COMPARATIVE ADVANTAGE OF CULTIVATION OF PULSES IN

SRI LANKA

Viraji Jayaweera

Department of Agricultural Economics and Business Management

Faculty of Agriculture

University of Peradeniya

Outline

Importance of pulses

Sri Lankan condition

Objectives of the study

Measurements

Data and data sources

Green gram

Black gram

Cowpea

Conclusions and recommendations

Importance of Pulses

Health Concerns

• Provide essential amino acids

• Cheap compared to animal protein sources

• Major source of protein for poor population in rural areas and for vegetarian population

Sustainable Agriculture

• Increase the organic matter content in the soil

• Fix atmospheric nitrogen to enrich the soil fertility

Sri Lankan Condition

Source: Department of Census and Statistics

Crop Production

(MT)

Imports

(MT)

Top Three Exporters to Sri

Lanka

Green gram 13,890 7,090 Australia, Thailand, Myanmar

Black gram 9,175 n.a. Myanmar, Singapore, Thailand

Cowpea 15,070 152,000 Myanmar, Brazil, Madagascar

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

1980/81 1985/86 1990/91 1995/96 2002 2005 2006/07 2009/10 2012/13

Axis

Tit

le

Share of Total Expenditure on Food and Drink

Average monthly household quantity consumed

Suitable to grow

in many

geographical

regions as a third

season crop

Source: Department of Census and Statistics, Trade Map (2013)

Objectives of the Study

1. To estimate the Domestic Resource Cost of cultivation of green gram, black

gram and cowpea in different districts in Sri Lanka

2. To investigate the effect of incentives provided for both outputs and

intermediate inputs on pulse produces

3. To investigate the private and social profitability of green gram, black gram

and cowpea cultivation in different districts in Sri Lanka

Measurements

Domestic Resource Cost (DRC)

Effective Protection Coefficient (EPC)

Nominal Protection Coefficient (NPC)

Private Profitability

Social Profitability

Green gram Black gram Cowpea

Data and Data Sources

Market and economic prices of

fertilizer, seeds, labor, machinery

and output

Opportunity cost of labor and seeds

Border taxes on output and

machinery

Economic prices were derived from the market prices by taking the effect of

import tariffs and para-tariffs on the output, subsidies on fertilizers and seeds,

and import tariffs and para-tariffs on agrochemicals and machinery

Cost of Cultivation reports of

Department of Agriculture

Department of Census and

Statistics

Central Bank of Sri Lanka

Sri Lanka Customs

Green Gram

Unit Districts

Hambantota Ampara Jaffna Monaragala Kandy Kurunegala

Private

Profit Rs./

acre 48,299 49,742 50,259 45,358 48,411 48,001

Social

Profit Rs./

acre 52,958 29,178 51,103 49,330 28,042 27,635

NPC Ratio 1.27 1.27 1.27 1.27 1.27 1.27

EPC Ratio 1.31 1.31 1.32 1.32 1.32 1.32

DRC Ratio 0.06 0.47 0.06 0.06 0.48 0.49

Black Gram

Unit Districts

Anuradhapura Vavuniya Ampara Monaragala Kandy Kurunegala

Private

Profit Rs.

/acre 28,729 14,004 29,347 28,139 30,587 30,342

Social

Profit Rs.

/acre 25,696 16,684 11,224 24,016 12,331 12,089

NPC Ratio 1.38 1.38 1.38 1.38 1.38 1.38

EPC Ratio 1.53 1.58 1.51 1.54 1.53 1.53

DRC Ratio 0.09 0.18 0.63 0.12 0.57 0.58

Cowpea

Unit Districts

Ampara Anuradhapura Jaffna Monaragala Kandy Kurunegala

Private

Profit Rs./

acre 97,443 32,882 11,996 18,955 31,740 -10,550

Social

Profit Rs./

acre 66,820 43,232 23,452 31,371 14,087 -19,336

NPC Ratio 1.27 1.27 1.27 1.27 1.27 1.27

EPC Ratio 1.30 1.33 1.37 1.35 1.33 1.52

DRC Ratio 0.30 0.07 0.12 0.10 0.68 2.82

Conclusions and Recommendations

Major determinants of the private and social profitability of pulse cultivation in

Sri Lanka

Spatial variability in opportunity costs of labor

Spatial variability in average yields

Pulse producers are protected from incentives provided for both outputs and

intermediate inputs

Cultivation the green gram, black gram and cowpea is socially profitable in all

the districts covered in the study, however cowpea is not socially profitable to

grow in Kurunegala district

Conclusions and Recommendations Cont….

The social profitability of growing pulses in Kandy, Kurunegala and Amapara

is smaller due to high opportunity cost of labor

The economic environment in Hambantota, Jaffna, Anuradhapura, Vavuniya

and Monaragala are more conducive for the cultivation of pulses

There is a divergence in private and social profits in Hambantota, Jaffna,

Anuradhapura, Vavuniya and Monaragala districts

It is recommended to provide of further incentives to the farmers cultivating

pulses in these areas

THANK YOU