalee, and district out oflevel, the administrativetotal national fishofficers catch. such The as productivitythe DS and ACTEDlevels in and these Sewalanka two districts staff. are not as high as in other districts in the country. This, combined with the threat of resource depletion should discourage more people from getting into the Thesub-sector second, and more encourage extensive datamoving collection into other phase parts included of the multiple fishing steps. value As achain first step,such theas districtprocessing level and workshops also moving were into structured other livelihood and conducted options in such a way as highthat informationvalue cash cropwas gatheredcultivation. for each livelihood sector (sectors which had been identified earlier through Figuresecondary 4.9: data Percentage and initial of field fishermen work). Focusby district, Group 2009Discussions (FGD) guiding questions were designed to capture the in-depth issues related to various farm and non-farm livelihoods in theTangalle study 4%locations. Key Person Interview (KPI) tools were Kalmunaiused to obtain13% informationMatara 5% from the state institutions and identified stakeholders at different stages of the value chains from differentGalle 4% livelihood sectors. In addition, an Open-ended Case Study tool wasKalutara used to 3% obtain data on issues of vulnerability. Colombo 1% Due to time constraints, it was not always possible to triangulate information obtained from Negombo 8% Batticaloa 15% one source that was specific to study locations. The multiple layers of data collection, i.e. the district level workshops, key informant interviews and community level discussions, did help bridge this gap to a certain extent. The rapidly changing context of the communities that had recently resettledPuttalam at 8% the time of the study warranted a level of intense primary data collection. Chillaw 7%
Mannar 4% Jaffna 10% Trincomalee 18%
Source: Ministry of Fisheries and Aquatic Resources, 2009
The 10-year strategic plan for the fisheries sector (MFAR,2007) encourages the development of the deep sea fishing sub-sector in the long run for various reasons, such as higher returns based on the demand in the export market for certain fish types (such as tuna) and availability of resources. The coastal sub-sector is considered important within the current state policy dialogue because it employs and supports the bulk of the people engaged in the fishing sector.
The peak fishing season on the Eastern coast is from February to July. The lack of a secondary form of livelihood which can cushion them during the off-season for marine fishing makes fishermen more vulnerable and leaves them with no other alternative but to take credit at high interest rates trapping them in a debt cycle. During the off-season for marine fishing, they engage in fishing in the lagoon and the estuary; catching prawns, crabs and fish. These fisherman claim that they are unable to make a profit out of brackish water fishing because the catch is too small, caused by resource depletion and the filling up of the estuary. Introducing culture fishing as discussed in detail in the value addition
566 3.section The Context:could be anBatticaloa alternative/secondary and Trincomalee livelihood Districts for these communities. Further, introducing cash crop cultivation such as vegetables and cereals and fruit could also provide Thisthem section an income of the source study during profiles the the off-season. two districts - Batticaloa and Trincomalee - that are the focus of this market analysis. It provides the background to the following sections in the studyDetermining and raises the returnscontextual to thespecificities marine fish that producer are relevant or the when cost dealing of production with livelihoods could not and be livelihooddone in this reconstruction study due to thein theselack ofregions data at (suchthe secondary as issues and of primarywell-being, level. vulnerability, The reason availabilitycould be the of unpredictability physical infrastructure of the amount and impact of fish of caughtconflict and on variousthe income livelihoods). depending on the type of fish caught, which in turn depended on the time of the month, the type of fishing 3.1equipment Implications and craft of used the anddemographic the number characteristics of people that are of engagedthe study in thedistricts craft. TheIn this population analysis, demographics the study focused have changedon coastal considerably fishing, and over illustrates the decades the valueas a result chain of with the conflict.examples This from has the had Kallarawa implications fishing on thecommunity number ofin peoplethe Kuchchaveli and ethnic DS groups Division within of the region.Trincomalee In a District. post-conflict The primary situation, data as from is presentlythe current faced, study returnees also shows could that changethe highest the demographicincome for the profile communities of the regions is generated and impact through on howdeep livelihood sea fishing. groups can function within these changing demographics. Inputs ANon-motorised special enumeration boats are in owned2007 by by the the Department fishing families, of Census but much and of Statistics the other (DCS) inputs after (fishing the cessationequipment of and hostilities fuel) are revealed financed a total by thepopulation wholesaler. of 334,363 For fishing in Trincomalee; to happen atrepresenting an optimum a 30.6%level, fishermen increase needin population to have multiple since the fishing last gearCensus to catchin 1981 different (DCS, types 2007b). of fish. This Fuel was is comparativelypurchased at lowerthe nearest than the filling increase station, in Batticaloaor illegally District from duringretail suppliersthe same closerperiod towhich the experiencedcommunity. Trincomaleea 56.2% increaseand Batticaloa in population show the andhighest had numbers a total of population traditional fishingof 515,857 craft (Departmentthroughout the of islandCensus and and Trincomalee Statistics, 2007a). is the third In the highest 2012 inCensus, the multi-day the total boat population category, in Batticaloabut there iswas a question 525,142 whether and 378,182 these boats in Trincomalee. operating off This the showsTrincomalee an increase shores areof aroundowned 1.76%by the inlocals Batticaloa or whether and a they0.11% belong increase to the in Trincomaleemigrant fishers since from the endthe Northof the Westernconflict. and Southern coasts. The target communities should be linked to the deep sea sub-sector if not Despitedirectly asboth boat districts owners, being at least conflict as support affected, service the providers.ethnic composition has only changed significantly in the Trincomalee District over the past five decades; the Muslim population in theThe Trincomaleefishing community District ishas locked increased in a relationship by 16% (2007) with since the wholesaler, 1981 (ibid. )not becoming only because the most he ethnicallyfinances the predominant inputs, but group also becausein the district, he provides even thoughadvances this during percentage the off-season fell marginally when fromfishing 45.4% families’ in 2007 secondary to 40.41% income in 2012. sources In the are Batticaloa not sufficient District, for the their Sri subsistence. Lankan Tamil Fishing ethnic groupyields ahas reasonably remained high the incomepredominant during group. the peak The seasons percentage but seasonalityof Sinhalese and in theweak population financial hasmanagement fallen in the and Batticaloa saving habits District of over the thefisher past communities 5 decades from create 3.4% financial in 1963 difficulties to 1.19% for in 2012,them duringwhile increasing the lean period. marginally They in do both not districtsapproach from formal 2007 financial to 2010 services by 0.69% because in Batticaloa of the andlack 1.56%of collateral in Trincomalee. and guarantors. The Sri Their Lankan only Tamilway ofpopulation accessing has formal increased financial marginally services byis 1.56%through and pawning 2.60% jewellery. in Trincomalee and Batticaloa Districts respectively from 2007 – 2012. This is very different from during the war when the population count for all ethnicities in BatticaloaThere was hadlittle assistancebeen significantly being provided low. This to the shows fishing increasing community resettlement from the government. activity in BatticaloaThe officials after of the the Ministry cessation of Fisheriesof fighting. do Thoughnot engage all populationsat the community have returneeslevel. Many post fishing war, thecommunities Sinhalese are who organised have been into resettled fishing societies,in majority and Tamil many areas external in the agencies East have channel resulted their in thesupport rise toof ethnicthe community tensions. Thesethrough population these societies, movements but indicatingwhere they resettlement are not havetruly createdrepresentative a complex (as situationin Kallarawa) where and some where Internally there is Displaced little trust Persons between (IDPs) the communityhave conflicting and claimsthe society’s to the officesame bearers,land and their property. role becomes Tables 3.1 limited. and 3.2 provide information on the ethnic mix of the studied districts, providing a pre-war and post-war perspective. Based on the secondary data available, both districts showed an excess in production in marine fish which is expected, given the resources available in the two districts. The high amount of excess production necessitates a marketing network that can send fish directly into inland areas that are at least adjoining the districts, such as Anuradhapura and Polonnaruwa, without sending it to Colombo. There is a clear opportunity for transporting fresh fish out of the districts using cooler trucks, but the capital constraints of the target communities and also the perceived monopoly of the wholesalers, restrict them from expanding their market and services.
577 TableMarine 3.1:fishing Population is seasonal by with ethnicity the peak in fishing Trincomalee season beingDistrict from February to July. The highest income comes from deep sea fishing, but most of the fishing families in the target Year Total Sinhalese Sri Lanka Indian Sri Lanka Other communities own non-motorised boats and engage in one-day fishing, which is in the Population (%) Tamil Tamil Moor (%) coastal sub-sector. The net income distribution of the coastal sub-sector when compared to the offshore sub-sector is low. The number (of% people) engaged(%) in a given(%) coastal fishing activity1963 is high13 and8,55 the3 harvest2 is8 .low8 compared36 to.9 the offshore2.4 sub-sector.29 .These4 fisher2.5 folk are19 constrained71 188 by,24 the5 large capital29.1 requirement35. 4of purchasing2.7 and maintaining31.8 a multi-day1.0 boat.198 1Without2 5substantive5,948 initial3 3capital.4 support,34 the.3 resettled2 .communities1 29 .that3 are targeted0.9 in2 this007 study 3cannot34,363 take up deep25.4 sea fishing.2 8 It.6 seemed that0.1 although4 5.4the state policy0.5 is encouraging the development of the deep sea fishing industry, it cannot target these 2012 378,182 27.0 30.6 1.7 40.4 0.3 producers at the lower ends of the value chain and instead is targeting the fishers that have Source:stronger Department initial capital. of Census The and higher Statistics, prices 2007b, of 2012deep sea fishing craft and fishing equipment has meantTable 3.2:that Populationthe non-government by ethnicity organisations in Batticaloa who Districtare working within the sector also cannot justify providing these on an individual basis. Year Total Sinhalese Sri Lanka Indian Sri Lanka Other However, inP oBatticaloa,pulation several(% one-day) boatsTa mhaveil been Tconvertedamil intoMo omulti-dayr ( %boats.) This trend should be encouraged through technology(%) and( %capital) transfers.(%) The offshore sub-sector1963 provides196,189 a large amount3.4 of indirect71.1 employment0.8 opportunities.23.5 These include1.2 construction1971 256,721of boats, boat cleaning4.5 and maintenance,69.1 fish net1.7 manufacture,23.7 ice production1.1 and supplying of other services required by the industry such as transport, food provision 1981 330,333 3.4 70.8 1.2 23.9 0.7 and mechanical parts for boat engines. Given the decreasing trend of direct youth participating2007 515,857in the fishing activities0.7 - due to unwillingness,74.0 given0 the nature25.0 of the industry0.5 or2 0lack12 of skills525,142 - they could 1.2be encouraged 72.6to participate0.2 in these indirect25.5 employment0.5 opportunities.Source: Department Skills of Census development and Statistics, could 2007a, be 2012 provided through the National Institute for Fisheries and Nautical Engineering, already established in the regions and the growing The change in population compositions as discussed above could be explained in many sub-sector can directly absorb the youth. ways. The impact of the war and the resulting displacements of minority communities within these districts could explain these changes. The influx of IDPs into these regions could also Beach seine fishing also happens in Batticaloa and Trincomalee, but many beach seines are have changed the composition of the population.2 Other aspects, such as some ethnic owned by people from the Northwest coast. Local people can obtain employment on the groups (for example Muslims) showing a higher annual population growth rate in general beach seines either as temporary workers (where they are given fish as payment) or as could also be another contributing factor. permanent workers with cash wages. However, most of the permanent workers on these Despitebeach seines these are changes, outsiders. settlements Women alsoparticularly engage inin thethe East,last phase are clustered of the beach along seine ethnic activity, lines. In“the many illippu” regions and aresettlement paid in kind patterns with 2-3and basketscommunities of fish. reside Being in employed distinct ethnic in the enclaves beach seines with interactionwas seen to seemingly bring less returnstaking placeand most in more of the urbanised time they wereenvironments paid in kind, within so thethe fishermen districts. Engagingfrom the communityin various preferredtypes of livelihoodsto go to sea increases in their traditionalthe inter-ethnic crafts andinteraction engage acrossin fishing. the region. This study alludes to this as well, where groups that have been known to harbour Value addition tensions work together along various components of the value chain, seemingly in harmony. There is very little value addition taking place in the marine fishing sub-sector, mainly because’Our of milk the goesneed to threesupply hands fresh beforefish to the market.collectors. The Producers Tamils engage also feel in milkingthat dry fish productionand they is less sell productive. the milk to Muslims.Sprats are, The however, Muslims driedsell it and to Sinhala sold, because shop owners‘. it is not always profitable to sell fresh sprats. (FGD, Eravur pattu)
These“Dry population fish making changes is unprofitableand the potential because for itwe to lose keep one changing third of as the a result weight. of the We end of the wardon’t and engage the returning in dry populationfish making is ata pointthe moment, to note in only relation if we to catch rehabilitation a lot of sprats work in the East. However,we make atdry the fish, same because time, resettlementit is not profitable of Sinhala to sell populations fresh sprats” in both districts has also fuelled minority insecurities regarding the protection of land rights. In FGD,terms Kallarawa of livelihoods, managing of inputs and production activities as well as engaging in meaningful market linkagesClose to will45% be of affected the fish by imports changes to inthe population country are and canned population fish. flows,Therefore, which there in turn clearly affects is thea demand groups forthat canned can access fish, especiallyresources andin the those hill countrywho are and excluded. in the areas where there is low refrigeration facilities for fresh fish. However, whether small scale producers can compete 2 withThe lackthe ofmultinational data on displacement companies and resettlement is a concern. by ethnicity If makesmarket it difficult linkages to draw can conclusions be established on causal factors in the two districts.
588 Thethrough importance the private of understanding sector and if the a brandlocal context name canand bedynamics created in withterms quality of inclusion assurance and exclusionsystems, cannedof main fish identity as a valuegroups added (such product as ethnicity) of the marineand incorporating sector has potential.this understanding However, intoit should project be designingintroduced has on beena small highlighted scale. Previous in a study attempts conducted to introduce by CEPA this in industry collaboration failed withbecause Oxford of the University. lack of a It steady argues supply that theof wet most fish contentious in Mannar. dimensionsManual, low ofcapital development canning policyplants/fish design processing and programming factories iscould in the be targeting a viable - whichalternative groups to are larger included scale and mechanised excluded inplants the projectsfor which - theand raw how material these aspectssupply cannotaffect localbe ensured. dynamics and community interactions and can increase tensions between groups if not managed (Diprose et al., 2010). Thus, this studyGiven consideredthe increasing the resourcelocal context depletion and socio-economicin the coastal sub-sectorand demographic and the dynamics inability ofwhich the existedfishers toin immediatelyBatticaloa and move Trincomalee into the whendeep seaforming sub-sector, the methodology engaging inand high carrying value outculture the mappingfishing could exercises. be introduced and facilitated. The export demand for the high value culture fish would mean a higher price for the fishermen. Demand for high value fish and fish products Basedsuch as on chilled the survey and frozen carried tuna out and by lobsters,the Department sea cucumber, of Census sea andbass, Statistics oysters andin 2007, shrimp in Trincomalee,exists in the internationalpeople in 24 GNmarket divisions and local(belonging production to 7 DS could divisions) be geared were towards displaced supplying while in Batticaloa,these products. people However, in 23 GN the divisions quantity (belonging of exports toof the3DS shrimp divisions) and wereprawn displaced. in the country This washas mainlydecreased due with to conflict;the failure 74% of andprawn 85.8% farms ofin thethe displacedNorth Western people coastal in Trincomalee line, and andthis Batticaloapresents an respectively opportunity were for culture-baseddisplaced due fisheriesto conflict. to beThe developed rest had beenin the displaced East. Venturing due to theinto tsunamiculture fishingdisaster should (DCS, be 2007a, based 2007b). on the lessons learnt from the experience of the North Western prawn farms and their failures and should therefore be implemented with risk Tminimisingable 3.3: mechanismsDisplaced p oinp uplace,latio nsuch in T rasin cforom athele eearly Dist ridentificationict, 2007 and treatment of diseases. DS Division Total Population Displaced Population displaced as Introducing high value Populationfishing will mean thatdue the to supportingconflict servicesa % andof total infrastructure population have toPadavasiripura be properly in place. The10,666 collection and assembling16 chains will have to0 be functioning smoothly and the producers need to access transport and ice plants fairly quickly. In Kuchchaveli 26,327 531 2 addition, training on cleaner fish handling practices and quality maintenance will have to be providedGomarankadawala along with initial5,879 market linkages in order6 to maintain the sustainability0 of the ventures.Morawewa The fishers engaging5,563 in coastal fishing886 that yields lower productivity16 could be targetedTown and for Gravets this, as can89,046 vulnerable groups 5,391such as FHHs and youth. Cage6 culture for example, needs relatively low levels of heavy manual labour and can target FHHs. Thambalagamuwa 27,572 467 2 StorageKanthale and transportation42,861 287 1 AtKinniya present, there is little 61,558need for storage of marine379 fish products within the1 communities becauseSeruwila the catch is sold11,142 to the buyers within 787hours of coming ashore. Cooler7 trucks are used for transportation in the peak season. Often fish is packed in rigifoam boxes and Muttur 47,132 2,714 6 transported to the wholesale markets. Transport providers are not from the fishing community,Verugal they are outsiders6,617 who have an agreement0 with the wholesalers,0 and who Source:transport Department the fish of from Census the and community Statistics, 2007b to places in Colombo and Negombo. The closest ice plant to the Kallarawa is in Trincomalee and the cost of ice at the point of fish purchase is 25% higher than in Trincomalee. This is, however, a hidden cost, deducted as an expense by the buyer when purchasing the fish.
However, as explained in the above section, moving into culture fishing will necessitate better transport and storage facilities and if the expected higher returns are to go to the producers, the supporting services will also have to be made more accessible to the producers, if not solely owned/managed by them. At the time of the study there were 3 ice plants in Batticaloa. Given the isolation and connectivity constraints in the target GNs, these ice plants clearly will not serve the purpose and the need for smaller scale ice plants closer to the communities should be stressed.
Investments along the value chain such as post-harvest handling; sorting, cleaning, packaging and support services would create more regulated employment opportunities for the people at the producer level and would bring in higher returns.
599 TableMarket 3.4: Displaced population in Batticaloa District, 2007 TheDS Divisionmarket for fish is dominatedTotal by wholesalersPopulation in Displaced Colombo andPopulation their local displacedcollectors, whoas purchase the fish to bePopulation transported out ofdue the to district conflict to the leadinga % offish total sale populationcentres in the country (mainly St. John’s market) and also for export. The wholesalers, who are at the highestKoralai levelPattu of North the supply21,263 chain, play a key role1,093 in determining the market price5 for fish. The dominanceKoralai Pattu of Westthe wholesalers20,985 in coastal fishing,27 especially in beach seine fishing0 is derived fromKoralai their Pattu hold on producers24,589 through cash advances2,702 given during the off-season,11 and for purchasing inputs such as fuel and fishing gear. This cycle of dependency should be broken Eravur Pattu 75,886 17,276 23 by providing the producers with alternative livelihood options during the off-season and also increasingEravur Town awareness on alternative25,024 financial sources.84 0 Manmunai North 88,459 9,081 10 There is a high demand for fish within the district, and if the cycle of dependency on the fish Kattankudy 39,523 237 1 wholesalers and their local collectors can be broken, producers should be able to trade fish inManmunai their locality. Pattu Currently,30,747 there are small retail874 sellers on bicycles who also3 purchase fish, butManmunai they buy S-W it from the representative23,988 of the wholesaler357 and not from the fishermen.1 Poratheevu Pattu 38,282 442 1 Identifying the markets with more purchasing power such as hoteliers and urbanized populationsManmunai Southfor high value niche products such as lobster and crab and promoting either 57,917 1,967 3 directand Eruvul market Pattu linkages through collective marketing at the community level or through the privateKoralai sectorPattu should be strongly facilitated. Exporting is 100% dominated by the private sectorCentral mainly based in Colombo24,510 or in the North 582Western coast and these exporters2 will have to be linked up with the producers in the east so that they can increase their revenue by supplyingKoralai Pattu to these South more lucrative19,659 markets. These6,107 exporters usually send a representative31 to theManmunai fish selling West centres to25,025 ensure quality and 4this would automatically 0bring in better Source:handling Department systems. of Census and Statistics, 2007b
More than five years after the cessation of conflict in the East, many people displaced at various stages of the conflict have returned to their home areas. However, the problem of sustainable resettlement is still a crucial problem for many of the conflict-affected population. Resettlement of all ethnic communities after the war has created multiple complications such as competing land claims, boundary disputes, the inability to provide legal documents and landlessness. Public information on IDPs and returnees is not easily available and no comprehensive profiling has been undertaken since 2007 making it a “hidden crisis”. Many who have returned have difficulties accessing basic necessities such as food, water, shelter and sanitation and in exercising their civil rights.
Displacement and resettlement has also been one of the reasons for migration, more so in Trincomalee than in Batticaloa. In 2012, the Batticaloa District had a migrant population of 22,975 people, 3,034 of whom had been displaced and 1,153 who had been resettled after displacement. In Trincomalee, these figures and proportion were higher, with the district having a migrant population of 73,640, with 3,476 being displaced and 28,225 resettled after displacement.
Quite often large scale economic projects (that the local population does not have the skill to help implement/directly benefit from) are given precedence over much needed infrastructure assistance that would benefit individual households, including IDPs and returnees. Some relocations were also regarded with suspicion among the local and international organisations as having been forced. The Eastern Province remains highly militarised, though relatively less than the Northern Province. The military continues to be an economic player, competing with the IDP’s, returnees and others affected by the conflict and hampering economic independence from aid. However, this condition is more prevalent in the North than in the East.
1060 ThoseFigure who 4.10: were Mapping displaced offrom constraints the Trincomalee and high potential security solutionszones (Sampur for area)the marinehad not beenfisheries able sub-sectorto return to their homes at the time of the study, and had often been resettled in areas close to their lands of origin among host communities. Most of the time this was under dire conditions and returneesConstraints have consistentlyCauses voiced a demandPotential to return toInstitutions their own Solutions Implementing lands. Solutions
Low returns from high Continued governmentResource restriction depletion in on the humanitarian community meant Developmentthat no brackish water value brackish water Introduce culture fishing comprehensive needs assessment had been conductedfishing in the conflict-affected areasOrganisations of the North and East, and the difference between needs and available resources continuesDevelopment to Introduce culture fishing Organisations plague these people. InResource addition, depletion humanitarian in Excessive and fishing development aid in the North and East the coastal sub-sector Introduce/expand value is heavily monitored and controlled by the military. Therefore,addition the suchdistribution as making of Developmentaid to the fish canning at community Organisations displaced and their adequate resettlement is by no means universal. levelThe Lessons Learnt and Reconciliation Report and its subsequent recommendations in 2011Identify enterprisinghave not been included in the action plan of the government (IDMC,Lack 2012). of ice plants These and recommendationsindividuals, provide wereDevelopment crucial to Lack of support cooler rooms training and facilitate Organisations achieving a durable solutionservices for closer the to the displaced. initial capital communities Lack of manufacturing of fishing craft and Provide capital and Development 3.2 Poverty and income inequality equipment within the technical support Organisations district Determining well-being is important in trying to understand the choice/lack thereof to Lack of fishing gear to engage in certainLack of types of livelihoods catchover different others, types ofparticularlyProvide specialised in relation fishing toDevelopment income productivity fish according to gear to suit the seasonality Organisations, DOF availability and sources, welfareRequirement transfers, of accessseasonality to physical infrastructure and other inputs. These aspects are also importantdifferent types ofin relation to decisions regarding the target population, fishing gear specific project intervention (such as type of livelihood assistanceProvide training or type on cleaner of infrastructureDevelopment 3 High post-harvest loss fish handling Organisations, needed) to name a few. DOF
A paper written by Sarvananthan (2005) provides an overall understandingTraining of financial of theDevelopment poverty management, marketing Organisations situation in the North and East. He concludesWeak fishingthat societies in terms of per capita income the North and East Provinces are the worst-off in the country. He concludesFacilitate access tothat price deprivationDevelopment is information through mobile Organisations significantly higher than the national average on the basis of proxyphones indicators for relative povertyMarine such as borrowings, commodity loans and income transfer.Identifying andThe linking Consumer up Finance Fisheries with potentially interested Survey (CFS) data collected in 2003/2004 show that the incomefinancial inequality institutions/ in theDevelopment Eastern Inability to move in to Organisations Lack of capital to invest individuals with the fishing Province is highest amongmore allprofitable the fishingprovinces and inequality remainedcommunities in 2009/2010. activities in deep sea fishing craft and equipment Support conversion of day Development According to the 2009/10 Household Income and Expenditureboats intoSurvey multi-day (HIES) boats dataOrganisations (DCS, 2011), the Eastern Province shows one ofLack the of capital highest to invest levelsIdentifying of poverty and linking in up comparison to in support services with potentially interested other provinces, with an income of only Rs.(Boat 5,663 manufacturing, mean per capitafinancial income, withDevelopment only 1.5 income earners per house. This is, by far, therepairing, lowest net income earnedinstitutions/individuals in any of the Organisationsprovinces repairing, ice plants, with the fishing for a month (DCS, 2011). transport) communities Introduction of Lack of income during alternative/secondary Development It is important to note, however, that this surveythe off seasonhas not coveredlivelihoods some during of the the off remoteOrganisations areas of the Batticaloa and Ampara Districts and has completely excludedseason the Trincomalee District Indebtedness due to the security conditions that prevailed. Given that some of the poorest areasDevelopment have Provide micro finance Organisations, Lack of formal facilities for the poor other NGOs’ been left out, it can be assumed that the povertyfinancial support levels were higher during theseworking periods with than what was recorded for the province. fishermen fisheries societies Market related Identify and create linkages constraints to the markets with more purchasing power to sell high value capture and Development culture fish Organisations Low bargaining Monopoly of the (Hotels,restaurants and power wholesaler urban markets) Facilitate direct market Development linkages with private sector Organisations 3. The Household Income and Expenditure Survey (DCS, 2008) was not conducted in the Trincomalee District, so theSource: district Study level data poverty information is not available for Trincomalee. However, this information is available for the Batticaloa District.
6111 Table4.6 Non-farm 3.5: Head livelihoods count index by province TheProvince working definitionHead Countof the Index’non-farm livelihoods refers to those activities that are not primary agriculture, forestry or fisheries. In certain cases, agro-based processing is also 2006/07 2009/10 classified as a non-farm activity. For the purpose of clarity of this market study, agro-based Western 8.20 4.20 industries are not included in the non-farm sector and they are discussed under the value chainCentral of each sub-sector. 22.30 9.70 Southern 13.80 9.80 TheNorthern industry survey - conducted by 12.80 the Department of Census and Statistics (2004) provides anEastern indication of the 10.80 range of industries 14.80 present in the two districts. Food processing of locally grown agricultural produce and the apparel industry dominate the non-farm sector in the North-Western 14.60 11.30 two districts, both in terms of percentage of establishments as well as a provider of employment.North-Central Manufacturing 14.20 of furniture 5.70 and non-metallic mineral products such as clay basedUva industries, are27.00 also relatively 13.70 high in the two districts. Sabaragamuwa 24.20 10.60 Table 4.10: Industrial establishments in the Trincomalee District - 2003‐04 Source: Department of Census and Statistics, May 2011 Trincomalee Batticaloa The poverty headcount index in the Batticaloa District, as stated in the HIES 2009/10 is Units Persons Units Persons 20.3% in otherIndustry words, 20.3% Division of the total population (Table 3.5) is below the official poverty line (Department of Census and Statistics 2011). According toEngaged the poverty gap Engagedindex, the poor households living below the poverty line in the Batticaloa% District% are% clustered% closer toMining the povertyand quarrying line as opposed to the national figure. The2.6 calorie9.9 consumption4.3 of the4.4 poor householdsManufacture in of thefood district products is andhigher beverages compared to the values50.8 of national33.3 as40.8 well as 32.5Eastern ProvinceManufacture (ibid). of tobacco products 0.4 0.7 0.3 0.3 Manufacture of textiles and yarn 0.7 0.9 1.3 2.8 Table 3.6: Poverty head count index and poverty status Manufacture of apparel 12.8 31.2 10.3 18.3 Manufacture of leather products Sri Eastern 0.2 0.1 1.3 1.2 Year Lanka province Batticaloa Trincomalee Manufacture of wood and products of wood and cork 1.4 0.8 2.9 3.7 Publishing,2006/07 * printing* and reproduction1 of5. 2recorded media10.8 0.5 100.5.7 0.7 - 1.2 Manufacture2009/10 of basic chemical and chemical8.9 products14 . 8 0.2 200.2.3 0.9 11.70.6 Source:Manufacture Department of non-metallic of Census and mineral Statistics, products 2008, 2011 8.6 9.7 0.5 0.5 **Manufacture Data excludes of the fabricated Northern Provincemetal products and the Trincomalee District 8.4in the Eastern4.4 Province12.9 12.7 Manufacture of furniture 12.7 7.3 6.5 5.4 3.3 Poverty and welfare in study divisions of Trincomalee and Batticaloa Collection, purification, and distribution of water 0.4 0.7 16.9 10.3 Levels of poverty in the Batticaloa and Trincomalee districts are well above that of the rest Other 0.5 0.4 0.3 6.0 of the provinces in the country. Most of the households included in this study earned a lower monthlyTotal average income compared to the average household100 income100 of the100 Batticaloa100 and Source:Trincomalee Department Districts. of Census Approximately and Statistics, 2004 50% of the target households in the Batticaloa District earned less than Rs.1,500 per month which shows a high level of income poverty among the These statistics include large, medium and small industries present at the district level. target population. The situation was slightly different in the Trincomalee District where there These industries were present to a lesser extent in the studied communities and there were was only around 28% of the target population who earned below Rs.1,500 per month, but no large or medium scale industries within the target GNs (ACAP, 2009). The main forms of the majority (40%) still earned only between Rs.1,500 – Rs.3,000 per month. Thus, it was small industries present in the target DS’s are handloom, coir, carpentry and pottery. Study clear that poverty affects a large proportion of the population in both districts and based on communities are also engaged in basic levels of food processing such as making lime pickle. information collected there was a sense of deprivation and inability to gain sufficient income The present status of food processing and possibilities of expanding agro-based industries is to meet basic needs among the studied population. discussed under the value-chain analysis for each sub-sector. “We don’t have the money to carry out the funeral even. We collect the money The tourism industry was also identified as a potential form of non-farm industry, especially among us and do it.” in the coastal areas, which could bring direct returns to the community through small scale FGD, Vaharai retail establishments and by providing accommodation and other services to tourists.
1262 “I“These don’t havevillages a permanent can get involvedhouse. We in livetourism in a small in the cottage. future I don’twhen have the moneysector toexpands. build a Theyhouse can of my get own.” involved in providing support services to the tourism industry such as accommodation.” Case study, disabled, Kiran District level workshop Based on study data, it was clear that the low income levels in these areas highlight the need forThe livelihood indirect supportmanner to in generate which communitiesboth short-term that and live long-term away fromresults. the Low popular income tourist levels pointdestinations to a pattern in coastal of day-to-day areas can survival benefit -from mostly the dependent rapidly expanding on livelihoods tourism that industry are affected in the byeast seasonality; was discussed and theat the potential district for level saving workshops and investment and in the for key these informant groups isinterviews. very low. ThisThe inpotential turn hinders of linking their up ability producers to come with out the of service poverty providers and the of lack the of tourism assets industry,(and therefore in the collateral)form of supplying pushes vegetables,them towards dairy informal and also financial handmade services products which with binds ornamental them in valuea vicious was cyclehighlighted of debt in (analysedthese discussions. in the following sections). The high levels of deprivation suggested that any project intervention would have to provide funds for starting up traditional livelihoodWith the activitiesstrong state and drivealso supporttowards diversificationincreasing electrification in order to andprovide connectivity multiple incomerelated sourcesinfrastructure for the in target the region, families. the Small and Medium Enterprises (SMEs) show potential in bringing income to the two districts. Qualitative Assessment of the Local Enabling BasicEnvironment needs also For needPrivate to Enterprisebe considered in the when Eastern planning Province development of Sri Lanka, initiatives conducted as these by Asia are communitiesFoundation (2009), which highlightshave faced some the ofdestructive the constraints forces privateof conflict enterprises for over (large three scaledecades. and However,small scale) when encounter. moving High beyond unofficial the monetary‘fees’ and povertycharges aspectsby public and officials analysing when theobtaining basic infrastructurepermits, licenses, available, registrations, the communities lack of motivation provided anda more business-friendly comprehensive attitude, picture lackof the of well-beinginformation status and knowledge of the target on populationcore activities and (businessprovided someregistration, insights laws into and the regulation),nature and scaleopaque of andinterventions cumbersome which procedures were planned for business for that registrationarea. and licensing/permits are the main points highlighted in the study. The Batticaloa Municipal Council had come out on top Thewith followingthe most sectionfavourable presents indicators the situation out of theregarding local authorities basic needs reviewed within theand study this successsample andstory period. should be shared with the other local authorities as well.
3.4The Vulnerabilityissues highlighted above have two direct implications for the improvement of the Aslivelihoods discussed of inthe the people previous in sections,the recently the resettledtarget population communities. could Thebe considered large-scale vulnerable business toventures external will shocks be hesitant as a whole, to invest but in specific the region attention and in should order tobe attractgiven tomore the ofgroups these that players are introducedsteps need in to this be section taken into terms improve of project the services design andat thedeciding local theauthority type of level.intervention. Also the A setpromotion of criteria of SMEssuch asat numberthe local of level dependents, will prove female cumbersome headed given households, the ‘unfriendly’ disability, business elderly andenvironment, orphans haveespecially been considered at the withinregistration the context and of displacedlicensing andlevels recently and resettled extra communitiessupport/consultations in ACAP targetedwill have areas.to be providedThis section to these provides SMEs a throughbrief profile the project.of the vulnerable groups. The district level workshops with government officials identified reed-based production, the Ahandloom large numberindustry, ofsmall-scale people garmentliving with factories disabilities and footwear are reported manufacturing from asMylawewa, the main Gomarankadawelasources of non-farm DS based Division. livelihoods In general, in the there districts. seems Small-scale to be more garment men with industry disabilities and thanfootwear women, manufacturing which could present be explained in Kathankudy by the extent could tobe which further they explored were affected for the potential by the war of asreplication well as accidentsinitially on that a pilot they scale. have The had available to face when skill base engaging and the in theirmarket livelihoods. demand for these products are opportunities for expansion, replication and further improvement of the Vulnerabilityindustry. Handlooms, is also characterised which falls under by the the high category number of of garment, widowers/widows has the highest in all target presence GN divisions.in the Batticaloa Nalloor GNDistrict, Division and in Muthurhas a well-establishedDS division is an exception,supply and reporting market fewernetwork. widows. The Tablesinvestment 3.7a onand technology 3.7b show transfer the vulnerable and linking groups the communitiesin the GN divisions with the targeted markets by outside the ACAP the projects,district are and the hence reasons this for study. the stability and presence of the industry.
The studied communities are not engaging in the coir industry and the industry is phasing out due to unavailability of the input - coconut husk. Small-scale carpentry, masonry and pottery are also present to some extent in the studied communities. The main clay-based industry available in these communities is brick making. The constraints of this industry and the potential opportunities are discussed in detail in the following section.
1363 Table 4.11:3.7a: VulnerableSmall industries groups section in studied in the GN two divisions districts by sex, Trincomalee, 2010 People with Widowers/ Orphans Handloom Coir Carpentry Pottery GN Division disabilities widows Batticaloa 27 9 4 2 Males Females Males Females Males Females Trincomalee 8 0 1 0 Sumethankarapura S 8 2 0 24 0 0 Source: District Secretariat, 2009 Nalloor T 10 12 0 62 0 0 BrickKadakarachenai making T 40 17 62 6 5 8 ClayAiliyadi brick M making, cement 28brick making18 and reed0 based production72 were4 identified5 and discussedNaduoothu as M non-farm activities20 at the8 community0 level, when85 speaking0 to community0 members.Vilgamvihara Pirambadithivu, Mylawewa9 and5 Pannichchaiyadiyaru0 10 communities4 engaged0 in theseThiriyaya activities S, T but only as an22 alternative12 livelihood 4activity which27 would cushion0 them0 when theirKithuluthuwa main livelihood S was affected11 by seasonality6 changes.5 26 5 1 TableMilawewa 4.12: S Population 46engaged 18in Brick making1 in17 the studied0 GNs in0 the Source:Batticaloa Assistance District to Conflict Affected Persons data, 2010
TableGN Division 3.7b: Vulnerable No groups in ACAP targeted GN divisions by sex, Batticaloa Punanai East 29 People with Widowers/ Orphans Ambalanthrai W 7 GN Division disabilities widows Vilanthoddam 01 Males Females Males Females Males Females PunanaiSource: DCS - EastBatticaloa, 2011 23 21 nil 98 nil nil TheMathurankernykulam clay needed for brick production8 is 5obtained from2 the paddy40 lands closenil to the village.3 MostPerillavely producers tend to locate4 their production7 site16 close to 64the land tonil avoid the costnil of transportingPoolakkadu clay. According 6to the FGDs,5 the clay 3is obtained52 only fromnil certain identified2 lands to avoid an environmental impact. At the time of the study, there were no restrictions Kithulwewa 8 6 nil 84 14 31 on clay mining imposed by the authorities. Koppavely 4 1 10 59 nil 9 BrickAyithiyamalai making isNorth one of the43 main livelihoods23 in Pirambaditheevu,nil 53 in thenil Poolakkadu1 GN divisionNediyamadu in the Kiran DS division.9 About 25-303 familiesnil were directly12 engagednil in brick making.nil ThePandariyaveli community level interviews8 highlighted4 that brick11 making also51 provided15 opportunities31 for casualAmbalanthurai labour, for- West those who5 did not 10have capital3 or land. 53Those who20 owned the18 land produced bricks on their own. Navakirinagar 5 5 9 15 nil nil ProductionPaalaiyadivaddai 13 6 4 83 49 42 Vilanthoddam 4 4 15 29 1 5 There is considerable traditional knowledge on brick making in the region. The conflict limitedSource: Assistance access to to theConflict clay Affected supply Persons and data,to marketing 2010 networks, but new marketing networks Inhave terms been of established, connectivity, and Mylawewa access to inclay Gomarankadawala supply is no longer GN a problem.is the most The remote, nature ofbeing this aboutindustry 45km provides away space from thefor bothmain mentown and centre. women In contrast,to engage Kuchchaveli in this form in of Thiriyaya family labour GN and or Vilaathottamhired labour. are the closest to the main bus route. The need for using multiple modes of transport such as ferries and buses and the resulting loss of quality of the produce and productiveBrick making time provides was highlighted the communities in the focuswith a group stable discussions and assured as income, connectivity since issuesthe risk that of affectinvolvement livelihoods. is low (Tables compared 1 and to 2 cropof Annex agriculture. 1 provides Bricks more are data usually on infrastructure produced parallel access). to cultivation, and the producers use traditional technology for the processing of the clay and for burning“If we thego tobricks. the town The earlytechnology morning is wastefulwe will return of energy, evening time 6 oand clock.” resources, and the quantity produced is low. However, the quality of bricks is very good. FGD, Vaharai Based on the collected data, the initial cost of establishing a traditional brick making site is Rs.25,000, including the construction of a kiln. Labour cost is the main component of the
6414 cost of“We making carry aon brick our andhead it the is Rs.vegetables 2 per brick. and Otherpaddy inputsthat we required produce are up waterto the andriver power (paddycrossing, husk). Paddycross thehusk river is usually using thesourced thoni from (raft) the which paddy costs free about of charge. Rs.10 Theand firewoodhead is sourcedfrom from there the to forests the market nearby. in TheValaichenai.” market price of a small brick was Rs. 5.50 without the transport cost. The profit ranged from Rs. 2 to Rs. 3 depending(Case on study, the cost FHH, of Kiran)inputs. The profitability of the industry motivates many producers to engage in brick making. Connectivity issues also hinder people’s access to basic services such as education and health.There is More a need importantly to enhance from the this brick study’s industry point through of view, improving connectivity the bottlenecks technology. will There mean is thatlittle theformal communities assistance have to brick to incur makers. extra Credit costs isto obtained transport through their produce the collectors, to the markets or through and accesspawning town family centres valuables for theirsince input the return supply. to investmentAlternatively is theyassured. have The to dependmain threats on suppliers to brick andmaking buyers, are extremewhich reduces weather their patterns, bargaining such poweras increased and this rainfall ultimately or floods. means that the profit the producer makes is reduced. Market Bricks“We have do a goodnot have market bus in services. the East We at present,should walk given by the foot levels 12 kmof reconstruction to Kadjuwatta taking place.Junction. Insufficient If we supply go by within auto (three-wheeler)the districts leads they to willthe chargeimportation Rs.300/-.” of bricks from other districts. There is an active brick making industry in (CaseBatticaloa study, and disabled, Trincomalee Vaharai) that is meeting this demand. Unlike other products, the producers get the accurate price and Themarket lack information of electricity relating supply to the in bricks the duecommunities to the dynamic is important nature ofto the note. market. Apart Despite from Kuchchaveli,the bad condition which is ofpartly the connectedtransport toinfrastructure, the main grid andcollectors mainly poweredcome to bythe solar different panels providedbrick-making by an villages INGO followingto collect thethe tsunami, products none and ofpay the the other market communities price for inthe this bricks. study They had accessalso tend to toan pay electricity in advance. supply. This has constraining implications for starting up value addition processes such as paddy milling or milk based products. Existing strong market linkages and opportunities of production need to be capitalised on in “We don’t have the electricity to produce the yoghurts. If we produce the curd order to make brick making successful. In the long run, it is also important to take into we cannot market it due to the lack of vehicle.” account the sustainability of the sector and the potential negative environmental (FGD, Eravur Pattu) consequences of expanding this industry. Some of the communities felt a certain level of marginalisation given the fact that some of the villages that adjoined their village of other ethnicities were electrified while theirs was not.
“There are electricity lines going over our village into the next village which is a Sinhala settlement. We were resettled in 2007 but still we don’t have electricity.” (FGD, Eravur Pattu)
Except in the Ayiliyadi GN division in the Kinniya DS division, all the other communities in the study had access to a supply of drinking water, mainly through tube wells and ground wells. However, water for livelihood purposes (especially crop cultivation) was identified as a critical constraint at the community level. Although most of the communities had access to at least a minor tank, these were in dire need of rehabilitation and the only other option they could depend on was rain water. This sole dependence on rain water was a constraint in reaching an optimal level of productivity from the available agricultural resources such as land and labour.
In addition to the acute income poverty levels discussed above, when one adds the other dimensions of poverty related to well-being such as connectivity and the availability of water and electricity, it is clear that the target communities need multi-pronged approaches in terms of project interventions to improve their livelihood conditions. For example, while rehabilitating the tank is a pressing need, the provision of other support structures such as availability of transport facilities, also need to be considered. The project activities will have to look to innovative methods of getting around the infrastructure bottlenecks such as, the provision of mills that can be operated on other types of fuel or organising and strengthening producer groups in order to promote collective transport of farm produce.
1565 3.5 Impact of conflict on livelihoods in Trincomalee and Batticaloa The Batticaloa District employs the highest percentage of people in the services sector, followed by industries. Trincomalee also employs the highest proportion in the service sector, followed by agriculture (see Figure 3.1).
Figure 3.1: Employed population by major industry
120% 100% 80% 60% Agriculture
40% Industries
20% Service 0% Ampara Batticaloa Trincomalee
Source: Derived from Labour Force Survey, 2010 Paddy, vegetables and other field crops are the main agricultural crops grown in the province, including the Batticaloa and Trincomalee Districts. Marine fishing is an important part of the fisheries sector in the two districts, which includes coastal and deep sea fishing. Batticaloa has the largest coastal lagoon ecosystem in the country, which largely contributes to the inland fishing industry in the district (Diprose et al., 2010)
Even though the Eastern Province is recovering from the conflict at a faster rate when compared to the Northern Province, the impacts and signs of conflict remain. Conflict has negatively impacted both production and productivity in the agriculture and fisheries sectors. Limited access to agriculture lands and restrictions on transport worsened this production and productivity loss. The lack of physical security has also led to a great deal of disinvestment in agriculture, as a result of conflict. The destruction of basic infrastructure linked with farming was also a major constraint to the sector (Diprose et al., 2010).
In Sri Lanka, the classification of strategic areas as high security zones has had a significant negative impact on agriculture. It denies access to productive land for farming and livestock grazing. It is estimated that 2,500 acres of paddy land have been declared as a high security zone (at the time of the study this was referred to as an ‘Economic Zone’4) in the Trincomalee District alone (based on information gathered from KPIs and the District level workshop). During the conflict, there were large amounts of land which was under the high security zone and inaccessible.
Military restrictions on fishing during certain times of the day, and other restrictions preventing landing on certain sites affected the productivity of the fisheries sector. Significant progress has been made in rolling back these restrictions, following the end of the conflict (KPI, Trincomalee).
4 The change in terminology when referring to areas (from security zone to economic zone) is positive as it implies a change in focus and continued peace.
16 5Most Policy of the Opportunities coastal infrastructure and Recommendations (especially roads, bridges and power lines), fisheries settlements and fishing equipment (including boats) were destroyed leaving most fishing Thecommunities final section affected of this and study requiring presents assistance. the larger Destruction policy framework of fisheries within infrastructure which livelihood such projectsas ice plants, involving landing resettled sites andcommunities harbours hamperedin the East the have fisheries to operate, sector particularly in the two indistricts. relation toThe the Batticaloa two districts District studied. was Itable also to highlights keep production the environmental levels high hazards despite to the which presence the target of locationsrestrictions. are Theprone. destruction Finally, it presentsof major, the medium recommendations; and minor inirrigation general fortanks project-based affected decisionproduction making by the and inland in detail fisheries by specific sub-sector livelihood (CEPA sectors unpublished (summarised study onin Tableagriculture 5.3). and fisheries livelihoods in the North and East, 2009). However, as shown in Table 3.8, 5.1production Policy levelsand Institutions in the Trincomalee and Batticaloa Districts did suffer during the height of Thethe conflictcore state (from policy 2005–2007). documents Subsequent that indicate to thethe cessation development of hostilities, thrust for production the East are levels the Mahindarecovered Chinthanaya and improved. and its associated Ten- Year Horizon Development Plan (GoSL, 2010). The comprehensive three-year development plan for the Eastern Province has been Table 3.8: Marine sector fish production by d istrict, 2004-2009 incorporated in the overall “Mahinda Chinthana” – a Ten-Year Horizon Development FrameworkFisheries 2006-2016District for Sri2004 Lanka. The2005 programme2006 is steered2007 by the President’s2008 Office2009 and thePuttalam Ministry of Nation Building16,520 and11,670 Estate Infrastructure14,910 17,130 Development.16,960 The provincial20,010 authorities, relevant District Secretaries and a wide spectrum of grassroot level communities Chilaw 14,220 9,360 18,720 24,180 22,060 21,950 in the Eastern Province play a pivotal role in the formulation of sectoral strategies. This sectionNegombo draws from the information22,780 16,940available on29,070 the website35,710 dedicated35,820 to the “Eastern37,490 Revival”Colombo 9. 1,640 560 590 510 1,030 830 Kalutara 20,690 11,560 30,520 39,950 39,580 33,100 TheGalle immediate areas of 17,530focus of the11,210 Three-Year15,530 Plan as outlined17,820 in the14,800 Eastern24,930 Revival websiteMatara include agriculture27,990 and irrigation,17,090 roads,38,480 power and48,460 energy, 47,810livelihood support,44,180 fisheries and livestock development, education, civil administration, health and sanitation, Tangalle 21,960 6,220 15,590 20,990 20,850 20,990 etc. This programme is an integral part of the National Development Plan, including mega infrastructureKalmunai projects which19,790 are aimed7,940 mainly at11,480 improving 12,810connectivity22,050 with other 16,260regions. TheBatticaloa strategy covers the development16,160 of7,650 major sectors8,930 including:11,710 resettlement21,850 of Internally24,530 DisplacedTrincomalee Persons (IDPs),16,540 Revitalising 6,790Productive 6,270Sectors and8,150 the Regional17,980 Economy27,690 which includeMullathivu Crop Agriculture, 2,200Irrigation, Fisheries,780 Livestock,850 Industries,360 Tourism260 and Minor,- SmallJaffna and Medium Scale 33,980Enterprises12,790 (MSME), Improving11,220 Economic5,130 Infrastructure5,830 13,080such as electricity, roads, transport (roads, railways), ports, water supply and sanitation and Rural Kilinochchi 3,130 1,460 830 590 360 - Infrastructure Development. Rural Infrastructure includes programmes under Gama Naguma,Mannar the decentralised17,060 budget, Gam8,380 Pubuduwa,12,990 Gami 9,170Aruna and 7,390the Rural 8,130Market Source:Development Department Project. of Census and Statistics, 2009, extracted from Table 5.34 The transport of farm inputs such as chemical fertilizer and fuel were also restricted during theThe war,following which ledpolicy to lowenvironment productivity creates of the landopportunities and increased for costdifferent of production. sectors thatThe positivedevelopment side ofprojects not using can chemicalharness. fertilizerThe main on issues these of lands the policies was that related there to is thean opportunitystudy areas forare discussedthese farmers below to and produce can be organicfine-tuned foods for developmentwhich have ainitiatives. growing demand. However, unfortunately, as discussed at the district level workshops, usage of chemical fertilizer has increased in the Batticaloa and Trincomalee Districts due to increased accessibility to fertilizer. However, there is still a potential to use uncultivated and abandoned land for chemical-free organic farming.
Repeated and protracted displacement of communities has greatly affected the skilled agriculture and fisheries labour pool of the North and East. Renewed stability following the end of military operations has created conditions that are conducive for the return of displaced persons. The increase in the skilled labour pool will help revive agriculture and fisheries in these provinces.
9 Easter Revival official website www.neweast.lk accessed on September 2010
1767 DestructionTable 5.1: Analysisof physical of relevantmarket centres policies and to themarket project networks during the conflict also hindered the agriculture, fisheries and livestock sectors. As discussed in the documents of “EasternPolicy StrategiesRevival”, the government strategicRelevance plan tofor development the development initiatives of the basedEastern Province5, lack of marketing and storageon facilities the findings discouraged of thethe farmers market from study engaging (the in production since it always leads to highsupport wastage, fromespecially government during the policyharvest makersglut. Storage to and processing infrastructure were alsoimplement damaged and the traditionalrecommendations) marketing networks lost. TheAgriculture livestock sub-sector, especially the dairy sector, was negatively impacted due to loss of milkCrop collection agriculture, networks production (District andlevel workshop,Production Batticaloa).enhancement is necessary for the crops productivity will be enhanced by that are produced in low volume and with high Theincreasing non-viability the cultivated of agriculture area andand fisheriesvalue addition as a result and marketof conflict-related potential. Different constraints types led generationsthe cropping of intensity. young people to seek ofother crops forms require of employment, different strategies. eroding theFor traditionalinstance knowledge base that existed in thesevegetables, areas before other the field conflict. crops Hereditaryand fruit cultivation employment in patterns have changed and attracting athe new two generation districts of producersshould haveto this asector production remains a challenge. As a result of migration, remittancesexpansion tofocus the areasdue haveto low also volumeincreased of and local can be harnessed to develop the region (CEPAproduction, unpublished to meet study the on agricultureconsumption and demand fisheries livelihoods in the North and East, 2009).within the districts. On the other hand, crops such as paddy should have a market focus due to market 3.6 Institutions saturation. The Ministry of Agriculture Development and Agrarian Services (MADAS) is the key governmentFarmers will institution be encouraged charged with to theIt shouldimplementation be noted of that agriculture home gardening related policies is one andof issues.diversify The their mandate crops mainlyof MADAS through covers the policy, important planning income and generating implementation, activities through in which its departmentshome gardening, and statutory fruit cropbodies. and FHHs and PwDs engage in. They should be linked to perennial crop expansion. any potential assistance coming from the The Department of Agriculture (DOA) government.under the Ministry Expanding of Agriculture fruit crop cultivationDevelopment needs and Agrarian Services has the infrastructureto taketo provideinto account services seasonality to the differentand marketability. provinces. Agriculture is a devolved subject, andValue there addition are opportunitiesprovincial agricultural for fruit needsoffices to withbe agricultural instructors in every Govi Janaput Kendrain place / Centreso that (De there Silva, is 2009).high return These received centres are found at the divisional level in allfrom farming the cultivation.districts and Mixing provide cropping agriculture perennials support services and extension services throughout,with short-term from cultivation crops will to generatemarketing. income A number for the of research and training institutes supportproducer the functions until of thethe DOA. perennial The Provincial crop Departmentbecomes of Agriculture implements agriculture extensioneconomically and viable.communication and research activities in relation to crop sector development under the devolution of power to the provincial council.Industrial The crops capacities such of as these grasses, institutions The expansionhave decreased of the inprivate the war-affected sector and projectsareas when of comparedmaize, tosoybean, other parts groundnut,of the country development due to the institutionslack of human in the resources East provides because an of increasedsesame, migrationsunflower of andofficers sorghum and destruction opportunity of physical to invest infrastructure in these (suchcash ascrops. buildings, The vehicleswill be and introduced other assets). to the low producers should be linked to the potential markets yielding areas in the Province to in the region for the cultivation to be sustainable. Theaccelerate Ministry theof Livestock local production Development of has the primary responsibility for the livestock sector withraw Departmentsmaterials for ofanimal Animal feed Production and and Health located in each province providing servicesmixes. related to animal livestock development. Milco and Nestle are the most prominent private sector agents are engaged in the dairy sector in the country. Marketing of agricultural produce The sectoral analysis of the study finds the lack of a will be increased by providing market close by, poor access to markets and market access to markets through the linkages, constrain the agriculture sector as a provision of improved market whole. The support from the government creates an facilities, and the facilitating of enabling environment for implementation of the farmers to engage in the project. It is also important to facilitate the 5 The Eastern Revival development programme by the government, the website for which is www.neweast.lk, includedidentification, a wide spectrum production of social outreachand programmesgovernment’s such ascooperation resettlement ofto internally create displaced a regional people, landminemarketing clearance, of rehabilitation high andvalue awareness market programmes centre as where well as the massive produce infrastructure from the development East is projectscommodities. such as new road networks, bridges, ports,consolidated power plants, at electricity one location distribution and networks, distributed hospitals, to anda schools. This 3-year programme which was to endwider in 2010 market. had a total budget investment of Rs. 197,219 million (US$ 1840 million). (Source: Permanent Mission of Sri Lanka to the United Nations in New York, 2008)
6818 The following are areas of responsibility in the fisheries sector with their respective Collective marketing of agricultural produce is overseeing/implementing institutions in brackets; the fisheries sector is led by the Ministry another way of increasing the bargaining power of of Fisheries and Aquatic Resources (MFAR) in charge of policy design, implementation the producers. (Department of Fisheries and Aquatic Resources and Coastal Conservation Department), research (NARA), education (NIFNE), development and extension (NAQDA). Many of the It should be noted that there is a policy drive by the government’s regional research and development establishments (NARA and NAQDA) are government to promote high value crops. It backs now in a serious state of disrepair and in some cases, requisitioned by the military (FAO, the study recommendation of introducing high 2007). value paddy varieties as a pilot effort. There is a host of other service providing institutions that are related to the agriculture, Special emphasis will be placed on This is an opportunity to address the issue of lack of livestock and fisheries sectors. The Department of Irrigation at the national level and the development of agriculture extension support for animal husbandry and provincial level play a significant role in developing the agriculture sector in these recently research and extension systems in vegetable cultivation. Livelihood development resettled areas. order to identify and cater to a initiatives can consider resource transfer to facilitate dynamic crop sector in the east. sufficient extension support. The resource transfer However, there is a marked lack of presence of these institutions in the North and East due can be in the form of capacity building or financial to the conflict which prevailed until 2009. In the rehabilitation process these institutions Having identified the lack of support for administrative infrastructure such as should be provided incentives to start operating in these areas. A range of donor funded and properly functioning irrigation office space and vehicles. local NGO programmes such as Sarvodaya, SANASA and some commercial banks provide schemes in the East as a reason for micro finance whereas insurance related to livelihoods are less common. These efforts could low productivity in the area, the The implementing agency for irrigation facilities at be further extended and expanded to help provide capital to farmers and fishermen to invest policies in the irrigation sector the central level is the Department of Irrigation. The in income earning ventures. envisage ‘improvement to water focus of irrigation improvement at the moment is on quality and irrigation efficiency, the major and medium tanks. Most of the study operation and management, locations benefit from the minor tanks. If rehabilitation of existing canals and development projects are unable to rehabilitate all head works, drainage and flood the minor tanks, lobbying is necessary for the protection, salt water exclusion and improvement of minor tanks. Community the development of new irrigation participation on the maintenance of tanks is equally schemes.’ The on-going mega important. irrigation development projects in the two districts are Allai in Trincomalee and Rugham scheme in Batticaloa and rehabilitation of the Kurangupanchankulam scheme, Puluganawa tank, and Boroppola and Unichchai tank.
Introducing drip and sprinkler Micro irrigation is necessary in order to increase the irrigation systems, regulating irrigation efficiency and productivity of vegetable ground water regulatory and fruit cultivation. This will help to reduce the cost mechanisms and strengthening the of production and increase the competitiveness of capacity of the provincial irrigation the farmers. department are some of the steps envisaged for the development of the irrigation sector.
1969 Livestock Increasing farm returns to livestock The productivity improvement areas that keepers by improving the development initiatives should focus on are, productivity of the livestock sector. upgrading and increasing availability of the cattle breeding stock and improving quality of feed.
Providing necessary infrastructure Rehabilitation of rural roads and farm roads should facilities, which are vital for the be given priority. Awareness needs to be created on production and marketing of this issue. livestock produce, introducing value addition to diversify the Dairy value addition such as local level curd and livestock sector. yoghurt production should be supported by providing necessary training and equipment. The technical support from the relevant authorities could be obtained for training related to value addition, packaging and also marketing.
Promoting extensive management It should be noted that intensive management is of cattle for meat and intensive not practiced in the East and the farmers should be management for milk production. given necessary exposure on this management practice before it is introduced. A special effort Organise the livestock farmers into should also be made to link the capable farmers Producer Co-operatives and similar with this effort and facilitate gaining knowledge on Farmer Organisations for collective modern farming techniques. marketing of farm produce and enhancement of farmer returns. Breeds that are suitable for different management systems need to be introduced. Fisheries Improving infrastructure such as Large state-driven investment in fisheries constructing anchorages, improvement infrastructure is an opportunity for and construction of landing sites, non-governmental development organisations to provision of ice plants. focus on improving other areas of the fisheries sub-sector such as facilitating market linkages. The target communities should be linked with these large infrastructure projects.
Provision of other services such as Electrification is a cross-cutting constraint for most electricity, drinking water, toilets of the target villages. Provision of electricity for and improvement of access road these communities by the government will enable networks for the fishing development projects to initiate more value addition communities. (fish processing) and introduce more non-farm based livelihood activities such as ICT-based small businesses such as mobile phone and computer repairing and three-wheeler/motorbike repairing.
70 4.Support Value-Chain for the inland Analysis sector for such Key This Livelihoods policy aspect in helpsBatticaloa address and productivity Trincomalee related as free fingerling stocking, supply constraints discussed in the analysis of inland Aof value-chain cages for analysissea bass looks culture at the and chain fisheries. of activities The and local relationships level fingerling that allow production producers toestablishment get their goods of communityto market, andbased the constraintsthrough mini to hatcheries moving through should thetarget chain the andvillages adding in value.mini-hatcheries This study lookedare some at several of the value this chains study of as farm well, and and non-farm development products projects that form should the livelihoodsareas that of havethe targetbeen groupsprioritised in thelook Batticaloa at ways and of Trincomaleefacilitating community Districts. This access section to identifieswithin the the fishing factors industry. that constrain thethese target activities. communities from moving up the different value chains and also the opportunities that exist to do so. It concludes with identifying meansImproving of overcoming marketing the throughconstraints It andis also capitalising necessary on to theprovide opportunities. capital support For eachfor product,efforts suchit was as observed construction that theof atarget the poorgroup fisher produced folk to primarily come out for of the viciouslocal market, cycle identifiedfish market as andthe localfish retail consumer outlets. or theof local credit trader. and The becomemiddlemen more dominate. independent There wasin very little value addition taking place. marketingValue addition their was produce. constrained by the destruction of all capital resources during the conflict and the deterioration of infrastructure (for example, roadsIndustries and power supply). Lack of financial capital and inadequate access/availability to financialRevitalisation services of theis antextile acute industry problemThe for industriesa population such whose as smallasset localisedbase has garment been so strongly eroded. Livelihoods are also threatenedindustries bycan natural be replicated disasters suchwith assupport flooding. from government departments as well as non People in the East have the traditionalgovernmental skills, interest organisations.. and enthusiasm The to handloomengage in agriculture, fisheries, animal husbandryindustry and in non-farmcan also activities be supported such as brickwith making. new Institutional support, particularly the technologicalsupport of livelihood inputs. activities at a micro level, is minimal. There is space to provide the necessary infrastructure and create a livelihood-conduciveEstablishment of industrial environment zones which In will the improve long production,run, the promotion support value of additionlarge level and developand providing less exploitative concessions relationships with a withindustries the middlemen. will benefit the target populations by view to improving public-private providing formal employment opportunities in the 4.1sectors Paddy region. The value-chain analysis based on primary and secondary data highlights that the farmers inProvision the studied of infrastructure GNs are predominantly facilities atProvision the production of infrastructure level of the value facilities chain. Insuch order as to obtain a higher value for their produceelectricity, they need roads to moveand waterup the willvalue improve chain orthe be introduced to new methods of increasingcompetitiveness profitability of and produce reduce within the cost the of same production. stage of the value chain. 5.2 Natural hazards and coping methods The mainNorth constraints and East are identified susceptible are those to several regarding kinds low of naturalproductivity, hazards. low Table value 5.2 additionprovides andan outline low marketability.of the natural hazards Productivity which impact related specific constraints livelihood can sectors be resolved and the mainly potential by regularisingcoping mechanisms access to which land, communities crop diversification, can use ensuring to mitigate water the supply impacts. and improving access to inputs; fertilizer, seed paddy and machinery.
It is proposed that low value addition is resolved by increasing space for value addition at the local level so that the profit that is diverted elsewhere is retained by the producer and the target communities. Promoting the local rice mills by providing support to establishing and strengthening existing small and medium enterprises (SMEs) will increase the selling price. The possibility of creating products out of paddy waste such as paddy husk and bran can also be linked to the promotion of SMEs. Also proposed is the sale of rice-based products at the local level and in the long term for export out of the districts to improve value addition. There is also a need to improve the infrastructure, such as electricity and farm roads, in order to sustain the value addition process at a competitive market level.
Targeting external markets, which are mainly the districts with a production scarcity, by promoting collective marketing and encouraging private sector partnerships is one possible method of improving low marketability. Increasing storage facilities and product diversification to tap niche markets (such as selling traditional varieties of rice to urban centres and within the tourist sector) will generate higher returns. Facilitating more formal
2171 Tablefinancial 5.2: services The Impact and providing of natural off-season hazards income and generationpossible coping activities methods to reduce debt will give the producer more bargaining power and increase marketing options. Sector Natural Impact on Potential coping Figure 4.1: MappingHazard of actors andlivelihoods value of the product along mechanism the value chain Crop sector Increasing salinity Loss of soil productivity, Development of salinity degradation, arable tolerant cultivars Change in Actors PADDYcoastal FARMING land Product Value Crop sector Rainfall regimes and Reduction of productivity Development of seeds/ resulting droughts of agriculture land cultivars with low Within the and floods Consumers Currirrigationent market requirementsprice by -Samba Rs. 76.19 community/DS introducing desirable Within the district -Nadu Rs. 64.64 Outside district Naducharacteristics rice is sold at R sof. 4 5.00 per kg wtraditionalithin the dist rriceict varieties Inco(suchme per askg tpokkali)o retailer Rtos. 1high6.00 yielding rice varieties in Whoorderlesaler tose lproducels new -Samvarieties,ba Rs. 57. 1some0 of which Traders based -Nadmayu Rs. help 48.0 0meet the . in the community Traders Incoimpactsme per k gof to climate WS Rs. 12.00 . outside DS/District Large mill owners change, early warning Prodsystemsucts based on waste Miller Sells -Rice bran Rs. 18.00 per kg Inland Rainfall regimes and Drought leads to lower -PadIntroductiondy husk Rs. 3.00 of psecondaryer bag Fishing resulting droughts yields in seasonal tanks livelihoods, proper Millers- and floods and loss of freshwater planning of aquaculture . Large scale and brackish water activities such as cage . Small scale Millers and traders purchase resources which affect culture . Home based Processors -Dry paddy Rs. 21.00 Rice flour based inland/aquaculture -Wet paddy Rs. 19.25 small scale producers Sells Nadu to the wholesaler Crop sector Rise in sea level Reduction in land extent at Rs.Land 32.0 zoning0 to identify available for cultivation areas for cultivation SmaIntroductionll scale miller of secondary -chalivelihoodsrges Rs. 2.50 per kg Large scale miller Title holders -sells the rice for Rs. 32.00 FishingTenant farmerRises in sea level Reduction in beach area IncoBetterme per resourcekg Rs. 6.00 Lease farmers availableProducer fors beach seine management practices activities and awareness creation Farm gate price -Samamongba Rs. 3 0the.00, fishersNadu Rs. 28.00 Adverse impacts on fish (Government) breeding grounds which -Samba Rs. 29.00, Nadu Rs. 22.00 DOA will lead to increased (Traders) Agrarian services resource depletion Profit to the farmer (if sold at department Rs. 22.00) Rs. 6.00 per kg Source:Agro Ministrychemic aofl s Environment,uppliers 2010 Local money lenders Cost of production AccordingDept. of I rtorig athetion vulnerability profilingIn pundertakenuts by the MoE, Eravur Pattu has been identified as a highly vulnerable DS division for droughts and floods-Rs. 16 .00which per kgwill have adverse effects on paddy and livestock rearing. Porativu Pattu and Kinniya have been identified as Source: Department of Census and Statistics, Department of Agriculture, Central Bank, HARTI, Primary study data *moderately Sale prices and vulnerable. profits are based Kuchchaveli on primary hasdata collectedbeen identified during the studyas highly vulnerable to sea level rising and Muttur as moderately vulnerable. Future project planning, in these areas will have to be aware of these adverse effects and try to incorporate the mitigation measure mentioned above. For example, construction of fish landing sites or anchorages in the areas
7222 Thethat aboveare susceptible figure maps to sea the level actors rising along is notthe advised.paddy value Interventions chain and in shows Eravur how Patttu the willvalue have of theto include product introduction changes as of it droughtmoves along resistance the value varieties chain of to crops the finaland livestockconsumer. breeds. All the Further, service providersthis mapping at exercisethe input has level, been the conducted large scale only andup to small the DSscale level millers and might and havethe traders missed theare predominantlypotential vulnerabilities men according at the toGN the or datacommunity collected levels for the and current these specificstudy. There cases were will havewomen to whobe considered produced inpaddy intervention mainly planning.as tenant farmers, lease cultivators and most commonly, as wage labourers. The vulnerable groups female-headed households (FHHs), persons with disabilities5.3 Recommendations (PWDs) and the elderly that were among the employed category were mainly engagedRecommendations in paddy cultivationhave been for organised daily wage into or four for paymentmain areas. in-kind The and first in section tenant providesfarming. Theregeneral were recommendations FHHs that engaged for development in processing projects paddy aimed into at ricebenefiting and selling these communities.it within the communityThe second or section in neighbouring goes on tovillages. provide recommendations to overcome the cross-cutting issues for different types of income generating activities. Recommendations for each Assub-sector represented are indiscussed Figure 4.1,next. the Finally,profit thespecific producer recommendations gets from his produceare made is thefor leastthe amountcommunities of profit in this along study the which value can chain be replicated even though in other he/she target puts communities in the most based amount on the of effort.livelihood Apart profiles from (seethe profitTable that5.3). millers gain from selling the rice, they also gain additional profit by selling the by-products of paddy milling, such as rice bran and paddy husk. As clearly5.3.1 General stated in recommendations the diagram above, the wholesalers and retailers, who are at the highest levelThe producersof the value in thechain study gain group more are value mainly from mapped a kilo ofon rice to thethan lower those levels below (most them of inthem the valueare at chainproduction6. It should level) ofbe the noted respective that this value value chains chain as presents discussed only in thethe previous immediate sections, value additionlimiting their of milling. profitability, Those role engaged and control in other in theforms value of chain.value additionGiven their to ricemultiple could and gain diverse even moreconflict-related profit from experiences a kilogram in theof rice. past Thethree studied decades, communities they are severely did not constrained engage in byvalue the additionlack of capital,except fortechnology small scale and milling supportive at local structures level, which (such does as notconnectivity, provide the extension highest possibleservices) return. and also environmental hazards like floods, drought and wild elephant attacks which make them even more vulnerable within a post conflict environment. The traders, the middlemen and the large scale mill owners outside these communities held theThe mosttarget powerful group of positions this study along is in the a transition value chain. state They following were thethe priceend of givers the violent and the conflict other actorsand is vulnerablealong the tovalue external chain shocks had little as discussedbargaining throughout power. The this vulnerable study. Even groups throughout - such the as tenantconflict farmers,time period, FHHs they and have PWDs engaged - had even in traditional less bargaining livelihoods power but due the toanalysis their dependency shows that onthese other sectors actors have in not the reached chain, their lack optimal of awareness potential andabout there subsidy is a need schemes for support and theirwith entitlementsthe end of war and and the resettlement. temporary nature The existing of their skill employment base is the as biggest wage labourers. advantage The and fact should that somebe capitalised of the labourers upon with were the paid support in kind, of new rather technology than in cash,so that is athese clear producersindication becomeof their position.more competitive. Based on the analysis, the study team feels that strengthening the already existing sub-sectors will provide relatively stable incomes to the target group, in the short Thereand medium is a clear term. need The to introduceanalysis alsoa more recommends equitable negotiationcash crop cultivation,process along culture the valuefish, chain.non-farm The activities discussions related with to maintenancethe relevant and experts repair, highlightedretail trade andthat agro-based the influence products and dominanceas potential of future the traders trends and for thethe middlementarget group. cannot Training be eliminated on enhancing at once, existing but need skills to and be integratedmanagement into practices intervention would designing also be important. in such a way that the more vulnerable groups can benefit from their ventures. For example, if the middlemen are provided support to start up aThe SME current for paddy study milling and experience in the community, gathered the in paddyconducting producers this research in the community shows that should starting be directlycompletely linked new to livelihoodhim. activities in an environment that is in a stage of revival is risky. Thus, such initiatives need to be undertaken with alternatives that people can fall back on if Increasingthese new livelihoods productivity do not take off. However, the market study clearly highlights gaps in the production, productivity, value addition and marketing levels within the existing sub - Assectors, mentioned which needbefore, to beresettled filled in ordercommunities to increase in theboth income districts of theare target engaged communities. in paddy cultivation. Tables 4.1 and 4.2 show the changes in the production and extent sown as a consequenceThe study also of identifies the heightened niche areas military for activitiessupport and and growth the destruction within the of existing irrigation sub-sectors. in the two districtsThe indication (during that 2006 people and are2007). engaged By 2008, in, andclose open to the to, endalternative of the war,forms with such the as cultivationcash crop ofcultivation both uncultivated or culture andfishing, abandoned creates thelands, space paddy for productionniche sectors and to the spring extent up sownwithin showsthese value chains. The study also highlighted some niche areas where the traditional sectors can benefit using the same skill base – highlighting, for example, the need to explore the potential for introducing high value traditional paddy varieties that bring in higher market 6 The costs associated with transport, labour and storage for the wholesalers and the retailers should be deducted inpotential order to computeand returns the exact to theprofit producer. gained by theThe two study players. also Unavailability looked at of areas these wheredata restricts communities further analysis can onbe thelinked profitability. to expanding industries like tourism in the region.
7323 anInterventions increase. Withdo not the always increase need in to the take extent place sownin the intarget both communities. districts and Interventionsthe increase atin production,a different point at present in the valueboth districts,chain can as create shown positive in Table backward 4.3, produce linkages more that paddy can enhance than is consumedthe livelihoods within of thethe targetdistrict. communities. The returns For from instance, paddy evento the if theproducer target cancommunities be increased do not by expandinghave the resourcesthe extent orcultivated the infrastructure and/or increasing to invest the inproductivity, an ice plant, keeping support in mind to externala more factorsentrepreneurial (such as individualmarket prices). in close While vicinity community of the communitylevel interviews could and increase key person the shelf interviews life of revealthe community’s that there fish is morecatch landconsiderably to be used and enablefor cultivation, them to commandthere are amany higher constraints price. to productivity that also need to be addressed. Farming families could benefit more from a strategyGiven the thatrecently increases resettled the context productivity of the target of existing communities, paddy a conflictland, and sensitive uses approachhitherto uncultivatedthroughout the land project to grow cycle other is cropscrucial. (depending A recently on concluded the technical study feasibility undertaken of soil by and CEPA other in conditions),collaboration which with the would University then diversify of Oxford their through agricultural three caselivelihoods. study programmes (Diprose et al., 2010), stressed the importance of programmes responding to the social contexts that Table 4.1: Paddy production in the Batticaloa and Trincomalee Districts they are dealing with and managing the ways the programmes interact with social dynamics soYear as not to exacerbate the tensions present Productioninto overt conflict. (MT) It identified the importance of understanding the heterogeneityBatticaloa of the target population and targetingTrincomalee all ethnic groups but to varying degrees (forYala more ‘privileged’Maha ethnic groups in Yalaparticular areas thisMaha means focusing2004 attention on the50,594 poorer members)112,951 and considering29,109 local group divides90,300 such as IDP-host community tensions, inter-regional tensions (some areas are consistently prioritised 2005 50,882 94,394 62,603 89,880 for aid over others following complex emergencies) and recently resettled-local group tensions2006 and attempting49,031 to provide a level131,830 of equitable distribution43,370 between the85,439 relevant communities.2007 49,039 37,476 42,147 63,039 2008 61,609 55,020 NA 73,505 Source:A considerable District Secretariat number - Batticaloa of projects: and Trincomalee, state, international 2008 donor and private sector funded projects and investments are in operation in the two districts focusing on livelihood Tableenhancement 4.2: Paddy and restoration extent sown10. The in experiencesthe Trincomalee and the and lessons Batticaloa from these Districts projects should be factored into future development initiatives in order to avoid duplication, to find and Year Extent sown (Ha) strengthen synergies among the projects and most importantly not to repeat the same errors and to incorporate the learningBatticaloa of these projects in order to optimiseTrincomalee the returns from the resources allocated for developmentMaha activities.Yala A working documentMaha by the InstituteYala of Policy Studies2004 (IPS) highlights46,050 that some of the46,182 experience of the25,022 large scale private7,795 sector in investing2005 is not very positive46,182 (Wijesinghe,16,719 2009). “CIC, for23,743 example, noted 16,321that heavy bureaucratic2006 burdens meant46,772 that it took 15,498nearly 3 years to 16,287obtain some basic11,027 approvals, counting nearly 20 successive steps. Hayleys Agro, which operates under an out-grower 2007 18,469 2,705 18,987 10,368 model with Eastern farmers, noted that at times local commitment is a challenge as forward 2008 19,134 25,022 contracts have been breached by local farmers.17,728 Education of local communities is7,795 essential toSource: meet District these Secretariat challenges. - Trincomalee, They need 2008 to and be Department sensitised of to Census the entry and Statistics of the large formal private sectorTable 4.3into showstheir regions the average and made yield aware for theon how2 districts to form against successful the partnershipsnational average instead and of perceivingBatticaloa isit assignificantly a threat.” below the national average, whereas Trincomalee is closer to it. However, this is district level data and it would be safe to assume that the average yield of Thethe targetpossibility communities of linking is upmuch with less the given regional the constraintshubs where that more they trade face. and manufacturing enterprises are situated should be explored in order to maximise spillover effects. Most of theseTable enterprises 4.3: Paddy are average located yieldin the (Kgs/Per more urban Ha) areas like Kaththankudi Urban Council and TrincomaleeYear Trincomaleeand Batticaloa Municipal Batticaloa Councils and popular National tourist destinations such as Pasikuda,2004 Kalkuda and 4,050 Nilaweli. The target2,997 population of development4,086 projects in the study areas2005 can be linked up 4,131 with these hubs as2,654 raw material suppliers3,963 of fresh fruit, vegetable and milk for processing enterprises and also for making small garments and other small-scale 2006 4,104 3,316 4,137 industries. The lack of physical space for expansion in some of these hubs like Kaththankudy can2007 be also overcome 4,306 with these initiatives.2,991 4,386 2008 4,440 3,805 4,184 Source: Department of Census and Statistics (various years)7 10 USAID (CORE) Livelihood Assessments undertaken for Trincomalee and Batticaloa (May 2009) provide a list of donor7 Department projects of Censusfunded and through Statistics internationalwebsite, organisations and their local partners (available at www.core.zunepile.com).www.statistics.gov.lk/agriculture/Paddy%20Statistics/PaddyStatsPages/Production.html
2474 IrrigationIt is important that there is continuous monitoring, consultation and follow-up with the Bothcommunities Batticaloa on theand assistanceTrincomalee given Districts to them have in orderaccess to toensure water the resources sustainability for ofpaddy the cultivation,support. Past with lessons both fromdistricts NGO having support both proves major that and projects medium fail irrigation when there tanks. is no (Table follow-up 4.4) However,and monitoring. this does It is alsonot importantensure that to shareall areas the successhave sufficient stories of access certain tocommunities water sources with throughoutother target the communities. year. Many Forareas example, were noted the highas facing demand problems for smoked when tryingdried methodsto access ofwater fish andprocessing were being in Kurinjankatkulam affected by droughts/floods in Vaharai should periodically. be shared with other communities that are engaging in inland fishing. Table 4.4: Major and medium tanks in the Batticaloa and Trincomalee Districts 5.3.2 Cross-cutting issues Major and Medium Irrigation Schemes Major and Medium Irrigation Schemes StrengtheningBatticaloa farmer/fisher District producer groups Trincomalee District Production groups such as farmer organisations and fisher societies need to be DS Division Number DS Division Number strengthened/created in an environment where livelihoods are resuming after the war. It is importantKoralai Pattu to makeNorth sure that these groups3 areKantalai empowered to be able to engage in3 value additionKoralai Pattuand marketing.South Training related2 to valueSeruvila addition, marketing, and quality control,2 shouldManmunai be providedSouth West through farmer organisations.3 Morawewa New simple technologies on branding,4 packagingManmunai andWest storing should also be2 includedPadavisripura in this training. This type of training1 is necessaryManmunai for South the paddy,& Eruvil fruits, Pattu vegetable1 and dairyTown sector. & Gravets In addition, there should be1 more awareness and training given to facing/coping with potential hazards and environmental Porathivu Pattu 2 Kuchchaveli 5 issues such as floods, droughts and animal threats. Members of these production groups should also be part of the village level SMEs formedThampalakamam to market the local produce to external2 markets. Muthur 2 Gomarankadawela 5 Infrastructure Kinniya 1 Infrastructure improvements are crucial in all the target communities. Lack of connectivity Source: District Secretary, Batticaloa and Trincomalee, 2008 due to lack of roads, mode of transport, poor public transport facilities, poor electricity Somesupply, of lack the oftanks physical functioned market throughout centres andthe conflict,dilapidated but minorwere nottanks maintained are cross-cutting properly duringinfrastructure-related the height of theconstraints conflict. thatThe allirrigation the sub-sectors infrastructure are facing.that was Large destroyed development by the fightingprogrammes needs are to present be renovated in the East and toirrigation improve maintenance the class A and and class management B roads. However,needs to thebe re-introducedrural roads need if theto be irrigation reconstructed system if isthe to connectivity reach its full of capacitythe communities and irrigate is to allbe theimproved. paddy landThe roadscultivation connecting in the thedistricts. farmland Both with government the main androads non-government need to be reconstructed. organisations Tank are engagedrehabilitation in improving will remove irrigation bottle-necks capacity, for agriculture but the smallerand provide tanks the are opportunity not as likely to engage to be rehabilitatedin crop cultivation as the duringlarger ones.both seasons The irrigable and alsoarea optimiseof a small inland tank isfishing. around Value 50-150 addition acres ofpossibilities land, and arewill limitedbenefit in a communitiesfew villages or where GN Divisions. there is noThese electricity tanks areor where the responsibility the electricity of thesupply local is fluctuating.government Some authorities, interventions and even such though as providing they needmilling much opportunities, less investment machinery for rehabilitation,for value addition the cannotlocal government be done without authorities the necessary are not alwayspower supply.able to Theallocate ways the of providingfunds. electricity for these villages need to be explored. Another issue is the lack of coordination. Where tanks are functioning, lack of coordination betweenFinancial farmer services organisations and officials in charge of releasing the water for land preparationAccess to financial can cause services delays, should and beaffect improved seed sowing for any and of the harvesting. sub-sectors to be sustainable. This will help producers to come out of the vicious circle of credit dependency. Micro credit Paddyshould cultivationbe provided in forthe farm Eastern based Province as well isas done non-farm during based both producers the Maha andand enterprises. Yala seasons, In withthe case the wherehighest micro-credit extent of land is provided being cultivated by development in the Mahaprojects, Season it is importantas rain-fed to paddy. provide In a floodcustomised prone areas,micro-credit however, for thethe cultivation needy, productive of paddy andpoor other farmers crops and takes vulnerable place only groups. during theAwareness Yala season raising when should there be is undertakenless rainfall. at This the iscommunity the case inlevel the onKiran the DS available Division formalin the Batticaloafinancial services District whereand the farmers procedures who cannot and cultivatedocumentation paddy duringprocess the for rainy accessing season chooseformal tofinancial engage services. in other alternativeWhere specific livelihoods development such as wage interventions labour in non-farmdo not provideenterprises, financial or in wageassistance, labour potential on agricultural beneficiaries lands outsidecan be ofdirected the DS towardsDivision. the Access other to government irrigation allows and householdsnon-government to cultivate organisations paddy duringproviding the micro-credit Yala season. facilities. If the irrigated water is insufficient farmers will cultivate vegetables and other field crops that use less water. While this helps diversify the agricultural portfolios, it also increases the productivity of the paddy lands and this practice should be strongly encouraged.
2575 In5.3.3 some Recommendations areas where irrigation by sub-sectorsfacilities are not available, communities use agro wells and cultivateThe following vegetables recommendations and other field highlight crops that interventions have a low that water can requirement. be undertaken Agro to wellsimprove are notthe positionsuitable offor vulnerable all areas, menand andespecially women not in thefor areastraditional like Kithulwewaagricultural andin the non-farm Eravur valuePattu divisionchains. Tablewhere 5.3 the maps water out table the is potentialextremely solutions low. based on the main components of the value chain, and identifies the types of organisations that can implement them. This section Availabilitythen goes on ofto skillsdescribe and in experiencemore detail the in paddydifferent farming solutions proposed for each sector. One of the main factors strengthening the potential for paddy production is the availability of skilled and experienced farmers who are interested in continuing paddy cultivation. The skills of paddy farming have remained with the communities throughout the conflict, with some farmers being able to engage in cultivation even during the conflict. Young people are also showing an interest in investing in agriculture. The skilled and experienced labour can be used to maximize the productivity levels in the two districts.
“There are wage labourers who are continuously working in one paddy land for a long time so their availability is assured.” (FGD, Kinniya)
Improving access to inputs Improving access to quality seed paddy and fertilizer at the correct time and access to machinery will increase the productivity levels of paddy. Lack of awareness about the government subsidised schemes and lack of financial capital result in the use of low quality seeds and fertilizer.
Seed paddy Seed paddy is one of the key inputs of paddy cultivation. Different communities source their seed paddy from different places. Some get it from the government farms; others use their own, or purchase from individuals who cultivate using government seed paddy and maintain uniform paddy fields (uniformity in terms of paddy produced from using the same quality seeds). Seed paddy can be purchased from the government for cash or by providing paddy that meets the quality standards. Thus, if the farmer can store a portion of the paddy production for a season, he/she can exchange it for government seed paddy. The availability, accessibility, quality and cost of seed paddy in the studied districts have shortcomings (described below), which has resulted in many constraints to achieving the maximum potential in terms of production and productivity.
The seed paddy provided by the government is of a better quality than that of the farmers’. The farmers own paddy is often mixed with weed seeds and the use of combined harvesters can damage the seeds, reducing the rate of germination and lowering productivity. Even though the quality is better there are some constraints to accessing seed paddy from the government. It is only available to farmers cultivating their own land and tenant farmers need to get a letter from the land owner before they can obtain government seed paddy, delaying the process. Many small-scale farmers are also not aware of the process for purchasing seed paddy from government farms. The price of the seed paddy provided by the government is not affordable for some poor farmers. Therefore, they use their own seed paddy and this leads to loss of productivity. The DOA’s extension services have been curtailed (due to resource issues), and this has constrained its ability to make farmers more aware of what services are available to them.
2676 Fertilizer The fertilizer subsidy for paddy farming is a big incentive for farmers to engage in paddy cultivation. This is particularly the case for those farmers who were affected by the conflict, were resettled and had to begin to initiate paddy cultivation. The subsidised selling price of a 50kg urea fertilizer sack is Rs. 350, but the price to the farmer varies depending on the transport cost.
“The government subsidy is Rs.350. With the transport costs included one sack of fertilizer costs about Rs.450 - Rs.500.” FGD, Gomarankadawala Development Organisations, Organisations, Development DS DOAS, Organisations Development Organisations Development Organisations, Development DOA, DOAS Organisations Development Organisations Development Organisations Development Organisations Development As with seed paddy, tenant farmers with no paddy land registration are unable to get the fertilizer subsidy. Many are not aware of the procedure of getting a letter of consent from the landowners, and so end up purchasing fertilizer at higher prices. The farmers without the Paddy Land Registration (PLR) are unable to access the subsidised price scheme. Given that most of theSales farmers in the studied communities are tenant farmers and some do not have the PLR, awareness creation about the available facilities and support to access good quality fertilizer is crucial.
Other constraints include the quality of the fertilizer, which seems to be deteriorating, and the location of the fertilizer stores, which tend to be some distance away from the farm lands.
“The quality of the fertilizer that was given by the government used to be very good. But now it has gone down a bit. The Urea fertilizer that is manufactured locally, at the Fertilizer Corporation is of good quality but the fertilizer that we get 77 now is brought from Malaysia and it’s not of very good quality.” FGD, Gomarankadawala
In Batticaloa and Trincomalee, there were no facilities to store fertilizer. Most of the storage
facilities Inputs have & Producers been Processors Marketing Institutions affected by the war and this affects the farmers in these two districts. The use of organic fertilizer for cultivation was minimal among the farmers even though they had the knowledge about the advantages of using organic fertilizer and about the ill effects of inorganic fertilizer. Extension services and trainings are provided by the DOA on the usage of organic manure for paddy and vegetable cultivation. However, high water requirement for the production of organic manure and slow returns are the main reasons preventing farmers from using organic manure for cultivation.
Delayed delivery, high transport cost and deteriorating quality are some of the other aspects preventing the achieving of desired outcomes of the fertilizer subsidy. Financial mismanagement, corruption and direct or indirect bribes are the alarming factors hindering the effective implementation of this national policy. Better monitoring is essential as this policy initiative directly deals with cash handling.
Agricultural Machinery The relaxation of the restrictions on transport after the war has gradually supported mechanisation of agriculture in the two districts. Large scale machinery, such as combine harvesters is now available in the district, and the use of machinery has helped overcome labour shortages and increased efficiency. In areas where paddy cultivation had just begun (e.g. Gomarankadawela) farmers did not have sufficient capital to purchase machinery for
ploughingPotential Solutions and Paddy sub-sector – solutions for low productivity harvesting. the strengthening to land by access Regularising land disputes mechanisms to resolve maintenance of minor and regular Rehabilitation irrigation tanks and other infrastructure subsidy fertiliser on accessing awareness Increase seed paddy and on purchasing awareness Increase with technology support local seed paddy producers and training Paddy sub-sector – solutions for low value addition milling near local communities opportunities Provide and SMEs Support small scale rice based production local people who can be assisted for Identify construct storage facilities, of storage development at the local level facilities waste for on potential market information Provide the long term and husk) with material (such as bran these products aim of engaging in marketing Table 5.3: Solutions mapped against the value chain and possible implementing institutions the value chain and possible implementing Solutions mapped against Table 5.3:
27 Although machinery usage can increase the productivity of paddy land, the farmers were aware that it can also have negative impacts. Paddy harvested with a combine harvester is of lower quality than that harvested manually, and can damage seed and make it unusable as seed paddy.
“We don’t have any tractors in this village. Sometimes, in an emergency, we use the combine harvester; for example, if the rains are coming and we need to finish the harvesting before that we would hire a combine harvester, but the quality of the paddy is not good if we use a combine harvester. We have to hire one from Madawachchiya” FGD, Gomarankadawala Local Authorities Organisations Development Organisations, Development DOA, DOAS Organisations Development Organisations Development Organisations Development Organisations Development Development DOA, DOAS, Organisations Organisations Development Organisations Development DOA, Development DOAS, Organisations Organisations Development
Poor connectivity to the farm land restricts the usage of machinery, as well as the transportation of inputs to the farm and produce out of the farm. Most roads were damaged during the conflict and need to be reconstructed. Poor road conditions add to the cost of production too by incurring additional transport costs.
Environmental factors The most common threat in all the studied communities came from wild elephants, which destroy the paddy fields and other agriculture crops. Farmers use less effective traditional methods to chase the elephants in the absence of electric fencing which has had more positive impacts in other parts of the country that faced the same problem. The compensation schemes available from the government, such as crop insurance, were seen as futile by the farmers due to the delays and costs in processing.
“There is an insurance scheme introduced through the Govi Jana Sewa to 78 compensate for damage to the harvest. The process to claim compensation is long, difficult and expensive. They need proof of the incident to claim compensation, so we need to submit photos. For the photos the people from the Studio in Horowapothana wanted Rs.7,000. Compared to the cost that we have to bear, the compensation is not adequate.” FGD, Gomarankadawala
Floods and droughts are also a problem. Kiran DS division is the most vulnerable to flooding. During the rainy season the entire paddy land gets submerged and makes paddy cultivation in the Maha season almost impossible. Flooding damages the drains and bunds, so land preparation becomes difficult, which in turn requires more time and resources to be invested in land preparation each season.
Access to land As discussed at the district level workshops and the key informant interviews, the availability of land for cultivation in the Batticaloa and Trincomalee Districts can be identified as an opportunity not only for expanding paddy cultivation but also for the cultivation of other field crops.
Access to these lands, however, has been restricted due to factors such as lack of proper legal entitlements, demarcation of high security zones and uneven topography. The farmers in the study locations felt that the increasing extent of land sown was not resulting from greater land ownership by the poor farmers who are engaging in paddy cultivation. The owners of the paddy lands located in these communities are outsiders and only a limited
amountPaddy sub-sector – solutions for low marketability roads farm Improve of villagers providers credit withLink communities other micro credit customised micro and provide owned livelihoods support to diversify Provide paddy value high market rice varieties traditional Introduce on prices and potential information market Provide lands.buyers linkages with outside districts market Create sector partnerships (e.g. Cargills, private Facilitate paddy CIC) to help market Vegetables and fruits sub-sector of local capacity seed production Increase – and at authorities – DOA and DOAS agriculture level community fertiliser the use of organic Promote irrigation micro capital support to introduce Initial systems sufficient and provide extension officers Increase functioning better for resources of the extension officers building Capacity
28 Land has become a contentious issue in both the Batticaloa and Trincomalee Districts. Some landowners had abandoned their paddy lands and migrated outside the district during the conflict. Other people have begun farming these lands without informing the owners. There is also another group of farmers in the lands of those who have migrated either locally or oversees, cultivating the lands in a tenant capacity. The end of the conflict saw owners returning and reclaiming their land and displacing those who thought they would have the opportunity to cultivate these lands for a long period of time. There is also the danger that lack of ownership will prevent farmers from investing in the productivity improvement of the land they are cultivating and it also has implications for accessing the state sponsored input subsidy schemes discussed earlier (such as for fertilizer). In the Trincomalee District a large portion of the land was declared as a high security zone. 2,500 acres of paddy land has also been Organisations, Development alienated Organisations, Development Department of Industries, forDOA, DOAS the construction Organisations Development Organisations Development of Organisations Development a coal Organisations Development power Organisations Development plant and Organisations Development now electrification of for to lobby formsthese areas Departments, Government an Organisations Development ‘economic DAPH, Development Organisations zone’ Organisations Development encompassing five GN divisions, including Sampur. This has created a problem of landlessness in the area.
Batticaloa faces the problem of uneven topography, which necessitates considerable capital investment for the required levelling. Unevenness in land reduces irrigation efficiency and leads to diminished productivity. Productivity is also affected by salinity in the soil in some areas of the Batticaloa District and the Kinniya Division in Trincomalee. The lack of crop rotation and continued cultivation of paddy has exacerbated the problem.
Increasing value addition Paddy is largely marketed as paddy, with little or no value addition. Where paddy is milled, for example in Ayilady and Kinniya, it is done in small scale village-based rice mills for a fee and used for consumption rather than for selling on the market. 98% of the farmers in the study locations were selling raw paddy without any processing (based on key informant 79 interviews) and only 2% were capable of storing the paddy and processing it later.
Value addition at the local level as rice, rice-based products and paddy waste such as bran and husk will give higher returns to the producers. This will also provide them with additional sources of income that will help them move out of their debt cycles. The main constraints for the value addition are the lack of initial capital, the distance to the existing value addition centres and the lack of an assured market for the value-added products.
One of the main reasons for the lack of value addition at this level is the unavailability of large mills with new technology in the region. The large mills are located far from the communities (the nearest commercial scale mill to Gomarankadewela is in Horawapothana, 2 hours away) and farmers were not interested, nor able to incur the transport costs.
“If there are mills close by we can save the time that we spend on going for milling and use that time for some other productive activity.” FGD, Gomarankadawala
The situation is exacerbated by poor road quality. For instance, there is a large mill located at the border of the village in Ayilady, which is not accessible due to poor road conditions.
“There is a small mill in this village. They are not doing milling on a large scale. This milling is done only for consumption purposes. It is done for a fee. We pay Rs. 5 per kg of paddy” FGD, Ayilady, Kinniya Dairy and livestock sub-sector Provide capital support for traditional food food traditional capital support for Provide methods processing addition value new technology for Introduce machinery at processing vegetable Provide level community with low water low country vegetables Promote requirement and inter-cropping mix cropping Introduce vegetable and inter-seasonal diversification Crop cultivation addition on potential value awareness Increase methods and improve to power (electricity) access Improved roads milk yield land to increase pasture Rehabilitate milk to increase varieties grass improved Introduce yield to breeds cross suitable good quality Introduce milk yield increase
29 There are also no facilities for making rice flour on a commercial scale. There is no private sector guarantee to buy the value-added products even if there is any value addition done. In addition, there is a need for training and technology transfer in making rice-based products. The government is willing to provide extension services if there is an attempt by the private sector or NGOs to conduct contract farming (based on information from the DS level workshop). The technology to make rice-based value-added products is not available locally. The lack of electricity in most of these target communities (as discussed earlier) also acts as a constraint
In comparison to the general producer groups, certain vulnerable groups such as the FHHs engage more in value addition processes linked to paddy, albeit on a very small scale. As presented Organisations Development in Organisations, Development TableLocal Authorities 3 Agriculture, Provincial of Development support from AnnexOrganisations 1 of bearers DAPH, Office (tableCooperatives profiling Organisations, Development Local Authorities vulnerableLocal Authorities groups), Organisations Development the Organisations, Development FHHsLocal Government Organisations Development in Kiran Organisations Development either buy the paddy during the harvesting season or collect the paddy that they receive as payment for the paddy wage labour activities and store it at home. They boil it and mill it at home and sell the rice in the neighbouring villages during the off-season.
These value-addition activities can be strengthened and improved further by promoting SMEs within communities for rice milling, rice based production and for paddy waste-based production, or by supporting individuals further up on the value chain (e.g. medium-sized mill owners) to develop their activities and to integrate with actors below them in the value chain through the sourcing of labour and paddy from farming households. Community based SMEs could be managed and made to function through producer groups on a profit sharing basis and could include the producers from the vulnerable communities who already have the experience of rice milling and making rice flour-based products such as string hoppers. Collective production can be introduced where, according to the type of vulnerability/disability, different groups engage in different activities along the process. 80
SMEs should be linked with better supply and market routes and integrated into the overall production and value-chain process in order to be sustainable in the short term within the target communities with the aim of expanding into urban centres in the long term. There is a potential market for the rice-based products and the paddy waste-based products from poultry mash buyers and biscuit manufactures, who will have to be identified and linked with the SMEs.
Increasing paddy marketability The study’s target group comprised of small farmers who produce paddy, largely for consumption but also with a view to selling the surplus. However, the market is largely a buyers’ market, and farmers have little control in determining prices and/or accessing alternative market opportunities. The many reasons for this are elaborated below, leading on to potential recommendations for livelihood and value-addition interventions.
Most farmers in our target group in Batticaloa and Trincomalee sell their paddy within the district. There are two main buyers: the Multi-Purpose Cooperative Societies (MPCS) purchase for the government under the Guaranteed Price Scheme (purchasing only about 5-10% of the total production of the district and buying only from the registered farmers) and local traders. There is little involvement of the large-scale private sector in paddy marketing, even though many of them are involved in marketing agro-chemical inputs.
Even though the paddy producers within the district prefer to sell their paddy within the district, there was an excess of paddy production in both districts at the time of the study Provision of initial capital to purchase equipment and capital to purchase of initial Provision start up SMEs training through transfer Technology within supporting human resources Increase institutions management systems cooperative Regularising establish milk collection infrastructure, Improve with managed sales outlets and links community milk bars and hotels for local canteens, restaurants, marketing direct roads rural Improve as initial capital to selected credit micro Provide groups in minor tanks and support communities Rehabilitate maintenance work at local of fingerling breeding the feasibility Explore and constructing mini hatcheries nurseries level financial and technical support to existing Facilitate the quantity to improve centre breeding district level of the breeds supplied and quality (Trincomalee 74,293 Mt and Batticaloa 157,335 Mt)Inland fisheries sub-sector and at the national level, as shown in
30 Table 4.5. However, there are districts that show a scarcity and with the state driven road infrastructure development, connecting the Eastern Province to the rest of the country, the excess paddy from Trincomalee and Batticaloa can be supplied to these areas, such as the Western Province and the Central Province.
Paddy marketing outside the district can be promoted by encouraging the private sector to play a bigger role in the marketing process. Even though the private traders and individuals are involved in purchasing paddy, they do not provide long-term sustainable support to the sector. They are perceived as exploiting the paddy sector rather than supporting it. They have access to a good network of farmers and this partnership can be promoted to be more equitable and profitable to both the producer and the buyer. The farmers should be encouraged Organisations Development Department of Fisheries, to Organisations Development engageFisheries societies, Organisations Development in collectiveDepartment of Fisheries, Organisations Development marketing Organisations Development to these Organisations Development private Organisations Development sellers and Organisations Development this would increase Organisations Development working with Fisheries societies their bargaining power while also ensuring a continuous supply to the private sector.
Table 4.5: Excess/scarcity of paddy for 2010 by district (Mt)
District Maha Yala 2010 Total for the Annual requirement Total 2009/10 Year 2010 of paddy for human consumption Trincomalee 106,727 39,752 146,479 61,965 74,293 Batticaloa 193,274 74,563 267,837 90,421 157,335 National Total 2,629,566 1,559,493 4,189,059 3,443,419 473,718 Source: Department of Census and Statistics, 2010
Due to a lack of storage facilities and the need to settle debts incurred the producers are
obliged to sell the paddy immediately following the harvest, which gives them a lower price 81 due to the high supply during that time period. The prices paid by the MPCS are higher than the prices paid by private traders (except in the case of Samba rice for which the MPCS offers a very low price), but they demand a much higher quality of paddy. Payments from the MPCS take about a week to 10 days to be effected. For these reasons, many producers prefer to sell the paddy to the local traders even at a lower price. Providing storage facilities closer to the community and facilitating more formal and accessible financial service schemes will give the producer the opportunity to store the paddy and sell it during the off season when the prices have picked up.
The physical market infrastructure that existed in many communities prior to the conflict were destroyed by the war. Farmers felt that they had more bargaining power when their produce was sold at the local market centres, because these allowed them to get price information from outside markets. Some physical markets, for example the ‘pola’, still exists but they are more focused on selling products from outside the area within the community rather than linking the community’s produce with the outside market. Promoting these local markets will give the producers a chance to directly market their products in their localities.
“There aren’t any local market centres in this area that may connect the local market to the wider marketing network. Only Pola type markets are available where the vegetables can be marketed.” FGD, Kinniya
Producers find it difficult to reach the market because there is a lack of good transport facilities. Agricultural lands are not connected to the main motorable roads in most areas and Supply of fishing gear to vulnerable groups/those groups/those Supply of fishing gear to vulnerable that sustain them on new methods of fish culturing training Provide management about resources creation Awareness and stopping over-fishing fishing (especially about culture awareness Increase sector) with the aim of promoting among the private control quality and introducing investments mechanisms fisheries societies and/or strengthen Create groups with the farming integrated - added products value for branding Improve name and packaging a trade introduce such as Pola, Establish to existing local markets links within the establish sales outlet at urban centres districts and link producers interested up potentially and linking Identifying the fishing individuals with financial institutions/ in deep sea fishing, crafts, – to invest community equipment and support services poor fisher folk for facilities microfinance Provide there is a dearth of vehicles for transportation. Marine fisheries sub-sector
31 “It costs Rs. 50 per sack to transport paddy from here to Gomarankadawala. There aren’t any tractors in this village except small tractors.” FGD, Gomarankadawala
The lack of proper infrastructure was seen as a constraint for the marketing of the produce by the vulnerable groups. The problem of transporting the produce out of the village was discussed at the district level workshops and at the community level as a constraint for marketing their produce. For FHHs, because of the extra physical effort needed on the part of these women to carry their produce (on their heads) to the locations outside their community, this is particularly problematic. The lack of proper roads and public transport makes it practically difficult for the women to transport the produce and financially it is not feasible Organisations Development to hire Organisations Development transport; Organisations Development the Organisations, Development Department of Fisheries women Organisations Development in Kiran Organisations, Development Department of Fisheries carry Organisations Development their Organisations Development home Organisations Development garden Organisations Development produce Organisations Development on their Organisations Development heads to Valaichenai and travel by foot and on the ferry. The people living with disabilities also face the same constraint given their limited mobility. Encouraging collective marketing and strengthening the farmer organisations and the marketing networks would reduce the transport-related constraints to a certain extent.
Access to financial services Local traders are often the suppliers of credit to the farmers for their cultivation, and the indebtedness forces some farmers to sell their produce to the traders at whatever price is offered. Other traders arrive at the farm-gate and pay a spot price for the paddy, which eliminates the farmers’ need for storage and/or transport. Farmers find it difficult to move out of these seller-buyer relationships which are exploitative rather than supportive of the producers. Introducing more accessible formal financial sources and alternative livelihood options would help mitigate this constraint.
82 Even though there are formal sources of finance that farmers can access - such as commercial banks, microfinance institutions and NGOs - the cost of credit, delays due to cumbersome documentation, lack of proper awareness about the process and the requirements, and the need to provide collateral, force farmers to access informal sources. These informal sources range from boutique (small shop) keepers, fertilizer retailers, buyers, and middlemen to local traders. Obtaining financial services from these informal sources tend to lock farmers into marketing relationships with local traders that can be exploitative. The Samurdhi programme provides livelihood loans that have a credit limit between Rs. 10,000 to 20,000 depending on the type of activity in which the borrower is engaged. Small farmers in the study areas were more confident of obtaining this loan rather than loans from the more conventional formal financial sources such as the state and commercial banks. The process does not require much documentation (merely a six-month record of savings by a group of Samurdhi beneficiaries). The interest rate is 10% and the payback period is 6 months. However, timely disbursement is a problem.
“We cannot get government loans at the proper time. If we apply for one season, they give loans for the other season. It is very difficult to get the government loans also, because of too many regulations before the approval time” FGD, Kinniya
Facilitating more formal credit sources and providing group loans could be a means of breaking the vicious cycle of debt that seems to bind the producers. Parallel to this, as stated earlier, introducing alternative income sources through crop diversification would give the producers an income in-between the paddy seasons and also during the low yielding Yala
season. support enterprising individuals to provide Identify etc.) boat manufacturing services (ice production, initial capital and facilitate training and provide fishing gear capital and technical support for Provide and equipment and fishing craft boats boats into multi-day of day Support conversion the specialised fishing gear to suit Provide seasonality during secondary livelihoods alternative/ Introduce season the off on cleaner fish handling training Provide fishing culture Introduce addition such as fish value Introduce/expand level canning at community on financial management, marketing Training mobile through to price information access Facilitate phones with linkages to the markets and create Identify capture power to sell high value purchasing more fish and culture sector linkages with private market direct Facilitate
32 Cross-cuttingHigh value varieties solution - integrated farming system for minor tanks MinorThere tanksis a trend, usually mainly belong among to a communitythe paddy producerswith 50-150 in familiesother parts benefiting of the fromcountry, it. Anto integratedcultivate traditional farming approach varieties. with The paddy yield cultivationis low compared can easily to bethe adopted hybrid varietiesaround the that minor are irrigationcurrently moretanks. commonly Inter-seasonal cultivated, short-term but as vegetables/grains a result the prices such of theseas cowpea, varieties green are muchgram andhigher. soya Some bean ofcan the be traditionalcultivated withvarieties the remainingfound in Srimoisture. Lanka Livestockare Dahanala, such asDevaraddiri, cattle and goatHeenati, are bestHondarawalu, for this type Mawee, of farming. Murunagakayam, Fish can be introducedPatchaiperumal, to the Suduwee minor tanks, and soSuwandal. that the tankA brief is inquiryutilised intoto its the optimum market level.potential A live of thesefencing traditional around cultivation varieties highlighted land is important the niche to protectpotential it infrom the grazingmore urban animals. areas and the tourist industry in the country. The general market prices of the more traditional varieties such as Suwandal, Madathawalu and Kaluheenati Thiswere farming as high systemas Rs. 170has -185numerous a kilo potentialat the time advantages. of the study. It helps These farmers traditional to overcome varieties theare problemsmore nutritious, of seasonality rich in taste, by providing pest-resistant a year-round and need income. no artificial, The inter-seasonal petroleum-based leguminous fertilizer vegetableand the higher cultivation value helpswill mean better more soil nutrientprofit for management the producer. and However, increases the cropping market intensitylinkages whichwill have yields to be higher facilitated returns in partnershipper unit of land with to the the private farmer. sector This andis another given the way risk of factorimproving of a thenew efficiency crop, it can of beirrigation introduced water. on Animal a small waste scale canwith be the used view as to manure expansion for cultivationin the medium and harvestterm. residuals and live fences could be used as feed for animals, which will reduce the cost of production of the whole system. Tank fish will provide families of farmers with adequateStorage access to animal protein. However, traditional value systems and beliefs of the farmersThe lack in of the physical communities storage willinfrastructure have to be adds taken to intothe considerationpaddy farmers’ when problems introducing of limited the integratedaccess to marketssystems. and For limited example, opportunities in a community for value where addition, livestock and rearingdepresses for themeat price is not of practiced,paddy on theintroducing market. Thegoat provision rearing will of storagenot be successful. at the local Using level willthe eliminatetank that thisprovides constraint. water forThe cultivation data collected to rear by ACAPfreshwater also states fish and that engaging there are in no fishing storage might facilities be rejected available by in certainany of communities.the target GNs except the paddy storage available in Naduoothu, in the Trincomalee district. Areas such as Poolakkadu in Eravur Pattu had large paddy storage facilities before they were I. Paddy sub-sector destroyed by the war. At the time of the study, there had been no attempt made by the Thegovernment analysis or identifiesNGOs to reconstructa) increasing these productivity, paddy storage b) facilities. improving value addition and c) increasing marketability as means of generating a higher and sustained income from the paddy sub-sector. Given the excess production levels in the two districts and the growing “We store about 1 bushel of rice only, which is what we need for consumption for trend in volume of production, further efforts in increasing production is not encouraged. the week. We don’t have separate storage for paddy in our houses, there is very Providing other income opportunities in terms of rice/rice-based value-added products, limited space. We store in the rooms of the house.” engaging in other forms of livelihoods and establishing more equitable market linkages are FGD, Gomarankadawala encouraged. a)Farmers Increasing are reluctant productivity to store paddy at home for fear of being attacked by elephants. Lack of storage is a critical problem, because there is an excess of paddy production in the East Regularisingat the moment access (as shownto land in Table 4.5). The lack of storage facilities also means that the Introducingfarmers cannot methods store andthe mechanismsseed paddy that to provide is required solutions for the for nextland season.disputes Discussionswill increase held the interestwith the levelproduction of the farmersgroups revealedin two ways. that theFirst, establishment they will have of an storage incentive facilities to invest at the in localland fertilitylevel would management help to protect and themaintain producers the fromsustainability price shocks. of the Individuals land cultivated. at the community Second, regularisedlevel could beaccess identified to land for will establishing mean easier common timely accessstorage to facilities. government subsidies on quality fertilizer and seed paddy, which in turn will increase the yield from the paddy land. In conclusion the above detailed analysis proposes a multi-pronged approach in designing Rehabilitationthe interventions and for regular these vulnerable maintenance communities. of minor Constraintsirrigation tanksat all theand levels other of theirrigation value infrastructurechain as discussed in the figure below, should be addressed in parallel for positive impacts Theto be minor felt bytanks the andbeneficiaries. related infrastructure For example, in whilethe two implementing districts serve interventions the target populationsto increase moreproductivity, than the financial major andservices medium and tanks technology but the shouldfocus ofalso the beexternal made actorsavailable is more to theon rehabilitatingcommunities alongmajor with and functioningmedium tanks infrastructure at present. and Rehabilitation market linkages. and regular maintenance of minor tanks is important and should be highlighted as an issue of importance among relevantThe following authorities diagrams with map communities the constraints, being causes, involved potential in taking solutions care andof the the tanks.institutions The resultingfor implementing timely and these sufficient solutions. availability of water will increase the productivity of the paddy lands. The involvement of the community through farmer organisations will ensure continuous maintenance of the irrigation-related infrastructure even without the presence of an external actor.
8333 IncreaseFigure 4.2: access Mapping to quality of constraintsinputs (seed andpaddy potential and fertilizer) solutions for low productivity of Awarenesspaddy sub-sector should be increased on procedures that need to be followed in order to obtain good quality, timely seed paddy at a lower cost for own account workers as well as tenant/lease cultivators.Constraints Supporting localCauses level seed paddyPotential producers who areInstitutions currently Solutions Implementing engaged in seed paddy production by providing training on new technology and initialSolutions capital will increase the availability of seeds. Regularising access to land Development Disputes over Unresolved land by strengthening the Organisations, b) Adding Value land ownership mechanisms to resolve DOAS, DS land disputes Increasing storage facilities Poor investment Storage facilities shouldTenancy be provided oncloser land to the community to facilitate the storage of paddy, seed paddy and fertilizer. Identifyingmaintenance and assisting the local people in developing storage that will be shared with theDamaged community major or constructing paddy/seed paddy/fertilizer stores closer to the target communitiesand mediumwill protect the farmers from the paddy price shocks irrigation brought on by seasonality. It will giveinfrastructure them the space to avoid the harvest glut and wait for the correct market price. Farmers would also be able to store the seed paddy required for Development the next season whichPoor irrigation will reduce theirDamaged dependence minor on theRehabilitate input suppliers.minor Organisations, facilities tanks irrigation tanks Local Providing milling opportunities (paddy and rice) closer to the communities Authorities The value addition to paddy is envisaged to be at three levels; rice, rice flour-based products Poor maintenance Encourage community Development (eg: hoppers, string-hoppers and pittu)of irrigation and paddy wasteparticipation (husk toand maintain bran) based products. Organisations TechnologicalLow and capital constraintsinfrastructure for the value additionthe irrigation processes infrastructure could be overcome in Productivity two ways. One is by promoting individuals with the capital and experience in value addition such as medium-scaleUnavailability mill ofowners to expand and improve their activities and integrate those machinery at the producer level of the value chain by sourcing their labour and paddy. Second, community based SMEs could be initiatedPoor quality with the involvement of the small-scale rice and fertiliser rice flour-based producers such as FHHs on a profit sharing basis. These SMEs should be linked to markets atAccessing the local and, inLack the of longPLR due term, with the urban centres in order to ensure sustainability. fertiliser subsidy to tenancy Introducing high value traditional paddyLack varieties of Increase awareness on Development information accessing fertiliser subsidy Organisations Introducing high value paddy varieties initially on a pilot basis within the communities that already possess the skills will bringInsufficient them higherseed returns.Support Although local seed paddythe yield is Developmentlower from traditional varieties, the market pricespaddy production are higher andproducers linkages with technology with marketsOrganisations, with high and training DOA, DOAS purchasing power and the necessary start up technology and input will move the paddy Lack of producers away from the common varieties and protect them from the price fluctuations of availability and Lack of PLR the common varieties.accessibility of seed paddy Lack of information Development c) Increasing marketability about the procedure Increase awareness on Organisations, of seed paddy purchasing seed paddy DOA Identifying niche markets purchasing Source:Specialised Study datamarket opportunities should be identified for paddy and the value-added products at the local level as well as outside the district. Areas that are popular with local tourists could be targeted for rice flour-based products such as hoppers. For high value traditional paddy varieties the tourism industry and local urban markets with high purchasing power should be targeted. The potential markets for paddy bi-products will be toothpaste, biscuit and animal feed producers. Links should also be identified and created with the private sector (for example, with companies such as Cargills and CIC). Private sector companies are already showing an interest in buy-back systems and forming partnerships with producers in the conflict affected North and East and this potential should be explored.
8434 ProvidingFigure 4.3: market Mapping information of constraints and linking and up withpotential markets solutions for low value addition Accurateof paddy up-to-date sub-sector information on prices and potential buyers will lessen the dependency of the producers on middlemen who are seen to play an exploitative role. Producers should be linked to the Constraintsmarkets outside theCauses districts through producerPotential groups suchInstitutions as farmer organisations. Collective marketing should be encouraged Solutionsto ensure continuousImplementing supply to Solutions the larger scale dealers such as private sector companies. Identify local people who can be assisted for Development Providing support to diversify livelihoods development of storage Organisations Damaged storage Poor storage facilities Introducing cash crop cultivation suchfacilities as due red to onions, big onions, chilli and fruit such as facilities banana, papaya, mango and pineappleconflict could be recommended as secondary/alternative Construct storage facilities Development livelihood options for the target communities (see atsection the local level4.1 foron paddy cash crops Organisationsfor further details). Exploring the possibility of an integrated farming system with cash and other field crops, livestock rearingLack of electricity and inland fishing in the village tank as discussed above will help the communities to diversify.supply Other crops with low irrigation requirements in comparison to paddy could be cultivated during the Yala season and also during the inter-season in the Provide milling same paddy tract using the moisture that was retained in the soil during the MahaDevelopment season. opportunities near local Organisations A diverse livelihood portfolio will provide producers with a cushioncommunities during the off-season and inter-seasons of paddy cultivation and bring them out of credit bondage to the trader/collector, opening up marketLack opportunities of mills with andSupport better small bargaining scale rice ability forDevelopment a higher Low Value new technology flour based production Organisations paddyAddition price.
Development Providing/facilitatingLack ofmicro value credit facilities Provide support to SMEs addition facilities Organisations Linking producers with rural micro credit facilities will make them less dependent on the informal credit systems. The potentialLack ofof market lending to these recently resettled communities should be explored with both regulatedguarantee (Sanasa for Development Bank, Hatton National Bank, value added People’s Bank) and non-regulated financialproducts institutions (Samurdhi Authority, Sewa Finance, SEEDS, BRAC SL and Arthacharya11) and awareness should be created at community level Lack of on the prerequisite documentationinvestment processes. on Micro credit/revolving loan schemes can target the more Absencevulnerable of value groups newin thetechnology communities such as PwDs and FHHs who could addition for use it as start capitalwaste suchor asfor purchasing production equipmentProvide information and onalso for value addition Lack of bran and husk potential market for waste activities such as rice milling and riceknowledge flour-based about production. Development material with the long the potential Organisations term aim of engaging in market II. Vegetables and fruits sub-sector marketing these products
Source:For vegetable Study data and fruit crop cultivation in the two districts to become competitive with other districts, production and productivity will have to be enhanced along with the introduction of value addition technologies and dynamic markets. Given the excess paddy production in the two districts and the lack of properly functioning irrigation facilities, the introduction of vegetable and fruit varieties with low moisture requirement and high value addition or marketability should be strongly encouraged. a) Improving production and productivity
Improving seed availability High yielding hybrid seed varieties with a shorter maturity period should be made available to the farmers by supporting the increase of production capacity of the DOA through technology and capital transfers if necessary. Seed production at the community level could be introduced with the support of the DOA and DOAS. Opportunities of linking up the farmers with the private sector seed producers should also be explored and facilitated.
11 Source: Gomez, June 2009
8535 PromotingFigure 4.4: the Mapping use of organic of constraints fertilizer and potential solutions for low marketability Theof paddy comparatively sub-sector smaller plot size for vegetables and fruits and the fact that the fields in these areas have been arable for a certain period of time due to the conflict makes cultivation using organic fertilizer highly profitable given the niche market for such produce. Constraints Causes Potential Institutions Farmers should be made aware of the potential higher returnsSolutions of using organic Implementingfertilizer and training should be given to them in preparation of organic fertilizer with requiredSolutions quality.
Damaged roads Local Introducing mix/inter-cropping, cropand diversification bridges due and inter-seasonalImprove farm roads cropping authorites Fruit and vegetables could be cultivatedto conflict as mix or inter-crops, a mix of short-term crops and perennial crops so that the farmer can gain short-term and long-term income from it. Crop Poor Poor road diversification willconnectivity protect the- farmersmaintenance from price shocks during the harvest glut and will also increase nutrientroad management condition of the soil. The introduction of inter-seasonal vegetable and vehicles Low private cultivation will optimise the moisturevehicle in theownership soil following the paddy harvest and will increase the return per unit of land for the farmer during the year. Alternatively, promoting vegetables and fruits with a relatively lower waterLack requirementof public such as pineapple is also advised. transport Promoting micro-irrigation systems Development Provide support to Organisations, Increasing awareness on the merits of using micro irrigationdiversify livelihood systems such asDOA, drip DOAS and sprinkler irrigation and providing initial capital will improve the cultivability of the land and Dependency on Link the communities with Development bring long-term benefits to the farmers.local lenders It will to also increase the efficiency of water usage, other micro credit providers Organisations given the dry zone conditions of thesepurchase areas. inputs
Improving extension services Provide customised micro Development credit Organisations Increasing the numberLack of credit and area of coverage of extension officers, providing sufficient support resources for better functioning andLong capacity procedure buildingin of the extension officers will facilitate the transfer of latest technological theknowledge formal sector to the farmers. Some of these crops might be relatively new to the farmers and strong extension services are essential in order to High level of overcome the potential challenges documentationin cultivation. in Low accessing formal Marketability credit b) Promoting value addition Only 5% purchased Development Provide vegetable and fruit processingthrough machinery at communityCreate market level linkages Organisations Increasing awareness on potential governmentvalue addition activitieswith outside and districts providing training and introducing new value addition methodsMPCS for vegetables and fruits will increase the returns to the producers. Vegetable processingHigh machinery credit such as seed separators for maize, soya beans and cow pea and fresh fruit juicedependency and pulp making machinery could also be introduced. Unable to market Lack of storage the paddy Improving traditional methods of processingfacilities Providing capital supportproduced and facilitating market linkages for traditional value addition Lack of private Facilitate private sector Development methods such as preparation of lime dill,sector pickle and spice (chilli, saffron) grinding will move partnership - Eg: Cargills, CIC Organisations the producer higher along the value chain.involvement Good quality packaged products can be marketed targeting the local markets as well as tourist related ventures. Lack of market Provide market information Development information on prices and potential buyers Organisations III. Dairy and livestock sub-sector Lack of Cattle, goat and poultrySaturated localrearing are the most prevalent Introduceelements traditional of animal rice husbandryDevelopment in the diversification in two districts. Goatmarket and for poultryhybrid rearing is done to providevarieties meat high marketwhile value cattle-rearingOrganisations is done rice paddy varieties for both dairy and meat purposes. Source: Study data The dairy industry can be strengthened by: a) improving the productivity of the herds by introducing suitable good quality cross-breeds, rehabilitating pasture lands and introducing improved grass varieties, b) increasing institutional support to the industry by increasing the quality and capacity of human resources in the departments, providing financial services
8636 facilities,4.2 Vegetables and facilitating and fruits formal financial services through relevant institutions, rural banks andThe NGOs,Batticaloa c) providingand Trincomalee value addition Districts opportunities produce other by fieldimproving crops access(OFCs) to such power, as chilli,rural roads,cowpea, facilitating green gram, technology kurakkan, transfer maize and through sorghum. training, Low landand vegetablesprovision suchof equipment, as brinjal, d)beans, improving okra, bitter marketability gourd, snake through gourd, improved and red milk onion collection are grown infrastructure, in the Batticaloa better District. rural roads,These OFCscreating and links vegetables with local are markets mostly andproduced regularising in home cooperative gardens duringmanagement the Yala systems. season when there is no water for paddy cultivation. Red onion, big onion and chilli were mentioned a)as Improvingpriority crops the by productivity the experts consideringof the herds the potential marketability and the returns compared to other fields crops grown. Introducing suitable good quality cross-breeds NewOther breeds field crops that areare suitablealso produced for the inlocal Chena climatic cultivation conditions in the should Yala season.be introduced Fruits insuch order as tomango, increase banana the milk and yieldpapaya of theare herds.cultivated This on should a large be scalea gradual and showprocess potential undertaken for expansion with the usein the of area. the Innecessary Trincomalee, technical pineapple support cultivation since wasthe startedcross-breeds as a pilot need project semi/intensive and it has managementcontinued with systems. the aim Lessons of expanding learnt in toterms other of consequencesareas. The study of introducing found that, cross-breeds vulnerable togroups, a new especially environment FHHs inshould the targetbe incorporated. communities (Newengaged breeds in vegetable may carry cultivation unidentifiable, at the uncommonhome garden diseases level. Thethat lackmay of destroy irrigation the facilitieslocal breeds and aslack well.) of capital to invest in the land preparation and the purchasing of quality seeds were identified as the constraints faced by Increasingfarmers. Facilitating quality and micro quantity credit of feedwould help overcome some of these constraints and Increasingenhance their the income.quality and quantity of the feed can be done by rehabilitating the pasture land and introducing new varieties with high productivity. This should be done in partnership with theSubstantial DOA and investment DOAS in order is needed to obtain for theimproving required technicalthe production support. andThe initialproductivity step should of bevegetables to identify and thefruits pasture cultivated lands in usedthe two during/pre-war, districts. The locatedexisting indata close shows proximity that fruit to andthe communities.vegetable cultivation This willis not also competitive require enoughconsultations in terms and of productionapprovals (seefrom Table relevant 4.6 below) local governmentcompared to authoritiesother districts. and district/divisionalThe lack of opportunities administration for value bodies. addition High is yieldingalso a constraint. improved grassMarketing varieties the such produce as CO3 during have already the harvest been glutintroduced of low incountry Sri Lanka vegetables and can isbe a tested concern to improvethat needs the to productivity be addressed of theas productionpasture lands. expands. b)Table Increasing 4.6: Selected institutional vegetables support as a for percentage the dairy ofindustry national production % of National Production % of National Production The number of livestock development officers and veterinary surgeons in the district need to Crop Trincomalee Batticaloa Crop Trincomalee Batticaloa be increased in order to meet the demand for extension services. Development initiatives shouldManioc support the DAPH2% to increase6% manpowerChilies at least in the areas1% where the project1% is implemented.Ground Nut This can3% be done by4% providingAsh incentives Plantain for the1% officers to 1%work on developmentOkra projects3% or by supporting4% the DAPHKurakkan to temporarily recruit1% graduates or0% diploma holdersRed Onion and provide4% them with the2% necessaryGingelly training. This will1% create employment0% opportunitiesSnake Gourd for the 3%youth as well as2% make theGreen project Gram sustainable 1%in the long run.0% Brinjal 2% 3% Red Pumpkin 1% 0% Provide access to financial services TheBitter recommendations Gourd 2% related to financial2% serviceCucumber are discussed at1% the beginning0% of this sectionMaize as it is a cross-cutting1% issue for1% all the sectors.Ash Pumpkin 1% 0% Sweet Potato 1% 1% Black Gram 0% 1% Source:c) Providing Samaratunge, value Sommers addition and Varley, opportunities 2009
TableImproving 4.7: rural Selected roads, fruitaccess crops to power as a percentage of national production This is discussed above in detail in the broad, cross-cutting theme of infrastructure. It should Crop Trincomalee Batticaloa be noted that access to power is important to improve value addition in the dairy sub-sector. Oranges 1% 2% ProvideMango training and equipment 1% for value 2% addition SufficientPlantain/banana liaison of the 1%project with the 1% DAPH could be of benefit to producers who are interestedPapaw in dairy value 1%to obtain technical 1% training on value addition. The learning coming fromLimes the experience of 1%the DAPH is that 0% provision of training and equipment should be targeted only to those interested in implementing the learning gathered. Simple equipment Source: Samaratunge, Sommers and Varley, 2009
8737 thatThe issuescan be of easily production maintained and productivity should be providedcould be overcomefor curd and by yoghurtincreasing making. access Producersto quality shouldinputs suchalso beas seedsgiven trainingand planting to handle material, the equipmentfertilizer, financial provided. services Training and on technology. packaging Itand is labellingalso important is also to important maximize for the reaching usage of broader land and markets. water by increasing the cropping intensity. Cropping intensity can be increased by introducing intercropping methods and crop d)diversification. Improving marketabilityExtension services also need to be improved in terms of quality and coverage. Improve milk collection networks CommunityImproving productionlevel milk andcollection productivity networks should be encouraged through farmer organisations in order to avoid involvement of middlemen and to increase the bargaining powerSeeds andof the planting farmers. material A record keeping system should be introduced to make the functioningThe lack of ofavailability networks smoothof hybrid and vegetable accountable. seeds The was farmer mentioned organisations as a reason belonging for lackto one of community/village/GNinterest in engaging in can vegetable be given farming. a vehicle The or bicycles, productivity milk collectionof the seeds cans supplied and temporary by the storageAgrarian facilities Services so Centre that isthe low milk compared collection to theprocess hybrid will varieties, run with and fewer the interruptions.centre cannot Paid,keep dedicatedup with the personnel demand in from supplying the farmer the seeds. organisations The farmers should purchase be in-charge the imported of thehybrid activities seeds relatedfrom the to private milk collection. sector. The Larger negative milk side collecting of using companies the hybrid such seeds as isMilco that orthe Nestle harvested can directlyplanting buymaterial from cannotthe farmer be used organisations for cultivation for ina thereasonable next season. price. However,This will farmersreduce theare wastagewilling to of buy milk hybrid and will seeds enable at a milk price collection much higher in the thanafternoons, local varieties which isbecause not in practice of higher at theproductivity. moment.
RegularisingFarmers show cooperative a reluctance management to cultivate fruitsystems because of the slow returns. The first harvest of Thethe mangoaim of thiscultivation recommendation takes approximately is to avoid delays3 years in frompayment the forplanting farmers time. after New selling hybrid the milkvarieties to the with cooperative high productivity and to minimise should thebe dependencyintroduced onso middlementhat the returns and selling are milkfaster. at lowIntercropping prices. Initiatives fruits with should other cultivationsbe taken towill promote also help such to overcome systems thisand constraint. highlight Fruitsthese constraintsproviding quick to the returns, relevant such institutions, as banana, such can as be the introduced DAPH, for with prompt other action. perennial fruit crops.
EstablishmentFertilizer of community managed sales outlets These outlets will serve as a place to display and sell the fresh milk as well as value-added There is no fertilizer subsidy for vegetable and fruit cultivation unlike paddy cultivation. The products of the farm. The outlets should be established closer to the town or main road so cost of purchasing Triple-Super-Phosphate (TSP) and Muriate-of-Potash (MOP) fertilizer is that products get sufficient demand and popularity. These outlets can be made a point of high. The high cost discourages farmers from using chemical fertilizer. This may be seen as contact for external buyers. Projects should look at ways of linking these outlets with the an opportunity for organic cultivation in which case the availability of organic fertilizer should external market and providing continuous support until operations stabilise. be increased. Organic farming can be promoted at a home gardening level for vegetables and short-term crops such as pineapple, banana and papaya. The smaller scales of IV. Inland fisheries sub-sector cultivation will make it more viable and the producers could tap into the growing market Inlanddemand fisheriesfor organic and fruits aquaculture and vegetables within the tourism sector as well as among urban consumer groups. Training on organic cultivation and market linkages should be facilitated. Inland fisheries should be strengthened mainly in the areas of a) increasing production and Lack of transport facilities affect input supply, access to farm land and transportation of the productivity by increasing the quality and quantity of the fingerlings, supplying fishing produce to the market. Poor road conditions, lack of suitable vehicles and containers to equipment to vulnerable groups and by improving the supporting infrastructure such as transport perishable vegetables are the main transport-related constraints affecting connectivity and tank rehabilitation, b) promoting market linkages for fresh capture inland vegetable production. Using public transport leads to heavy post-harvest losses of perishable fish at the local level as well as outside the district, for culture fish and for value added fish. vegetables. a) Increasing production and productivity Under-utilisation of land and insufficient irrigation StrengtheningThere is potential existing to undertake hatcheries vegetable that supply cultivation fingerlings on to available the two districtsland (uncultivated and Carpabandoned and Tilapia land) asin thefresh two fish districts. and local The breeds initial suchinvestment as Sungan needed and for Viral vegetable for value cultivation addition (smokeis lower dry)than fish paddy, were the identified profitability as the higher types and of thefresh risk water lower. fish While with waterthe highest scarcity market is an demand.issue and limitsAt present, the use the of landseasonal during andthe Yalaperennial season, tanks the studyin the noted East that are vegetables stocked withthat fingerlingsdo not require from much breeding water centreswere being in Inginiyagala cultivated since and irrigationDambulla. facilities Facilitating were financialnot available and technicalin most of support the study to increasecommunities. production Agro-wells in the either two hatcheries do not recharge will minimise for a long the timefingerling once scarcity.the water is taken out, or have been abandoned because they have been constructed in areas where the water table is too low.
8838 FeasibilityModern micro of constructing irrigation technologies mini hatcheries such andas drip mini and nurseries sprinkler irrigation are not used in any Theof the feasibility communities. of constructing These modern mini technologieshatcheries in are the the two solution districts for towater be managedscarcity because by the breedingthe efficiency centres of water in Iniginiyagala usage is higher and Dambulla compared with to floodthe proper irrigation. technology Cultivation transfer of chilli should and beonion explored. need micro The communities irrigation technology lack the technology in order to of achieve fish hatching the maximum at present. potential Improvement of the inland. transport The lack modes of capital and andalso low mini awareness hatcheries about within these the moderndistricts technologies would minimise constrain the high the fingerlingfarmers from mortality investing rate. in Land-basedthem. mini nurseries (such as those present in Rajawewa in Ampara) are also proposed and fisher societies could be strengthened to manage the mini nurseriesCrop diversification and hatcheries. They can also increase their income from the tank by selling the fingerlingsCrop diversification to the other is another fishing solutioncommunities. to cushion the price shocks of one type of vegetable. It is less risky than growing one crop and will help to maintain better nutrient management Introducing/promotingof the soil. After harvesting, culture paddy fishing lands can be used for cultivation of vegetables without Theremuch irrigation.is a strong The state remaining interest moisturein fish culture in the ofsoil breeds is sufficient based toon cultivate abundant drought brackish resistant water resourcescrops such that as cowpea, fetch higher green incomes gram and targeting sorghum. the Thisexport practice market provides12 (oysters, higher sea return bass, from sea thecucumber, land and crab these and crops shrimp). improve Target soil communities fertility by nitrogen(including fixing. vulnerable groups such as FHHs and PwDs) should be linked with these efforts by the state and by other non-state actors as Extensionmethods of facilitatingservices technology transfer. There is a clear lack of capital among the studied communities, therefore financial services should be introduced as start up for culture fishing, The lack of extension services is a constraint to the vegetable sector. There is only one and market linkages should be created. Interested actors/institutions with experience/ Agriculture Research Production Officer available for a DS division. These services and necessary market linkages with the export market from the private sector should be officers are important in terms of providing latest technology and assisting the producers in identified and encouraged to invest in culture fishing with the aim of introducing quality treating crop diseases. Extension services are also important when introducing and control mechanisms as per the international standards. promoting vegetable farming to new producers. Strengthening the extension service officers by providing them with training on new technology as a means of exposing them to modern b) Improving marketing advancements in the relevant sectors would provide sustainability to livelihood interventions in the long run. The fresh water capture fish, value added fish (smoked dried fish) and culture fish are the main products in the inland and aquaculture sub-sector identified in the current analysis. Processing, storage and value addition Marketing should be facilitated through fisher societies. Fresh water capture fish can be Localmarketed production locally doesto the not consumers require storage that facilitiesprefer fish since without there wasice. noRetail large outlets scale productionshould be inconstructed the communities closer to/integrated at the time of with the marketstudy. However, centres for as thesethe extent sales. of agriculture increases in the Eastern Province, storage facilities will be needed. For processed fish, market linkages should be facilitated at local as well as with urban Seedmarkets separating and hotels machinery and restaurants is necessary in forthe crops area. like The maize. identified Maize high at present demand is soldmethod only asof greensmoked cobs dry duefish tomaking the lack should of machinery. be popularised Even among though the there target is a communities demand for thatmaize engage grain fromin inland the poultryfishing. industry,Improving unavailability the quality ofof valuesuitable addition machinery through to split better the packaging, seeds from labelling the cob restrictsand branding the processing should be of encouraged maize cobs. throughGreen cobs training. were beingSpecial sold attention between can Rs. be 5 toplaced 6 at theon timeincluding of the vulnerable study (based groups on in theprimary value data addition collection), process. whereas the value of it could be increased when the seeds are separated. The technology currently used to split the grain resultsThe high in demandmuch damage in the tolocal the marketseeds andas well leads as tofor high export wastage. of culture Private fish companies should beat presentcapitalised engage upon inand maize market cultivation linkage inshould the East be createdand use with their the produce local markets as animal as feed.well as the export market through the involvement of the private sector. Processing of vegetables at the basic level such as red chillies, chilli powder and traditional picklesImproving can infrastructure provide added and value provision to vegetable of fishing cultivators. equipment Local to vulnerable level small-scale groups grinding Minormills can tank be rehabilitation introduced. shouldThis will be helpprioritised to overcome and connectivity the wastage infrastructure of produce such during as roads the andharvesting bridges/culverts season andwill havegenerate to be off-farmconstructed employment in order to opportunities.connect the producers SMEs could with thebe markets.promoted Market at the communityinfrastructure level should with alsotechnology be constructed, and initial as capital discussed being above. provided. The Traininganalysis highlightedon labelling, the packaging lack of fishingand quality equipment control forwould vulnerable also have groups to be and facilitated. provision of the same will increase their participation in the sub-sector and bring them more income. Fruit processing is another area that has future potential and needs attention and support. As discussed above, the initial effort is to expand the cultivation in terms of improving the production and productivity. The efforts of the Department of Industries in Trincomalee for fruit processing is constrained by the lack of supply of fruits from local producers. Fruits are 12currently Eastern Revivalsupplied official either website, from Nagenahira the DambullaNavodaya, www.neweast.lk, or Colombo accessedmarket. on Technology September 2010 from the
8939 DepartmentV. Marine Fisheriesof Industries sub-sector can be shared with SMEs at the community or DS level and with Higherthe provision returns of to initial the fishers capital can the beproducers generated can by get a) improvinghigher returns productivity for their by fruits. providing The specialisedmarketability fishing of natural gear, fruittraining drinks on is cleaner higher andwithin better the districtfish handling since the mechanisms, suppliers are capital very supportlimited. in acquiring deep sea fishing crafts and gear, introducing and promoting support services such as boat manufacturing and ice plants through SMEs and facilitating credit, b) improving“There ismarketing, a high demand creating for direct natural market drinks. linkages, Government and introducingdepartments and and supporting the alternative/secondaryschools demand largeincome quantities, sources. but we are unable to supply at the moment. We can also supply for the seminars, workshops, and meetings taking place in the a) Improvingarea.” productivity (KPI, Trincomalee) Providing specialised fishing gear to suit the seasonality and to support conversion of multi-dayMarket boats The availability of specialised types of fishing gear to capture fish available according to the timeThere of is the an seasonunmet willdemand bring forhigher vegetables returns. andSupporting fruits in the the conversion Batticaloa ofand day Trincomalee boats into multi-dayDistricts. boatsThis demand should be is encouragedmet by importing as this vegetables will give the and fishers fruits access from outsideto a better the resource districts basewhich compared are more to expensive the coastal than sub-sector, vegetables while produced also enabling locally. them Up tocountry access vegetablesfish types such are assupplied tuna whichfrom the fetch Dambulla a higher market. price Thein the increase international in the supply market. of lowThe country financial vegetables institutions to shouldthe local be markets encouraged is expected to invest to changein and linkthe consumptionup with the fishers patterns venturing within the into district the deep because sea sub-sectorof their lower as aprices business and freshnessinvestment as with they high are profit.produced The locally. shift into the deep sea sector will minimise the constraint of resource depletion in the coastal sub-sector. Seasonality of production affects the price of the vegetables. Many farmers produce similar Introducingkinds of vegetables and promoting during supportthe Yala services season, such and asthe ice excess production supply and brings boat the manufacturing. price of the Youthproduce who down are drastically. unwilling to Farmers engage in in Kalavanchikkudy, ocean fishing activities in the Batticaloa and the Districtfishers engagedin the less in productivecrop rotation, coastal so price sub-sector fluctuations should during be encouragedthe harvest toglut join did the not chainaffect of this support community. services In relatedcrop rotation, to fishing. the decision Construction regarding of theboats, crop boat cultivated cleaning is taken and basedmaintenance, on the demand fishing innet a manufacture,particular time ice period. production The and ‘one supplying village ofone other crop’ services approach required was byintroduced the industry by suchthe asgovernment transport, foodwith provisionsthe intention and mechanical of eliminating parts forprice the fluctuationboat engines and should involvement be promoted of bymiddlemen. providing Bothfinancial fruits capital and alongvegetables with technical are cultivated training underfrom thethis relevant programme. state authorities.It can be replicated in other vegetable and fruit producing areas as well. The ‘one village one crop’ SMEsapproach could involves be anchored crops tothat more are enterprisingcultivated according fisher communities/societies to the season and orfarmers individuals can withcultivate initial several capital. different The more crops vulnerable during a year fishers (but can only be one then at alinked given to point these in time).SMEs which would give them a more stable income than unproductive day boat fishing. Promotion of supportThe vegetables services and locally fruits will produced also boost within the the expanding district are fisheries marketed sector in village in the levelEast markets.and the shiftingCreating of regional fishers fromeconomic the coastal centres sub-sector would enable to the otherproducts services from will different be a solution areas forof the resourceprovince depletionto be centralised issue as welland andmarketed ensure sustainabilitythrough more of formalthe fishing channels, industry. reducing the exploitative involvement of the middlemen and increasing producer bargaining power. It Capacitywould also building facilitate of fishersa better and market fisher informationsocieties process and bring higher returns to the Trainingproducer. on cleaner fish handling in order to minimise post-harvest loss and to meet the export standards is essential in looking to expand the market for fish. Financial management (especiallyEncouraging in private saving sector during involvement the peak season in the vegetables,in order to fruitsbe financially and other secure crop sub-sectorsduring the off-season),is strongly encouraged. business planning Most of and the marketingUSAID-CORE are on-going other areas projects, which at would the time improve of the the study, skill basewere andconceptualised productivity around of the privatelabour forcesector and buy-back the sub-sector. systems8 and it will be useful to see the experiences and lessons generated from these private sector partnerships. Supermarket b) Marketing chains such as Cargills are also encouraging fruit production in Trincomalee, and linking up Introductionwith these ventures of alternative will broaden livelihoods the marketfor the off-seasonfor the producers. In addition, the expanding Introductiontourism industry of cash should crop be cultivation considered or asnon-farm a potential activities market such for asorganic three produce.wheeler/motorbike repairing/servicing, and IT related businesses such as ‘communication centres’ could be promotedIn conclusion, depending the vegetables on where and fruitsthe particular grown in thecommunities two districts are are located. not sufficient For example, to cater communitiesto the demand. that Therefore, have better it isaccess important to main to investroads moresuch asin Kallarawaincreasing couldthe production be introduced and intoproductivity non-farm in theactivities. short run,An alternative/secondarywhile looking for value-addition livelihood optionsoption willand providemarket linkages.the fisher communities a reserve that they can fall back on during the fishing off-season and will move them8 Details away on the from projects, the etc.cycle can of be debt found to on the the USAID-COREfish collector/trader. website www.core.zunepile.com/ .
4090 DirectFigure market 4.5: Mapping linkages of constraints and potential solutions of the vegetables and Thefruits monopoly sector of the collector/wholesaler can be reduced by facilitating direct market linkages with the wholesale markets within and outside the district. The improvement of support services asConstraints discussed above (suchCauses as transport andPotential ice plants) will be Institutionsessential in direct marketing. The involvement of the private sector, for exampleSolutions hotels andImplementing restaurants, Solutions could be sought to market other high value fish products. Increase seed production capacity of local DOA, DOAS, VI. Non-farm livelihood sub-sector agriculture authorities - Development Unavailability of DOA and DOAS Organisations sufficient good quality The presence of the non-farm sectorseed isand minimal planting in recently resettled communities, but the Development material Introduce seed strong state drive towards improving the much needed supporting infrastructureOrganisations, for the production at local level SMEs and the interest shown by some of the large private companies investing in DOASthe area, especially in agro-based industriesNo fertilizer show incentives potential for introduction/improvement of this A Livelihood and Market StudyPromote use of organic ResettledDevelopment for fruits and vegetable sub-sector. The recommendations regarding the agro-based industriesfertiliser have beenOrganisations discussed cultivation under theCommunities relevant sub-sectors andin thisthe section Eastern provides recommendations Province for the enterprises that are related to non-farmInsufficient activities. awareness Assessing conditionsand exposure in selected to the GramaPromote Niladari use of organicDivisions Development Strengthening the state servicesorganic and farmingmotivated and its individuals/groupsfertilizer who want Organisationsto start up of the Batticaloapotential marketsand Trincomalee districts enterprises Slow returns of Introduce mix cropping Development For the business enablingLack of environmentperennial in fruit the crops two districtsand to inter-cropping be made more conduciveOrganisations for investment and businessproduction and start-ups, the local authorities that are the main points of contact Crop diversification and productivity Under-utilisation byof the Development of such ventures will have to be strengthened, in termsinter-seasonal of knowledge about business land Organisations registration, taxation procedures and dispute resolution especiallyvegetable cultivation related to land and being more motivated in carrying out Mohamedthe necessary Munas procedures.Initial capital Building support the capacities of Development to introduce micro interested individuals to start upGayathri and manage Lokuge enterprises should alsoOrganisations be done irrigation systems simultaneously and through a continuousInsufficient irrigationconsultative process. Promote vegetables Development Promoting the industries and enterprises that are present inwith the low communitieswater requirement Organisations The enterprisesA that Publication are already of thepresent Centre in the for areas Poverty such Analysis as reed-based (CEPA) production, clay Increase extension and cement brick making, agro-based industries such as rice mills, curd makingDOAS, and DOA, other officers and provide small-scale businesses such as restaurants,September shops,2013 sufficientsalons resources and forbakeries Developmentshould be Lack of extension Vegetables better functioning Organisations strengthenedand Fruits with necessary knowledgeservices for fruit on and business planning, business management, customer service and improving marketabilityvegetable cultivation of their products.Capacity building of the Development extension officers Organisations Introducing new enterprises Enterprises that have proved to be successful and have a relatively established clientele in Provide vegetable Lack of processing Development the respective locations which are outside the communitiesprocessing that machineryare targeted by the project machinery Organisations should be introduced to the communities on a pilot basis withat community strong level capital and technology support. Some of these enterprises are handlooms, small garments and shoe making Lack of knowledge factories, as well as information andabout communication potential value technologyIncrease awareness related on businesses such as Development mobile phone repairing and communicationaddition opportunities centres, threepotential wheeler/motorbike value addition repairing and Study Series No. 6 – 2013 Organisations construction-related activities suchavailable as carpentry in the region and masonry.methods Lack of value for vegetables and fruits addition Incorporating lessons learnt fromInsufficient other projects support to that are working within the two districts in Provide capital support expand the traditional Development trying to promote enterprises for traditional food methods of fruit and Organisations Given the relatively experimental nature of the new enterprisesprocessing methods proposed, it is strongly vegetable processing recommended that the lessons from similar projects on enterprise development within the Development region be studied. Some of these Insufficientprojects, investment identified through the study, are the USAID-CORE 13Introduce new Organisations, projects, the entrepreneur groupson promoted new technology by Nucleustechnology, and for Rebuilding value LivesDept. through of Sustainable Development Projectrelated by Berendina to value addition Micro Financeaddition Institute14 . Industries, DOA, DOAS
Source: Study data 13 More details availabe atwww.nucleus.lk,Supported accessed by theon August Asia 2010 Foundation 14 More details available at www.berendina.org, accessed on August 2010
9141 ©Linking4.3 Centre Dairy with forand tourism Poverty livestock industry Analysis 2013 TheLivestock expanding and poultry tourism are industry undertaken in the as Easta subsidiary can create livelihood a market activity, for farm often and serving non-farm as a produce,supplementary both value activity added to paddy and non-value production. added. Cattle The rearing potential is the of linkingmost common up the vegetables livelihood Firstandsource, otherpublished although field –crop 2013goat producers, rearing andthe poultryinland fishis also producers undertaken and the by livestocka significant producers number with of theproducers. booming In thetourism Batticaloa industry District, in the livestock region rearingshould isbe an encouragedimportant source through of income the service in all providersthe target thatGNs supplybut it hasthe alocal relatively and foreign low presence tourists inwith the food Trincomalee and accommodation. District. Cattle Bees are Nationalhoneyreared andmainly Library smoked for of dairy, drySri Lankafish and could most– Cataloguing also poor be householdsexplored of Publication as rearproduce two Data withor three a potential head of niche cattle market as a amongsubsidiary the activity.local and In foreign Eravur tourists. Pattu, large herds belonging to wealthier householders are lookedMunas, after Mohamed by villagers for a wage during the paddy cultivation season. 5.4 FutureA livelihood trends and and market important study of livelihoods resettled communities of the target in communitiesthe eastern province : FigureAssessing 4.6: Mapping conditions of inactors selected and grama value niladari of the divisionsproduct ofalong the Batticaloathe dairy andvalue PotentialchainTrincomalee future districts trends / Mohamed Munas and Gayathri Lokuge. - The following elements were identified as potential income generating activities in the target Colombo : Centre for Poverty Analysis , 2013 villages. The opportunities and constraints in engaging in these activitiesCha narege discussed in in Actors Dairy detail in the sub-sector analysis. Product Value 102p. ; 21cm..- (Study series ; No. 6) o High value traditional paddy cultivation Wo iISBNthCashin t h978-955-1040-69-7 ecrop com cultivationmunity (vegetables and fruits) and processingLoca l (freshmarke tfruit drinks, dill, Consumers pickle) Fresh milk Rs. 42.00 Wo ii.thValue in331.2 the addition DDDC23S/dist rbased i ct on milk (curd, yoghurt) ii. Title Retail market o Ouiii.tsDeepi dLokugee d iseastri c ,tfishing, Gayathri culture jt au fishing (shrimp, sea iv.bass, Series crab), support services for the fishing sector (ice plants, boat repairing/manufacturing,P afishstu rtransport)ised Rs. 1 2and0.00 value 1.addition Conditions (dry offish, employment canned fish) UHT Rs. 120.00 - 190.00 o Non-farm based livelihoods (maintenance and repair, ICT-based services, retail trade, Traders based mini garment factories) Purchase price Rs. 22.00 Copyrighto Support of thisservices publication to the belongs tourism to industry Tthera dCentreer s(accommodation, for Poverty Analysis. restaurants, Any part adventure of this . in the community book tourism)may be reproduced with due acknowledgement to the authorSelling and pric epublisher. Rs. 42.00 . outside DS/District The5.5 ConclusionCEPA Publication Series currently includes Studies, Edited Volumes, Working Papers Local curd processors andIt will Briefing take a Papers.considerable The interpretations time for recently and resettled conclusions families expressed toL odevelopcal inpr othisc etheirs sStudyor capacity(cu arerd) those and of the individual authors and do not necessarily reflect the views or policies of CEPA or the ventureYoghu rintot an dnew cu rareasd of production. Therefore, it is recommended that small producers publication sponsors. Processors Purchasing price Rs. 40.00 bep rencouragedocessors ou totsi dbuilde th eon their existing skills, and that they are supported to move up the valuecom mchainunit ieofs their existing forms of livelihood. In the divisionsPro fstudied,it Rs. 25 .00agriculture and Photographsfisheries were used the mainin this forms publication of livelihood, are attributed with animal to CEPA husbandry, staff. home gardening, brick making,Large caetc.ttle hprovidingerd alternative means of earning additionalFarm g atincomes.e price There is Producers ISBN:considerableown e978-955-1040-69-7rs (ou tpotentialside the to add value to their operations within the existing context, and also toc makeommu usenitie ofs) the potential changes that can be brought in throughLocal ve nthedo rdevelopments Rs. 22.00 of Alltourism enquiries in the relating two districts. to this publication should be directed to: Local small hCentreolders for Poverty Analysis Milco Rs. 26.00 - 35.00 29 R G Senanayake Mawatha, Local Processors Rs. 40.00 DAPH Colombo 7, Sri Lanka Veterinary SuTelrge ons : +94 (011) 4690200, 2676955-8 Fax : +94 (011) 2676959 Min. of Livestock and Cost of production per litre Email : [email protected] (Under extensive system, Rural CommuWeb:nity www.cepa.lk Development Dry zone) Inputs PrintedLocal mby:on ey Mudranalenders Printers (Pvt) Ltd. Rs. 9.23 NGOs 69/2, Ward Place, Colombo 7, Sri Lanka. Source: Department of Census and Statistics, Department of Agriculture, Central Bank, HARTI, Primary data * Sale prices and profits are based on primary data collected during the study.
9242ii ReferencesTheMohamed main actors Munas involved is a researcher in the dairy at thevalue Centre chain for are Poverty mapped Analysis in Figure and 4.6. holds The a Mastersinput and in serviceEconomics providers from arethe mainlyUniversity men, of however, Colombo. women Munas play is a thesignificant thematic role champion in production for andthe localArunatilake,migration level processing.thematic N., Gunawardena, area. None His of researchthe A., vulnerable Marawila, related groups trainingD., inSamaratunga, the and sample experience were P., directly Senaratne,includes part poverty, ofA., the & dairyThibbotuwawa,conflict, value livelihoods, chain, M., but 2008. fisheries,the Analysispresent migration engagementof the fisheriesand ofeconomics. womensector inin SriHethe Lanka: sub-sectorhas over guided eightshows case years that studies theof FHHsforexperience value can chainbe in targeted carrying development in out promoting research in conflict-afffected the on sub-sector. poverty related environments. The lack issues. of engagement HeWashington also has of experience D.C.:FHHs USAID.can bein dueOnline.conducting to the Accessed current evaluations August free rangingin 2010,conflict cattle affected management areas of Srisystem, Lanka. but the introduction of improved breeds
DCS,The conditions 2010. Estimated prevailing paddy in the production studied communities and excess/scarcity constrain of their paddy ability by seasonto achieve and this by district.level of Colombo:production. Department Well-to-do of farmers Census canand usuallyStatistics. afford Online. high Accessed yielding Maybreeds 2013, that they
4393iii AcknowledgementsHowever,De Silva, D.,providing 2009. “Ruralimproved institutions” breeds will in Ratnayake,mean changes I & Fernando,in the management P. (eds.), Opportunitiessystems and costfor the of productionproductive perpoor: litre. perspectives It will necessitate on agriculture intensive and orrural semi-intensive livelihoods inmanagement Sri Lanka. ThesystemsColombo: authors and Centre athank higher for the Poverty cost Agency of Analysis. production for Technical Chapter per litre Cooperation6, pp.in comparison177-211. and Print. Developmentto extensive management(ACTED) for providingsystems as the shown funds in and the support following for table.this study The inmain November reason 2010.for this They is the sincerely higher labourthank Azraand AbdulfeedDiprose, cost Cader R., in Abdulandthe Priyanthiintensive Cader, A.,Fernandosystems. & Thalayasingam, forThe their increase input P., intoin 2010 yield the (unpublished). contentwill be 2-5of the times Conflict-sensitivity,publication. greater which makesdevelopment the introduction effectiveness, of improved inequalities, breeds and more conflict profitable in forSri theLanka: producers. Understanding aid Thanksprogramming, are also voice extended and actionto Basith in Inadeenlocal conflict-affected and a group of environments. research assistants Oxford: who Centre collected for secondaryTableResearch 4.8: ondata Cost Inequality, and of conductedproduction Human data ofsecurity collectionmilk (perand at litre)Ethnicity institutional in the(CRISE), anddry communityzone Oxford by managementUniversity levels in bothand thesystemColombo: Sinhala Centre and Tamil for Poverty languages. Analysis (CEPA).
TheDistrict authors Secretariat-Batticaloa, are grateful Managementto Dr. 2008. Muttukrishna Statistical System informationSarvananthan, of BatticaloaDevelopment District. Economist and Zone/District Principal ResearcherIntensive of the PointSemi-intensive Pedro Institute Extensive of Development, Prof. Amala de Silva, District Secretariat-Trincomalee 2008. Statistical information of Trincomalee District. DepartmentDry Zone of Economics,23.3 University14.51 of Colombo and9.23 Mr. Asoka Gunawardena, Former Chairman, Finance Commission of Sri Lanka and the Sri Lanka Administrative Service for Source: Department of Animal Production and Health, 2009 reviewingSiriwardena, the P.various P. G. draftsS. N., of2004. this document.“National Aquaculture Sector Overview – Sri Lanka” in National Aquaculture Sector Overview Fact Sheets. Rome: Fisheries and Aquaculture Milk yield can be increased by improving the traditional methods of management practices Department, Food and Agriculture Organisation of the United Nations. Online. Accessed June 2013. ofThanks the herds, are due and also, the qualityto Ms. of Tushani the feed Kalugalagedera, in terms of fodder for andher patiencepasture land. and Monitoringdedication ofin http://www.fao.org/fishery/countrysector/naso_sri-lanka/en. thesewriting new up managementthe final version, practices Chaturanga to see whetherWeerasekera, the recommendations without whose encouragement are implemented this is final product would not have been possible, and Roshni Alles for editing the final document FAO,imperative 2007.Fisheries for increasing institutional the yields. analysis Existing and stock capacity can beassessment upgraded towith the good Ministry quality of and preparing it for print. Fisheriescross-breeds and andAquatic the Resourcesincreased productivityof Sri Lanka. would Rome: in Food turn andencourage Agriculture the smallholdersOrganisation toof theengage United in dairyNations. farming. Online. Accessed August 2009, The Asia Foundation is gratefully acknowledged for providing the funding to print this study.
TrainingRengasamy, and S., capacity n.d. A students’building ofguide livestock to sub-sector/value producers does chain take analysis place forthrough livelihood the intervention.government andOnline. NGOs, Accessed but it Juneis not followed up by the provision of the necessary capital 2013
4494iv PrefaceFinancialRIU, n.d. Theservices value chain approach to poverty reduction and development of livelihoods. ResearchCurrently, Intothe milkUse. collectorsOnline. Accessed are the easiestMay 2013, source of credit for small farmers. Thus, even
TheseIn the communitiesabsence of value were addition,also more trading vulnerable is the to step external in the shocks. value chainEven whichduring canthe provideconflict theyhigher had returns. engaged The in lacktraditional of capital livelihoods. to invest However, in the thesetrade sectorsprevents have the not producers reached fromtheir optimalengaging potential in trading. and this already existing skill base is the biggest advantage these resettled communities have, and should be capitalised upon and made to be more competitive with the support of new technology. The following sectors were identified as potential income
9545v generating“The milkactivities we produce in the target passes villages: through high three value hands traditional before paddyit reaches cultivation; the market. cash crop cultivationThe producers(vegetables are andmainly fruits) Tamils and and processing the milk is (freshsold to fruitthe Muslims.drinks, dill,The pickle);Muslims value additiontraders based sell on the milk milk (curd, to the yoghurt); Sinhala deepshop seaowners.” fishing, culture fishing (shrimp, sea bass, tank Rain Rain Rain Rain Minor water water water crab), support services Source for the fishing sector (ice plants, boat repairing/manufacturing,FGD, Eravur Pattu fish transport) and value addition (dry fish, canned fish); non-farm based livelihoods (maintenanceIn Trincomalee, and the repair, government ICT based is expanding services, theretail milk trade, collection mini garment centres factories);and carrying support out a servicesminimal levelto the of tourism processingCultivation industry with (accommodation,the aim of preserving restaurants, the nutritional adventure level tourism). of the milk. A lack Yes Yes Yes of capacity of these processing centres to deal with large quantities of milk makes the producersBased on study sell the findings, excessYes / No itmilk is apparent collected that to private starting companies completely such new as livelihood NESTLE oractivities MILCO. in But an increasingenvironment the thatWater capacity is in a stageof the of centres revival requiresis risky. Thus, a continuous such initiatives supply need of milk to be and undertaken a strong marketwith alternatives link, because that people the processed can fall back and on packeted if these newmilk livelihoodsneeds to arebe consumednot successful. within Niche 48 Tube Tube wells areas for support and growth were identifiedWells within the existingWells sub-sectors (such as cash hours of production. Source crop cultivation or culture fishing) while also identifying niche areas where the traditional Demandsectors can for benefit fresh using milk the same skill base – for example, the need to explore the potential Atfor present,introducing the highincreasingDrinking value trendtraditional of powdered paddy varieties. milk consumption The study hasalso led looked to poor at areasdemand where for freshcommunities milk/liquid can milkbe linked even to Yes though expanding theYes nutritionalindustries suchvalue as of tourism Yes the latter in the is higher.region. Awareness about the benefits of consumingYes / No liquid/fresh milk is essential to change the attitude and consumptionIn addition, interventionspattern of the do rural not and always urban need communities. to take place in the target communities. Interventions at a different point in the value chain can create positive backward impacts that No No can enhance“When wethe visitlivelihoods the farm Yes of families,the target they communities. give us powdered milk for us to drink even
though they have Yes / No fresh milk at home. They think that it is a dishonour if they give The possibilitythe visitorsElectricity of freshlinking milk” up with the regional hubs where more trade and manufacturing enterprises are situated should also be explored in order to maximise spillKPI, over Batticaloa effects. In the studied areas, most of these enterprises were located in the more urban areas such as ItKaththankudi should be Urban noted, Council however, and Trincomaleethat in the and future, Batticaloa the Municipaldemand forCouncils fresh/liquid as well asmilk in consumptionpopular tourist will destinations increase when such theas Pasikuda, income of Kalkuda the households and Nilaweli. increases It is recommended over time. This that is anthe opportunitydevelopment that initiatives the smallholders link target inbeneficiaries the dairy industrywith these at thehubs domestic to act as level raw canmaterial take 96 advantagesuppliers of of. fresh fruit, vegetable and milk for processing enterprises and also to provide small garments and other small industries. This would also help overcome the lack of physical space for expansion in someFrequency of of these hubs such as Kaththankudy. Value addition public transport Traditional forms of curd are made and marketed locally. It is not transported outside the About 4 - 5 buses About both daily, operate and CTB private one but No CTB bus, the on bus private road. Kinniya - Wan-ela - Bus service twice a day evening) and (morning does not function but regularly. Belikkadato day a Twice Horowpothana from regionAn important mainly point because to take of the into lack account of a good when transport designing/implementing network. The lack livelihood of capacity interventions to invest infor technology recently resettled and the communities, lack of electricity is that within a conflict the recentlysensitive resettled approach communities is crucial throughout are seen asthe bottlenecks project cycle. for Therevalue addition.should also be continuous monitoring, consultation and follow-up with the communitiesConnectivity on the assistance given to them in order to ensure the sustainability of the support.“If there It isis alsovalue important addition to for share the themilk, success it is possible stories ofto certainsell the communities Rs. 40 worth with of other targetmilk communities at Rs 100.” so as to learn and replicate successful initiatives. District Level Workshop, Batticaloa Conflict affects economic development and value chains in different ways – disrupting Distance to Yoghurttransport, production destroying was infrastructure,the main road not being done restricting in any mobility, of the studied and affecting communities relationships but it isbetween one of theactors value-addition in the value chain.techniques The study which found requires several minimumcross-cutting capital issues support. faced by Thiscommunities can be 1 km to Kinniya-Kantale km 5 main road. road Kinniya – Wan-ela the village. runs through 45 km to Horowpothana introducedengaging in through the different the SMEs/farmer livelihood sub-sectors organisations identified at the incommunity this study. level. Farmer Private and sectorfisher individualsgroups’ roles outside in the thevalue community chain should who be are expanded capable andof investing strengthened are engaged as they arein producing the main flavouredproducers milk,in these but communitiesit is not done and at thecurrently community have limitedlevel. power and roles within the value chain. Communities should be empowered to engage in value addition and marketing and Privatetrained sectorin these involvement areas as well is seenas in onlyquality in milkcontrol. collection Training and on marketing new and effectiveof fresh milk.production Large scaletechnologies value addition and methods such as of making facing/coping yoghurt with and potential cheese and hazards flavoured and environmental milk is done beyond issues theshould reach also of be the provided. target communities. The community The level following production quotation groups reflects should the also present be part level of the of valuevillage addition level SMEs at the formed community to market level. the local produce to external markets. Infrastructure improvement is crucial – with the need for improved rural roads, public transport facilities,
electricity supply,D.S & G.N Divisions physical market centres and rehabilitation of minor tanks. Access to Kuchaveli, Thiriyai Kuchaveli, Aayiladi Kinniya, Gomarankadwala, Mylawewa ANNEXES Table 1: Infrastructure availability of study communities - Trincomalee District financial services should also be improved for the sub-sectors to be sustainable. Data Discussion Group Focus Source: Micro-credit
46vi should“Sometimes be provided that for farm-basedmiddle man as collects well as 5,000 non-farm-based to 7,000 litres producers of milk andduring enterprises, the day with customisedand makes micro-credit the curd for and the sells needy, it back productive to us in poor the evening.”farmers and vulnerable groups, and
for community awareness raising efforts on the--- financial services availableFGD, Eravur and Pattuapplication water water water & rain rain & rain & rain & procedures. Source Minor tank Minor tank Minor tank Minor Other livestock BothThus, backyard there is considerablepoultry and freespace ranging and potential goats are for found livelihood in the improvement two districts. and Farmers expansion with
Cultivation among conflict-affected, resettlement communitiesNo in the North and East. However, based on Yes Yes higher capital engage in broiler production, for which there is a high demand Yes that cannot be the assessment of this study, it will take a considerable time for recently resettled families to
met by the currentYes / No production. develop their capacity and venture into new areas of production. The study recommends that Poultrysmall producersWater is imported are into encouraged the two districts, to build fromon their areas existing where skills, production and that is on they a large are supported scale and pricesto move are up thecheaper. value chainThis ofdepresses their existing the formsprices of and livelihood. discourages There ispoultry considerable farming potential on a Wells Wells Sabha in milk in and the and water is water Drinking Drinking to add value to theirSource operations within the existing context, and also to make use of the providied providied and wellsand
commercial scale in the studied districts. containers Tube wells Tube by soldiers soldiers by potential changes that can be brought in through the development Pradeshiya of tourism in the two DAPHdistricts. and NGOs are encouraging poultry production in the two districts, by interventions to Drinking
increase the availability of young chickens, andNo by providing micro credit for poultry keeping, Yes Yes Yes especially among families that have been recently resettled, as a secondary/temporary income source. YoungYes / No chickens are more readily available in Trincomalee where there is a hatchery at Uppuveli, even though this is also insufficient to meet the demand for birds if
poultry is done on a commercial scale. In Batticaloa, the DAPH is aiming to provide mini hatcheries to identifiedNo producers. No No No Yes / No Electricity There is a high demand for mutton in the local market, so goat rearing takes place as a supplementary activity in most households and provides continuous income for families and reduces the impact of seasonality of crop cultivation. The main constraint to goat farming is the lack of improved breeds. 97 In conclusion, removing constraints related to productivity, value addition and institutional support and marketability would increase the returns to farmers. The diagram mapping
constraints in Frequency of the sub-sector summarises the constraints discussed above and points towards interventionspublic transport that could be potential solutions. No bus services, No bus foot, by travel residents three and cycle, bike, wheeler etc. services and No bus foot, by travel residents & boat. cycle No issues on transport (CTB available Transport but does not & private) regularly. function Connectivity Distance to the main road 12 km (Vaharai- 12 km (Vaharai- Batticaloa) junction 12 km Kiran Village situated on Chenkalady – Maha Oya (Badulla Road) main road 500 m D.S & G.N Divisions Vaharai, Madurankernykulam Poolakkadu Kiran, Pullumalai Pattu, Eravur Vellaweli, Vilamthottam Table 2: Infrastructure availability of study communities - Batticaloa District Focus Group Discussion Data Group Focus Source:
47vii TableFigure 3: 4.7: Profile Mapping of vulnerable of constraints groups withinand potential the study solutions sample of the dairy and livestock sector
Location Sex TypeConstraints of CauseCauses of Age EducationPotential WelfareInstitutions Vulnerability widowhood, statusSolutions benefitsImplementing disability Solutions Government Kunjan katkulam Female Disability Attacked by 56 RehabilitateNo schooling pastureSamurdhiDepartments, plus wild elephant land keroseneDevelopment stamp Poor management Organisations practices, poor Kunjan katkulam Male Disability By diseasequality feeds 65 No schooling CompensationDAPH, and Introduce improved & elderly elderly welfareDevelopment grass varieties paymentOrganisations Low Low milk productivity yield Pirambadiththeevu Male Disability By Poorarmy quality 52 IntroduceNo datasuitable goodNo benefitsDevelopment breeds quality cross breeds Organisations
Pirambaditheevu Male Disability By shellSmall attack holdings 40 Grade 4 Samurdhi
Wilamthottam Male Elderly Not applicable 78 Grade 2 Samurdhi and compensation Lack of extension Provincial Lack of officers, Increase human Agriculture, extension Aayiladi Male Disability By crocodileveterinary 68 Graderesources 4 Samurdhi,support boat, of services attacksurgeons net by tsunamiDevelopment Lack of Organisations institutional relief and tricycle Provide micro credit Development support Long procedure by rotary club facilities Organisations Lack of credit Wilamthottam Female Elderly Not applicable 60 No schooling Samurdhi facilities Complicated Facilitate formal credit Development documentation through discussions with Organisations Kiran Female Widow Natural neededdeath 34 relevantGrade institutions; 2 Samurdhi, of husband rural banks, NGOs Rs. 10,000/= as a loan by a NGO Diary and Improving access Development Livestock Lack of electricity Kallarawa Female WidowInfrastructure Natural death 59 Gradeto power 6 A houseOrganisations by Red related of husband Cross, solar panel Lack of good constraints Local quality transport, Improving roads by ZOA Authorities roads Low level of Wilamthottam Male Elderly Not applicableUnavailability of 80 Grade 3 Samurdhi,Development elderly value addition Technological Technology transfer technology to the Organisations, constraints through training welfare payment communities and personalDAPH Provision of initial capital Lack of paymentDevelopment by GN of Lack of capital to purchase equipment equipment Organisations and start up SMEs Rs. 10,000/=
Aayiladi Female Widow Husband 42 No schooling Samurdhi kidnapped Improve milk collection Development Lack of physical infrastructure and Organisations, market centres Infrastructure establish sales outlets Local Authorities Source: Centre for Poverty Analysis, 2010related constraints Improvement of rural Local Poor roads roads Authorities Lack of information Creating links with local Poor Limited exposure about canteens, restaurants, Development marketability to the market potential milk bars and hotels for Organisations mechanisms markets direct marketing Selling the Delayed process DAPH, Office milk to the Regularising cooperative of payment in the Bearers of middlemen at management systems a lower price cooperatives Cooperatives
Source: Study data
9848 Fisheries Contents Inland fisheries and marine fishing are two very important livelihood activities in the two 1.districts. Introduction Within ...... the fisheries sector, the majority of people are engaged in the marine1 fishing sub-sector. The topography of the Batticaloa District with its tanks and lagoons 2. Conceptual Framework and Methodology ...... 3 makes it more conducive to inland fishing in comparison to Trincomalee. 2.1 The value chain analysis: Approach to the study ...... 3 4.4 2.2 Inland Value fisheries chains in a conflict affected context ...... 3 Inland 2.3 fishing Conceptual is an allframework year activity-dependent ...... on the fish stock, while marine fishing is4 seasonal. Families engaging in both inland and marine fishing supplement their incomes 2.4 Methodology ...... 6 through secondary livelihood activities such as livestock rearing and the cultivation of paddy 3.and The other Context: crops. Batticaloa For example, and KunjhaankatkulamTrincomalee Districts in the...... Madurankernykulam GN division in7 Batticaloa 3.1 Implicationswas studied ofto demographicbuild the inland characteristics fishing value ofchain. the studyThe division districts has ...... 60 households7 that are engaged in inland fishing who also engage in secondary livelihood options such as 3.2 Poverty and income inequality ...... 11 paddy cultivation, bee honey collection and home gardening. 3.3 Poverty and welfare in study divisions of Trincomalee and Batticaloa ...... 12 Among 3.4 the Vulnerability studied GNs ...... the most number of fishermen engaged in inland fishing are from13 Ailiyadi and Nadoothu in Kinniya DS division and Kithulwewa and Madurankernykulam in the 3.5 Impact of conflict on livelihoods in Trincomalee and Batticaloa ...... 16 Batticaloa District. In Punanai East and Poolakkadu in Batticaloa, inland fishermen engage in fishing3.6 throughoutInstitutions the ...... year. Kithulwewa employs a number of fisherman; as high as 101 18in 4.inland Value fishing Chain from Analysis April forto September,Key Livelihoods during in theBatticaloa off season and forTrincomalee paddy cultivation...... 21 4.1 Paddy ...... 21 Fresh water capture fishing has been identified as a potential area for support to enhance the 4.2livelihoods Vegetables of the andrural fruits poor ...... by both state and non-state entities in the conflict affected37 areas 4.3 of the Dairy country, and livestock due to ...... its nature of providing quick returns and nutrition value as42 a protein supplement. Fishing provides the communities with a secondary source of income, 4.4 Inland fisheries ...... 49 which in turn helps them maintain a mixed livelihood portfolio which is more capable of mitigating 4.5 Marine the impact fisheries of external ...... shocks to income. Inland fisheries can be integrated with56 the 4.6agriculture Non-farm system livelihoods and can ...... be promoted as a rural livelihood option, working through62 the already existing government structures of agriculture and irrigation. These factors and 5. Policy Opportunities and Recommendations ...... 67 the presence of a large percentage of inland water bodies in the provinces suggest that the inland 5.1 fisheries Policy sub-sectorand Institutions has potential ...... to grow in the East. 67 5.2 Natural hazards and coping methods ...... 71 Table 4.9: Number of tanks by type in the East 5.3 Recommendations ...... 73 District 5.4 Future trendsPerennial and important livelihoods Seasonalof the target communities ...... 92 5.5 Conclusion ...... Functioning Abandoned Total 92 Batticaloa 18 206 96 296 References ...... 93 Ampara 53 181 87 268 Annexes ...... 96 Trincomalee 10 428 196 624 Source: Statistical Information, North East Provincial Council 2005 and MFAR, 2007 and DS Batticaloa, 2011
In these recently resettled areas of the country, fresh water capture fishing is practiced in seasonal tanks, using basic techniques for both home consumption purposes as well as for an increasingly expanding local market. In other words, subsistence is the main objective with excess catch being sold, thus it is mainly traditional/indigenous small scale techniques which are used in fishing. Among the 3 districts in the East, Batticaloa has the highest percentage of freshwater fisher folk whereas Ampara has the highest percentage of production, which makes the labour productivity of Ampara higher. The use of better fishing techniques as an outcome of training programmes given to the freshwater fisher folk under the Gal Oya scheme and the possibility of fishing during the dry season because of the
49ix Listpresence of Abbreviations of a higher number of perennial tanks could be a reason for the higher productivity rate in Ampara. The example of Ampara could be applied to the fresh water fishing in ACAPBatticaloa and Trincomalee Assistance toand Conflict apart Affectedfrom enhancing Persons the productivity through technology transfer, infrastructure development and institutional strengthening, overall strategies such ACTED Agency for Technical Cooperation and Development as balancing of resources through environmental conservation and reducing gender AIimbalances within Agriculture the sector Instructor should also be considered in order to develop the sub-sector. CBO Community-Based Organisations CEPAThe current market Centre analysis for Poverty identifies Analysis the potential to increase the production and CFSproductivity of the Consumer fresh water Finance fishing Survey sub-sector through a better supply of quality high DAPHdemand fingerlings, Department improved of Animal irrigation Production and andconnectivity Health infrastructure, resource management through collective decision making regarding the tank and the fish stock and DCS Department of Census and Statistics provision of fishing equipment mostly to the identified vulnerable groups. The sub-sector DOAshows a demand Department for certain types of Agriculture of traditionally processed dry fish which seems to have an DOASassured market and Department this could of be Agrarian further Servicesdeveloped by increasing the quantity of fish that is DOFprocessed and introducing Department the of Fisheriesproduct to markets outside the district in the longer term. DSFresh fish also seems Divisional to haveSecretariat a high demand locally, but exploring markets outside the FAOdistrict should be Food facilitated and Agriculture to ensure Organisationlong-term sustainability of the United of Nationsthe sub-sector. FGD Focus Group Discussion Fish production FHHs Female-Headed Households The price of fresh fish is about Rs. 100-200. The cost of input is minimal given that the GNproducers use traditional Grama Niladari non-motorised Division methods of fishing. In a context where the buyer GoSLcomes to the village Government and offers of Srithem Lanka the retail price, there are minimal costs (in terms of HIESlabour and transport) Household and almostIncome the Expenditure whole income Survey could be counted as profit. Given the IDMChigh market demand, Internal increasing Displacement the production Monitoring and Centre productivity of the sub-sector should be KPIencouraged since Key itPerson would Interview give higher returns to the producer. However, resource management mechanisms should also be encouraged; otherwise competition and damage LTTE Liberation Tigers of Tamil Elam to natural ecological systems could result from the drive to increase production. MFAR Ministry of Fisheries and Aquatic Resources MOPThe main constraints Muriate-of-Potash identified for increasing productivity and production were the MPCSmalfunctioning tank Multi-Purpose and unavailability Cooperative of Societiesquality input. Fingerlings, fishing craft, fishing OFCsequipment and labour Other Fieldare the Crops main inputs in inland fishing. PLR Paddy Land Registration The poor quality of the tank is an impediment to continuous fishing. Currently the tank in PwDs Persons with Disabilities the studied community contains only about 100 acres of water, but rehabilitated, could SMEsexpand to 600 acres. Small Itand dries Medium up during Enterprises the dry season, and the villagers control the flow of TSPwater using sand Triple-Super-Phosphate bags as there are no sluice gates. Responsibility for the maintenance of the tank rests with the Provincial Council, not the Department of Irrigation. As discussed at the DS level workshop and in the interviews with government representatives, at present, the government and NGOs are providing support for tank rehabilitation as part of the resettlement plans for these communities. The tank rehabilitation should integrate the producer groups as well so that they, through the fisher societies can contribute towards tank maintenance and management. They should be made aware of water resource management systems and be included in the strategising and planning of these interventions so that the ownership remains with them in the long term.
It has been observed that the most common management measures adopted in seasonal village tank culture consists largely of stocking with fingerlings and their subsequent harvesting. At present, the community claims that they have been informed by the relevant authority that the stocking rate is 100,000 per season (6 months) and they claim that they harvest 1,000kg per season, which could be considered average according to the records. Supplementary feeding of the fish is not practiced. According to research done by the FAO,
50x 1.it has Introduction been demonstrated that, by the addition of inputs (such as fertilizer and feed) and employing higher stocking rates, productivity can be improved (FAO, 2004). However, Thesupplementary Centre for feeding Poverty can Analysis only be (CEPA) considered was incontracted the longer by term the forAgency these communities,for Technical Cooperationgiven their lack and of Development capital and new(ACTED) technology. to identify and study potentially profitable economic activities in two conflict-affected districts, Batticaloa and Trincomalee, with a special focus placedThere areon theissues geographic with the areassupply in ofwhich fingerlings ACTED andworked. stocking. The studyThe Departmentwas conducted of Fisheriesin 2010, onesupplies year the after fingerlings, the end andof the fundsthirty toyear purchase war. The them analysis are provided aimed byat theproviding Provincial an understandingCouncil. Farmers of arelivelihood still not patterns able to produceand market their opportunities own or even andstart constraints up nurseries in thedue studied to lack regions.of technology This includedand capital, the potentialso all the to fingerlings target the are most imported vulnerable from people outside in thethese district regions, i.e. suchfrom placesas female-headed such as Dambulla, households, Puttalam the orelderly Ampara. and Thepeople distance living andwith the disabilities. mode of transport result in a high fingerling mortality rate. The specific objectives of this study were to: “We do not have good quality high demand fish like Viral and Sungan. The dried 1. Examinefish of thesethe forces kinds adversely are expensive.” or positively affecting the economic environment. 2. Identify the economic, social, cultural, technological,(Case study, political, PWD, F,religious, Vaharai) and environmental factors which may impact livelihood activities. Producers feel that stocking is insufficient, stocking frequency is too slow and they are 3. Analyse the existing legislative and/administrative structures for economic enhancement. dissatisfied with the types of fish that are placed in the tank, because they are not the 4. breedsIdentify that theare majorin high constraints demand and and have practical a high solutions value. The adopted breeds with that regardare currently to access being to placedservices in the (location tank are specific), not the mostincluding suitable strategies to the adopted prevailing by conditions.rural producers. These breeds are not capable of breeding naturally and they eat the fingerlings and eggs of naturally breeding Thetraditional geographical breeds. areas The ingrowth which ofthis the study fingerlings was conducted needs to had be been managed affected carefully, by conflict without and hadwhich resettlement inland fishing populations. cannot be Thesustained. main livelihoods Promotion of of the seasonal studied tank communities aquaculture were with paddy easy cultivation,low-cost start fishing, ups, thevegetable presence and of fruit high cultivation nutrients anddue dairyto water and retention livestock. and The human study mappedactivity, outand theland-based different miniprocesses nurseries involved such inas the in Rajawewaaforementioned and Kirawana livelihood in sectors Ampara, and are carried potential out asolutions value-chain for the analysis. lack of good quality fingerling closer to the communities.
TheInland findings fisheries would are usuallyprovide organiseddevelopment around organisations fisheries societies with insights that try into to theensure specific that livelihood-relatedbenefits accrue equitably, challenges the and use needs of inappropriate of resettled communities. fishing equipment is controlled, over fishing is prevented and marketing is facilitated. The societies also engage in maintaining the Thetank. study The 60comprises families ofin fivethe sections.Kunjaankatkulam This first, village is an introductionare registered to withthe study; the society. the second The sectionsociety hadlooks 25 at boats, the conceptual so fishing wasframework, a joint activity methodology and only and one limitations member fromof the a familystudy; wasthe thirdpermitted section to participatedescribes the in fishing.context Thisin Batticaloa controlled and over-fishing Trincomalee and Districts resource in depletion.studied areas; The thepresence fourth of section a strong provides well-functioning a detailed analysisfisher society of value can chains be an for opportunity key livelihoods for implementing in the target areasnew strategies. and section five provides policy and development intervention opportunities and recommendations. Resource depletion caused by over-fishing is a major constraint for inland fishing. In the absence of regulation and regulatory bodies controlling the type of fishing equipment being used, communities have adopted their own regulatory mechanisms. In the Kunjaankatkulam village, the fishing society regulates the use of equipment, and the police and army posts in the area are also alert about the use of illegal fishing gear. During the time the communities were under LTTE control, the LTTE took measures to regulate fishing practices.
The vulnerable groups and the close relatives that support them are engaged in the production stage of inland fishing at a basic scale. They seem to be at the lowest end of the value chain with regard to the quality of equipment they use and the quantity of fish they can catch. The constraints that were discussed in the above sections with regard to the quality and quantity of fingerlings and the dilapidated status of the minor tank were reiterated by these vulnerable groups as well.
511 There are FHHs, PwDs and those that support these vulnerable groups that use basic fishing methods such as fishing with a rod and small nets mainly to supplement their income. In addition to the constraints mentioned at the community level, the lack of capital to purchase fishing gear was mentioned as a constraint by the respondents and they did not have access to boats.
“I cannot do any work because of my pain. Husband engages in fishing but he does not have proper fishing gear. He has an old net which he continues to repair and use. He does not have a boat, if he has a boat; he can increase the quantity of fish that he catches. Our lake is not deep enough and we do not have quality fish. If the tank is rehabilitated, we can increase our profit.” (Case study, PWD, F, Vaharai)
FHHs that engage in fishing are members of the fishing society, but paying up the membership fee was not strictly required of them. They use the same marketing methods as the rest of the fishing community, selling the fish catch to the highest bidder through the fishing society.
Using the zonal plans drawn up for the East by the MFAR in line with the 10 year plan for the fisheries sector, culture fishing can be developed beyond the model farms that have already been created. The water bodies available in these areas increase the potential for culture fishing. The export demand for cultured high-value breeds would mean a higher price for the fishermen. Demand for high-value fish and fish products such as lobsters, sea cucumber, sea bass, oysters and shrimp exists in the international market and local production could be geared towards supplying these products. However, the quantity of exports of shrimp and prawn in the country has decreased and this presents an opportunity for culture-based fisheries to be developed in these areas.
The culture-based fisheries suit the vulnerable groups such as FHHs with the initial capital costs financed either through micro-credit systems or livelihood assistance projects. The amount of heavy manual labour required for culture fishing is relatively less, which makes it ideal for vulnerable groups. Awareness creation with regard to the profitability of the culture fish industry should be undertaken among the private sector encouraging them to invest in these coastal regions. However, culture fishing should be introduced and managed with caution, using clear resource management mechanisms in order to minimise the possible damage to the environment.
Value addition Inland fisher folk can make more money by processing certain types of fish. The fish producers who participated in this study have identified the type of fish that can bring them higher returns and the method of processing fish which is in more demand. They have found out that there is no demand for salted dry fish, so they use the traditional method of smoke drying fish using firewood, which incurs minimal cost and can last for about 3 days. The fish that has a high demand is Sungan and Viral dry fish, which gave producers (at the time of the study) Rs 800 and Rs 600 per kilo respectively.
“If we dry 3 kilos of fish, it becomes 1 kilo of fish. Therefore, we only process the fish for which there is a good demand and a high price. A kilo of dry fish normally sells at Rs. 300 per kilo. It is more profitable to sell this fish as raw fish” (FGD, Vaharai)
52 2.Because Conceptual of the high Framework demand there and isMethodology little need for storage. However, during the peak season, the non-existence of ice plants limits producers’ ability to send fish to markets 2.1outside The the value-chain region, which analysis: results Approachin certain fishingto the communitiesstudy processing the fresh fish Airrespective value chain of therefers value to thatthe sequencethey get for of theiractivities efforts. that At arethe timeundertaken of the study,in relation producers to a particularwere selling activity normal that salted creates fish value. to middlemen It could includeat half thea set market of primary price. and Dry support fish is producedactivities thatin remote an enterprise areas and performswhere accessibility to turn inputsis a problem. into value-added Lack of awareness outputs, on takingthe part note of theof consumerfishermen needs,in marketing and producer and in benefits.choosing Asthe the types product of fish passes that throughhave a goodseveral demand stages inof the valuemarket, chain, coupled the valuewith ofpoor the transport product increasesfacilities forces(Rengasamy, producers 2009). to sell the dry fish to the middlemen and they cannot demand a good price for their produce. “Value chains encompass the full range of activities and services required to bring a product orVulnerable service fromgroups its conceptionare part of tothe sale value in its addition final markets—whether process with fresh local, fish national, using the regional same ormethod global” of smokethese dryingactors fish.and stakeholdersThose that cannot are supported engage in bycatching a range fish of due technical, to their business physical anddisabilities financial prefer service to engageproviders in (Sapersteinprocessing fish. & Campbell, 2007).
It is important“I have experience to see the of horizontal making dry and fish vertical since my links childhood. of the value So, I chain.can do Thethat relationshipwork. betweenSometimes different my players husband at the will same bring level fish of tothe make value dried chain fish. is considered But our village a horizontal tank link. Identifyingdoes nothorizontal have enough linkages fish.” can help recognise joint constraints that require collective action and collective production which generates economies(Case study, of PWD,scale F,for Vaharai) small scale producers. The vertical linkages through the value chain are visible. Vertical linkages are perceivedThe existence as a ofcombined a good marketeffort to for move smoke-dried the products fish orand services the technological along the different know-how levels they of thehave value acquired chain untilthrough it reaches experience the final and market. traditional The aimknowledge is to benefit can playersbe capitalised at all levels on, alongespecially the forchain. the Valuevulnerable chains groups are often because focused value on addition creating requires market littlelinks mobility. or strengthening existing market links for the products along the supply chain (Research into use website1). “If I catch the fish I will not sell them. If I sell that, the profit is less. I will make The activitiesdry fish. relatedThat brings to a valuemore chainprofit. of The a single traders livelihood come to can my behome contained to buy withindry fish. a single groupSungan or divided and amongViral are different good for producers, dry fish. Buteither these from fish a aresingle less geographical in the tank.” location or spread over wider areas, which can be linked to create(Case synergiesstudy, PWD, (Research M, Vaharai) into Use website). Each type of livelihood may have different value chains since the actors/stakeholdersIntroducing higher ofvalue the livelihoodsfreshwater vary and for brackish different water sectors products or sub-sectors. and supplying the technological and initial financial support will move the fishers away from the less profitable 2.2traditional Value freshwaterchains in afishing conflict-affected sector. The existingcontext knowledge and experience of capture Conflictfishing such affects as crabseconomic and brackishdevelopment water andprawns value can chains be seen in asdifferent an opportunity ways. Transport to expand is disrupted,this sub-sector. infrastructure As highlighted is destroyed in the livelihoodor inaccessible sector and study security for USAID concerns funded restrict CORE mobility. project Power(May 2009), relationships Tilapia, Milkfishalso tend and to Carp shift species rapidly areas seendoes asthe easier policy and environment, less expensive affecting in the stabilitygrowth phaseand the and enabling less prone environment to diseases for businessin comparison and enterprise. to prawns, Often,although interventions they fetch ofa governmentslower price in andthe marketdonors thantarget the short-time prawns. Thehorizons. local market Most importantly, which prefers conflict fresh destroysfish without the trustice should between be targeted different for actors these in types the value of aquaculture. chain. These methods of higher value culture fishing was, at the time of the study, already in their pilot phases throughout the Eastern UsingProvince, a value mainly chain in theapproach Batticaloa in post-war District, settingsand steps requires should the be following: taken for segmentingscaling up andthe marketincorporating to make the use lessons of existing learnt fromopportunities the pilot andphases. generating early momentum, re-building the horizontal and vertical links in the chain, providing participants with access to support servicesMarkets such as transport, finance and marketing, and working to regain trust between the differentFreshwater actors. and brackishThere is water a need capture to work fish withas well government as culture agenciesfish is seen to tobuild compete the policy with environmentthe marine fish for infostering the local economic market anddevelopment has shown and export with differentpotential. private-sector Tilapia and Milkfish actors whowithout can ice be should encouraged target theto investlocal market, in upgrading with transport different from stages the ofeastern the value districts chain. to theIn contextsmore urban where areas economictaking minimum activity time. has Thebeen culture severely fish suchconstrained as shrimp and and institutionscrab could considerablytarget the tourism weakened, industry strengthening and also the value export chains market. may Privatehave tosector be involvementpart of wider, in multi-sectorbuy-back systems efforts. should be encouraged and the links should be facilitated where possible into systems where the company would supply the fingerlings and the feed and buy back the produce from the farmers at a competitive market price.
1.Source: http://www.researchintouse.com/nrk/RIUinfo/valuechain/valuechain.htm
533 ThisDue studyto the takes lack a ofpost-conflict market centres, approach and to becausedeveloping of thethe value lack chainsof transport in the focusfacilities districts and ofconnectivity, Batticaloa andproducers Trincomalee. tend to These sell their districts, produce together to middlemen with Ampara or collectors in the Eastern at a lower Province than andoptimum all of price.the Northern The exception Province is have in Kunjaankatkulam, been affected by wherealmost there three is decades a fisheries of war society, between and thewhere Liberation producers Tigers are ableof Tamil to sell Elam their (LTTE) fish toand the the buyer Government who offers of theSri highestLanka. Cessationprice. Here of overtthe buyer hostilities offers in them the East the inmarket 2007 priceled to and a post-war also pays situation an additional prevailing Rs. in 10 the per region, kilo to even the beforefisheries the society. war ended The strengthened in May 2009. fisheries ACAP (Assistance society in turnfor Conflict can look Affected to start Persons)up seasonal was tank the ACTEDfish culture. project which selected sites in which to work in the North and East, mobilised communities and identified infrastructure which were priority for reconstruction. The study wasDiscussions part of theat the process district of level identifying workshop the revealedlivelihood that, sectors the ofmiddlemen the selected buy recently the fish resettledfrom the communitiesfishermen for and Rs. areas90 and for sell support it to theand retailer value addition.for Rs. 190 and the retailer charges Rs. 290 from the consumer. Similar to the marine sector value addition process, the middlemen are 2.3seen Conceptual to be involved framework in the input supply and they also purchase the harvest at the end. AMiddlemen conceptual bring framework the ice boxes; derived store from the value-chain fish in these analysis boxes andto identify transport key the aspects produce that to contributethe market. to Theincreasing lack of the the profitability producer’s of understanding existing and expanding of the market, livelihoods the waslack usedof market here. Interventionscentres in close to proximitycreate a value-chain and the lack market of connectivity system need in termsto link of producers transport to infrastructure the market. Theymake shouldthe producers work with sell thetheir intermediaries produce to the (in middlemen other words or thethe collectorprocessors, at a marketinglow price. and sales personnel, etc.) to produce the goods that are in demand, in a way that enhances the profitabilityThere is a high and (and market increasing) power of local the demand producer for and inland benefits fish, prawnsall the stakeholdersand dry fish thatalong is notthe chain.salted. A local level market centre integrated into a regular market for the other crop produce as well could be a potential intervention to replace the ad hoc fresh fish sales that Inare this taking analysis, place the by keythe elementroad side. is theThe end-market rapidly developing - local, national,tourism industryregional orwas global. seen Eachas a sub-sectorpotential market is analysed for these using products. the value-chain Quality assurance approach. mechanisms Product market, for potential market partnershiptrends, key componentswith the private of thesector sub-sector, should be and introduced an analysis and brandingof the relationship strategies suchbetween a trade the name different and stakeholderslabelling will bein essentialterms of in their the longerrole in term the insectors targeting are nichecrucial markets. elements of a sub-sector analysis. These stakeholders may vary for different value chains. The constraints and opportunitiesStrengthening in the terms fishing of technology, societies to market identify access, new markets, institutional improving policies, market finance linkages, and credit, and andcollective input marketingsupply also of formfresh a fish part as of well the as sub-sector dry fish will analysis. bring higher returns to the producers.
AlthoughIn summary, adapted the attached by many, diagram the underlying maps the concept constraints, of the causes value and chain potential remains solutions the same. for Thethe inlandvalue-chain fisheries analysis sector. for the paddy sub-sector, undertaken by Oxfam GB with the Agrarian Services Department, takes a conventional approach to value chain development by considering all the relevant stakeholders of the paddy value chain. This study was localised to the Batticaloa District so that specific livelihood support and improvement recommendations could be provided. Another study on the fisheries sector in Sri Lanka, conducted by USAID uses the value-chain approach to understand how conflict can influence the fisheries sectors’ ability to compete (Arunatilake et al., 2008). The Livelihood Gap Analysis conducted by ILO in 2008, provides detailed information on livelihood needs and infrastructure gaps of the selected resettled Divisional Secretariats (DS) in the Batticaloa District.
Available literature (including literature on the aforementioned research) was used to map the stakeholders and their functions along the value chain, to identify some of the constraints and opportunities discussed in Section 5 and to frame the recommendations based on the study analysis.
Sub-sectors for the value-chain analysis of this study were identified using the information gathered through existing secondary and primary data. The farm and non-farm livelihood options of the study target group were mapped as a first layer and the most prominent livelihood types were chosen as sub-sectors for the analysis. The important sub-sectors identified for this market study were paddy, vegetables, livestock, inland fisheries, marine fisheries and non-farm livelihoods (brick making). At the time of the study the tourism
544 sectorFigure was 4.8: a growing,Mapping but of not constraints the prominent and livelihood potential sector solutions and most for survey inland respondents fisheries didsub-sector not identify it as a livelihood option. However, the study does point out the links the identified sub-sectors could have to the tourism sector for market expansion and diversification. Constraints Causes Potential Institutions Solutions Implementing Solutions Value chains exist within particular contexts, and the framework in Figure 2.1 describes the contextual factors that can influence the operationLack of technology of the and valueExplore chain the atfeasibility all levels. of There are capital for local fingerling breeding at Development social, cultural, environmental, political andfingerling institutional production factors,local levelwhich are Organisationscritical to consider when enhancing the livelihoods of vulnerableHigh mortality rate groups in in a conflict-affected area. The Lack of fingerlings participation of vulnerable groups will also be transportationaffected by their own human, social, financial Unavailability of Facilitate financial and Development and physical assets, and their level of motivation.fingerlings in high technical support to Organisations demand. Eg: Viral existing local breeding centres Figure 2.1 Conceptual frameworkLack of fishing of theLack studyof capital to buy Development equipment to Supply of fishing equipment fishing equipment to vulnerable groups Organisations, vulnerable groups NAQDA Social and Low Production Recently resettled Providing micro credit as Development Cultural and ECONOMIC Aspectscommunities of Exis withtin lowg Liveinitialliho capitalods to selected Organisations Lack of capital and capital groups Factors productivity technology to engage in culture fishing Lack of awareness and DOF, Provide training on new Development exposure on culture methods of fish culturing Education Consumfishingers Organisations Development Health Rehabilitate minor tanks Organisations, Dilapidated tanks Poor maintenance of and mobilise community the tanks Local for maintenance Government Networks Fisheries Depletion of fishing MarkeLacktin ofg resource& Awareness creation about Societies, management and resource management Social stock Sales Development Inland illegal fishing methods and stop over fishing Organisations eFisheriesxclusion Infrastructure Local InfrastructLackure of transport Poorly maintained Improve the rural roads and Services facilities rural roads and Services Authorities Link to existing local Development markets such as pola' Organisations √ InformatLackion of market ProLowce sexpectedsors returns √ Connectivity √ Technologycentres by decision makers Establish and t rsalesans poutletsort at urban centres within the Development √ Electricity √ Finance Organisations Marketing district and linking the Political and constraints a fornd water √ Landproducers Institutional capture fish, culture fish Increase awareness about Factors and value Lack of private sector Lack of awareness culture fishing with the aim DOF, added fish investment in Proaboutduce potentialrs for of promoting investment & Development marketing culture fish culture fish introducing quality control PolicOrganisationsies Environmental mechanisms Factors Create and/or strengthen Resource Lack of bargaining Promote collective fisheries societies allocDevelopmentation power of the marketing integrated with the Organisations Natural communities farming groups resources InLackpu tofs awareness Social Lack of branding for about methods of Introducing trade name Development value added products increasing and packaging protOrganisationsection Climate marketability change Source: Study data Potential Areas of Growth
Expanding existing livelihoods New l ivelihoods
555 2.44.5 MethodologyMarine fisheries The marinemarket fishinganalysis sector largely in Sriused Lanka a qualitative comprises methodology of two sub-sectors- which was the coastalcomplemented sub-sector by secondaryand the deep-sea quantitative sub-sector. data and The resources. country’s Publishedcoastal fishing data fromsub-sector government is facing websites, constraints and agenciesrelated to as resource well as depletion.ACAP data On were the usedEastern and coast a short the literature fishermen survey are facing was alsothis, conductedalbeit to a withlesser the degree, purpose than of thecollating fishermen background from the information Southern relatingcoast because to value-chain the Eastern analysis. and SamplingNorthern coastwas undertaken have not experiencedusing quantitative as much data over-fishing both from theas otherACAP regionsproject anddue Districtto the Secretaryrestrictions Statistical on fishing Information during the sheetswar. However, (Section the3 provides lifting of the fishing criteria restrictions used for in sample these selection).areas will see more and more people getting into the industry.
TheAs shown initial datain the collection following phase graph, focused the highest on gathering percentage district of levelfisher data folk - inrespondents the country were are representativesfrom Trincomalee of andthe governmentBatticaloa, 18% departments and 15% of respectively, agriculture, andagrarian they services,produce 8.36%fisheries, in livestock,Batticaloa andand at9.44% the provincial in Trincomalee, and district out oflevel, the administrativetotal national fishofficers catch. such The as productivitythe DS and ACTEDlevels in and these Sewalanka two districts staff. are not as high as in other districts in the country. This, combined with the threat of resource depletion should discourage more people from getting into the Thesub-sector second, and more encourage extensive datamoving collection into other phase parts included of the multiple fishing steps. value As achain first step,such theas districtprocessing level and workshops also moving were into structured other livelihood and conducted options in such a way as highthat informationvalue cash cropwas gatheredcultivation. for each livelihood sector (sectors which had been identified earlier through Figuresecondary 4.9: data Percentage and initial of field fishermen work). Focusby district, Group 2009Discussions (FGD) guiding questions were designed to capture the in-depth issues related to various farm and non-farm livelihoods in theTangalle study 4%locations. Key Person Interview (KPI) tools were Kalmunaiused to obtain13% informationMatara 5% from the state institutions and identified stakeholders at different stages of the value chains from differentGalle 4% livelihood sectors. In addition, an Open-ended Case Study tool wasKalutara used to 3% obtain data on issues of vulnerability. Colombo 1% Due to time constraints, it was not always possible to triangulate information obtained from Negombo 8% Batticaloa 15% one source that was specific to study locations. The multiple layers of data collection, i.e. the district level workshops, key informant interviews and community level discussions, did help bridge this gap to a certain extent. The rapidly changing context of the communities that had recently resettledPuttalam at 8% the time of the study warranted a level of intense primary data collection. Chillaw 7%
Mannar 4% Jaffna 10% Trincomalee 18%
Source: Ministry of Fisheries and Aquatic Resources, 2009
The 10-year strategic plan for the fisheries sector (MFAR,2007) encourages the development of the deep sea fishing sub-sector in the long run for various reasons, such as higher returns based on the demand in the export market for certain fish types (such as tuna) and availability of resources. The coastal sub-sector is considered important within the current state policy dialogue because it employs and supports the bulk of the people engaged in the fishing sector.
The peak fishing season on the Eastern coast is from February to July. The lack of a secondary form of livelihood which can cushion them during the off-season for marine fishing makes fishermen more vulnerable and leaves them with no other alternative but to take credit at high interest rates trapping them in a debt cycle. During the off-season for marine fishing, they engage in fishing in the lagoon and the estuary; catching prawns, crabs and fish. These fisherman claim that they are unable to make a profit out of brackish water fishing because the catch is too small, caused by resource depletion and the filling up of the estuary. Introducing culture fishing as discussed in detail in the value addition
566 3.section The Context:could be anBatticaloa alternative/secondary and Trincomalee livelihood Districts for these communities. Further, introducing cash crop cultivation such as vegetables and cereals and fruit could also provide Thisthem section an income of the source study during profiles the the off-season. two districts - Batticaloa and Trincomalee - that are the focus of this market analysis. It provides the background to the following sections in the studyDetermining and raises the returnscontextual to thespecificities marine fish that producer are relevant or the when cost dealing of production with livelihoods could not and be livelihooddone in this reconstruction study due to thein theselack ofregions data at (suchthe secondary as issues and of primarywell-being, level. vulnerability, The reason availabilitycould be the of unpredictability physical infrastructure of the amount and impact of fish of caughtconflict and on variousthe income livelihoods). depending on the type of fish caught, which in turn depended on the time of the month, the type of fishing 3.1equipment Implications and craft of used the anddemographic the number characteristics of people that are of engagedthe study in thedistricts craft. TheIn this population analysis, demographics the study focused have changedon coastal considerably fishing, and over illustrates the decades the valueas a result chain of with the conflict.examples This from has the had Kallarawa implications fishing on thecommunity number ofin peoplethe Kuchchaveli and ethnic DS groups Division within of the region.Trincomalee In a District. post-conflict The primary situation, data as from is presentlythe current faced, study returnees also shows could that changethe highest the demographicincome for the profile communities of the regions is generated and impact through on howdeep livelihood sea fishing. groups can function within these changing demographics. Inputs ANon-motorised special enumeration boats are in owned2007 by by the the Department fishing families, of Census but much and of Statistics the other (DCS) inputs after (fishing the cessationequipment of and hostilities fuel) are revealed financed a total by thepopulation wholesaler. of 334,363 For fishing in Trincomalee; to happen atrepresenting an optimum a 30.6%level, fishermen increase needin population to have multiple since the fishing last gearCensus to catchin 1981 different (DCS, types 2007b). of fish. This Fuel was is comparativelypurchased at lowerthe nearest than the filling increase station, in Batticaloaor illegally District from duringretail suppliersthe same closerperiod towhich the experiencedcommunity. Trincomaleea 56.2% increaseand Batticaloa in population show the andhighest had numbers a total of population traditional fishingof 515,857 craft (Departmentthroughout the of islandCensus and and Trincomalee Statistics, 2007a). is the third In the highest 2012 inCensus, the multi-day the total boat population category, in Batticaloabut there iswas a question 525,142 whether and 378,182 these boats in Trincomalee. operating off This the showsTrincomalee an increase shores areof aroundowned 1.76%by the inlocals Batticaloa or whether and a they0.11% belong increase to the in Trincomaleemigrant fishers since from the endthe Northof the Westernconflict. and Southern coasts. The target communities should be linked to the deep sea sub-sector if not Despitedirectly asboth boat districts owners, being at least conflict as support affected, service the providers.ethnic composition has only changed significantly in the Trincomalee District over the past five decades; the Muslim population in theThe Trincomaleefishing community District ishas locked increased in a relationship by 16% (2007) with since the wholesaler, 1981 (ibid. )not becoming only because the most he ethnicallyfinances the predominant inputs, but group also becausein the district, he provides even thoughadvances this during percentage the off-season fell marginally when fromfishing 45.4% families’ in 2007 secondary to 40.41% income in 2012. sources In the are Batticaloa not sufficient District, for the their Sri subsistence. Lankan Tamil Fishing ethnic groupyields ahas reasonably remained high the incomepredominant during group. the peak The seasons percentage but seasonalityof Sinhalese and in theweak population financial hasmanagement fallen in the and Batticaloa saving habits District of over the thefisher past communities 5 decades from create 3.4% financial in 1963 difficulties to 1.19% for in 2012,them duringwhile increasing the lean period. marginally They in do both not districtsapproach from formal 2007 financial to 2010 services by 0.69% because in Batticaloa of the andlack 1.56%of collateral in Trincomalee. and guarantors. The Sri Their Lankan only Tamilway ofpopulation accessing has formal increased financial marginally services byis 1.56%through and pawning 2.60% jewellery. in Trincomalee and Batticaloa Districts respectively from 2007 – 2012. This is very different from during the war when the population count for all ethnicities in BatticaloaThere was hadlittle assistancebeen significantly being provided low. This to the shows fishing increasing community resettlement from the government. activity in BatticaloaThe officials after of the the Ministry cessation of Fisheriesof fighting. do Thoughnot engage all populationsat the community have returneeslevel. Many post fishing war, thecommunities Sinhalese are who organised have been into resettled fishing societies,in majority and Tamil many areas external in the agencies East have channel resulted their in thesupport rise toof ethnicthe community tensions. Thesethrough population these societies, movements but indicatingwhere they resettlement are not havetruly createdrepresentative a complex (as situationin Kallarawa) where and some where Internally there is Displaced little trust Persons between (IDPs) the communityhave conflicting and claimsthe society’s to the officesame bearers,land and their property. role becomes Tables 3.1 limited. and 3.2 provide information on the ethnic mix of the studied districts, providing a pre-war and post-war perspective. Based on the secondary data available, both districts showed an excess in production in marine fish which is expected, given the resources available in the two districts. The high amount of excess production necessitates a marketing network that can send fish directly into inland areas that are at least adjoining the districts, such as Anuradhapura and Polonnaruwa, without sending it to Colombo. There is a clear opportunity for transporting fresh fish out of the districts using cooler trucks, but the capital constraints of the target communities and also the perceived monopoly of the wholesalers, restrict them from expanding their market and services.
577 TableMarine 3.1:fishing Population is seasonal by with ethnicity the peak in fishing Trincomalee season beingDistrict from February to July. The highest income comes from deep sea fishing, but most of the fishing families in the target Year Total Sinhalese Sri Lanka Indian Sri Lanka Other communities own non-motorised boats and engage in one-day fishing, which is in the Population (%) Tamil Tamil Moor (%) coastal sub-sector. The net income distribution of the coastal sub-sector when compared to the offshore sub-sector is low. The number (of% people) engaged(%) in a given(%) coastal fishing activity1963 is high13 and8,55 the3 harvest2 is8 .low8 compared36 to.9 the offshore2.4 sub-sector.29 .These4 fisher2.5 folk are19 constrained71 188 by,24 the5 large capital29.1 requirement35. 4of purchasing2.7 and maintaining31.8 a multi-day1.0 boat.198 1Without2 5substantive5,948 initial3 3capital.4 support,34 the.3 resettled2 .communities1 29 .that3 are targeted0.9 in2 this007 study 3cannot34,363 take up deep25.4 sea fishing.2 8 It.6 seemed that0.1 although4 5.4the state policy0.5 is encouraging the development of the deep sea fishing industry, it cannot target these 2012 378,182 27.0 30.6 1.7 40.4 0.3 producers at the lower ends of the value chain and instead is targeting the fishers that have Source:stronger Department initial capital. of Census The and higher Statistics, prices 2007b, of 2012deep sea fishing craft and fishing equipment has meantTable 3.2:that Populationthe non-government by ethnicity organisations in Batticaloa who Districtare working within the sector also cannot justify providing these on an individual basis. Year Total Sinhalese Sri Lanka Indian Sri Lanka Other However, inP oBatticaloa,pulation several(% one-day) boatsTa mhaveil been Tconvertedamil intoMo omulti-dayr ( %boats.) This trend should be encouraged through technology(%) and( %capital) transfers.(%) The offshore sub-sector1963 provides196,189 a large amount3.4 of indirect71.1 employment0.8 opportunities.23.5 These include1.2 construction1971 256,721of boats, boat cleaning4.5 and maintenance,69.1 fish net1.7 manufacture,23.7 ice production1.1 and supplying of other services required by the industry such as transport, food provision 1981 330,333 3.4 70.8 1.2 23.9 0.7 and mechanical parts for boat engines. Given the decreasing trend of direct youth participating2007 515,857in the fishing activities0.7 - due to unwillingness,74.0 given0 the nature25.0 of the industry0.5 or2 0lack12 of skills525,142 - they could 1.2be encouraged 72.6to participate0.2 in these indirect25.5 employment0.5 opportunities.Source: Department Skills of Census development and Statistics, could 2007a, be 2012 provided through the National Institute for Fisheries and Nautical Engineering, already established in the regions and the growing The change in population compositions as discussed above could be explained in many sub-sector can directly absorb the youth. ways. The impact of the war and the resulting displacements of minority communities within these districts could explain these changes. The influx of IDPs into these regions could also Beach seine fishing also happens in Batticaloa and Trincomalee, but many beach seines are have changed the composition of the population.2 Other aspects, such as some ethnic owned by people from the Northwest coast. Local people can obtain employment on the groups (for example Muslims) showing a higher annual population growth rate in general beach seines either as temporary workers (where they are given fish as payment) or as could also be another contributing factor. permanent workers with cash wages. However, most of the permanent workers on these Despitebeach seines these are changes, outsiders. settlements Women alsoparticularly engage inin thethe East,last phase are clustered of the beach along seine ethnic activity, lines. In“the many illippu” regions and aresettlement paid in kind patterns with 2-3and basketscommunities of fish. reside Being in employed distinct ethnic in the enclaves beach seines with interactionwas seen to seemingly bring less returnstaking placeand most in more of the urbanised time they wereenvironments paid in kind, within so thethe fishermen districts. Engagingfrom the communityin various preferredtypes of livelihoodsto go to sea increases in their traditionalthe inter-ethnic crafts andinteraction engage acrossin fishing. the region. This study alludes to this as well, where groups that have been known to harbour Value addition tensions work together along various components of the value chain, seemingly in harmony. There is very little value addition taking place in the marine fishing sub-sector, mainly because’Our of milk the goesneed to threesupply hands fresh beforefish to the market.collectors. The Producers Tamils engage also feel in milkingthat dry fish productionand they is less sell productive. the milk to Muslims.Sprats are, The however, Muslims driedsell it and to Sinhala sold, because shop owners‘. it is not always profitable to sell fresh sprats. (FGD, Eravur pattu)
These“Dry population fish making changes is unprofitableand the potential because for itwe to lose keep one changing third of as the a result weight. of the We end of the wardon’t and engage the returning in dry populationfish making is ata pointthe moment, to note in only relation if we to catch rehabilitation a lot of sprats work in the East. However,we make atdry the fish, same because time, resettlementit is not profitable of Sinhala to sell populations fresh sprats” in both districts has also fuelled minority insecurities regarding the protection of land rights. In FGD,terms Kallarawa of livelihoods, managing of inputs and production activities as well as engaging in meaningful market linkagesClose to will45% be of affected the fish by imports changes to inthe population country are and canned population fish. flows,Therefore, which there in turn clearly affects is thea demand groups forthat canned can access fish, especiallyresources andin the those hill countrywho are and excluded. in the areas where there is low refrigeration facilities for fresh fish. However, whether small scale producers can compete 2 withThe lackthe ofmultinational data on displacement companies and resettlement is a concern. by ethnicity If makesmarket it difficult linkages to draw can conclusions be established on causal factors in the two districts.
588 Thethrough importance the private of understanding sector and if the a brandlocal context name canand bedynamics created in withterms quality of inclusion assurance and exclusionsystems, cannedof main fish identity as a valuegroups added (such product as ethnicity) of the marineand incorporating sector has potential.this understanding However, intoit should project be designingintroduced has on beena small highlighted scale. Previous in a study attempts conducted to introduce by CEPA this in industry collaboration failed withbecause Oxford of the University. lack of a It steady argues supply that theof wet most fish contentious in Mannar. dimensionsManual, low ofcapital development canning policyplants/fish design processing and programming factories iscould in the be targeting a viable - whichalternative groups to are larger included scale and mechanised excluded inplants the projectsfor which - theand raw how material these aspectssupply cannotaffect localbe ensured. dynamics and community interactions and can increase tensions between groups if not managed (Diprose et al., 2010). Thus, this studyGiven consideredthe increasing the resourcelocal context depletion and socio-economicin the coastal sub-sectorand demographic and the dynamics inability ofwhich the existedfishers toin immediatelyBatticaloa and move Trincomalee into the whendeep seaforming sub-sector, the methodology engaging inand high carrying value outculture the mappingfishing could exercises. be introduced and facilitated. The export demand for the high value culture fish would mean a higher price for the fishermen. Demand for high value fish and fish products Basedsuch as on chilled the survey and frozen carried tuna out and by lobsters,the Department sea cucumber, of Census sea andbass, Statistics oysters andin 2007, shrimp in Trincomalee,exists in the internationalpeople in 24 GNmarket divisions and local(belonging production to 7 DS could divisions) be geared were towards displaced supplying while in Batticaloa,these products. people However, in 23 GN the divisions quantity (belonging of exports toof the3DS shrimp divisions) and wereprawn displaced. in the country This washas mainlydecreased due with to conflict;the failure 74% of andprawn 85.8% farms ofin thethe displacedNorth Western people coastal in Trincomalee line, and andthis Batticaloapresents an respectively opportunity were for culture-baseddisplaced due fisheriesto conflict. to beThe developed rest had beenin the displaced East. Venturing due to theinto tsunamiculture fishingdisaster should (DCS, be 2007a, based 2007b). on the lessons learnt from the experience of the North Western prawn farms and their failures and should therefore be implemented with risk Tminimisingable 3.3: mechanismsDisplaced p oinp uplace,latio nsuch in T rasin cforom athele eearly Dist ridentificationict, 2007 and treatment of diseases. DS Division Total Population Displaced Population displaced as Introducing high value Populationfishing will mean thatdue the to supportingconflict servicesa % andof total infrastructure population have toPadavasiripura be properly in place. The10,666 collection and assembling16 chains will have to0 be functioning smoothly and the producers need to access transport and ice plants fairly quickly. In Kuchchaveli 26,327 531 2 addition, training on cleaner fish handling practices and quality maintenance will have to be providedGomarankadawala along with initial5,879 market linkages in order6 to maintain the sustainability0 of the ventures.Morawewa The fishers engaging5,563 in coastal fishing886 that yields lower productivity16 could be targetedTown and for Gravets this, as can89,046 vulnerable groups 5,391such as FHHs and youth. Cage6 culture for example, needs relatively low levels of heavy manual labour and can target FHHs. Thambalagamuwa 27,572 467 2 StorageKanthale and transportation42,861 287 1 AtKinniya present, there is little 61,558need for storage of marine379 fish products within the1 communities becauseSeruwila the catch is sold11,142 to the buyers within 787hours of coming ashore. Cooler7 trucks are used for transportation in the peak season. Often fish is packed in rigifoam boxes and Muttur 47,132 2,714 6 transported to the wholesale markets. Transport providers are not from the fishing community,Verugal they are outsiders6,617 who have an agreement0 with the wholesalers,0 and who Source:transport Department the fish of from Census the and community Statistics, 2007b to places in Colombo and Negombo. The closest ice plant to the Kallarawa is in Trincomalee and the cost of ice at the point of fish purchase is 25% higher than in Trincomalee. This is, however, a hidden cost, deducted as an expense by the buyer when purchasing the fish.
However, as explained in the above section, moving into culture fishing will necessitate better transport and storage facilities and if the expected higher returns are to go to the producers, the supporting services will also have to be made more accessible to the producers, if not solely owned/managed by them. At the time of the study there were 3 ice plants in Batticaloa. Given the isolation and connectivity constraints in the target GNs, these ice plants clearly will not serve the purpose and the need for smaller scale ice plants closer to the communities should be stressed.
Investments along the value chain such as post-harvest handling; sorting, cleaning, packaging and support services would create more regulated employment opportunities for the people at the producer level and would bring in higher returns.
599 TableMarket 3.4: Displaced population in Batticaloa District, 2007 TheDS Divisionmarket for fish is dominatedTotal by wholesalersPopulation in Displaced Colombo andPopulation their local displacedcollectors, whoas purchase the fish to bePopulation transported out ofdue the to district conflict to the leadinga % offish total sale populationcentres in the country (mainly St. John’s market) and also for export. The wholesalers, who are at the highestKoralai levelPattu of North the supply21,263 chain, play a key role1,093 in determining the market price5 for fish. The dominanceKoralai Pattu of Westthe wholesalers20,985 in coastal fishing,27 especially in beach seine fishing0 is derived fromKoralai their Pattu hold on producers24,589 through cash advances2,702 given during the off-season,11 and for purchasing inputs such as fuel and fishing gear. This cycle of dependency should be broken Eravur Pattu 75,886 17,276 23 by providing the producers with alternative livelihood options during the off-season and also increasingEravur Town awareness on alternative25,024 financial sources.84 0 Manmunai North 88,459 9,081 10 There is a high demand for fish within the district, and if the cycle of dependency on the fish Kattankudy 39,523 237 1 wholesalers and their local collectors can be broken, producers should be able to trade fish inManmunai their locality. Pattu Currently,30,747 there are small retail874 sellers on bicycles who also3 purchase fish, butManmunai they buy S-W it from the representative23,988 of the wholesaler357 and not from the fishermen.1 Poratheevu Pattu 38,282 442 1 Identifying the markets with more purchasing power such as hoteliers and urbanized populationsManmunai Southfor high value niche products such as lobster and crab and promoting either 57,917 1,967 3 directand Eruvul market Pattu linkages through collective marketing at the community level or through the privateKoralai sectorPattu should be strongly facilitated. Exporting is 100% dominated by the private sectorCentral mainly based in Colombo24,510 or in the North 582Western coast and these exporters2 will have to be linked up with the producers in the east so that they can increase their revenue by supplyingKoralai Pattu to these South more lucrative19,659 markets. These6,107 exporters usually send a representative31 to theManmunai fish selling West centres to25,025 ensure quality and 4this would automatically 0bring in better Source:handling Department systems. of Census and Statistics, 2007b
More than five years after the cessation of conflict in the East, many people displaced at various stages of the conflict have returned to their home areas. However, the problem of sustainable resettlement is still a crucial problem for many of the conflict-affected population. Resettlement of all ethnic communities after the war has created multiple complications such as competing land claims, boundary disputes, the inability to provide legal documents and landlessness. Public information on IDPs and returnees is not easily available and no comprehensive profiling has been undertaken since 2007 making it a “hidden crisis”. Many who have returned have difficulties accessing basic necessities such as food, water, shelter and sanitation and in exercising their civil rights.
Displacement and resettlement has also been one of the reasons for migration, more so in Trincomalee than in Batticaloa. In 2012, the Batticaloa District had a migrant population of 22,975 people, 3,034 of whom had been displaced and 1,153 who had been resettled after displacement. In Trincomalee, these figures and proportion were higher, with the district having a migrant population of 73,640, with 3,476 being displaced and 28,225 resettled after displacement.
Quite often large scale economic projects (that the local population does not have the skill to help implement/directly benefit from) are given precedence over much needed infrastructure assistance that would benefit individual households, including IDPs and returnees. Some relocations were also regarded with suspicion among the local and international organisations as having been forced. The Eastern Province remains highly militarised, though relatively less than the Northern Province. The military continues to be an economic player, competing with the IDP’s, returnees and others affected by the conflict and hampering economic independence from aid. However, this condition is more prevalent in the North than in the East.
1060 ThoseFigure who 4.10: were Mapping displaced offrom constraints the Trincomalee and high potential security solutionszones (Sampur for area)the marinehad not beenfisheries able sub-sectorto return to their homes at the time of the study, and had often been resettled in areas close to their lands of origin among host communities. Most of the time this was under dire conditions and returneesConstraints have consistentlyCauses voiced a demandPotential to return toInstitutions their own Solutions Implementing lands. Solutions
Low returns from high Continued governmentResource restriction depletion in on the humanitarian community meant Developmentthat no brackish water value brackish water Introduce culture fishing comprehensive needs assessment had been conductedfishing in the conflict-affected areasOrganisations of the North and East, and the difference between needs and available resources continuesDevelopment to Introduce culture fishing Organisations plague these people. InResource addition, depletion humanitarian in Excessive and fishing development aid in the North and East the coastal sub-sector Introduce/expand value is heavily monitored and controlled by the military. Therefore,addition the suchdistribution as making of Developmentaid to the fish canning at community Organisations displaced and their adequate resettlement is by no means universal. levelThe Lessons Learnt and Reconciliation Report and its subsequent recommendations in 2011Identify enterprisinghave not been included in the action plan of the government (IDMC,Lack 2012). of ice plants These and recommendationsindividuals, provide wereDevelopment crucial to Lack of support cooler rooms training and facilitate Organisations achieving a durable solutionservices for closer the to the displaced. initial capital communities Lack of manufacturing of fishing craft and Provide capital and Development 3.2 Poverty and income inequality equipment within the technical support Organisations district Determining well-being is important in trying to understand the choice/lack thereof to Lack of fishing gear to engage in certainLack of types of livelihoods catchover different others, types ofparticularlyProvide specialised in relation fishing toDevelopment income productivity fish according to gear to suit the seasonality Organisations, DOF availability and sources, welfareRequirement transfers, of accessseasonality to physical infrastructure and other inputs. These aspects are also importantdifferent types ofin relation to decisions regarding the target population, fishing gear specific project intervention (such as type of livelihood assistanceProvide training or type on cleaner of infrastructureDevelopment 3 High post-harvest loss fish handling Organisations, needed) to name a few. DOF
A paper written by Sarvananthan (2005) provides an overall understandingTraining of financial of theDevelopment poverty management, marketing Organisations situation in the North and East. He concludesWeak fishingthat societies in terms of per capita income the North and East Provinces are the worst-off in the country. He concludesFacilitate access tothat price deprivationDevelopment is information through mobile Organisations significantly higher than the national average on the basis of proxyphones indicators for relative povertyMarine such as borrowings, commodity loans and income transfer.Identifying andThe linking Consumer up Finance Fisheries with potentially interested Survey (CFS) data collected in 2003/2004 show that the incomefinancial inequality institutions/ in theDevelopment Eastern Inability to move in to Organisations Lack of capital to invest individuals with the fishing Province is highest amongmore allprofitable the fishingprovinces and inequality remainedcommunities in 2009/2010. activities in deep sea fishing craft and equipment Support conversion of day Development According to the 2009/10 Household Income and Expenditureboats intoSurvey multi-day (HIES) boats dataOrganisations (DCS, 2011), the Eastern Province shows one ofLack the of capital highest to invest levelsIdentifying of poverty and linking in up comparison to in support services with potentially interested other provinces, with an income of only Rs.(Boat 5,663 manufacturing, mean per capitafinancial income, withDevelopment only 1.5 income earners per house. This is, by far, therepairing, lowest net income earnedinstitutions/individuals in any of the Organisationsprovinces repairing, ice plants, with the fishing for a month (DCS, 2011). transport) communities Introduction of Lack of income during alternative/secondary Development It is important to note, however, that this surveythe off seasonhas not coveredlivelihoods some during of the the off remoteOrganisations areas of the Batticaloa and Ampara Districts and has completely excludedseason the Trincomalee District Indebtedness due to the security conditions that prevailed. Given that some of the poorest areasDevelopment have Provide micro finance Organisations, Lack of formal facilities for the poor other NGOs’ been left out, it can be assumed that the povertyfinancial support levels were higher during theseworking periods with than what was recorded for the province. fishermen fisheries societies Market related Identify and create linkages constraints to the markets with more purchasing power to sell high value capture and Development culture fish Organisations Low bargaining Monopoly of the (Hotels,restaurants and power wholesaler urban markets) Facilitate direct market Development linkages with private sector Organisations 3. The Household Income and Expenditure Survey (DCS, 2008) was not conducted in the Trincomalee District, so theSource: district Study level data poverty information is not available for Trincomalee. However, this information is available for the Batticaloa District.
6111 Table4.6 Non-farm 3.5: Head livelihoods count index by province TheProvince working definitionHead Countof the Index’non-farm livelihoods refers to those activities that are not primary agriculture, forestry or fisheries. In certain cases, agro-based processing is also 2006/07 2009/10 classified as a non-farm activity. For the purpose of clarity of this market study, agro-based Western 8.20 4.20 industries are not included in the non-farm sector and they are discussed under the value chainCentral of each sub-sector. 22.30 9.70 Southern 13.80 9.80 TheNorthern industry survey - conducted by 12.80 the Department of Census and Statistics (2004) provides anEastern indication of the 10.80 range of industries 14.80 present in the two districts. Food processing of locally grown agricultural produce and the apparel industry dominate the non-farm sector in the North-Western 14.60 11.30 two districts, both in terms of percentage of establishments as well as a provider of employment.North-Central Manufacturing 14.20 of furniture 5.70 and non-metallic mineral products such as clay basedUva industries, are27.00 also relatively 13.70 high in the two districts. Sabaragamuwa 24.20 10.60 Table 4.10: Industrial establishments in the Trincomalee District - 2003‐04 Source: Department of Census and Statistics, May 2011 Trincomalee Batticaloa The poverty headcount index in the Batticaloa District, as stated in the HIES 2009/10 is Units Persons Units Persons 20.3% in otherIndustry words, 20.3% Division of the total population (Table 3.5) is below the official poverty line (Department of Census and Statistics 2011). According toEngaged the poverty gap Engagedindex, the poor households living below the poverty line in the Batticaloa% District% are% clustered% closer toMining the povertyand quarrying line as opposed to the national figure. The2.6 calorie9.9 consumption4.3 of the4.4 poor householdsManufacture in of thefood district products is andhigher beverages compared to the values50.8 of national33.3 as40.8 well as 32.5Eastern ProvinceManufacture (ibid). of tobacco products 0.4 0.7 0.3 0.3 Manufacture of textiles and yarn 0.7 0.9 1.3 2.8 Table 3.6: Poverty head count index and poverty status Manufacture of apparel 12.8 31.2 10.3 18.3 Manufacture of leather products Sri Eastern 0.2 0.1 1.3 1.2 Year Lanka province Batticaloa Trincomalee Manufacture of wood and products of wood and cork 1.4 0.8 2.9 3.7 Publishing,2006/07 * printing* and reproduction1 of5. 2recorded media10.8 0.5 100.5.7 0.7 - 1.2 Manufacture2009/10 of basic chemical and chemical8.9 products14 . 8 0.2 200.2.3 0.9 11.70.6 Source:Manufacture Department of non-metallic of Census and mineral Statistics, products 2008, 2011 8.6 9.7 0.5 0.5 **Manufacture Data excludes of the fabricated Northern Provincemetal products and the Trincomalee District 8.4in the Eastern4.4 Province12.9 12.7 Manufacture of furniture 12.7 7.3 6.5 5.4 3.3 Poverty and welfare in study divisions of Trincomalee and Batticaloa Collection, purification, and distribution of water 0.4 0.7 16.9 10.3 Levels of poverty in the Batticaloa and Trincomalee districts are well above that of the rest Other 0.5 0.4 0.3 6.0 of the provinces in the country. Most of the households included in this study earned a lower monthlyTotal average income compared to the average household100 income100 of the100 Batticaloa100 and Source:Trincomalee Department Districts. of Census Approximately and Statistics, 2004 50% of the target households in the Batticaloa District earned less than Rs.1,500 per month which shows a high level of income poverty among the These statistics include large, medium and small industries present at the district level. target population. The situation was slightly different in the Trincomalee District where there These industries were present to a lesser extent in the studied communities and there were was only around 28% of the target population who earned below Rs.1,500 per month, but no large or medium scale industries within the target GNs (ACAP, 2009). The main forms of the majority (40%) still earned only between Rs.1,500 – Rs.3,000 per month. Thus, it was small industries present in the target DS’s are handloom, coir, carpentry and pottery. Study clear that poverty affects a large proportion of the population in both districts and based on communities are also engaged in basic levels of food processing such as making lime pickle. information collected there was a sense of deprivation and inability to gain sufficient income The present status of food processing and possibilities of expanding agro-based industries is to meet basic needs among the studied population. discussed under the value-chain analysis for each sub-sector. “We don’t have the money to carry out the funeral even. We collect the money The tourism industry was also identified as a potential form of non-farm industry, especially among us and do it.” in the coastal areas, which could bring direct returns to the community through small scale FGD, Vaharai retail establishments and by providing accommodation and other services to tourists.
1262 “I“These don’t havevillages a permanent can get involvedhouse. We in livetourism in a small in the cottage. future I don’twhen have the moneysector toexpands. build a Theyhouse can of my get own.” involved in providing support services to the tourism industry such as accommodation.” Case study, disabled, Kiran District level workshop Based on study data, it was clear that the low income levels in these areas highlight the need forThe livelihood indirect supportmanner to in generate which communitiesboth short-term that and live long-term away fromresults. the Low popular income tourist levels pointdestinations to a pattern in coastal of day-to-day areas can survival benefit -from mostly the dependent rapidly expanding on livelihoods tourism that industry are affected in the byeast seasonality; was discussed and theat the potential district for level saving workshops and investment and in the for key these informant groups isinterviews. very low. ThisThe inpotential turn hinders of linking their up ability producers to come with out the of service poverty providers and the of lack the of tourism assets industry,(and therefore in the collateral)form of supplying pushes vegetables,them towards dairy informal and also financial handmade services products which with binds ornamental them in valuea vicious was cyclehighlighted of debt in (analysedthese discussions. in the following sections). The high levels of deprivation suggested that any project intervention would have to provide funds for starting up traditional livelihoodWith the activitiesstrong state and drivealso supporttowards diversificationincreasing electrification in order to andprovide connectivity multiple incomerelated sourcesinfrastructure for the in target the region, families. the Small and Medium Enterprises (SMEs) show potential in bringing income to the two districts. Qualitative Assessment of the Local Enabling BasicEnvironment needs also For needPrivate to Enterprisebe considered in the when Eastern planning Province development of Sri Lanka, initiatives conducted as these by Asia are communitiesFoundation (2009), which highlightshave faced some the ofdestructive the constraints forces privateof conflict enterprises for over (large three scaledecades. and However,small scale) when encounter. moving High beyond unofficial the monetary‘fees’ and povertycharges aspectsby public and officials analysing when theobtaining basic infrastructurepermits, licenses, available, registrations, the communities lack of motivation provided anda more business-friendly comprehensive attitude, picture lackof the of well-beinginformation status and knowledge of the target on populationcore activities and (businessprovided someregistration, insights laws into and the regulation),nature and scaleopaque of andinterventions cumbersome which procedures were planned for business for that registrationarea. and licensing/permits are the main points highlighted in the study. The Batticaloa Municipal Council had come out on top Thewith followingthe most sectionfavourable presents indicators the situation out of theregarding local authorities basic needs reviewed within theand study this successsample andstory period. should be shared with the other local authorities as well.
3.4The Vulnerabilityissues highlighted above have two direct implications for the improvement of the Aslivelihoods discussed of inthe the people previous in sections,the recently the resettledtarget population communities. could Thebe considered large-scale vulnerable business toventures external will shocks be hesitant as a whole, to invest but in specific the region attention and in should order tobe attractgiven tomore the ofgroups these that players are introducedsteps need in to this be section taken into terms improve of project the services design andat thedeciding local theauthority type of level.intervention. Also the A setpromotion of criteria of SMEssuch asat numberthe local of level dependents, will prove female cumbersome headed given households, the ‘unfriendly’ disability, business elderly andenvironment, orphans haveespecially been considered at the withinregistration the context and of displacedlicensing andlevels recently and resettled extra communitiessupport/consultations in ACAP targetedwill have areas.to be providedThis section to these provides SMEs a throughbrief profile the project.of the vulnerable groups. The district level workshops with government officials identified reed-based production, the Ahandloom large numberindustry, ofsmall-scale people garmentliving with factories disabilities and footwear are reported manufacturing from asMylawewa, the main Gomarankadawelasources of non-farm DS based Division. livelihoods In general, in the there districts. seems Small-scale to be more garment men with industry disabilities and thanfootwear women, manufacturing which could present be explained in Kathankudy by the extent could tobe which further they explored were affected for the potential by the war of asreplication well as accidentsinitially on that a pilot they scale. have The had available to face when skill base engaging and the in theirmarket livelihoods. demand for these products are opportunities for expansion, replication and further improvement of the Vulnerabilityindustry. Handlooms, is also characterised which falls under by the the high category number of of garment, widowers/widows has the highest in all target presence GN divisions.in the Batticaloa Nalloor GNDistrict, Division and in Muthurhas a well-establishedDS division is an exception,supply and reporting market fewernetwork. widows. The Tablesinvestment 3.7a onand technology 3.7b show transfer the vulnerable and linking groups the communitiesin the GN divisions with the targeted markets by outside the ACAP the projects,district are and the hence reasons this for study. the stability and presence of the industry.
The studied communities are not engaging in the coir industry and the industry is phasing out due to unavailability of the input - coconut husk. Small-scale carpentry, masonry and pottery are also present to some extent in the studied communities. The main clay-based industry available in these communities is brick making. The constraints of this industry and the potential opportunities are discussed in detail in the following section.
1363 Table 4.11:3.7a: VulnerableSmall industries groups section in studied in the GN two divisions districts by sex, Trincomalee, 2010 People with Widowers/ Orphans Handloom Coir Carpentry Pottery GN Division disabilities widows Batticaloa 27 9 4 2 Males Females Males Females Males Females Trincomalee 8 0 1 0 Sumethankarapura S 8 2 0 24 0 0 Source: District Secretariat, 2009 Nalloor T 10 12 0 62 0 0 BrickKadakarachenai making T 40 17 62 6 5 8 ClayAiliyadi brick M making, cement 28brick making18 and reed0 based production72 were4 identified5 and discussedNaduoothu as M non-farm activities20 at the8 community0 level, when85 speaking0 to community0 members.Vilgamvihara Pirambadithivu, Mylawewa9 and5 Pannichchaiyadiyaru0 10 communities4 engaged0 in theseThiriyaya activities S, T but only as an22 alternative12 livelihood 4activity which27 would cushion0 them0 when theirKithuluthuwa main livelihood S was affected11 by seasonality6 changes.5 26 5 1 TableMilawewa 4.12: S Population 46engaged 18in Brick making1 in17 the studied0 GNs in0 the Source:Batticaloa Assistance District to Conflict Affected Persons data, 2010
TableGN Division 3.7b: Vulnerable No groups in ACAP targeted GN divisions by sex, Batticaloa Punanai East 29 People with Widowers/ Orphans Ambalanthrai W 7 GN Division disabilities widows Vilanthoddam 01 Males Females Males Females Males Females PunanaiSource: DCS - EastBatticaloa, 2011 23 21 nil 98 nil nil TheMathurankernykulam clay needed for brick production8 is 5obtained from2 the paddy40 lands closenil to the village.3 MostPerillavely producers tend to locate4 their production7 site16 close to 64the land tonil avoid the costnil of transportingPoolakkadu clay. According 6to the FGDs,5 the clay 3is obtained52 only fromnil certain identified2 lands to avoid an environmental impact. At the time of the study, there were no restrictions Kithulwewa 8 6 nil 84 14 31 on clay mining imposed by the authorities. Koppavely 4 1 10 59 nil 9 BrickAyithiyamalai making isNorth one of the43 main livelihoods23 in Pirambaditheevu,nil 53 in thenil Poolakkadu1 GN divisionNediyamadu in the Kiran DS division.9 About 25-303 familiesnil were directly12 engagednil in brick making.nil ThePandariyaveli community level interviews8 highlighted4 that brick11 making also51 provided15 opportunities31 for casualAmbalanthurai labour, for- West those who5 did not 10have capital3 or land. 53Those who20 owned the18 land produced bricks on their own. Navakirinagar 5 5 9 15 nil nil ProductionPaalaiyadivaddai 13 6 4 83 49 42 Vilanthoddam 4 4 15 29 1 5 There is considerable traditional knowledge on brick making in the region. The conflict limitedSource: Assistance access to to theConflict clay Affected supply Persons and data,to marketing 2010 networks, but new marketing networks Inhave terms been of established, connectivity, and Mylawewa access to inclay Gomarankadawala supply is no longer GN a problem.is the most The remote, nature ofbeing this aboutindustry 45km provides away space from thefor bothmain mentown and centre. women In contrast,to engage Kuchchaveli in this form in of Thiriyaya family labour GN and or Vilaathottamhired labour. are the closest to the main bus route. The need for using multiple modes of transport such as ferries and buses and the resulting loss of quality of the produce and productiveBrick making time provides was highlighted the communities in the focuswith a group stable discussions and assured as income, connectivity since issuesthe risk that of affectinvolvement livelihoods. is low (Tables compared 1 and to 2 cropof Annex agriculture. 1 provides Bricks more are data usually on infrastructure produced parallel access). to cultivation, and the producers use traditional technology for the processing of the clay and for burning“If we thego tobricks. the town The earlytechnology morning is wastefulwe will return of energy, evening time 6 oand clock.” resources, and the quantity produced is low. However, the quality of bricks is very good. FGD, Vaharai Based on the collected data, the initial cost of establishing a traditional brick making site is Rs.25,000, including the construction of a kiln. Labour cost is the main component of the
6414 cost of“We making carry aon brick our andhead it the is Rs.vegetables 2 per brick. and Otherpaddy inputsthat we required produce are up waterto the andriver power (paddycrossing, husk). Paddycross thehusk river is usually using thesourced thoni from (raft) the which paddy costs free about of charge. Rs.10 Theand firewoodhead is sourcedfrom from there the to forests the market nearby. in TheValaichenai.” market price of a small brick was Rs. 5.50 without the transport cost. The profit ranged from Rs. 2 to Rs. 3 depending(Case on study, the cost FHH, of Kiran)inputs. The profitability of the industry motivates many producers to engage in brick making. Connectivity issues also hinder people’s access to basic services such as education and health.There is More a need importantly to enhance from the this brick study’s industry point through of view, improving connectivity the bottlenecks technology. will There mean is thatlittle theformal communities assistance have to brick to incur makers. extra Credit costs isto obtained transport through their produce the collectors, to the markets or through and accesspawning town family centres valuables for theirsince input the return supply. to investmentAlternatively is theyassured. have The to dependmain threats on suppliers to brick andmaking buyers, are extremewhich reduces weather their patterns, bargaining such poweras increased and this rainfall ultimately or floods. means that the profit the producer makes is reduced. Market Bricks“We have do a goodnot have market bus in services. the East We at present,should walk given by the foot levels 12 kmof reconstruction to Kadjuwatta taking place.Junction. Insufficient If we supply go by within auto (three-wheeler)the districts leads they to willthe chargeimportation Rs.300/-.” of bricks from other districts. There is an active brick making industry in (CaseBatticaloa study, and disabled, Trincomalee Vaharai) that is meeting this demand. Unlike other products, the producers get the accurate price and Themarket lack information of electricity relating supply to the in bricks the duecommunities to the dynamic is important nature ofto the note. market. Apart Despite from Kuchchaveli,the bad condition which is ofpartly the connectedtransport toinfrastructure, the main grid andcollectors mainly poweredcome to bythe solar different panels providedbrick-making by an villages INGO followingto collect thethe tsunami, products none and ofpay the the other market communities price for inthe this bricks. study They had accessalso tend to toan pay electricity in advance. supply. This has constraining implications for starting up value addition processes such as paddy milling or milk based products. Existing strong market linkages and opportunities of production need to be capitalised on in “We don’t have the electricity to produce the yoghurts. If we produce the curd order to make brick making successful. In the long run, it is also important to take into we cannot market it due to the lack of vehicle.” account the sustainability of the sector and the potential negative environmental (FGD, Eravur Pattu) consequences of expanding this industry. Some of the communities felt a certain level of marginalisation given the fact that some of the villages that adjoined their village of other ethnicities were electrified while theirs was not.
“There are electricity lines going over our village into the next village which is a Sinhala settlement. We were resettled in 2007 but still we don’t have electricity.” (FGD, Eravur Pattu)
Except in the Ayiliyadi GN division in the Kinniya DS division, all the other communities in the study had access to a supply of drinking water, mainly through tube wells and ground wells. However, water for livelihood purposes (especially crop cultivation) was identified as a critical constraint at the community level. Although most of the communities had access to at least a minor tank, these were in dire need of rehabilitation and the only other option they could depend on was rain water. This sole dependence on rain water was a constraint in reaching an optimal level of productivity from the available agricultural resources such as land and labour.
In addition to the acute income poverty levels discussed above, when one adds the other dimensions of poverty related to well-being such as connectivity and the availability of water and electricity, it is clear that the target communities need multi-pronged approaches in terms of project interventions to improve their livelihood conditions. For example, while rehabilitating the tank is a pressing need, the provision of other support structures such as availability of transport facilities, also need to be considered. The project activities will have to look to innovative methods of getting around the infrastructure bottlenecks such as, the provision of mills that can be operated on other types of fuel or organising and strengthening producer groups in order to promote collective transport of farm produce.
1565 3.5 Impact of conflict on livelihoods in Trincomalee and Batticaloa The Batticaloa District employs the highest percentage of people in the services sector, followed by industries. Trincomalee also employs the highest proportion in the service sector, followed by agriculture (see Figure 3.1).
Figure 3.1: Employed population by major industry
120% 100% 80% 60% Agriculture
40% Industries
20% Service 0% Ampara Batticaloa Trincomalee
Source: Derived from Labour Force Survey, 2010 Paddy, vegetables and other field crops are the main agricultural crops grown in the province, including the Batticaloa and Trincomalee Districts. Marine fishing is an important part of the fisheries sector in the two districts, which includes coastal and deep sea fishing. Batticaloa has the largest coastal lagoon ecosystem in the country, which largely contributes to the inland fishing industry in the district (Diprose et al., 2010)
Even though the Eastern Province is recovering from the conflict at a faster rate when compared to the Northern Province, the impacts and signs of conflict remain. Conflict has negatively impacted both production and productivity in the agriculture and fisheries sectors. Limited access to agriculture lands and restrictions on transport worsened this production and productivity loss. The lack of physical security has also led to a great deal of disinvestment in agriculture, as a result of conflict. The destruction of basic infrastructure linked with farming was also a major constraint to the sector (Diprose et al., 2010).
In Sri Lanka, the classification of strategic areas as high security zones has had a significant negative impact on agriculture. It denies access to productive land for farming and livestock grazing. It is estimated that 2,500 acres of paddy land have been declared as a high security zone (at the time of the study this was referred to as an ‘Economic Zone’4) in the Trincomalee District alone (based on information gathered from KPIs and the District level workshop). During the conflict, there were large amounts of land which was under the high security zone and inaccessible.
Military restrictions on fishing during certain times of the day, and other restrictions preventing landing on certain sites affected the productivity of the fisheries sector. Significant progress has been made in rolling back these restrictions, following the end of the conflict (KPI, Trincomalee).
4 The change in terminology when referring to areas (from security zone to economic zone) is positive as it implies a change in focus and continued peace.
16 5Most Policy of the Opportunities coastal infrastructure and Recommendations (especially roads, bridges and power lines), fisheries settlements and fishing equipment (including boats) were destroyed leaving most fishing Thecommunities final section affected of this and study requiring presents assistance. the larger Destruction policy framework of fisheries within infrastructure which livelihood such projectsas ice plants, involving landing resettled sites andcommunities harbours hamperedin the East the have fisheries to operate, sector particularly in the two indistricts. relation toThe the Batticaloa two districts District studied. was Itable also to highlights keep production the environmental levels high hazards despite to the which presence the target of locationsrestrictions. are Theprone. destruction Finally, it presentsof major, the medium recommendations; and minor inirrigation general fortanks project-based affected decisionproduction making by the and inland in detail fisheries by specific sub-sector livelihood (CEPA sectors unpublished (summarised study onin Tableagriculture 5.3). and fisheries livelihoods in the North and East, 2009). However, as shown in Table 3.8, 5.1production Policy levelsand Institutions in the Trincomalee and Batticaloa Districts did suffer during the height of Thethe conflictcore state (from policy 2005–2007). documents Subsequent that indicate to thethe cessation development of hostilities, thrust for production the East are levels the Mahindarecovered Chinthanaya and improved. and its associated Ten- Year Horizon Development Plan (GoSL, 2010). The comprehensive three-year development plan for the Eastern Province has been Table 3.8: Marine sector fish production by d istrict, 2004-2009 incorporated in the overall “Mahinda Chinthana” – a Ten-Year Horizon Development FrameworkFisheries 2006-2016District for Sri2004 Lanka. The2005 programme2006 is steered2007 by the President’s2008 Office2009 and thePuttalam Ministry of Nation Building16,520 and11,670 Estate Infrastructure14,910 17,130 Development.16,960 The provincial20,010 authorities, relevant District Secretaries and a wide spectrum of grassroot level communities Chilaw 14,220 9,360 18,720 24,180 22,060 21,950 in the Eastern Province play a pivotal role in the formulation of sectoral strategies. This sectionNegombo draws from the information22,780 16,940available on29,070 the website35,710 dedicated35,820 to the “Eastern37,490 Revival”Colombo 9. 1,640 560 590 510 1,030 830 Kalutara 20,690 11,560 30,520 39,950 39,580 33,100 TheGalle immediate areas of 17,530focus of the11,210 Three-Year15,530 Plan as outlined17,820 in the14,800 Eastern24,930 Revival websiteMatara include agriculture27,990 and irrigation,17,090 roads,38,480 power and48,460 energy, 47,810livelihood support,44,180 fisheries and livestock development, education, civil administration, health and sanitation, Tangalle 21,960 6,220 15,590 20,990 20,850 20,990 etc. This programme is an integral part of the National Development Plan, including mega infrastructureKalmunai projects which19,790 are aimed7,940 mainly at11,480 improving 12,810connectivity22,050 with other 16,260regions. TheBatticaloa strategy covers the development16,160 of7,650 major sectors8,930 including:11,710 resettlement21,850 of Internally24,530 DisplacedTrincomalee Persons (IDPs),16,540 Revitalising 6,790Productive 6,270Sectors and8,150 the Regional17,980 Economy27,690 which includeMullathivu Crop Agriculture, 2,200Irrigation, Fisheries,780 Livestock,850 Industries,360 Tourism260 and Minor,- SmallJaffna and Medium Scale 33,980Enterprises12,790 (MSME), Improving11,220 Economic5,130 Infrastructure5,830 13,080such as electricity, roads, transport (roads, railways), ports, water supply and sanitation and Rural Kilinochchi 3,130 1,460 830 590 360 - Infrastructure Development. Rural Infrastructure includes programmes under Gama Naguma,Mannar the decentralised17,060 budget, Gam8,380 Pubuduwa,12,990 Gami 9,170Aruna and 7,390the Rural 8,130Market Source:Development Department Project. of Census and Statistics, 2009, extracted from Table 5.34 The transport of farm inputs such as chemical fertilizer and fuel were also restricted during theThe war,following which ledpolicy to lowenvironment productivity creates of the landopportunities and increased for costdifferent of production. sectors thatThe positivedevelopment side ofprojects not using can chemicalharness. fertilizerThe main on issues these of lands the policies was that related there to is thean opportunitystudy areas forare discussedthese farmers below to and produce can be organicfine-tuned foods for developmentwhich have ainitiatives. growing demand. However, unfortunately, as discussed at the district level workshops, usage of chemical fertilizer has increased in the Batticaloa and Trincomalee Districts due to increased accessibility to fertilizer. However, there is still a potential to use uncultivated and abandoned land for chemical-free organic farming.
Repeated and protracted displacement of communities has greatly affected the skilled agriculture and fisheries labour pool of the North and East. Renewed stability following the end of military operations has created conditions that are conducive for the return of displaced persons. The increase in the skilled labour pool will help revive agriculture and fisheries in these provinces.
9 Easter Revival official website www.neweast.lk accessed on September 2010
1767 DestructionTable 5.1: Analysisof physical of relevantmarket centres policies and to themarket project networks during the conflict also hindered the agriculture, fisheries and livestock sectors. As discussed in the documents of “EasternPolicy StrategiesRevival”, the government strategicRelevance plan tofor development the development initiatives of the basedEastern Province5, lack of marketing and storageon facilities the findings discouraged of thethe farmers market from study engaging (the in production since it always leads to highsupport wastage, fromespecially government during the policyharvest makersglut. Storage to and processing infrastructure were alsoimplement damaged and the traditionalrecommendations) marketing networks lost. TheAgriculture livestock sub-sector, especially the dairy sector, was negatively impacted due to loss of milkCrop collection agriculture, networks production (District andlevel workshop,Production Batticaloa).enhancement is necessary for the crops productivity will be enhanced by that are produced in low volume and with high Theincreasing non-viability the cultivated of agriculture area andand fisheriesvalue addition as a result and marketof conflict-related potential. Different constraints types led generationsthe cropping of intensity. young people to seek ofother crops forms require of employment, different strategies. eroding theFor traditionalinstance knowledge base that existed in thesevegetables, areas before other the field conflict. crops Hereditaryand fruit cultivation employment in patterns have changed and attracting athe new two generation districts of producersshould haveto this asector production remains a challenge. As a result of migration, remittancesexpansion tofocus the areasdue haveto low also volumeincreased of and local can be harnessed to develop the region (CEPAproduction, unpublished to meet study the on agricultureconsumption and demand fisheries livelihoods in the North and East, 2009).within the districts. On the other hand, crops such as paddy should have a market focus due to market 3.6 Institutions saturation. The Ministry of Agriculture Development and Agrarian Services (MADAS) is the key governmentFarmers will institution be encouraged charged with to theIt shouldimplementation be noted of that agriculture home gardening related policies is one andof issues.diversify The their mandate crops mainlyof MADAS through covers the policy, important planning income and generating implementation, activities through in which its departmentshome gardening, and statutory fruit cropbodies. and FHHs and PwDs engage in. They should be linked to perennial crop expansion. any potential assistance coming from the The Department of Agriculture (DOA) government.under the Ministry Expanding of Agriculture fruit crop cultivationDevelopment needs and Agrarian Services has the infrastructureto taketo provideinto account services seasonality to the differentand marketability. provinces. Agriculture is a devolved subject, andValue there addition are opportunitiesprovincial agricultural for fruit needsoffices to withbe agricultural instructors in every Govi Janaput Kendrain place / Centreso that (De there Silva, is 2009).high return These received centres are found at the divisional level in allfrom farming the cultivation.districts and Mixing provide cropping agriculture perennials support services and extension services throughout,with short-term from cultivation crops will to generatemarketing. income A number for the of research and training institutes supportproducer the functions until of thethe DOA. perennial The Provincial crop Departmentbecomes of Agriculture implements agriculture extensioneconomically and viable.communication and research activities in relation to crop sector development under the devolution of power to the provincial council.Industrial The crops capacities such of as these grasses, institutions The expansionhave decreased of the inprivate the war-affected sector and projectsareas when of comparedmaize, tosoybean, other parts groundnut,of the country development due to the institutionslack of human in the resources East provides because an of increasedsesame, migrationsunflower of andofficers sorghum and destruction opportunity of physical to invest infrastructure in these (suchcash ascrops. buildings, The vehicleswill be and introduced other assets). to the low producers should be linked to the potential markets yielding areas in the Province to in the region for the cultivation to be sustainable. Theaccelerate Ministry theof Livestock local production Development of has the primary responsibility for the livestock sector withraw Departmentsmaterials for ofanimal Animal feed Production and and Health located in each province providing servicesmixes. related to animal livestock development. Milco and Nestle are the most prominent private sector agents are engaged in the dairy sector in the country. Marketing of agricultural produce The sectoral analysis of the study finds the lack of a will be increased by providing market close by, poor access to markets and market access to markets through the linkages, constrain the agriculture sector as a provision of improved market whole. The support from the government creates an facilities, and the facilitating of enabling environment for implementation of the farmers to engage in the project. It is also important to facilitate the 5 The Eastern Revival development programme by the government, the website for which is www.neweast.lk, includedidentification, a wide spectrum production of social outreachand programmesgovernment’s such ascooperation resettlement ofto internally create displaced a regional people, landminemarketing clearance, of rehabilitation high andvalue awareness market programmes centre as where well as the massive produce infrastructure from the development East is projectscommodities. such as new road networks, bridges, ports,consolidated power plants, at electricity one location distribution and networks, distributed hospitals, to anda schools. This 3-year programme which was to endwider in 2010 market. had a total budget investment of Rs. 197,219 million (US$ 1840 million). (Source: Permanent Mission of Sri Lanka to the United Nations in New York, 2008)
6818 The following are areas of responsibility in the fisheries sector with their respective Collective marketing of agricultural produce is overseeing/implementing institutions in brackets; the fisheries sector is led by the Ministry another way of increasing the bargaining power of of Fisheries and Aquatic Resources (MFAR) in charge of policy design, implementation the producers. (Department of Fisheries and Aquatic Resources and Coastal Conservation Department), research (NARA), education (NIFNE), development and extension (NAQDA). Many of the It should be noted that there is a policy drive by the government’s regional research and development establishments (NARA and NAQDA) are government to promote high value crops. It backs now in a serious state of disrepair and in some cases, requisitioned by the military (FAO, the study recommendation of introducing high 2007). value paddy varieties as a pilot effort. There is a host of other service providing institutions that are related to the agriculture, Special emphasis will be placed on This is an opportunity to address the issue of lack of livestock and fisheries sectors. The Department of Irrigation at the national level and the development of agriculture extension support for animal husbandry and provincial level play a significant role in developing the agriculture sector in these recently research and extension systems in vegetable cultivation. Livelihood development resettled areas. order to identify and cater to a initiatives can consider resource transfer to facilitate dynamic crop sector in the east. sufficient extension support. The resource transfer However, there is a marked lack of presence of these institutions in the North and East due can be in the form of capacity building or financial to the conflict which prevailed until 2009. In the rehabilitation process these institutions Having identified the lack of support for administrative infrastructure such as should be provided incentives to start operating in these areas. A range of donor funded and properly functioning irrigation office space and vehicles. local NGO programmes such as Sarvodaya, SANASA and some commercial banks provide schemes in the East as a reason for micro finance whereas insurance related to livelihoods are less common. These efforts could low productivity in the area, the The implementing agency for irrigation facilities at be further extended and expanded to help provide capital to farmers and fishermen to invest policies in the irrigation sector the central level is the Department of Irrigation. The in income earning ventures. envisage ‘improvement to water focus of irrigation improvement at the moment is on quality and irrigation efficiency, the major and medium tanks. Most of the study operation and management, locations benefit from the minor tanks. If rehabilitation of existing canals and development projects are unable to rehabilitate all head works, drainage and flood the minor tanks, lobbying is necessary for the protection, salt water exclusion and improvement of minor tanks. Community the development of new irrigation participation on the maintenance of tanks is equally schemes.’ The on-going mega important. irrigation development projects in the two districts are Allai in Trincomalee and Rugham scheme in Batticaloa and rehabilitation of the Kurangupanchankulam scheme, Puluganawa tank, and Boroppola and Unichchai tank.
Introducing drip and sprinkler Micro irrigation is necessary in order to increase the irrigation systems, regulating irrigation efficiency and productivity of vegetable ground water regulatory and fruit cultivation. This will help to reduce the cost mechanisms and strengthening the of production and increase the competitiveness of capacity of the provincial irrigation the farmers. department are some of the steps envisaged for the development of the irrigation sector.
1969 Livestock Increasing farm returns to livestock The productivity improvement areas that keepers by improving the development initiatives should focus on are, productivity of the livestock sector. upgrading and increasing availability of the cattle breeding stock and improving quality of feed.
Providing necessary infrastructure Rehabilitation of rural roads and farm roads should facilities, which are vital for the be given priority. Awareness needs to be created on production and marketing of this issue. livestock produce, introducing value addition to diversify the Dairy value addition such as local level curd and livestock sector. yoghurt production should be supported by providing necessary training and equipment. The technical support from the relevant authorities could be obtained for training related to value addition, packaging and also marketing.
Promoting extensive management It should be noted that intensive management is of cattle for meat and intensive not practiced in the East and the farmers should be management for milk production. given necessary exposure on this management practice before it is introduced. A special effort Organise the livestock farmers into should also be made to link the capable farmers Producer Co-operatives and similar with this effort and facilitate gaining knowledge on Farmer Organisations for collective modern farming techniques. marketing of farm produce and enhancement of farmer returns. Breeds that are suitable for different management systems need to be introduced. Fisheries Improving infrastructure such as Large state-driven investment in fisheries constructing anchorages, improvement infrastructure is an opportunity for and construction of landing sites, non-governmental development organisations to provision of ice plants. focus on improving other areas of the fisheries sub-sector such as facilitating market linkages. The target communities should be linked with these large infrastructure projects.
Provision of other services such as Electrification is a cross-cutting constraint for most electricity, drinking water, toilets of the target villages. Provision of electricity for and improvement of access road these communities by the government will enable networks for the fishing development projects to initiate more value addition communities. (fish processing) and introduce more non-farm based livelihood activities such as ICT-based small businesses such as mobile phone and computer repairing and three-wheeler/motorbike repairing.
70 4.Support Value-Chain for the inland Analysis sector for such Key This Livelihoods policy aspect in helpsBatticaloa address and productivity Trincomalee related as free fingerling stocking, supply constraints discussed in the analysis of inland Aof value-chain cages for analysissea bass looks culture at the and chain fisheries. of activities The and local relationships level fingerling that allow production producers toestablishment get their goods of communityto market, andbased the constraintsthrough mini to hatcheries moving through should thetarget chain the andvillages adding in value.mini-hatcheries This study lookedare some at several of the value this chains study of as farm well, and and non-farm development products projects that form should the livelihoodsareas that of havethe targetbeen groupsprioritised in thelook Batticaloa at ways and of Trincomaleefacilitating community Districts. This access section to identifieswithin the the fishing factors industry. that constrain thethese target activities. communities from moving up the different value chains and also the opportunities that exist to do so. It concludes with identifying meansImproving of overcoming marketing the throughconstraints It andis also capitalising necessary on to theprovide opportunities. capital support For eachfor product,efforts suchit was as observed construction that theof atarget the poorgroup fisher produced folk to primarily come out for of the viciouslocal market, cycle identifiedfish market as andthe localfish retail consumer outlets. or theof local credit trader. and The becomemiddlemen more dominate. independent There wasin very little value addition taking place. marketingValue addition their was produce. constrained by the destruction of all capital resources during the conflict and the deterioration of infrastructure (for example, roadsIndustries and power supply). Lack of financial capital and inadequate access/availability to financialRevitalisation services of theis antextile acute industry problemThe for industriesa population such whose as smallasset localisedbase has garment been so strongly eroded. Livelihoods are also threatenedindustries bycan natural be replicated disasters suchwith assupport flooding. from government departments as well as non People in the East have the traditionalgovernmental skills, interest organisations.. and enthusiasm The to handloomengage in agriculture, fisheries, animal husbandryindustry and in non-farmcan also activities be supported such as brickwith making. new Institutional support, particularly the technologicalsupport of livelihood inputs. activities at a micro level, is minimal. There is space to provide the necessary infrastructure and create a livelihood-conduciveEstablishment of industrial environment zones which In will the improve long production,run, the promotion support value of additionlarge level and developand providing less exploitative concessions relationships with a withindustries the middlemen. will benefit the target populations by view to improving public-private providing formal employment opportunities in the 4.1sectors Paddy region. The value-chain analysis based on primary and secondary data highlights that the farmers inProvision the studied of infrastructure GNs are predominantly facilities atProvision the production of infrastructure level of the value facilities chain. Insuch order as to obtain a higher value for their produceelectricity, they need roads to moveand waterup the willvalue improve chain orthe be introduced to new methods of increasingcompetitiveness profitability of and produce reduce within the cost the of same production. stage of the value chain. 5.2 Natural hazards and coping methods The mainNorth constraints and East are identified susceptible are those to several regarding kinds low of naturalproductivity, hazards. low Table value 5.2 additionprovides andan outline low marketability.of the natural hazards Productivity which impact related specific constraints livelihood can sectors be resolved and the mainly potential by regularisingcoping mechanisms access to which land, communities crop diversification, can use ensuring to mitigate water the supply impacts. and improving access to inputs; fertilizer, seed paddy and machinery.
It is proposed that low value addition is resolved by increasing space for value addition at the local level so that the profit that is diverted elsewhere is retained by the producer and the target communities. Promoting the local rice mills by providing support to establishing and strengthening existing small and medium enterprises (SMEs) will increase the selling price. The possibility of creating products out of paddy waste such as paddy husk and bran can also be linked to the promotion of SMEs. Also proposed is the sale of rice-based products at the local level and in the long term for export out of the districts to improve value addition. There is also a need to improve the infrastructure, such as electricity and farm roads, in order to sustain the value addition process at a competitive market level.
Targeting external markets, which are mainly the districts with a production scarcity, by promoting collective marketing and encouraging private sector partnerships is one possible method of improving low marketability. Increasing storage facilities and product diversification to tap niche markets (such as selling traditional varieties of rice to urban centres and within the tourist sector) will generate higher returns. Facilitating more formal
2171 Tablefinancial 5.2: services The Impact and providing of natural off-season hazards income and generationpossible coping activities methods to reduce debt will give the producer more bargaining power and increase marketing options. Sector Natural Impact on Potential coping Figure 4.1: MappingHazard of actors andlivelihoods value of the product along mechanism the value chain Crop sector Increasing salinity Loss of soil productivity, Development of salinity degradation, arable tolerant cultivars Change in Actors PADDYcoastal FARMING land Product Value Crop sector Rainfall regimes and Reduction of productivity Development of seeds/ resulting droughts of agriculture land cultivars with low Within the and floods Consumers Currirrigationent market requirementsprice by -Samba Rs. 76.19 community/DS introducing desirable Within the district -Nadu Rs. 64.64 Outside district Naducharacteristics rice is sold at R sof. 4 5.00 per kg wtraditionalithin the dist rriceict varieties Inco(suchme per askg tpokkali)o retailer Rtos. 1high6.00 yielding rice varieties in Whoorderlesaler tose lproducels new -Samvarieties,ba Rs. 57. 1some0 of which Traders based -Nadmayu Rs. help 48.0 0meet the . in the community Traders Incoimpactsme per k gof to climate WS Rs. 12.00 . outside DS/District Large mill owners change, early warning Prodsystemsucts based on waste Miller Sells -Rice bran Rs. 18.00 per kg Inland Rainfall regimes and Drought leads to lower -PadIntroductiondy husk Rs. 3.00 of psecondaryer bag Fishing resulting droughts yields in seasonal tanks livelihoods, proper Millers- and floods and loss of freshwater planning of aquaculture . Large scale and brackish water activities such as cage . Small scale Millers and traders purchase resources which affect culture . Home based Processors -Dry paddy Rs. 21.00 Rice flour based inland/aquaculture -Wet paddy Rs. 19.25 small scale producers Sells Nadu to the wholesaler Crop sector Rise in sea level Reduction in land extent at Rs.Land 32.0 zoning0 to identify available for cultivation areas for cultivation SmaIntroductionll scale miller of secondary -chalivelihoodsrges Rs. 2.50 per kg Large scale miller Title holders -sells the rice for Rs. 32.00 FishingTenant farmerRises in sea level Reduction in beach area IncoBetterme per resourcekg Rs. 6.00 Lease farmers availableProducer fors beach seine management practices activities and awareness creation Farm gate price -Samamongba Rs. 3 0the.00, fishersNadu Rs. 28.00 Adverse impacts on fish (Government) breeding grounds which -Samba Rs. 29.00, Nadu Rs. 22.00 DOA will lead to increased (Traders) Agrarian services resource depletion Profit to the farmer (if sold at department Rs. 22.00) Rs. 6.00 per kg Source:Agro Ministrychemic aofl s Environment,uppliers 2010 Local money lenders Cost of production AccordingDept. of I rtorig athetion vulnerability profilingIn pundertakenuts by the MoE, Eravur Pattu has been identified as a highly vulnerable DS division for droughts and floods-Rs. 16 .00which per kgwill have adverse effects on paddy and livestock rearing. Porativu Pattu and Kinniya have been identified as Source: Department of Census and Statistics, Department of Agriculture, Central Bank, HARTI, Primary study data *moderately Sale prices and vulnerable. profits are based Kuchchaveli on primary hasdata collectedbeen identified during the studyas highly vulnerable to sea level rising and Muttur as moderately vulnerable. Future project planning, in these areas will have to be aware of these adverse effects and try to incorporate the mitigation measure mentioned above. For example, construction of fish landing sites or anchorages in the areas
7222 Thethat aboveare susceptible figure maps to sea the level actors rising along is notthe advised.paddy value Interventions chain and in shows Eravur how Patttu the willvalue have of theto include product introduction changes as of it droughtmoves along resistance the value varieties chain of to crops the finaland livestockconsumer. breeds. All the Further, service providersthis mapping at exercisethe input has level, been the conducted large scale only andup to small the DSscale level millers and might and havethe traders missed theare predominantlypotential vulnerabilities men according at the toGN the or datacommunity collected levels for the and current these specificstudy. There cases were will havewomen to whobe considered produced inpaddy intervention mainly planning.as tenant farmers, lease cultivators and most commonly, as wage labourers. The vulnerable groups female-headed households (FHHs), persons with disabilities5.3 Recommendations (PWDs) and the elderly that were among the employed category were mainly engagedRecommendations in paddy cultivationhave been for organised daily wage into or four for paymentmain areas. in-kind The and first in section tenant providesfarming. Theregeneral were recommendations FHHs that engaged for development in processing projects paddy aimed into at ricebenefiting and selling these communities.it within the communityThe second or section in neighbouring goes on tovillages. provide recommendations to overcome the cross-cutting issues for different types of income generating activities. Recommendations for each Assub-sector represented are indiscussed Figure 4.1,next. the Finally,profit thespecific producer recommendations gets from his produceare made is thefor leastthe amountcommunities of profit in this along study the which value can chain be replicated even though in other he/she target puts communities in the most based amount on the of effort.livelihood Apart profiles from (seethe profitTable that5.3). millers gain from selling the rice, they also gain additional profit by selling the by-products of paddy milling, such as rice bran and paddy husk. As clearly5.3.1 General stated in recommendations the diagram above, the wholesalers and retailers, who are at the highest levelThe producersof the value in thechain study gain group more are value mainly from mapped a kilo ofon rice to thethan lower those levels below (most them of inthem the valueare at chainproduction6. It should level) ofbe the noted respective that this value value chains chain as presents discussed only in thethe previous immediate sections, value additionlimiting their of milling. profitability, Those role engaged and control in other in theforms value of chain.value additionGiven their to ricemultiple could and gain diverse even moreconflict-related profit from experiences a kilogram in theof rice. past Thethree studied decades, communities they are severely did not constrained engage in byvalue the additionlack of capital,except fortechnology small scale and milling supportive at local structures level, which (such does as notconnectivity, provide the extension highest possibleservices) return. and also environmental hazards like floods, drought and wild elephant attacks which make them even more vulnerable within a post conflict environment. The traders, the middlemen and the large scale mill owners outside these communities held theThe mosttarget powerful group of positions this study along is in the a transition value chain. state They following were thethe priceend of givers the violent and the conflict other actorsand is vulnerablealong the tovalue external chain shocks had little as discussedbargaining throughout power. The this vulnerable study. Even groups throughout - such the as tenantconflict farmers,time period, FHHs they and have PWDs engaged - had even in traditional less bargaining livelihoods power but due the toanalysis their dependency shows that onthese other sectors actors have in not the reached chain, their lack optimal of awareness potential andabout there subsidy is a need schemes for support and theirwith entitlementsthe end of war and and the resettlement. temporary nature The existing of their skill employment base is the as biggest wage labourers. advantage The and fact should that somebe capitalised of the labourers upon with were the paid support in kind, of new rather technology than in cash,so that is athese clear producersindication becomeof their position.more competitive. Based on the analysis, the study team feels that strengthening the already existing sub-sectors will provide relatively stable incomes to the target group, in the short Thereand medium is a clear term. need The to introduceanalysis alsoa more recommends equitable negotiationcash crop cultivation,process along culture the valuefish, chain.non-farm The activities discussions related with to maintenancethe relevant and experts repair, highlightedretail trade andthat agro-based the influence products and dominanceas potential of future the traders trends and for thethe middlementarget group. cannot Training be eliminated on enhancing at once, existing but need skills to and be integratedmanagement into practices intervention would designing also be important. in such a way that the more vulnerable groups can benefit from their ventures. For example, if the middlemen are provided support to start up aThe SME current for paddy study milling and experience in the community, gathered the in paddyconducting producers this research in the community shows that should starting be directlycompletely linked new to livelihoodhim. activities in an environment that is in a stage of revival is risky. Thus, such initiatives need to be undertaken with alternatives that people can fall back on if Increasingthese new livelihoods productivity do not take off. However, the market study clearly highlights gaps in the production, productivity, value addition and marketing levels within the existing sub - Assectors, mentioned which needbefore, to beresettled filled in ordercommunities to increase in theboth income districts of theare target engaged communities. in paddy cultivation. Tables 4.1 and 4.2 show the changes in the production and extent sown as a consequenceThe study also of identifies the heightened niche areas military for activitiessupport and and growth the destruction within the of existing irrigation sub-sectors. in the two districtsThe indication (during that 2006 people and are2007). engaged By 2008, in, andclose open to the to, endalternative of the war,forms with such the as cultivationcash crop ofcultivation both uncultivated or culture andfishing, abandoned creates thelands, space paddy for productionniche sectors and to the spring extent up sownwithin showsthese value chains. The study also highlighted some niche areas where the traditional sectors can benefit using the same skill base – highlighting, for example, the need to explore the potential for introducing high value traditional paddy varieties that bring in higher market 6 The costs associated with transport, labour and storage for the wholesalers and the retailers should be deducted inpotential order to computeand returns the exact to theprofit producer. gained by theThe two study players. also Unavailability looked at of areas these wheredata restricts communities further analysis can onbe thelinked profitability. to expanding industries like tourism in the region.
7323 anInterventions increase. Withdo not the always increase need in to the take extent place sownin the intarget both communities. districts and Interventionsthe increase atin production,a different point at present in the valueboth districts,chain can as create shown positive in Table backward 4.3, produce linkages more that paddy can enhance than is consumedthe livelihoods within of thethe targetdistrict. communities. The returns For from instance, paddy evento the if theproducer target cancommunities be increased do not by expandinghave the resourcesthe extent orcultivated the infrastructure and/or increasing to invest the inproductivity, an ice plant, keeping support in mind to externala more factorsentrepreneurial (such as individualmarket prices). in close While vicinity community of the communitylevel interviews could and increase key person the shelf interviews life of revealthe community’s that there fish is morecatch landconsiderably to be used and enablefor cultivation, them to commandthere are amany higher constraints price. to productivity that also need to be addressed. Farming families could benefit more from a strategyGiven the thatrecently increases resettled the context productivity of the target of existing communities, paddy a conflictland, and sensitive uses approachhitherto uncultivatedthroughout the land project to grow cycle other is cropscrucial. (depending A recently on concluded the technical study feasibility undertaken of soil by and CEPA other in conditions),collaboration which with the would University then diversify of Oxford their through agricultural three caselivelihoods. study programmes (Diprose et al., 2010), stressed the importance of programmes responding to the social contexts that Table 4.1: Paddy production in the Batticaloa and Trincomalee Districts they are dealing with and managing the ways the programmes interact with social dynamics soYear as not to exacerbate the tensions present Productioninto overt conflict. (MT) It identified the importance of understanding the heterogeneityBatticaloa of the target population and targetingTrincomalee all ethnic groups but to varying degrees (forYala more ‘privileged’Maha ethnic groups in Yalaparticular areas thisMaha means focusing2004 attention on the50,594 poorer members)112,951 and considering29,109 local group divides90,300 such as IDP-host community tensions, inter-regional tensions (some areas are consistently prioritised 2005 50,882 94,394 62,603 89,880 for aid over others following complex emergencies) and recently resettled-local group tensions2006 and attempting49,031 to provide a level131,830 of equitable distribution43,370 between the85,439 relevant communities.2007 49,039 37,476 42,147 63,039 2008 61,609 55,020 NA 73,505 Source:A considerable District Secretariat number - Batticaloa of projects: and Trincomalee, state, international 2008 donor and private sector funded projects and investments are in operation in the two districts focusing on livelihood Tableenhancement 4.2: Paddy and restoration extent sown10. The in experiencesthe Trincomalee and the and lessons Batticaloa from these Districts projects should be factored into future development initiatives in order to avoid duplication, to find and Year Extent sown (Ha) strengthen synergies among the projects and most importantly not to repeat the same errors and to incorporate the learningBatticaloa of these projects in order to optimiseTrincomalee the returns from the resources allocated for developmentMaha activities.Yala A working documentMaha by the InstituteYala of Policy Studies2004 (IPS) highlights46,050 that some of the46,182 experience of the25,022 large scale private7,795 sector in investing2005 is not very positive46,182 (Wijesinghe,16,719 2009). “CIC, for23,743 example, noted 16,321that heavy bureaucratic2006 burdens meant46,772 that it took 15,498nearly 3 years to 16,287obtain some basic11,027 approvals, counting nearly 20 successive steps. Hayleys Agro, which operates under an out-grower 2007 18,469 2,705 18,987 10,368 model with Eastern farmers, noted that at times local commitment is a challenge as forward 2008 19,134 25,022 contracts have been breached by local farmers.17,728 Education of local communities is7,795 essential toSource: meet District these Secretariat challenges. - Trincomalee, They need 2008 to and be Department sensitised of to Census the entry and Statistics of the large formal private sectorTable 4.3into showstheir regions the average and made yield aware for theon how2 districts to form against successful the partnershipsnational average instead and of perceivingBatticaloa isit assignificantly a threat.” below the national average, whereas Trincomalee is closer to it. However, this is district level data and it would be safe to assume that the average yield of Thethe targetpossibility communities of linking is upmuch with less the given regional the constraintshubs where that more they trade face. and manufacturing enterprises are situated should be explored in order to maximise spillover effects. Most of theseTable enterprises 4.3: Paddy are average located yieldin the (Kgs/Per more urban Ha) areas like Kaththankudi Urban Council and TrincomaleeYear Trincomaleeand Batticaloa Municipal Batticaloa Councils and popular National tourist destinations such as Pasikuda,2004 Kalkuda and 4,050 Nilaweli. The target2,997 population of development4,086 projects in the study areas2005 can be linked up 4,131 with these hubs as2,654 raw material suppliers3,963 of fresh fruit, vegetable and milk for processing enterprises and also for making small garments and other small-scale 2006 4,104 3,316 4,137 industries. The lack of physical space for expansion in some of these hubs like Kaththankudy can2007 be also overcome 4,306 with these initiatives.2,991 4,386 2008 4,440 3,805 4,184 Source: Department of Census and Statistics (various years)7 10 USAID (CORE) Livelihood Assessments undertaken for Trincomalee and Batticaloa (May 2009) provide a list of donor7 Department projects of Censusfunded and through Statistics internationalwebsite, organisations and their local partners (available at www.core.zunepile.com).www.statistics.gov.lk/agriculture/Paddy%20Statistics/PaddyStatsPages/Production.html
2474 IrrigationIt is important that there is continuous monitoring, consultation and follow-up with the Bothcommunities Batticaloa on theand assistanceTrincomalee given Districts to them have in orderaccess to toensure water the resources sustainability for ofpaddy the cultivation,support. Past with lessons both fromdistricts NGO having support both proves major that and projects medium fail irrigation when there tanks. is no (Table follow-up 4.4) However,and monitoring. this does It is alsonot importantensure that to shareall areas the successhave sufficient stories of access certain tocommunities water sources with throughoutother target the communities. year. Many Forareas example, were noted the highas facing demand problems for smoked when tryingdried methodsto access ofwater fish andprocessing were being in Kurinjankatkulam affected by droughts/floods in Vaharai should periodically. be shared with other communities that are engaging in inland fishing. Table 4.4: Major and medium tanks in the Batticaloa and Trincomalee Districts 5.3.2 Cross-cutting issues Major and Medium Irrigation Schemes Major and Medium Irrigation Schemes StrengtheningBatticaloa farmer/fisher District producer groups Trincomalee District Production groups such as farmer organisations and fisher societies need to be DS Division Number DS Division Number strengthened/created in an environment where livelihoods are resuming after the war. It is importantKoralai Pattu to makeNorth sure that these groups3 areKantalai empowered to be able to engage in3 value additionKoralai Pattuand marketing.South Training related2 to valueSeruvila addition, marketing, and quality control,2 shouldManmunai be providedSouth West through farmer organisations.3 Morawewa New simple technologies on branding,4 packagingManmunai andWest storing should also be2 includedPadavisripura in this training. This type of training1 is necessaryManmunai for South the paddy,& Eruvil fruits, Pattu vegetable1 and dairyTown sector. & Gravets In addition, there should be1 more awareness and training given to facing/coping with potential hazards and environmental Porathivu Pattu 2 Kuchchaveli 5 issues such as floods, droughts and animal threats. Members of these production groups should also be part of the village level SMEs formedThampalakamam to market the local produce to external2 markets. Muthur 2 Gomarankadawela 5 Infrastructure Kinniya 1 Infrastructure improvements are crucial in all the target communities. Lack of connectivity Source: District Secretary, Batticaloa and Trincomalee, 2008 due to lack of roads, mode of transport, poor public transport facilities, poor electricity Somesupply, of lack the oftanks physical functioned market throughout centres andthe conflict,dilapidated but minorwere nottanks maintained are cross-cutting properly duringinfrastructure-related the height of theconstraints conflict. thatThe allirrigation the sub-sectors infrastructure are facing.that was Large destroyed development by the fightingprogrammes needs are to present be renovated in the East and toirrigation improve maintenance the class A and and class management B roads. However,needs to thebe re-introducedrural roads need if theto be irrigation reconstructed system if isthe to connectivity reach its full of capacitythe communities and irrigate is to allbe theimproved. paddy landThe roadscultivation connecting in the thedistricts. farmland Both with government the main androads non-government need to be reconstructed. organisations Tank are engagedrehabilitation in improving will remove irrigation bottle-necks capacity, for agriculture but the smallerand provide tanks the are opportunity not as likely to engage to be rehabilitatedin crop cultivation as the duringlarger ones.both seasons The irrigable and alsoarea optimiseof a small inland tank isfishing. around Value 50-150 addition acres ofpossibilities land, and arewill limitedbenefit in a communitiesfew villages or where GN Divisions. there is noThese electricity tanks areor where the responsibility the electricity of thesupply local is fluctuating.government Some authorities, interventions and even such though as providing they needmilling much opportunities, less investment machinery for rehabilitation,for value addition the cannotlocal government be done without authorities the necessary are not alwayspower supply.able to Theallocate ways the of providingfunds. electricity for these villages need to be explored. Another issue is the lack of coordination. Where tanks are functioning, lack of coordination betweenFinancial farmer services organisations and officials in charge of releasing the water for land preparationAccess to financial can cause services delays, should and beaffect improved seed sowing for any and of the harvesting. sub-sectors to be sustainable. This will help producers to come out of the vicious circle of credit dependency. Micro credit Paddyshould cultivationbe provided in forthe farm Eastern based Province as well isas done non-farm during based both producers the Maha andand enterprises. Yala seasons, In withthe case the wherehighest micro-credit extent of land is provided being cultivated by development in the Mahaprojects, Season it is importantas rain-fed to paddy. provide In a floodcustomised prone areas,micro-credit however, for thethe cultivation needy, productive of paddy andpoor other farmers crops and takes vulnerable place only groups. during theAwareness Yala season raising when should there be is undertakenless rainfall. at This the iscommunity the case inlevel the onKiran the DS available Division formalin the Batticaloafinancial services District whereand the farmers procedures who cannot and cultivatedocumentation paddy duringprocess the for rainy accessing season chooseformal tofinancial engage services. in other alternativeWhere specific livelihoods development such as wage interventions labour in non-farmdo not provideenterprises, financial or in wageassistance, labour potential on agricultural beneficiaries lands outsidecan be ofdirected the DS towardsDivision. the Access other to government irrigation allows and householdsnon-government to cultivate organisations paddy duringproviding the micro-credit Yala season. facilities. If the irrigated water is insufficient farmers will cultivate vegetables and other field crops that use less water. While this helps diversify the agricultural portfolios, it also increases the productivity of the paddy lands and this practice should be strongly encouraged.
2575 In5.3.3 some Recommendations areas where irrigation by sub-sectorsfacilities are not available, communities use agro wells and cultivateThe following vegetables recommendations and other field highlight crops that interventions have a low that water can requirement. be undertaken Agro to wellsimprove are notthe positionsuitable offor vulnerable all areas, menand andespecially women not in thefor areastraditional like Kithulwewaagricultural andin the non-farm Eravur valuePattu divisionchains. Tablewhere 5.3 the maps water out table the is potentialextremely solutions low. based on the main components of the value chain, and identifies the types of organisations that can implement them. This section Availabilitythen goes on ofto skillsdescribe and in experiencemore detail the in paddydifferent farming solutions proposed for each sector. One of the main factors strengthening the potential for paddy production is the availability of skilled and experienced farmers who are interested in continuing paddy cultivation. The skills of paddy farming have remained with the communities throughout the conflict, with some farmers being able to engage in cultivation even during the conflict. Young people are also showing an interest in investing in agriculture. The skilled and experienced labour can be used to maximize the productivity levels in the two districts.
“There are wage labourers who are continuously working in one paddy land for a long time so their availability is assured.” (FGD, Kinniya)
Improving access to inputs Improving access to quality seed paddy and fertilizer at the correct time and access to machinery will increase the productivity levels of paddy. Lack of awareness about the government subsidised schemes and lack of financial capital result in the use of low quality seeds and fertilizer.
Seed paddy Seed paddy is one of the key inputs of paddy cultivation. Different communities source their seed paddy from different places. Some get it from the government farms; others use their own, or purchase from individuals who cultivate using government seed paddy and maintain uniform paddy fields (uniformity in terms of paddy produced from using the same quality seeds). Seed paddy can be purchased from the government for cash or by providing paddy that meets the quality standards. Thus, if the farmer can store a portion of the paddy production for a season, he/she can exchange it for government seed paddy. The availability, accessibility, quality and cost of seed paddy in the studied districts have shortcomings (described below), which has resulted in many constraints to achieving the maximum potential in terms of production and productivity.
The seed paddy provided by the government is of a better quality than that of the farmers’. The farmers own paddy is often mixed with weed seeds and the use of combined harvesters can damage the seeds, reducing the rate of germination and lowering productivity. Even though the quality is better there are some constraints to accessing seed paddy from the government. It is only available to farmers cultivating their own land and tenant farmers need to get a letter from the land owner before they can obtain government seed paddy, delaying the process. Many small-scale farmers are also not aware of the process for purchasing seed paddy from government farms. The price of the seed paddy provided by the government is not affordable for some poor farmers. Therefore, they use their own seed paddy and this leads to loss of productivity. The DOA’s extension services have been curtailed (due to resource issues), and this has constrained its ability to make farmers more aware of what services are available to them.
2676 Fertilizer The fertilizer subsidy for paddy farming is a big incentive for farmers to engage in paddy cultivation. This is particularly the case for those farmers who were affected by the conflict, were resettled and had to begin to initiate paddy cultivation. The subsidised selling price of a 50kg urea fertilizer sack is Rs. 350, but the price to the farmer varies depending on the transport cost.
“The government subsidy is Rs.350. With the transport costs included one sack of fertilizer costs about Rs.450 - Rs.500.” FGD, Gomarankadawala Development Organisations, Organisations, Development DS DOAS, Organisations Development Organisations Development Organisations, Development DOA, DOAS Organisations Development Organisations Development Organisations Development Organisations Development As with seed paddy, tenant farmers with no paddy land registration are unable to get the fertilizer subsidy. Many are not aware of the procedure of getting a letter of consent from the landowners, and so end up purchasing fertilizer at higher prices. The farmers without the Paddy Land Registration (PLR) are unable to access the subsidised price scheme. Given that most of theSales farmers in the studied communities are tenant farmers and some do not have the PLR, awareness creation about the available facilities and support to access good quality fertilizer is crucial.
Other constraints include the quality of the fertilizer, which seems to be deteriorating, and the location of the fertilizer stores, which tend to be some distance away from the farm lands.
“The quality of the fertilizer that was given by the government used to be very good. But now it has gone down a bit. The Urea fertilizer that is manufactured locally, at the Fertilizer Corporation is of good quality but the fertilizer that we get 77 now is brought from Malaysia and it’s not of very good quality.” FGD, Gomarankadawala
In Batticaloa and Trincomalee, there were no facilities to store fertilizer. Most of the storage
facilities Inputs have & Producers been Processors Marketing Institutions affected by the war and this affects the farmers in these two districts. The use of organic fertilizer for cultivation was minimal among the farmers even though they had the knowledge about the advantages of using organic fertilizer and about the ill effects of inorganic fertilizer. Extension services and trainings are provided by the DOA on the usage of organic manure for paddy and vegetable cultivation. However, high water requirement for the production of organic manure and slow returns are the main reasons preventing farmers from using organic manure for cultivation.
Delayed delivery, high transport cost and deteriorating quality are some of the other aspects preventing the achieving of desired outcomes of the fertilizer subsidy. Financial mismanagement, corruption and direct or indirect bribes are the alarming factors hindering the effective implementation of this national policy. Better monitoring is essential as this policy initiative directly deals with cash handling.
Agricultural Machinery The relaxation of the restrictions on transport after the war has gradually supported mechanisation of agriculture in the two districts. Large scale machinery, such as combine harvesters is now available in the district, and the use of machinery has helped overcome labour shortages and increased efficiency. In areas where paddy cultivation had just begun (e.g. Gomarankadawela) farmers did not have sufficient capital to purchase machinery for
ploughingPotential Solutions and Paddy sub-sector – solutions for low productivity harvesting. the strengthening to land by access Regularising land disputes mechanisms to resolve maintenance of minor and regular Rehabilitation irrigation tanks and other infrastructure subsidy fertiliser on accessing awareness Increase seed paddy and on purchasing awareness Increase with technology support local seed paddy producers and training Paddy sub-sector – solutions for low value addition milling near local communities opportunities Provide and SMEs Support small scale rice based production local people who can be assisted for Identify construct storage facilities, of storage development at the local level facilities waste for on potential market information Provide the long term and husk) with material (such as bran these products aim of engaging in marketing Table 5.3: Solutions mapped against the value chain and possible implementing institutions the value chain and possible implementing Solutions mapped against Table 5.3:
27 Although machinery usage can increase the productivity of paddy land, the farmers were aware that it can also have negative impacts. Paddy harvested with a combine harvester is of lower quality than that harvested manually, and can damage seed and make it unusable as seed paddy.
“We don’t have any tractors in this village. Sometimes, in an emergency, we use the combine harvester; for example, if the rains are coming and we need to finish the harvesting before that we would hire a combine harvester, but the quality of the paddy is not good if we use a combine harvester. We have to hire one from Madawachchiya” FGD, Gomarankadawala Local Authorities Organisations Development Organisations, Development DOA, DOAS Organisations Development Organisations Development Organisations Development Organisations Development Development DOA, DOAS, Organisations Organisations Development Organisations Development DOA, Development DOAS, Organisations Organisations Development
Poor connectivity to the farm land restricts the usage of machinery, as well as the transportation of inputs to the farm and produce out of the farm. Most roads were damaged during the conflict and need to be reconstructed. Poor road conditions add to the cost of production too by incurring additional transport costs.
Environmental factors The most common threat in all the studied communities came from wild elephants, which destroy the paddy fields and other agriculture crops. Farmers use less effective traditional methods to chase the elephants in the absence of electric fencing which has had more positive impacts in other parts of the country that faced the same problem. The compensation schemes available from the government, such as crop insurance, were seen as futile by the farmers due to the delays and costs in processing.
“There is an insurance scheme introduced through the Govi Jana Sewa to 78 compensate for damage to the harvest. The process to claim compensation is long, difficult and expensive. They need proof of the incident to claim compensation, so we need to submit photos. For the photos the people from the Studio in Horowapothana wanted Rs.7,000. Compared to the cost that we have to bear, the compensation is not adequate.” FGD, Gomarankadawala
Floods and droughts are also a problem. Kiran DS division is the most vulnerable to flooding. During the rainy season the entire paddy land gets submerged and makes paddy cultivation in the Maha season almost impossible. Flooding damages the drains and bunds, so land preparation becomes difficult, which in turn requires more time and resources to be invested in land preparation each season.
Access to land As discussed at the district level workshops and the key informant interviews, the availability of land for cultivation in the Batticaloa and Trincomalee Districts can be identified as an opportunity not only for expanding paddy cultivation but also for the cultivation of other field crops.
Access to these lands, however, has been restricted due to factors such as lack of proper legal entitlements, demarcation of high security zones and uneven topography. The farmers in the study locations felt that the increasing extent of land sown was not resulting from greater land ownership by the poor farmers who are engaging in paddy cultivation. The owners of the paddy lands located in these communities are outsiders and only a limited
amountPaddy sub-sector – solutions for low marketability roads farm Improve of villagers providers credit withLink communities other micro credit customised micro and provide owned livelihoods support to diversify Provide paddy value high market rice varieties traditional Introduce on prices and potential information market Provide lands.buyers linkages with outside districts market Create sector partnerships (e.g. Cargills, private Facilitate paddy CIC) to help market Vegetables and fruits sub-sector of local capacity seed production Increase – and at authorities – DOA and DOAS agriculture level community fertiliser the use of organic Promote irrigation micro capital support to introduce Initial systems sufficient and provide extension officers Increase functioning better for resources of the extension officers building Capacity
28 Land has become a contentious issue in both the Batticaloa and Trincomalee Districts. Some landowners had abandoned their paddy lands and migrated outside the district during the conflict. Other people have begun farming these lands without informing the owners. There is also another group of farmers in the lands of those who have migrated either locally or oversees, cultivating the lands in a tenant capacity. The end of the conflict saw owners returning and reclaiming their land and displacing those who thought they would have the opportunity to cultivate these lands for a long period of time. There is also the danger that lack of ownership will prevent farmers from investing in the productivity improvement of the land they are cultivating and it also has implications for accessing the state sponsored input subsidy schemes discussed earlier (such as for fertilizer). In the Trincomalee District a large portion of the land was declared as a high security zone. 2,500 acres of paddy land has also been Organisations, Development alienated Organisations, Development Department of Industries, forDOA, DOAS the construction Organisations Development Organisations Development of Organisations Development a coal Organisations Development power Organisations Development plant and Organisations Development now electrification of for to lobby formsthese areas Departments, Government an Organisations Development ‘economic DAPH, Development Organisations zone’ Organisations Development encompassing five GN divisions, including Sampur. This has created a problem of landlessness in the area.
Batticaloa faces the problem of uneven topography, which necessitates considerable capital investment for the required levelling. Unevenness in land reduces irrigation efficiency and leads to diminished productivity. Productivity is also affected by salinity in the soil in some areas of the Batticaloa District and the Kinniya Division in Trincomalee. The lack of crop rotation and continued cultivation of paddy has exacerbated the problem.
Increasing value addition Paddy is largely marketed as paddy, with little or no value addition. Where paddy is milled, for example in Ayilady and Kinniya, it is done in small scale village-based rice mills for a fee and used for consumption rather than for selling on the market. 98% of the farmers in the study locations were selling raw paddy without any processing (based on key informant 79 interviews) and only 2% were capable of storing the paddy and processing it later.
Value addition at the local level as rice, rice-based products and paddy waste such as bran and husk will give higher returns to the producers. This will also provide them with additional sources of income that will help them move out of their debt cycles. The main constraints for the value addition are the lack of initial capital, the distance to the existing value addition centres and the lack of an assured market for the value-added products.
One of the main reasons for the lack of value addition at this level is the unavailability of large mills with new technology in the region. The large mills are located far from the communities (the nearest commercial scale mill to Gomarankadewela is in Horawapothana, 2 hours away) and farmers were not interested, nor able to incur the transport costs.
“If there are mills close by we can save the time that we spend on going for milling and use that time for some other productive activity.” FGD, Gomarankadawala
The situation is exacerbated by poor road quality. For instance, there is a large mill located at the border of the village in Ayilady, which is not accessible due to poor road conditions.
“There is a small mill in this village. They are not doing milling on a large scale. This milling is done only for consumption purposes. It is done for a fee. We pay Rs. 5 per kg of paddy” FGD, Ayilady, Kinniya Dairy and livestock sub-sector Provide capital support for traditional food food traditional capital support for Provide methods processing addition value new technology for Introduce machinery at processing vegetable Provide level community with low water low country vegetables Promote requirement and inter-cropping mix cropping Introduce vegetable and inter-seasonal diversification Crop cultivation addition on potential value awareness Increase methods and improve to power (electricity) access Improved roads milk yield land to increase pasture Rehabilitate milk to increase varieties grass improved Introduce yield to breeds cross suitable good quality Introduce milk yield increase
29 There are also no facilities for making rice flour on a commercial scale. There is no private sector guarantee to buy the value-added products even if there is any value addition done. In addition, there is a need for training and technology transfer in making rice-based products. The government is willing to provide extension services if there is an attempt by the private sector or NGOs to conduct contract farming (based on information from the DS level workshop). The technology to make rice-based value-added products is not available locally. The lack of electricity in most of these target communities (as discussed earlier) also acts as a constraint
In comparison to the general producer groups, certain vulnerable groups such as the FHHs engage more in value addition processes linked to paddy, albeit on a very small scale. As presented Organisations Development in Organisations, Development TableLocal Authorities 3 Agriculture, Provincial of Development support from AnnexOrganisations 1 of bearers DAPH, Office (tableCooperatives profiling Organisations, Development Local Authorities vulnerableLocal Authorities groups), Organisations Development the Organisations, Development FHHsLocal Government Organisations Development in Kiran Organisations Development either buy the paddy during the harvesting season or collect the paddy that they receive as payment for the paddy wage labour activities and store it at home. They boil it and mill it at home and sell the rice in the neighbouring villages during the off-season.
These value-addition activities can be strengthened and improved further by promoting SMEs within communities for rice milling, rice based production and for paddy waste-based production, or by supporting individuals further up on the value chain (e.g. medium-sized mill owners) to develop their activities and to integrate with actors below them in the value chain through the sourcing of labour and paddy from farming households. Community based SMEs could be managed and made to function through producer groups on a profit sharing basis and could include the producers from the vulnerable communities who already have the experience of rice milling and making rice flour-based products such as string hoppers. Collective production can be introduced where, according to the type of vulnerability/disability, different groups engage in different activities along the process. 80
SMEs should be linked with better supply and market routes and integrated into the overall production and value-chain process in order to be sustainable in the short term within the target communities with the aim of expanding into urban centres in the long term. There is a potential market for the rice-based products and the paddy waste-based products from poultry mash buyers and biscuit manufactures, who will have to be identified and linked with the SMEs.
Increasing paddy marketability The study’s target group comprised of small farmers who produce paddy, largely for consumption but also with a view to selling the surplus. However, the market is largely a buyers’ market, and farmers have little control in determining prices and/or accessing alternative market opportunities. The many reasons for this are elaborated below, leading on to potential recommendations for livelihood and value-addition interventions.
Most farmers in our target group in Batticaloa and Trincomalee sell their paddy within the district. There are two main buyers: the Multi-Purpose Cooperative Societies (MPCS) purchase for the government under the Guaranteed Price Scheme (purchasing only about 5-10% of the total production of the district and buying only from the registered farmers) and local traders. There is little involvement of the large-scale private sector in paddy marketing, even though many of them are involved in marketing agro-chemical inputs.
Even though the paddy producers within the district prefer to sell their paddy within the district, there was an excess of paddy production in both districts at the time of the study Provision of initial capital to purchase equipment and capital to purchase of initial Provision start up SMEs training through transfer Technology within supporting human resources Increase institutions management systems cooperative Regularising establish milk collection infrastructure, Improve with managed sales outlets and links community milk bars and hotels for local canteens, restaurants, marketing direct roads rural Improve as initial capital to selected credit micro Provide groups in minor tanks and support communities Rehabilitate maintenance work at local of fingerling breeding the feasibility Explore and constructing mini hatcheries nurseries level financial and technical support to existing Facilitate the quantity to improve centre breeding district level of the breeds supplied and quality (Trincomalee 74,293 Mt and Batticaloa 157,335 Mt)Inland fisheries sub-sector and at the national level, as shown in
30 Table 4.5. However, there are districts that show a scarcity and with the state driven road infrastructure development, connecting the Eastern Province to the rest of the country, the excess paddy from Trincomalee and Batticaloa can be supplied to these areas, such as the Western Province and the Central Province.
Paddy marketing outside the district can be promoted by encouraging the private sector to play a bigger role in the marketing process. Even though the private traders and individuals are involved in purchasing paddy, they do not provide long-term sustainable support to the sector. They are perceived as exploiting the paddy sector rather than supporting it. They have access to a good network of farmers and this partnership can be promoted to be more equitable and profitable to both the producer and the buyer. The farmers should be encouraged Organisations Development Department of Fisheries, to Organisations Development engageFisheries societies, Organisations Development in collectiveDepartment of Fisheries, Organisations Development marketing Organisations Development to these Organisations Development private Organisations Development sellers and Organisations Development this would increase Organisations Development working with Fisheries societies their bargaining power while also ensuring a continuous supply to the private sector.
Table 4.5: Excess/scarcity of paddy for 2010 by district (Mt)
District Maha Yala 2010 Total for the Annual requirement Total 2009/10 Year 2010 of paddy for human consumption Trincomalee 106,727 39,752 146,479 61,965 74,293 Batticaloa 193,274 74,563 267,837 90,421 157,335 National Total 2,629,566 1,559,493 4,189,059 3,443,419 473,718 Source: Department of Census and Statistics, 2010
Due to a lack of storage facilities and the need to settle debts incurred the producers are
obliged to sell the paddy immediately following the harvest, which gives them a lower price 81 due to the high supply during that time period. The prices paid by the MPCS are higher than the prices paid by private traders (except in the case of Samba rice for which the MPCS offers a very low price), but they demand a much higher quality of paddy. Payments from the MPCS take about a week to 10 days to be effected. For these reasons, many producers prefer to sell the paddy to the local traders even at a lower price. Providing storage facilities closer to the community and facilitating more formal and accessible financial service schemes will give the producer the opportunity to store the paddy and sell it during the off season when the prices have picked up.
The physical market infrastructure that existed in many communities prior to the conflict were destroyed by the war. Farmers felt that they had more bargaining power when their produce was sold at the local market centres, because these allowed them to get price information from outside markets. Some physical markets, for example the ‘pola’, still exists but they are more focused on selling products from outside the area within the community rather than linking the community’s produce with the outside market. Promoting these local markets will give the producers a chance to directly market their products in their localities.
“There aren’t any local market centres in this area that may connect the local market to the wider marketing network. Only Pola type markets are available where the vegetables can be marketed.” FGD, Kinniya
Producers find it difficult to reach the market because there is a lack of good transport facilities. Agricultural lands are not connected to the main motorable roads in most areas and Supply of fishing gear to vulnerable groups/those groups/those Supply of fishing gear to vulnerable that sustain them on new methods of fish culturing training Provide management about resources creation Awareness and stopping over-fishing fishing (especially about culture awareness Increase sector) with the aim of promoting among the private control quality and introducing investments mechanisms fisheries societies and/or strengthen Create groups with the farming integrated - added products value for branding Improve name and packaging a trade introduce such as Pola, Establish to existing local markets links within the establish sales outlet at urban centres districts and link producers interested up potentially and linking Identifying the fishing individuals with financial institutions/ in deep sea fishing, crafts, – to invest community equipment and support services poor fisher folk for facilities microfinance Provide there is a dearth of vehicles for transportation. Marine fisheries sub-sector
31 “It costs Rs. 50 per sack to transport paddy from here to Gomarankadawala. There aren’t any tractors in this village except small tractors.” FGD, Gomarankadawala
The lack of proper infrastructure was seen as a constraint for the marketing of the produce by the vulnerable groups. The problem of transporting the produce out of the village was discussed at the district level workshops and at the community level as a constraint for marketing their produce. For FHHs, because of the extra physical effort needed on the part of these women to carry their produce (on their heads) to the locations outside their community, this is particularly problematic. The lack of proper roads and public transport makes it practically difficult for the women to transport the produce and financially it is not feasible Organisations Development to hire Organisations Development transport; Organisations Development the Organisations, Development Department of Fisheries women Organisations Development in Kiran Organisations, Development Department of Fisheries carry Organisations Development their Organisations Development home Organisations Development garden Organisations Development produce Organisations Development on their Organisations Development heads to Valaichenai and travel by foot and on the ferry. The people living with disabilities also face the same constraint given their limited mobility. Encouraging collective marketing and strengthening the farmer organisations and the marketing networks would reduce the transport-related constraints to a certain extent.
Access to financial services Local traders are often the suppliers of credit to the farmers for their cultivation, and the indebtedness forces some farmers to sell their produce to the traders at whatever price is offered. Other traders arrive at the farm-gate and pay a spot price for the paddy, which eliminates the farmers’ need for storage and/or transport. Farmers find it difficult to move out of these seller-buyer relationships which are exploitative rather than supportive of the producers. Introducing more accessible formal financial sources and alternative livelihood options would help mitigate this constraint.
82 Even though there are formal sources of finance that farmers can access - such as commercial banks, microfinance institutions and NGOs - the cost of credit, delays due to cumbersome documentation, lack of proper awareness about the process and the requirements, and the need to provide collateral, force farmers to access informal sources. These informal sources range from boutique (small shop) keepers, fertilizer retailers, buyers, and middlemen to local traders. Obtaining financial services from these informal sources tend to lock farmers into marketing relationships with local traders that can be exploitative. The Samurdhi programme provides livelihood loans that have a credit limit between Rs. 10,000 to 20,000 depending on the type of activity in which the borrower is engaged. Small farmers in the study areas were more confident of obtaining this loan rather than loans from the more conventional formal financial sources such as the state and commercial banks. The process does not require much documentation (merely a six-month record of savings by a group of Samurdhi beneficiaries). The interest rate is 10% and the payback period is 6 months. However, timely disbursement is a problem.
“We cannot get government loans at the proper time. If we apply for one season, they give loans for the other season. It is very difficult to get the government loans also, because of too many regulations before the approval time” FGD, Kinniya
Facilitating more formal credit sources and providing group loans could be a means of breaking the vicious cycle of debt that seems to bind the producers. Parallel to this, as stated earlier, introducing alternative income sources through crop diversification would give the producers an income in-between the paddy seasons and also during the low yielding Yala
season. support enterprising individuals to provide Identify etc.) boat manufacturing services (ice production, initial capital and facilitate training and provide fishing gear capital and technical support for Provide and equipment and fishing craft boats boats into multi-day of day Support conversion the specialised fishing gear to suit Provide seasonality during secondary livelihoods alternative/ Introduce season the off on cleaner fish handling training Provide fishing culture Introduce addition such as fish value Introduce/expand level canning at community on financial management, marketing Training mobile through to price information access Facilitate phones with linkages to the markets and create Identify capture power to sell high value purchasing more fish and culture sector linkages with private market direct Facilitate
32 Cross-cuttingHigh value varieties solution - integrated farming system for minor tanks MinorThere tanksis a trend, usually mainly belong among to a communitythe paddy producerswith 50-150 in familiesother parts benefiting of the fromcountry, it. Anto integratedcultivate traditional farming approach varieties. with The paddy yield cultivationis low compared can easily to bethe adopted hybrid varietiesaround the that minor are irrigationcurrently moretanks. commonly Inter-seasonal cultivated, short-term but as vegetables/grains a result the prices such of theseas cowpea, varieties green are muchgram andhigher. soya Some bean ofcan the be traditionalcultivated withvarieties the remainingfound in Srimoisture. Lanka Livestockare Dahanala, such asDevaraddiri, cattle and goatHeenati, are bestHondarawalu, for this type Mawee, of farming. Murunagakayam, Fish can be introducedPatchaiperumal, to the Suduwee minor tanks, and soSuwandal. that the tankA brief is inquiryutilised intoto its the optimum market level.potential A live of thesefencing traditional around cultivation varieties highlighted land is important the niche to protectpotential it infrom the grazingmore urban animals. areas and the tourist industry in the country. The general market prices of the more traditional varieties such as Suwandal, Madathawalu and Kaluheenati Thiswere farming as high systemas Rs. 170has -185numerous a kilo potentialat the time advantages. of the study. It helps These farmers traditional to overcome varieties theare problemsmore nutritious, of seasonality rich in taste, by providing pest-resistant a year-round and need income. no artificial, The inter-seasonal petroleum-based leguminous fertilizer vegetableand the higher cultivation value helpswill mean better more soil nutrientprofit for management the producer. and However, increases the cropping market intensitylinkages whichwill have yields to be higher facilitated returns in partnershipper unit of land with to the the private farmer. sector This andis another given the way risk of factorimproving of a thenew efficiency crop, it can of beirrigation introduced water. on Animal a small waste scale canwith be the used view as to manure expansion for cultivationin the medium and harvestterm. residuals and live fences could be used as feed for animals, which will reduce the cost of production of the whole system. Tank fish will provide families of farmers with adequateStorage access to animal protein. However, traditional value systems and beliefs of the farmersThe lack in of the physical communities storage willinfrastructure have to be adds taken to intothe considerationpaddy farmers’ when problems introducing of limited the integratedaccess to marketssystems. and For limited example, opportunities in a community for value where addition, livestock and rearingdepresses for themeat price is not of practiced,paddy on theintroducing market. Thegoat provision rearing will of storagenot be successful. at the local Using level willthe eliminatetank that thisprovides constraint. water forThe cultivation data collected to rear by ACAPfreshwater also states fish and that engaging there are in no fishing storage might facilities be rejected available by in certainany of communities.the target GNs except the paddy storage available in Naduoothu, in the Trincomalee district. Areas such as Poolakkadu in Eravur Pattu had large paddy storage facilities before they were I. Paddy sub-sector destroyed by the war. At the time of the study, there had been no attempt made by the Thegovernment analysis or identifiesNGOs to reconstructa) increasing these productivity, paddy storage b) facilities. improving value addition and c) increasing marketability as means of generating a higher and sustained income from the paddy sub-sector. Given the excess production levels in the two districts and the growing “We store about 1 bushel of rice only, which is what we need for consumption for trend in volume of production, further efforts in increasing production is not encouraged. the week. We don’t have separate storage for paddy in our houses, there is very Providing other income opportunities in terms of rice/rice-based value-added products, limited space. We store in the rooms of the house.” engaging in other forms of livelihoods and establishing more equitable market linkages are FGD, Gomarankadawala encouraged. a)Farmers Increasing are reluctant productivity to store paddy at home for fear of being attacked by elephants. Lack of storage is a critical problem, because there is an excess of paddy production in the East Regularisingat the moment access (as shownto land in Table 4.5). The lack of storage facilities also means that the Introducingfarmers cannot methods store andthe mechanismsseed paddy that to provide is required solutions for the for nextland season.disputes Discussionswill increase held the interestwith the levelproduction of the farmersgroups revealedin two ways. that theFirst, establishment they will have of an storage incentive facilities to invest at the in localland fertilitylevel would management help to protect and themaintain producers the fromsustainability price shocks. of the Individuals land cultivated. at the community Second, regularisedlevel could beaccess identified to land for will establishing mean easier common timely accessstorage to facilities. government subsidies on quality fertilizer and seed paddy, which in turn will increase the yield from the paddy land. In conclusion the above detailed analysis proposes a multi-pronged approach in designing Rehabilitationthe interventions and for regular these vulnerable maintenance communities. of minor Constraintsirrigation tanksat all theand levels other of theirrigation value infrastructurechain as discussed in the figure below, should be addressed in parallel for positive impacts Theto be minor felt bytanks the andbeneficiaries. related infrastructure For example, in whilethe two implementing districts serve interventions the target populationsto increase moreproductivity, than the financial major andservices medium and tanks technology but the shouldfocus ofalso the beexternal made actorsavailable is more to theon rehabilitatingcommunities alongmajor with and functioningmedium tanks infrastructure at present. and Rehabilitation market linkages. and regular maintenance of minor tanks is important and should be highlighted as an issue of importance among relevantThe following authorities diagrams with map communities the constraints, being causes, involved potential in taking solutions care andof the the tanks.institutions The resultingfor implementing timely and these sufficient solutions. availability of water will increase the productivity of the paddy lands. The involvement of the community through farmer organisations will ensure continuous maintenance of the irrigation-related infrastructure even without the presence of an external actor.
8333 IncreaseFigure 4.2: access Mapping to quality of constraintsinputs (seed andpaddy potential and fertilizer) solutions for low productivity of Awarenesspaddy sub-sector should be increased on procedures that need to be followed in order to obtain good quality, timely seed paddy at a lower cost for own account workers as well as tenant/lease cultivators.Constraints Supporting localCauses level seed paddyPotential producers who areInstitutions currently Solutions Implementing engaged in seed paddy production by providing training on new technology and initialSolutions capital will increase the availability of seeds. Regularising access to land Development Disputes over Unresolved land by strengthening the Organisations, b) Adding Value land ownership mechanisms to resolve DOAS, DS land disputes Increasing storage facilities Poor investment Storage facilities shouldTenancy be provided oncloser land to the community to facilitate the storage of paddy, seed paddy and fertilizer. Identifyingmaintenance and assisting the local people in developing storage that will be shared with theDamaged community major or constructing paddy/seed paddy/fertilizer stores closer to the target communitiesand mediumwill protect the farmers from the paddy price shocks irrigation brought on by seasonality. It will giveinfrastructure them the space to avoid the harvest glut and wait for the correct market price. Farmers would also be able to store the seed paddy required for Development the next season whichPoor irrigation will reduce theirDamaged dependence minor on theRehabilitate input suppliers.minor Organisations, facilities tanks irrigation tanks Local Providing milling opportunities (paddy and rice) closer to the communities Authorities The value addition to paddy is envisaged to be at three levels; rice, rice flour-based products Poor maintenance Encourage community Development (eg: hoppers, string-hoppers and pittu)of irrigation and paddy wasteparticipation (husk toand maintain bran) based products. Organisations TechnologicalLow and capital constraintsinfrastructure for the value additionthe irrigation processes infrastructure could be overcome in Productivity two ways. One is by promoting individuals with the capital and experience in value addition such as medium-scaleUnavailability mill ofowners to expand and improve their activities and integrate those machinery at the producer level of the value chain by sourcing their labour and paddy. Second, community based SMEs could be initiatedPoor quality with the involvement of the small-scale rice and fertiliser rice flour-based producers such as FHHs on a profit sharing basis. These SMEs should be linked to markets atAccessing the local and, inLack the of longPLR due term, with the urban centres in order to ensure sustainability. fertiliser subsidy to tenancy Introducing high value traditional paddyLack varieties of Increase awareness on Development information accessing fertiliser subsidy Organisations Introducing high value paddy varieties initially on a pilot basis within the communities that already possess the skills will bringInsufficient them higherseed returns.Support Although local seed paddythe yield is Developmentlower from traditional varieties, the market pricespaddy production are higher andproducers linkages with technology with marketsOrganisations, with high and training DOA, DOAS purchasing power and the necessary start up technology and input will move the paddy Lack of producers away from the common varieties and protect them from the price fluctuations of availability and Lack of PLR the common varieties.accessibility of seed paddy Lack of information Development c) Increasing marketability about the procedure Increase awareness on Organisations, of seed paddy purchasing seed paddy DOA Identifying niche markets purchasing Source:Specialised Study datamarket opportunities should be identified for paddy and the value-added products at the local level as well as outside the district. Areas that are popular with local tourists could be targeted for rice flour-based products such as hoppers. For high value traditional paddy varieties the tourism industry and local urban markets with high purchasing power should be targeted. The potential markets for paddy bi-products will be toothpaste, biscuit and animal feed producers. Links should also be identified and created with the private sector (for example, with companies such as Cargills and CIC). Private sector companies are already showing an interest in buy-back systems and forming partnerships with producers in the conflict affected North and East and this potential should be explored.
8434 ProvidingFigure 4.3: market Mapping information of constraints and linking and up withpotential markets solutions for low value addition Accurateof paddy up-to-date sub-sector information on prices and potential buyers will lessen the dependency of the producers on middlemen who are seen to play an exploitative role. Producers should be linked to the Constraintsmarkets outside theCauses districts through producerPotential groups suchInstitutions as farmer organisations. Collective marketing should be encouraged Solutionsto ensure continuousImplementing supply to Solutions the larger scale dealers such as private sector companies. Identify local people who can be assisted for Development Providing support to diversify livelihoods development of storage Organisations Damaged storage Poor storage facilities Introducing cash crop cultivation suchfacilities as due red to onions, big onions, chilli and fruit such as facilities banana, papaya, mango and pineappleconflict could be recommended as secondary/alternative Construct storage facilities Development livelihood options for the target communities (see atsection the local level4.1 foron paddy cash crops Organisationsfor further details). Exploring the possibility of an integrated farming system with cash and other field crops, livestock rearingLack of electricity and inland fishing in the village tank as discussed above will help the communities to diversify.supply Other crops with low irrigation requirements in comparison to paddy could be cultivated during the Yala season and also during the inter-season in the Provide milling same paddy tract using the moisture that was retained in the soil during the MahaDevelopment season. opportunities near local Organisations A diverse livelihood portfolio will provide producers with a cushioncommunities during the off-season and inter-seasons of paddy cultivation and bring them out of credit bondage to the trader/collector, opening up marketLack opportunities of mills with andSupport better small bargaining scale rice ability forDevelopment a higher Low Value new technology flour based production Organisations paddyAddition price.
Development Providing/facilitatingLack ofmicro value credit facilities Provide support to SMEs addition facilities Organisations Linking producers with rural micro credit facilities will make them less dependent on the informal credit systems. The potentialLack ofof market lending to these recently resettled communities should be explored with both regulatedguarantee (Sanasa for Development Bank, Hatton National Bank, value added People’s Bank) and non-regulated financialproducts institutions (Samurdhi Authority, Sewa Finance, SEEDS, BRAC SL and Arthacharya11) and awareness should be created at community level Lack of on the prerequisite documentationinvestment processes. on Micro credit/revolving loan schemes can target the more Absencevulnerable of value groups newin thetechnology communities such as PwDs and FHHs who could addition for use it as start capitalwaste suchor asfor purchasing production equipmentProvide information and onalso for value addition Lack of bran and husk potential market for waste activities such as rice milling and riceknowledge flour-based about production. Development material with the long the potential Organisations term aim of engaging in market II. Vegetables and fruits sub-sector marketing these products
Source:For vegetable Study data and fruit crop cultivation in the two districts to become competitive with other districts, production and productivity will have to be enhanced along with the introduction of value addition technologies and dynamic markets. Given the excess paddy production in the two districts and the lack of properly functioning irrigation facilities, the introduction of vegetable and fruit varieties with low moisture requirement and high value addition or marketability should be strongly encouraged. a) Improving production and productivity
Improving seed availability High yielding hybrid seed varieties with a shorter maturity period should be made available to the farmers by supporting the increase of production capacity of the DOA through technology and capital transfers if necessary. Seed production at the community level could be introduced with the support of the DOA and DOAS. Opportunities of linking up the farmers with the private sector seed producers should also be explored and facilitated.
11 Source: Gomez, June 2009
8535 PromotingFigure 4.4: the Mapping use of organic of constraints fertilizer and potential solutions for low marketability Theof paddy comparatively sub-sector smaller plot size for vegetables and fruits and the fact that the fields in these areas have been arable for a certain period of time due to the conflict makes cultivation using organic fertilizer highly profitable given the niche market for such produce. Constraints Causes Potential Institutions Farmers should be made aware of the potential higher returnsSolutions of using organic Implementingfertilizer and training should be given to them in preparation of organic fertilizer with requiredSolutions quality.
Damaged roads Local Introducing mix/inter-cropping, cropand diversification bridges due and inter-seasonalImprove farm roads cropping authorites Fruit and vegetables could be cultivatedto conflict as mix or inter-crops, a mix of short-term crops and perennial crops so that the farmer can gain short-term and long-term income from it. Crop Poor Poor road diversification willconnectivity protect the- farmersmaintenance from price shocks during the harvest glut and will also increase nutrientroad management condition of the soil. The introduction of inter-seasonal vegetable and vehicles Low private cultivation will optimise the moisturevehicle in theownership soil following the paddy harvest and will increase the return per unit of land for the farmer during the year. Alternatively, promoting vegetables and fruits with a relatively lower waterLack requirementof public such as pineapple is also advised. transport Promoting micro-irrigation systems Development Provide support to Organisations, Increasing awareness on the merits of using micro irrigationdiversify livelihood systems such asDOA, drip DOAS and sprinkler irrigation and providing initial capital will improve the cultivability of the land and Dependency on Link the communities with Development bring long-term benefits to the farmers.local lenders It will to also increase the efficiency of water usage, other micro credit providers Organisations given the dry zone conditions of thesepurchase areas. inputs
Improving extension services Provide customised micro Development credit Organisations Increasing the numberLack of credit and area of coverage of extension officers, providing sufficient support resources for better functioning andLong capacity procedure buildingin of the extension officers will facilitate the transfer of latest technological theknowledge formal sector to the farmers. Some of these crops might be relatively new to the farmers and strong extension services are essential in order to High level of overcome the potential challenges documentationin cultivation. in Low accessing formal Marketability credit b) Promoting value addition Only 5% purchased Development Provide vegetable and fruit processingthrough machinery at communityCreate market level linkages Organisations Increasing awareness on potential governmentvalue addition activitieswith outside and districts providing training and introducing new value addition methodsMPCS for vegetables and fruits will increase the returns to the producers. Vegetable processingHigh machinery credit such as seed separators for maize, soya beans and cow pea and fresh fruit juicedependency and pulp making machinery could also be introduced. Unable to market Lack of storage the paddy Improving traditional methods of processingfacilities Providing capital supportproduced and facilitating market linkages for traditional value addition Lack of private Facilitate private sector Development methods such as preparation of lime dill,sector pickle and spice (chilli, saffron) grinding will move partnership - Eg: Cargills, CIC Organisations the producer higher along the value chain.involvement Good quality packaged products can be marketed targeting the local markets as well as tourist related ventures. Lack of market Provide market information Development information on prices and potential buyers Organisations III. Dairy and livestock sub-sector Lack of Cattle, goat and poultrySaturated localrearing are the most prevalent Introduceelements traditional of animal rice husbandryDevelopment in the diversification in two districts. Goatmarket and for poultryhybrid rearing is done to providevarieties meat high marketwhile value cattle-rearingOrganisations is done rice paddy varieties for both dairy and meat purposes. Source: Study data The dairy industry can be strengthened by: a) improving the productivity of the herds by introducing suitable good quality cross-breeds, rehabilitating pasture lands and introducing improved grass varieties, b) increasing institutional support to the industry by increasing the quality and capacity of human resources in the departments, providing financial services
8636 facilities,4.2 Vegetables and facilitating and fruits formal financial services through relevant institutions, rural banks andThe NGOs,Batticaloa c) providingand Trincomalee value addition Districts opportunities produce other by fieldimproving crops access(OFCs) to such power, as chilli,rural roads,cowpea, facilitating green gram, technology kurakkan, transfer maize and through sorghum. training, Low landand vegetablesprovision suchof equipment, as brinjal, d)beans, improving okra, bitter marketability gourd, snake through gourd, improved and red milk onion collection are grown infrastructure, in the Batticaloa better District. rural roads,These OFCscreating and links vegetables with local are markets mostly andproduced regularising in home cooperative gardens duringmanagement the Yala systems. season when there is no water for paddy cultivation. Red onion, big onion and chilli were mentioned a)as Improvingpriority crops the by productivity the experts consideringof the herds the potential marketability and the returns compared to other fields crops grown. Introducing suitable good quality cross-breeds NewOther breeds field crops that areare suitablealso produced for the inlocal Chena climatic cultivation conditions in the should Yala season.be introduced Fruits insuch order as tomango, increase banana the milk and yieldpapaya of theare herds.cultivated This on should a large be scalea gradual and showprocess potential undertaken for expansion with the usein the of area. the Innecessary Trincomalee, technical pineapple support cultivation since wasthe startedcross-breeds as a pilot need project semi/intensive and it has managementcontinued with systems. the aim Lessons of expanding learnt in toterms other of consequencesareas. The study of introducing found that, cross-breeds vulnerable togroups, a new especially environment FHHs inshould the targetbe incorporated. communities (Newengaged breeds in vegetable may carry cultivation unidentifiable, at the uncommonhome garden diseases level. Thethat lackmay of destroy irrigation the facilitieslocal breeds and aslack well.) of capital to invest in the land preparation and the purchasing of quality seeds were identified as the constraints faced by Increasingfarmers. Facilitating quality and micro quantity credit of feedwould help overcome some of these constraints and Increasingenhance their the income.quality and quantity of the feed can be done by rehabilitating the pasture land and introducing new varieties with high productivity. This should be done in partnership with theSubstantial DOA and investment DOAS in order is needed to obtain for theimproving required technicalthe production support. andThe initialproductivity step should of bevegetables to identify and thefruits pasture cultivated lands in usedthe two during/pre-war, districts. The locatedexisting indata close shows proximity that fruit to andthe communities.vegetable cultivation This willis not also competitive require enoughconsultations in terms and of productionapprovals (seefrom Table relevant 4.6 below) local governmentcompared to authoritiesother districts. and district/divisionalThe lack of opportunities administration for value bodies. addition High is yieldingalso a constraint. improved grassMarketing varieties the such produce as CO3 during have already the harvest been glutintroduced of low incountry Sri Lanka vegetables and can isbe a tested concern to improvethat needs the to productivity be addressed of theas productionpasture lands. expands. b)Table Increasing 4.6: Selected institutional vegetables support as a for percentage the dairy ofindustry national production % of National Production % of National Production The number of livestock development officers and veterinary surgeons in the district need to Crop Trincomalee Batticaloa Crop Trincomalee Batticaloa be increased in order to meet the demand for extension services. Development initiatives shouldManioc support the DAPH2% to increase6% manpowerChilies at least in the areas1% where the project1% is implemented.Ground Nut This can3% be done by4% providingAsh incentives Plantain for the1% officers to 1%work on developmentOkra projects3% or by supporting4% the DAPHKurakkan to temporarily recruit1% graduates or0% diploma holdersRed Onion and provide4% them with the2% necessaryGingelly training. This will1% create employment0% opportunitiesSnake Gourd for the 3%youth as well as2% make theGreen project Gram sustainable 1%in the long run.0% Brinjal 2% 3% Red Pumpkin 1% 0% Provide access to financial services TheBitter recommendations Gourd 2% related to financial2% serviceCucumber are discussed at1% the beginning0% of this sectionMaize as it is a cross-cutting1% issue for1% all the sectors.Ash Pumpkin 1% 0% Sweet Potato 1% 1% Black Gram 0% 1% Source:c) Providing Samaratunge, value Sommers addition and Varley, opportunities 2009
TableImproving 4.7: rural Selected roads, fruitaccess crops to power as a percentage of national production This is discussed above in detail in the broad, cross-cutting theme of infrastructure. It should Crop Trincomalee Batticaloa be noted that access to power is important to improve value addition in the dairy sub-sector. Oranges 1% 2% ProvideMango training and equipment 1% for value 2% addition SufficientPlantain/banana liaison of the 1%project with the 1% DAPH could be of benefit to producers who are interestedPapaw in dairy value 1%to obtain technical 1% training on value addition. The learning coming fromLimes the experience of 1%the DAPH is that 0% provision of training and equipment should be targeted only to those interested in implementing the learning gathered. Simple equipment Source: Samaratunge, Sommers and Varley, 2009
8737 thatThe issuescan be of easily production maintained and productivity should be providedcould be overcomefor curd and by yoghurtincreasing making. access Producersto quality shouldinputs suchalso beas seedsgiven trainingand planting to handle material, the equipmentfertilizer, financial provided. services Training and on technology. packaging Itand is labellingalso important is also to important maximize for the reaching usage of broader land and markets. water by increasing the cropping intensity. Cropping intensity can be increased by introducing intercropping methods and crop d)diversification. Improving marketabilityExtension services also need to be improved in terms of quality and coverage. Improve milk collection networks CommunityImproving productionlevel milk andcollection productivity networks should be encouraged through farmer organisations in order to avoid involvement of middlemen and to increase the bargaining powerSeeds andof the planting farmers. material A record keeping system should be introduced to make the functioningThe lack of ofavailability networks smoothof hybrid and vegetable accountable. seeds The was farmer mentioned organisations as a reason belonging for lackto one of community/village/GNinterest in engaging in can vegetable be given farming. a vehicle The or bicycles, productivity milk collectionof the seeds cans supplied and temporary by the storageAgrarian facilities Services so Centre that isthe low milk compared collection to theprocess hybrid will varieties, run with and fewer the interruptions.centre cannot Paid,keep dedicatedup with the personnel demand in from supplying the farmer the seeds. organisations The farmers should purchase be in-charge the imported of thehybrid activities seeds relatedfrom the to private milk collection. sector. The Larger negative milk side collecting of using companies the hybrid such seeds as isMilco that orthe Nestle harvested can directlyplanting buymaterial from cannotthe farmer be used organisations for cultivation for ina thereasonable next season. price. However,This will farmersreduce theare wastagewilling to of buy milk hybrid and will seeds enable at a milk price collection much higher in the thanafternoons, local varieties which isbecause not in practice of higher at theproductivity. moment.
RegularisingFarmers show cooperative a reluctance management to cultivate fruitsystems because of the slow returns. The first harvest of Thethe mangoaim of thiscultivation recommendation takes approximately is to avoid delays3 years in frompayment the forplanting farmers time. after New selling hybrid the milkvarieties to the with cooperative high productivity and to minimise should thebe dependencyintroduced onso middlementhat the returns and selling are milkfaster. at lowIntercropping prices. Initiatives fruits with should other cultivationsbe taken towill promote also help such to overcome systems thisand constraint. highlight Fruitsthese constraintsproviding quick to the returns, relevant such institutions, as banana, such can as be the introduced DAPH, for with prompt other action. perennial fruit crops.
EstablishmentFertilizer of community managed sales outlets These outlets will serve as a place to display and sell the fresh milk as well as value-added There is no fertilizer subsidy for vegetable and fruit cultivation unlike paddy cultivation. The products of the farm. The outlets should be established closer to the town or main road so cost of purchasing Triple-Super-Phosphate (TSP) and Muriate-of-Potash (MOP) fertilizer is that products get sufficient demand and popularity. These outlets can be made a point of high. The high cost discourages farmers from using chemical fertilizer. This may be seen as contact for external buyers. Projects should look at ways of linking these outlets with the an opportunity for organic cultivation in which case the availability of organic fertilizer should external market and providing continuous support until operations stabilise. be increased. Organic farming can be promoted at a home gardening level for vegetables and short-term crops such as pineapple, banana and papaya. The smaller scales of IV. Inland fisheries sub-sector cultivation will make it more viable and the producers could tap into the growing market Inlanddemand fisheriesfor organic and fruits aquaculture and vegetables within the tourism sector as well as among urban consumer groups. Training on organic cultivation and market linkages should be facilitated. Inland fisheries should be strengthened mainly in the areas of a) increasing production and Lack of transport facilities affect input supply, access to farm land and transportation of the productivity by increasing the quality and quantity of the fingerlings, supplying fishing produce to the market. Poor road conditions, lack of suitable vehicles and containers to equipment to vulnerable groups and by improving the supporting infrastructure such as transport perishable vegetables are the main transport-related constraints affecting connectivity and tank rehabilitation, b) promoting market linkages for fresh capture inland vegetable production. Using public transport leads to heavy post-harvest losses of perishable fish at the local level as well as outside the district, for culture fish and for value added fish. vegetables. a) Increasing production and productivity Under-utilisation of land and insufficient irrigation StrengtheningThere is potential existing to undertake hatcheries vegetable that supply cultivation fingerlings on to available the two districtsland (uncultivated and Carpabandoned and Tilapia land) asin thefresh two fish districts. and local The breeds initial suchinvestment as Sungan needed and for Viral vegetable for value cultivation addition (smokeis lower dry)than fish paddy, were the identified profitability as the higher types and of thefresh risk water lower. fish While with waterthe highest scarcity market is an demand.issue and limitsAt present, the use the of landseasonal during andthe Yalaperennial season, tanks the studyin the noted East that are vegetables stocked withthat fingerlingsdo not require from much breeding water centreswere being in Inginiyagala cultivated since and irrigationDambulla. facilities Facilitating were financialnot available and technicalin most of support the study to increasecommunities. production Agro-wells in the either two hatcheries do not recharge will minimise for a long the timefingerling once scarcity.the water is taken out, or have been abandoned because they have been constructed in areas where the water table is too low.
8838 FeasibilityModern micro of constructing irrigation technologies mini hatcheries such andas drip mini and nurseries sprinkler irrigation are not used in any Theof the feasibility communities. of constructing These modern mini technologieshatcheries in are the the two solution districts for towater be managedscarcity because by the breedingthe efficiency centres of water in Iniginiyagala usage is higher and Dambulla compared with to floodthe proper irrigation. technology Cultivation transfer of chilli should and beonion explored. need micro The communities irrigation technology lack the technology in order to of achieve fish hatching the maximum at present. potential Improvement of the inland. transport The lack modes of capital and andalso low mini awareness hatcheries about within these the moderndistricts technologies would minimise constrain the high the fingerlingfarmers from mortality investing rate. in Land-basedthem. mini nurseries (such as those present in Rajawewa in Ampara) are also proposed and fisher societies could be strengthened to manage the mini nurseriesCrop diversification and hatcheries. They can also increase their income from the tank by selling the fingerlingsCrop diversification to the other is another fishing solutioncommunities. to cushion the price shocks of one type of vegetable. It is less risky than growing one crop and will help to maintain better nutrient management Introducing/promotingof the soil. After harvesting, culture paddy fishing lands can be used for cultivation of vegetables without Theremuch irrigation.is a strong The state remaining interest moisturein fish culture in the ofsoil breeds is sufficient based toon cultivate abundant drought brackish resistant water resourcescrops such that as cowpea, fetch higher green incomes gram and targeting sorghum. the Thisexport practice market provides12 (oysters, higher sea return bass, from sea thecucumber, land and crab these and crops shrimp). improve Target soil communities fertility by nitrogen(including fixing. vulnerable groups such as FHHs and PwDs) should be linked with these efforts by the state and by other non-state actors as Extensionmethods of facilitatingservices technology transfer. There is a clear lack of capital among the studied communities, therefore financial services should be introduced as start up for culture fishing, The lack of extension services is a constraint to the vegetable sector. There is only one and market linkages should be created. Interested actors/institutions with experience/ Agriculture Research Production Officer available for a DS division. These services and necessary market linkages with the export market from the private sector should be officers are important in terms of providing latest technology and assisting the producers in identified and encouraged to invest in culture fishing with the aim of introducing quality treating crop diseases. Extension services are also important when introducing and control mechanisms as per the international standards. promoting vegetable farming to new producers. Strengthening the extension service officers by providing them with training on new technology as a means of exposing them to modern b) Improving marketing advancements in the relevant sectors would provide sustainability to livelihood interventions in the long run. The fresh water capture fish, value added fish (smoked dried fish) and culture fish are the main products in the inland and aquaculture sub-sector identified in the current analysis. Processing, storage and value addition Marketing should be facilitated through fisher societies. Fresh water capture fish can be Localmarketed production locally doesto the not consumers require storage that facilitiesprefer fish since without there wasice. noRetail large outlets scale productionshould be inconstructed the communities closer to/integrated at the time of with the marketstudy. However, centres for as thesethe extent sales. of agriculture increases in the Eastern Province, storage facilities will be needed. For processed fish, market linkages should be facilitated at local as well as with urban Seedmarkets separating and hotels machinery and restaurants is necessary in forthe crops area. like The maize. identified Maize high at present demand is soldmethod only asof greensmoked cobs dry duefish tomaking the lack should of machinery. be popularised Even among though the there target is a communities demand for thatmaize engage grain fromin inland the poultryfishing. industry,Improving unavailability the quality ofof valuesuitable addition machinery through to split better the packaging, seeds from labelling the cob restrictsand branding the processing should be of encouraged maize cobs. throughGreen cobs training. were beingSpecial sold attention between can Rs. be 5 toplaced 6 at theon timeincluding of the vulnerable study (based groups on in theprimary value data addition collection), process. whereas the value of it could be increased when the seeds are separated. The technology currently used to split the grain resultsThe high in demandmuch damage in the tolocal the marketseeds andas well leads as tofor high export wastage. of culture Private fish companies should beat presentcapitalised engage upon inand maize market cultivation linkage inshould the East be createdand use with their the produce local markets as animal as feed.well as the export market through the involvement of the private sector. Processing of vegetables at the basic level such as red chillies, chilli powder and traditional picklesImproving can infrastructure provide added and value provision to vegetable of fishing cultivators. equipment Local to vulnerable level small-scale groups grinding Minormills can tank be rehabilitation introduced. shouldThis will be helpprioritised to overcome and connectivity the wastage infrastructure of produce such during as roads the andharvesting bridges/culverts season andwill havegenerate to be off-farmconstructed employment in order to opportunities.connect the producers SMEs could with thebe markets.promoted Market at the communityinfrastructure level should with alsotechnology be constructed, and initial as capital discussed being above. provided. The Traininganalysis highlightedon labelling, the packaging lack of fishingand quality equipment control forwould vulnerable also have groups to be and facilitated. provision of the same will increase their participation in the sub-sector and bring them more income. Fruit processing is another area that has future potential and needs attention and support. As discussed above, the initial effort is to expand the cultivation in terms of improving the production and productivity. The efforts of the Department of Industries in Trincomalee for fruit processing is constrained by the lack of supply of fruits from local producers. Fruits are 12currently Eastern Revivalsupplied official either website, from Nagenahira the DambullaNavodaya, www.neweast.lk, or Colombo accessedmarket. on Technology September 2010 from the
8939 DepartmentV. Marine Fisheriesof Industries sub-sector can be shared with SMEs at the community or DS level and with Higherthe provision returns of to initial the fishers capital can the beproducers generated can by get a) improvinghigher returns productivity for their by fruits. providing The specialisedmarketability fishing of natural gear, fruittraining drinks on is cleaner higher andwithin better the districtfish handling since the mechanisms, suppliers are capital very supportlimited. in acquiring deep sea fishing crafts and gear, introducing and promoting support services such as boat manufacturing and ice plants through SMEs and facilitating credit, b) improving“There ismarketing, a high demand creating for direct natural market drinks. linkages, Government and introducingdepartments and and supporting the alternative/secondaryschools demand largeincome quantities, sources. but we are unable to supply at the moment. We can also supply for the seminars, workshops, and meetings taking place in the a) Improvingarea.” productivity (KPI, Trincomalee) Providing specialised fishing gear to suit the seasonality and to support conversion of multi-dayMarket boats The availability of specialised types of fishing gear to capture fish available according to the timeThere of is the an seasonunmet willdemand bring forhigher vegetables returns. andSupporting fruits in the the conversion Batticaloa ofand day Trincomalee boats into multi-dayDistricts. boatsThis demand should be is encouragedmet by importing as this vegetables will give the and fishers fruits access from outsideto a better the resource districts basewhich compared are more to expensive the coastal than sub-sector, vegetables while produced also enabling locally. them Up tocountry access vegetablesfish types such are assupplied tuna whichfrom the fetch Dambulla a higher market. price Thein the increase international in the supply market. of lowThe country financial vegetables institutions to shouldthe local be markets encouraged is expected to invest to changein and linkthe consumptionup with the fishers patterns venturing within the into district the deep because sea sub-sectorof their lower as aprices business and freshnessinvestment as with they high are profit.produced The locally. shift into the deep sea sector will minimise the constraint of resource depletion in the coastal sub-sector. Seasonality of production affects the price of the vegetables. Many farmers produce similar Introducingkinds of vegetables and promoting during supportthe Yala services season, such and asthe ice excess production supply and brings boat the manufacturing. price of the Youthproduce who down are drastically. unwilling to Farmers engage in in Kalavanchikkudy, ocean fishing activities in the Batticaloa and the Districtfishers engagedin the less in productivecrop rotation, coastal so price sub-sector fluctuations should during be encouragedthe harvest toglut join did the not chainaffect of this support community. services In relatedcrop rotation, to fishing. the decision Construction regarding of theboats, crop boat cultivated cleaning is taken and basedmaintenance, on the demand fishing innet a manufacture,particular time ice period. production The and ‘one supplying village ofone other crop’ services approach required was byintroduced the industry by suchthe asgovernment transport, foodwith provisionsthe intention and mechanical of eliminating parts forprice the fluctuationboat engines and should involvement be promoted of bymiddlemen. providing Bothfinancial fruits capital and alongvegetables with technical are cultivated training underfrom thethis relevant programme. state authorities.It can be replicated in other vegetable and fruit producing areas as well. The ‘one village one crop’ SMEsapproach could involves be anchored crops tothat more are enterprisingcultivated according fisher communities/societies to the season and orfarmers individuals can withcultivate initial several capital. different The more crops vulnerable during a year fishers (but can only be one then at alinked given to point these in time).SMEs which would give them a more stable income than unproductive day boat fishing. Promotion of supportThe vegetables services and locally fruits will produced also boost within the the expanding district are fisheries marketed sector in village in the levelEast markets.and the shiftingCreating of regional fishers fromeconomic the coastal centres sub-sector would enable to the otherproducts services from will different be a solution areas forof the resourceprovince depletionto be centralised issue as welland andmarketed ensure sustainabilitythrough more of formalthe fishing channels, industry. reducing the exploitative involvement of the middlemen and increasing producer bargaining power. It Capacitywould also building facilitate of fishersa better and market fisher informationsocieties process and bring higher returns to the Trainingproducer. on cleaner fish handling in order to minimise post-harvest loss and to meet the export standards is essential in looking to expand the market for fish. Financial management (especiallyEncouraging in private saving sector during involvement the peak season in the vegetables,in order to fruitsbe financially and other secure crop sub-sectorsduring the off-season),is strongly encouraged. business planning Most of and the marketingUSAID-CORE are on-going other areas projects, which at would the time improve of the the study, skill basewere andconceptualised productivity around of the privatelabour forcesector and buy-back the sub-sector. systems8 and it will be useful to see the experiences and lessons generated from these private sector partnerships. Supermarket b) Marketing chains such as Cargills are also encouraging fruit production in Trincomalee, and linking up Introductionwith these ventures of alternative will broaden livelihoods the marketfor the off-seasonfor the producers. In addition, the expanding Introductiontourism industry of cash should crop be cultivation considered or asnon-farm a potential activities market such for asorganic three produce.wheeler/motorbike repairing/servicing, and IT related businesses such as ‘communication centres’ could be promotedIn conclusion, depending the vegetables on where and fruitsthe particular grown in thecommunities two districts are are located. not sufficient For example, to cater communitiesto the demand. that Therefore, have better it isaccess important to main to investroads moresuch asin Kallarawaincreasing couldthe production be introduced and intoproductivity non-farm in theactivities. short run,An alternative/secondarywhile looking for value-addition livelihood optionsoption willand providemarket linkages.the fisher communities a reserve that they can fall back on during the fishing off-season and will move them8 Details away on the from projects, the etc.cycle can of be debt found to on the the USAID-COREfish collector/trader. website www.core.zunepile.com/ .
4090 DirectFigure market 4.5: Mapping linkages of constraints and potential solutions of the vegetables and Thefruits monopoly sector of the collector/wholesaler can be reduced by facilitating direct market linkages with the wholesale markets within and outside the district. The improvement of support services asConstraints discussed above (suchCauses as transport andPotential ice plants) will be Institutionsessential in direct marketing. The involvement of the private sector, for exampleSolutions hotels andImplementing restaurants, Solutions could be sought to market other high value fish products. Increase seed production capacity of local DOA, DOAS, VI. Non-farm livelihood sub-sector agriculture authorities - Development Unavailability of DOA and DOAS Organisations sufficient good quality The presence of the non-farm sectorseed isand minimal planting in recently resettled communities, but the Development material Introduce seed strong state drive towards improving the much needed supporting infrastructureOrganisations, for the production at local level SMEs and the interest shown by some of the large private companies investing in DOASthe area, especially in agro-based industriesNo fertilizer show incentives potential for introduction/improvement of this A Livelihood and Market StudyPromote use of organic ResettledDevelopment for fruits and vegetable sub-sector. The recommendations regarding the agro-based industriesfertiliser have beenOrganisations discussed cultivation under theCommunities relevant sub-sectors andin thisthe section Eastern provides recommendations Province for the enterprises that are related to non-farmInsufficient activities. awareness Assessing conditionsand exposure in selected to the GramaPromote Niladari use of organicDivisions Development Strengthening the state servicesorganic and farmingmotivated and its individuals/groupsfertilizer who want Organisationsto start up of the Batticaloapotential marketsand Trincomalee districts enterprises Slow returns of Introduce mix cropping Development For the business enablingLack of environmentperennial in fruit the crops two districtsand to inter-cropping be made more conduciveOrganisations for investment and businessproduction and start-ups, the local authorities that are the main points of contact Crop diversification and productivity Under-utilisation byof the Development of such ventures will have to be strengthened, in termsinter-seasonal of knowledge about business land Organisations registration, taxation procedures and dispute resolution especiallyvegetable cultivation related to land and being more motivated in carrying out Mohamedthe necessary Munas procedures.Initial capital Building support the capacities of Development to introduce micro interested individuals to start upGayathri and manage Lokuge enterprises should alsoOrganisations be done irrigation systems simultaneously and through a continuousInsufficient irrigationconsultative process. Promote vegetables Development Promoting the industries and enterprises that are present inwith the low communitieswater requirement Organisations The enterprisesA that Publication are already of thepresent Centre in the for areas Poverty such Analysis as reed-based (CEPA) production, clay Increase extension and cement brick making, agro-based industries such as rice mills, curd makingDOAS, and DOA, other officers and provide small-scale businesses such as restaurants,September shops,2013 sufficientsalons resources and forbakeries Developmentshould be Lack of extension Vegetables better functioning Organisations strengthenedand Fruits with necessary knowledgeservices for fruit on and business planning, business management, customer service and improving marketabilityvegetable cultivation of their products.Capacity building of the Development extension officers Organisations Introducing new enterprises Enterprises that have proved to be successful and have a relatively established clientele in Provide vegetable Lack of processing Development the respective locations which are outside the communitiesprocessing that machineryare targeted by the project machinery Organisations should be introduced to the communities on a pilot basis withat community strong level capital and technology support. Some of these enterprises are handlooms, small garments and shoe making Lack of knowledge factories, as well as information andabout communication potential value technologyIncrease awareness related on businesses such as Development mobile phone repairing and communicationaddition opportunities centres, threepotential wheeler/motorbike value addition repairing and Study Series No. 6 – 2013 Organisations construction-related activities suchavailable as carpentry in the region and masonry.methods Lack of value for vegetables and fruits addition Incorporating lessons learnt fromInsufficient other projects support to that are working within the two districts in Provide capital support expand the traditional Development trying to promote enterprises for traditional food methods of fruit and Organisations Given the relatively experimental nature of the new enterprisesprocessing methods proposed, it is strongly vegetable processing recommended that the lessons from similar projects on enterprise development within the Development region be studied. Some of these Insufficientprojects, investment identified through the study, are the USAID-CORE 13Introduce new Organisations, projects, the entrepreneur groupson promoted new technology by Nucleustechnology, and for Rebuilding value LivesDept. through of Sustainable Development Projectrelated by Berendina to value addition Micro Financeaddition Institute14 . Industries, DOA, DOAS
Source: Study data 13 More details availabe atwww.nucleus.lk,Supported accessed by theon August Asia 2010 Foundation 14 More details available at www.berendina.org, accessed on August 2010
9141 ©Linking4.3 Centre Dairy with forand tourism Poverty livestock industry Analysis 2013 TheLivestock expanding and poultry tourism are industry undertaken in the as Easta subsidiary can create livelihood a market activity, for farm often and serving non-farm as a produce,supplementary both value activity added to paddy and non-value production. added. Cattle The rearing potential is the of linkingmost common up the vegetables livelihood Firstandsource, otherpublished although field –crop 2013goat producers, rearing andthe poultryinland fishis also producers undertaken and the by livestocka significant producers number with of theproducers. booming In thetourism Batticaloa industry District, in the livestock region rearingshould isbe an encouragedimportant source through of income the service in all providersthe target thatGNs supplybut it hasthe alocal relatively and foreign low presence tourists inwith the food Trincomalee and accommodation. District. Cattle Bees are Nationalhoneyreared andmainly Library smoked for of dairy, drySri Lankafish and could most– Cataloguing also poor be householdsexplored of Publication as rearproduce two Data withor three a potential head of niche cattle market as a amongsubsidiary the activity.local and In foreign Eravur tourists. Pattu, large herds belonging to wealthier householders are lookedMunas, after Mohamed by villagers for a wage during the paddy cultivation season. 5.4 FutureA livelihood trends and and market important study of livelihoods resettled communities of the target in communitiesthe eastern province : FigureAssessing 4.6: Mapping conditions of inactors selected and grama value niladari of the divisionsproduct ofalong the Batticaloathe dairy andvalue PotentialchainTrincomalee future districts trends / Mohamed Munas and Gayathri Lokuge. - The following elements were identified as potential income generating activities in the target Colombo : Centre for Poverty Analysis , 2013 villages. The opportunities and constraints in engaging in these activitiesCha narege discussed in in Actors Dairy detail in the sub-sector analysis. Product Value 102p. ; 21cm..- (Study series ; No. 6) o High value traditional paddy cultivation Wo iISBNthCashin t h978-955-1040-69-7 ecrop com cultivationmunity (vegetables and fruits) and processingLoca l (freshmarke tfruit drinks, dill, Consumers pickle) Fresh milk Rs. 42.00 Wo ii.thValue in331.2 the addition DDDC23S/dist rbased i ct on milk (curd, yoghurt) ii. Title Retail market o Ouiii.tsDeepi dLokugee d iseastri c ,tfishing, Gayathri culture jt au fishing (shrimp, sea iv.bass, Series crab), support services for the fishing sector (ice plants, boat repairing/manufacturing,P afishstu rtransport)ised Rs. 1 2and0.00 value 1.addition Conditions (dry offish, employment canned fish) UHT Rs. 120.00 - 190.00 o Non-farm based livelihoods (maintenance and repair, ICT-based services, retail trade, Traders based mini garment factories) Purchase price Rs. 22.00 Copyrighto Support of thisservices publication to the belongs tourism to industry Tthera dCentreer s(accommodation, for Poverty Analysis. restaurants, Any part adventure of this . in the community book tourism)may be reproduced with due acknowledgement to the authorSelling and pric epublisher. Rs. 42.00 . outside DS/District The5.5 ConclusionCEPA Publication Series currently includes Studies, Edited Volumes, Working Papers Local curd processors andIt will Briefing take a Papers.considerable The interpretations time for recently and resettled conclusions families expressed toL odevelopcal inpr othisc etheirs sStudyor capacity(cu arerd) those and of the individual authors and do not necessarily reflect the views or policies of CEPA or the ventureYoghu rintot an dnew cu rareasd of production. Therefore, it is recommended that small producers publication sponsors. Processors Purchasing price Rs. 40.00 bep rencouragedocessors ou totsi dbuilde th eon their existing skills, and that they are supported to move up the valuecom mchainunit ieofs their existing forms of livelihood. In the divisionsPro fstudied,it Rs. 25 .00agriculture and Photographsfisheries were used the mainin this forms publication of livelihood, are attributed with animal to CEPA husbandry, staff. home gardening, brick making,Large caetc.ttle hprovidingerd alternative means of earning additionalFarm g atincomes.e price There is Producers ISBN:considerableown e978-955-1040-69-7rs (ou tpotentialside the to add value to their operations within the existing context, and also toc makeommu usenitie ofs) the potential changes that can be brought in throughLocal ve nthedo rdevelopments Rs. 22.00 of Alltourism enquiries in the relating two districts. to this publication should be directed to: Local small hCentreolders for Poverty Analysis Milco Rs. 26.00 - 35.00 29 R G Senanayake Mawatha, Local Processors Rs. 40.00 DAPH Colombo 7, Sri Lanka Veterinary SuTelrge ons : +94 (011) 4690200, 2676955-8 Fax : +94 (011) 2676959 Min. of Livestock and Cost of production per litre Email : [email protected] (Under extensive system, Rural CommuWeb:nity www.cepa.lk Development Dry zone) Inputs PrintedLocal mby:on ey Mudranalenders Printers (Pvt) Ltd. Rs. 9.23 NGOs 69/2, Ward Place, Colombo 7, Sri Lanka. Source: Department of Census and Statistics, Department of Agriculture, Central Bank, HARTI, Primary data * Sale prices and profits are based on primary data collected during the study.
9242ii ReferencesTheMohamed main actors Munas involved is a researcher in the dairy at thevalue Centre chain for are Poverty mapped Analysis in Figure and 4.6. holds The a Mastersinput and in serviceEconomics providers from arethe mainlyUniversity men, of however, Colombo. women Munas play is a thesignificant thematic role champion in production for andthe localArunatilake,migration level processing.thematic N., Gunawardena, area. None His of researchthe A., vulnerable Marawila, related groups trainingD., inSamaratunga, the and sample experience were P., directly Senaratne,includes part poverty, ofA., the & dairyThibbotuwawa,conflict, value livelihoods, chain, M., but 2008. fisheries,the Analysispresent migration engagementof the fisheriesand ofeconomics. womensector inin SriHethe Lanka: sub-sectorhas over guided eightshows case years that studies theof FHHsforexperience value can chainbe in targeted carrying development in out promoting research in conflict-afffected the on sub-sector. poverty related environments. The lack issues. of engagement HeWashington also has of experience D.C.:FHHs USAID.can bein dueOnline.conducting to the Accessed current evaluations August free rangingin 2010,conflict cattle affected management areas of Srisystem, Lanka. but the introduction of improved breeds
DCS,The conditions 2010. Estimated prevailing paddy in the production studied communities and excess/scarcity constrain of their paddy ability by seasonto achieve and this by district.level of Colombo:production. Department Well-to-do of farmers Census canand usuallyStatistics. afford Online. high Accessed yielding Maybreeds 2013, that they
4393iii AcknowledgementsHowever,De Silva, D.,providing 2009. “Ruralimproved institutions” breeds will in Ratnayake,mean changes I & Fernando,in the management P. (eds.), Opportunitiessystems and costfor the of productionproductive perpoor: litre. perspectives It will necessitate on agriculture intensive and orrural semi-intensive livelihoods inmanagement Sri Lanka. ThesystemsColombo: authors and Centre athank higher for the Poverty cost Agency of Analysis. production for Technical Chapter per litre Cooperation6, pp.in comparison177-211. and Print. Developmentto extensive management(ACTED) for providingsystems as the shown funds in and the support following for table.this study The inmain November reason 2010.for this They is the sincerely higher labourthank Azraand AbdulfeedDiprose, cost Cader R., in Abdulandthe Priyanthiintensive Cader, A.,Fernandosystems. & Thalayasingam, forThe their increase input P., intoin 2010 yield the (unpublished). contentwill be 2-5of the times Conflict-sensitivity,publication. greater which makesdevelopment the introduction effectiveness, of improved inequalities, breeds and more conflict profitable in forSri theLanka: producers. Understanding aid Thanksprogramming, are also voice extended and actionto Basith in Inadeenlocal conflict-affected and a group of environments. research assistants Oxford: who Centre collected for secondaryTableResearch 4.8: ondata Cost Inequality, and of conductedproduction Human data ofsecurity collectionmilk (perand at litre)Ethnicity institutional in the(CRISE), anddry communityzone Oxford by managementUniversity levels in bothand thesystemColombo: Sinhala Centre and Tamil for Poverty languages. Analysis (CEPA).
TheDistrict authors Secretariat-Batticaloa, are grateful Managementto Dr. 2008. Muttukrishna Statistical System informationSarvananthan, of BatticaloaDevelopment District. Economist and Zone/District Principal ResearcherIntensive of the PointSemi-intensive Pedro Institute Extensive of Development, Prof. Amala de Silva, District Secretariat-Trincomalee 2008. Statistical information of Trincomalee District. DepartmentDry Zone of Economics,23.3 University14.51 of Colombo and9.23 Mr. Asoka Gunawardena, Former Chairman, Finance Commission of Sri Lanka and the Sri Lanka Administrative Service for Source: Department of Animal Production and Health, 2009 reviewingSiriwardena, the P.various P. G. draftsS. N., of2004. this document.“National Aquaculture Sector Overview – Sri Lanka” in National Aquaculture Sector Overview Fact Sheets. Rome: Fisheries and Aquaculture Milk yield can be increased by improving the traditional methods of management practices Department, Food and Agriculture Organisation of the United Nations. Online. Accessed June 2013. ofThanks the herds, are due and also, the qualityto Ms. of Tushani the feed Kalugalagedera, in terms of fodder for andher patiencepasture land. and Monitoringdedication ofin http://www.fao.org/fishery/countrysector/naso_sri-lanka/en. thesewriting new up managementthe final version, practices Chaturanga to see whetherWeerasekera, the recommendations without whose encouragement are implemented this is final product would not have been possible, and Roshni Alles for editing the final document FAO,imperative 2007.Fisheries for increasing institutional the yields. analysis Existing and stock capacity can beassessment upgraded towith the good Ministry quality of and preparing it for print. Fisheriescross-breeds and andAquatic the Resourcesincreased productivityof Sri Lanka. would Rome: in Food turn andencourage Agriculture the smallholdersOrganisation toof theengage United in dairyNations. farming. Online. Accessed August 2009, The Asia Foundation is gratefully acknowledged for providing the funding to print this study.
TrainingRengasamy, and S., capacity n.d. A students’building ofguide livestock to sub-sector/value producers does chain take analysis place forthrough livelihood the intervention.government andOnline. NGOs, Accessed but it Juneis not followed up by the provision of the necessary capital 2013
4494iv PrefaceFinancialRIU, n.d. Theservices value chain approach to poverty reduction and development of livelihoods. ResearchCurrently, Intothe milkUse. collectorsOnline. Accessed are the easiestMay 2013, source of credit for small farmers. Thus, even
TheseIn the communitiesabsence of value were addition,also more trading vulnerable is the to step external in the shocks. value chainEven whichduring canthe provideconflict theyhigher had returns. engaged The in lacktraditional of capital livelihoods. to invest However, in the thesetrade sectorsprevents have the not producers reached fromtheir optimalengaging potential in trading. and this already existing skill base is the biggest advantage these resettled communities have, and should be capitalised upon and made to be more competitive with the support of new technology. The following sectors were identified as potential income
9545v generating“The milkactivities we produce in the target passes villages: through high three value hands traditional before paddyit reaches cultivation; the market. cash crop cultivationThe producers(vegetables are andmainly fruits) Tamils and and processing the milk is (freshsold to fruitthe Muslims.drinks, dill,The pickle);Muslims value additiontraders based sell on the milk milk (curd, to the yoghurt); Sinhala deepshop seaowners.” fishing, culture fishing (shrimp, sea bass, tank Rain Rain Rain Rain Minor water water water crab), support services Source for the fishing sector (ice plants, boat repairing/manufacturing,FGD, Eravur Pattu fish transport) and value addition (dry fish, canned fish); non-farm based livelihoods (maintenanceIn Trincomalee, and the repair, government ICT based is expanding services, theretail milk trade, collection mini garment centres factories);and carrying support out a servicesminimal levelto the of tourism processingCultivation industry with (accommodation,the aim of preserving restaurants, the nutritional adventure level tourism). of the milk. A lack Yes Yes Yes of capacity of these processing centres to deal with large quantities of milk makes the producersBased on study sell the findings, excessYes / No itmilk is apparent collected that to private starting companies completely such new as livelihood NESTLE oractivities MILCO. in But an increasingenvironment the thatWater capacity is in a stageof the of centres revival requiresis risky. Thus, a continuous such initiatives supply need of milk to be and undertaken a strong marketwith alternatives link, because that people the processed can fall back and on packeted if these newmilk livelihoodsneeds to arebe consumednot successful. within Niche 48 Tube Tube wells areas for support and growth were identifiedWells within the existingWells sub-sectors (such as cash hours of production. Source crop cultivation or culture fishing) while also identifying niche areas where the traditional Demandsectors can for benefit fresh using milk the same skill base – for example, the need to explore the potential Atfor present,introducing the highincreasingDrinking value trendtraditional of powdered paddy varieties. milk consumption The study hasalso led looked to poor at areasdemand where for freshcommunities milk/liquid can milkbe linked even to Yes though expanding theYes nutritionalindustries suchvalue as of tourism Yes the latter in the is higher.region. Awareness about the benefits of consumingYes / No liquid/fresh milk is essential to change the attitude and consumptionIn addition, interventionspattern of the do rural not and always urban need communities. to take place in the target communities. Interventions at a different point in the value chain can create positive backward impacts that No No can enhance“When wethe visitlivelihoods the farm Yes of families,the target they communities. give us powdered milk for us to drink even
though they have Yes / No fresh milk at home. They think that it is a dishonour if they give The possibilitythe visitorsElectricity of freshlinking milk” up with the regional hubs where more trade and manufacturing enterprises are situated should also be explored in order to maximise spillKPI, over Batticaloa effects. In the studied areas, most of these enterprises were located in the more urban areas such as ItKaththankudi should be Urban noted, Council however, and Trincomaleethat in the and future, Batticaloa the Municipaldemand forCouncils fresh/liquid as well asmilk in consumptionpopular tourist will destinations increase when such theas Pasikuda, income of Kalkuda the households and Nilaweli. increases It is recommended over time. This that is anthe opportunitydevelopment that initiatives the smallholders link target inbeneficiaries the dairy industrywith these at thehubs domestic to act as level raw canmaterial take 96 advantagesuppliers of of. fresh fruit, vegetable and milk for processing enterprises and also to provide small garments and other small industries. This would also help overcome the lack of physical space for expansion in someFrequency of of these hubs such as Kaththankudy. Value addition public transport Traditional forms of curd are made and marketed locally. It is not transported outside the About 4 - 5 buses About both daily, operate and CTB private one but No CTB bus, the on bus private road. Kinniya - Wan-ela - Bus service twice a day evening) and (morning does not function but regularly. Belikkadato day a Twice Horowpothana from regionAn important mainly point because to take of the into lack account of a good when transport designing/implementing network. The lack livelihood of capacity interventions to invest infor technology recently resettled and the communities, lack of electricity is that within a conflict the recentlysensitive resettled approach communities is crucial throughout are seen asthe bottlenecks project cycle. for Therevalue addition.should also be continuous monitoring, consultation and follow-up with the communitiesConnectivity on the assistance given to them in order to ensure the sustainability of the support.“If there It isis alsovalue important addition to for share the themilk, success it is possible stories ofto certainsell the communities Rs. 40 worth with of other targetmilk communities at Rs 100.” so as to learn and replicate successful initiatives. District Level Workshop, Batticaloa Conflict affects economic development and value chains in different ways – disrupting Distance to Yoghurttransport, production destroying was infrastructure,the main road not being done restricting in any mobility, of the studied and affecting communities relationships but it isbetween one of theactors value-addition in the value chain.techniques The study which found requires several minimumcross-cutting capital issues support. faced by Thiscommunities can be 1 km to Kinniya-Kantale km 5 main road. road Kinniya – Wan-ela the village. runs through 45 km to Horowpothana introducedengaging in through the different the SMEs/farmer livelihood sub-sectors organisations identified at the incommunity this study. level. Farmer Private and sectorfisher individualsgroups’ roles outside in the thevalue community chain should who be are expanded capable andof investing strengthened are engaged as they arein producing the main flavouredproducers milk,in these but communitiesit is not done and at thecurrently community have limitedlevel. power and roles within the value chain. Communities should be empowered to engage in value addition and marketing and Privatetrained sectorin these involvement areas as well is seenas in onlyquality in milkcontrol. collection Training and on marketing new and effectiveof fresh milk.production Large scaletechnologies value addition and methods such as of making facing/coping yoghurt with and potential cheese and hazards flavoured and environmental milk is done beyond issues theshould reach also of be the provided. target communities. The community The level following production quotation groups reflects should the also present be part level of the of valuevillage addition level SMEs at the formed community to market level. the local produce to external markets. Infrastructure improvement is crucial – with the need for improved rural roads, public transport facilities,
electricity supply,D.S & G.N Divisions physical market centres and rehabilitation of minor tanks. Access to Kuchaveli, Thiriyai Kuchaveli, Aayiladi Kinniya, Gomarankadwala, Mylawewa ANNEXES Table 1: Infrastructure availability of study communities - Trincomalee District financial services should also be improved for the sub-sectors to be sustainable. Data Discussion Group Focus Source: Micro-credit
46vi should“Sometimes be provided that for farm-basedmiddle man as collects well as 5,000 non-farm-based to 7,000 litres producers of milk andduring enterprises, the day with customisedand makes micro-credit the curd for and the sells needy, it back productive to us in poor the evening.”farmers and vulnerable groups, and
for community awareness raising efforts on the--- financial services availableFGD, Eravur and Pattuapplication water water water & rain rain & rain & rain & procedures. Source Minor tank Minor tank Minor tank Minor Other livestock BothThus, backyard there is considerablepoultry and freespace ranging and potential goats are for found livelihood in the improvement two districts. and Farmers expansion with
Cultivation among conflict-affected, resettlement communitiesNo in the North and East. However, based on Yes Yes higher capital engage in broiler production, for which there is a high demand Yes that cannot be the assessment of this study, it will take a considerable time for recently resettled families to
met by the currentYes / No production. develop their capacity and venture into new areas of production. The study recommends that Poultrysmall producersWater is imported are into encouraged the two districts, to build fromon their areas existing where skills, production and that is on they a large are supported scale and pricesto move are up thecheaper. value chainThis ofdepresses their existing the formsprices of and livelihood. discourages There ispoultry considerable farming potential on a Wells Wells Sabha in milk in and the and water is water Drinking Drinking to add value to theirSource operations within the existing context, and also to make use of the providied providied and wellsand
commercial scale in the studied districts. containers Tube wells Tube by soldiers soldiers by potential changes that can be brought in through the development Pradeshiya of tourism in the two DAPHdistricts. and NGOs are encouraging poultry production in the two districts, by interventions to Drinking
increase the availability of young chickens, andNo by providing micro credit for poultry keeping, Yes Yes Yes especially among families that have been recently resettled, as a secondary/temporary income source. YoungYes / No chickens are more readily available in Trincomalee where there is a hatchery at Uppuveli, even though this is also insufficient to meet the demand for birds if
poultry is done on a commercial scale. In Batticaloa, the DAPH is aiming to provide mini hatcheries to identifiedNo producers. No No No Yes / No Electricity There is a high demand for mutton in the local market, so goat rearing takes place as a supplementary activity in most households and provides continuous income for families and reduces the impact of seasonality of crop cultivation. The main constraint to goat farming is the lack of improved breeds. 97 In conclusion, removing constraints related to productivity, value addition and institutional support and marketability would increase the returns to farmers. The diagram mapping
constraints in Frequency of the sub-sector summarises the constraints discussed above and points towards interventionspublic transport that could be potential solutions. No bus services, No bus foot, by travel residents three and cycle, bike, wheeler etc. services and No bus foot, by travel residents & boat. cycle No issues on transport (CTB available Transport but does not & private) regularly. function Connectivity Distance to the main road 12 km (Vaharai- 12 km (Vaharai- Batticaloa) junction 12 km Kiran Village situated on Chenkalady – Maha Oya (Badulla Road) main road 500 m D.S & G.N Divisions Vaharai, Madurankernykulam Poolakkadu Kiran, Pullumalai Pattu, Eravur Vellaweli, Vilamthottam Table 2: Infrastructure availability of study communities - Batticaloa District Focus Group Discussion Data Group Focus Source:
47vii TableFigure 3: 4.7: Profile Mapping of vulnerable of constraints groups withinand potential the study solutions sample of the dairy and livestock sector
Location Sex TypeConstraints of CauseCauses of Age EducationPotential WelfareInstitutions Vulnerability widowhood, statusSolutions benefitsImplementing disability Solutions Government Kunjan katkulam Female Disability Attacked by 56 RehabilitateNo schooling pastureSamurdhiDepartments, plus wild elephant land keroseneDevelopment stamp Poor management Organisations practices, poor Kunjan katkulam Male Disability By diseasequality feeds 65 No schooling CompensationDAPH, and Introduce improved & elderly elderly welfareDevelopment grass varieties paymentOrganisations Low Low milk productivity yield Pirambadiththeevu Male Disability By Poorarmy quality 52 IntroduceNo datasuitable goodNo benefitsDevelopment breeds quality cross breeds Organisations
Pirambaditheevu Male Disability By shellSmall attack holdings 40 Grade 4 Samurdhi
Wilamthottam Male Elderly Not applicable 78 Grade 2 Samurdhi and compensation Lack of extension Provincial Lack of officers, Increase human Agriculture, extension Aayiladi Male Disability By crocodileveterinary 68 Graderesources 4 Samurdhi,support boat, of services attacksurgeons net by tsunamiDevelopment Lack of Organisations institutional relief and tricycle Provide micro credit Development support Long procedure by rotary club facilities Organisations Lack of credit Wilamthottam Female Elderly Not applicable 60 No schooling Samurdhi facilities Complicated Facilitate formal credit Development documentation through discussions with Organisations Kiran Female Widow Natural neededdeath 34 relevantGrade institutions; 2 Samurdhi, of husband rural banks, NGOs Rs. 10,000/= as a loan by a NGO Diary and Improving access Development Livestock Lack of electricity Kallarawa Female WidowInfrastructure Natural death 59 Gradeto power 6 A houseOrganisations by Red related of husband Cross, solar panel Lack of good constraints Local quality transport, Improving roads by ZOA Authorities roads Low level of Wilamthottam Male Elderly Not applicableUnavailability of 80 Grade 3 Samurdhi,Development elderly value addition Technological Technology transfer technology to the Organisations, constraints through training welfare payment communities and personalDAPH Provision of initial capital Lack of paymentDevelopment by GN of Lack of capital to purchase equipment equipment Organisations and start up SMEs Rs. 10,000/=
Aayiladi Female Widow Husband 42 No schooling Samurdhi kidnapped Improve milk collection Development Lack of physical infrastructure and Organisations, market centres Infrastructure establish sales outlets Local Authorities Source: Centre for Poverty Analysis, 2010related constraints Improvement of rural Local Poor roads roads Authorities Lack of information Creating links with local Poor Limited exposure about canteens, restaurants, Development marketability to the market potential milk bars and hotels for Organisations mechanisms markets direct marketing Selling the Delayed process DAPH, Office milk to the Regularising cooperative of payment in the Bearers of middlemen at management systems a lower price cooperatives Cooperatives
Source: Study data
9848 After the end of the conflict in 2009, communities in the Northern and Eastern Provinces of Sri Lanka started rebuilding their lives and livelihoods. Many were displaced communities who were returning to their homes in the North and East. The livelihood needs of these communities, especially communities resettling in war torn areas, are different to those in other areas. As part of an initiative by the Agency for Technical Cooperation and Development (ACTED) to help these resettling communities, the Centre for Poverty Analysis (CEPA) was contracted to undertake a study in 2010, to identify potentially profitable economic activities in two conflict affected districts, Batticaloa and Trincomalee. The analysis aimed at providing an understanding of livelihood patterns and market opportunities and constraints in these regions. Part of this process included analysing the potential to target the most vulnerable people in the communities, such as female-headed households, the elderly and people living with disabilities. Findings detailed in this study highlight the different livelihood areas which require support. Results from this study can be used to fine-tune and more effectively target livelihood development initiatives for communities in these and other conflict-affected areas.
29 R G Senanayake Mawatha, Colombo 7, Sri Lanka. ISBN 978-955-1040-69-7 Tel: +94 (011) 4690200, 2676955 Fax: +94 (011) 2676959 E-mail: [email protected] www.cepa.lk 9 789551 040697