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09. Progress of the Development Projects and Proposals being implemented by the Institutions under the Ministry.

1. Department of Agriculture.

The Department of Agriculture (DOA) has been established in 1912, over 100 years ago. At present, the DOA continues its services with the mission of development and dissemination of improved agricultural technology and providing related services to all stakeholders with emphasis on farmers to achieve an equitable and sustainable agricultural development to ensure food and nutritional security for the nation.

DOA consists of 15institutes with a regional network of sub institutes throughout the island to conduct research and development activities as well as to provide supportive services for farmers. It is one of the most important and largest government Departments in Sri Lanka with over 10,300 employees belonging to various cadre posts.

In order to achieve its objectives, DOA implements various projects and programmes throughout the island. Total Budgetary allocations received for this purpose in 2014 is Rs 4638.96 million. Allocation for main projects and expenditure incurred up to end of August is given below.

Table 1: Allocations for the year 2014 and expenditure up to 31st August 2014

|Project |Capital |Recurrent |

| |Allo. (Rs.Mn) |Expen. (Rs.Mn) |Allo. (Rs.Mn) |Expen. (Rs.Mn) |

|1. Administration & Establishment Services |48.30 |20.43 |373.75 |195.48 |

|2.Agricultural Research & Development |589.59 |215.86 |920.70 |603.83 |

|3.Extension & Training |673.37 |145.65 |743.15 |471.41 |

|4.Seed Certification & Plant Protection |680.30 |459.23 |609.80 |409.13 |

|Total for Department of Agriculture |1991.56 |844.17 |2647.40 |1679.85 |

Progress of DOA programmes during 2014

1. Agricultural Research & Development Programme.

Progress of agricultural research and development programmes with respect to rice, other field crops, horticultural and fruit crops conducted during 2014 are given below.

• Research being continued to develop high yielding and drought tolerant rice varieties resistant to salinity and iron toxicity and controlling weed under wet conditions.

• Paddy has been established in 10.5 ha in Low Country Wet Zone to produce basic seeds of different varieties.

• Demonstration fields have been established in 10 government farms covering 10 districts to train farmers and project officers.

• Germination ability of Bg 366 variety under low oxygen conditions has been improved to facilitate sowing of paddy under submerged conditions to control weeds and reduce usage of weedicides.

• Varieties resistant to floods (Bg360, Bg 96-741) suitable for flood affected areas have been developed.

• Varieties suitable for export market have been developed.

• Fifty three number of new crosses were done and 6 promising F1 hybrids of chili were evaluated to produce hybrid varieties of chili.

• Breeder seeds of chili varieties MICH 03 (2.6 kg) and MI 2 (6.1 kg) were produced.

• Two varieties of maize (Ruwan & Bhadra) were established in the field to produce parental lines.

• Infrastructure development is in progress at Regional Agricultural Research & Development Centre, Kilinochchi and a laboratory has been renovated in addition to construction of 04 rain shelters at Field Crop Research & Development Institute, MahaIlluppallama.

• Fruit villages have been established at Hambantota, Ampara, Kurunegala, Anuradhapura, Matale, Kalutara, Moneragala, Matara, Gampaha, Ratnapura and Badulla.

• Fruit biodiversity gardens are being established at Horana and Kundasale and maintenance of Mahinda Rajapakse Sports Complex at Homagama is being continued.

• A handbook on Tomato was produced and a book on postharvest technology of tomato is being prepared.

• Technologies on varietal improvement and pest & disease management have been introduced for vegetables, potato and root crops under the National Agricultural Research programme (NARP).

• Technologies on organic farming and low cost mushroom cultivation have been introduced under the Asian Network for Sustainable Organic Farming Technology and KOPIA mushroom projects.

• 40,000 kg of seed potato have been produced and exported under the seed potato production programme.

• Technical officers, farmers and general public have been trained on integrated pest management technologies.

2. Extension, Training and Communication Programme.

Some of the activities carried out by the Extension and Training Centre and the Information & Communication Centre during the year 2014 are given below.

• A ‘Govi sathiya’ programme was held at Agricultural Research Station, Telijawila to promote agriculture.

• 41,220 copies of booklets, 10,950 copies of leaflets and 800 copies of posters have been printed at the Agriculture Publication Unit to popularize agricultural practices.

• Construction of laboratory complex of the School of Agriculture, Karapincha has been completed and construction of the new building complex at the School of Agriculture, Kundasale is in progress under the Agriculture School Development programme.

• A new building is being constructed for the Audio Visual Centre to strengthen communication of agricultural technologies.

3. Seed Certification and Plant Protection Programme.

3.1.Seed & Planting Material Development.

Production and distribution of quality seeds and planting material have been continued by the Seed & Planting Material Development Centre through relevant programmes. The accelerated seed farm development programme is also continued with an allocation of Rs 150 million.

• A new sales centre is being constructed at Pelwehera and seed processing machines have been purchased for Paranthan, Murunkan, Polonnaruwa and Malwatta farms under the accelerated seed farm development programme.

• Production of seed and planting materials of vegetables, paddy, other field crops and flower plants is being continued.

• Big onion seed production is being continued in government farms at MahaIlluppallama, Bata atha, Middeniya and Polonnaruwa.

In addition, seeds of several local vegetable varieties including Mae, Golden cucumber, Winged bean, Okra, Thibbatu, Amaranthus, and Bitter gourd and planting materials of fruit crops including Pomegranate, Pineapple, Mandarine, Sweet orange, Grapes, Durian, Sour sop, Mangosteen, Rambutan, Pears and Mango have been produced by the Horticultural Research & Development Institute and the Fruit Research & Development Institute in order to increase availability of quality seeds and planting materials.

3.2.Seed Certification & Plant Protection.

Relevant programmes have been implemented under seed certification and plant protection to ensure quality of seeds supplied to farmers. Plant quarantine and plant protection services are being carried out in order to prevent pest and disease outbreaks.

• Awareness through newspaper advertisements, short television programmes and training programmes have been conducted (No. of participants 2435) and 380 seed handlers have been registered under the Seed Act.

• Awareness programmes have been conducted through electronic media to reduce impact of agrochemicals on human and the ecosystem

4. Other activities.

• Research on agro climatology, GIS & remote sensing, water & water resource management and soil conservation & fertility management are being conducted by the Natural Resources Management Centre in addition to implementation of the Soil Conservation Act.

• Ten socio economic research and 10 production and marketing research have been conducted by the Socio Economic & Planning Centre including 08 No. of project evaluations

• Infrastructure of the Department is being developed

Programme for 2015

Following are some of the programmes planned for 2015.

1. Agricultural Research & Development Programme

Rice

• Improving income of farmers through reducing cost of production and improving productivity of paddy fields.

• Establishment of Low Country Wet Zone as a buffer zone for paddy cultivation in Sri Lanka.

• Development of high yielding rice varieties through modification of structure of the plant.

• Development of varieties tolerant to drought, floods, salinity and iron toxicity.

• Introduction of new technologies for rice cultivation to reduce global warming.

• Mechanization of rice cultivation and reduction of postharvest losses.

• Development of varieties suitable for export market.

• Popularization of alternative application of phosphate fertilizer to increase fertilizer use efficiency.

Other Field Crops

• Development of high yielding improved varieties.

• Identification of varieties resistant to stress conditions.

• Development and dissemination of efficient agronomic practices to reduce the cost of production while increasing the productivity of land.

• Dissemination of improved soil and water conservation methods and soil fertility management strategies to suit farmers’ conditions.

• Development of integrated pest and weed management practices to reduce crop losses.

Horticulture

• Development of improved fruit and vegetable varieties, vegetable hybrids and open pollinated vegetable varieties with desirable quality traits

• Development of varieties specific for organic agriculture

• Multiplication and purification of popular local traditional vegetable and fruit varieties and production of nucleus seeds

• Conducting basic and strategic research to develop climate smart vegetable varieties

• Introduction of root and tuber crops for abiotic stresses and provision of sufficient nucleus planting materials

• Development and dissemination of novel cultivation techniques to improve quality and productivity of floricultural crops for middle level growers

• Development and dissemination of sustainable pest and diseases management techniques for vegetable crops.

• Development of smart nutrient management techniques (IPNS, Soil and plant test based fertilizer recommendations) to minimize environmental contaminations

• Selection and introduction of potato cultivars for non-traditional areas and dissemination of techniques for mass production of seed potato.

• Introduction of new mushroom types for commercial cultivation and low cost cultivation techniques for cottage level industry.

• Development of technological package to reduce post harvest losses of vegetables and techniques to produce processed food without using chemical preservatives.

• Implementation of island- wide fruit fly/ Melon fly control programme to ensure the quality and productivity of fruits and vegetable for local consumption and export market.

2. Extension & Training Programme.

• Enhancement of farmer involvement in protected agriculture for continuous crop production even under unfavourable weather conditions.

• Establishment of farmer controlled market to facilitate direct supply to the consumers without intervention of middlemen.

• Enhancement of women entrepreneurship through promotion of local food.

• Training and capacity building to enhance activities related to agriculture.

• Creating awareness on new agricultural technologies and popularization of agriculture through printed and electronic media.

3. Seed and Planting Material Production,Certification and Protection Programme.

• Increasing production and supply of quality seeds and planting material

• Implementation of Seed Act through strengthening the quality control system of seeds and creating awareness through media and training programmes

• Conservation & management of plant genetic resources

• Implementation of relevant regulations to facilitate safe import & export of plants & plant products

1. Other Programme.

• Conducting research on conservation of soil.

• Maintenance of agro-meteorological observation network and database.

• Conducting cost of cultivation studies and crop enterprise budgets for major food crops.

• Development of web based crop forecasting system.

• Conducting research on policies related to agriculture.

• Development of infrastructure of the Department of Agriculture.

2. Hadabima Authority of Sri Lanka.

Introduction.

The main task assigned to the National Agricultural Diversification and Settlement Authority (NADSA) established in 1978 under State Agricultural Corporation Act NO.11 of 1978 was to conserve the entire equilibrium of the Central hills and to protect the community living in the areas.

The plantations were introduced in place of the forests with vegetations in the upcountry under the foreign invasions. These have become barren and marginal lands with the end of the colonial era.

The soil erosions in these lands have become an environmental problem as it has directly and indirectly affected the environment. Loss of fertility in the soil, depositing soil in the rivers and in the waterways were , drying up of the water sources ,loss of drinking water and reducing the fertility of productivity of the lands are some of the reasons for it.

The Authority has taken steps to solve these environmental problems by conserving and developing the lands in the area and actions have been taken to extend the services of the Authority after studying the functions and the success of the NADSA in 1990 which was functioning for nearly 12 years from its inception.

Accordingly the official name NADSA was amended by the extra ordinary Gazette notification No: 687/15 dated 07.11.1991 and assigned the name Greenery Settlement Development Authority of Sri Lanka (Hadabima Authority of Sri Lanka) and extended its area to carry out its functions. Funds were provided for this purpose by the Food and Agriculture Organization. Although this aid programme was implemented until 1994, and thereafter the funds were received from the Treasury after considering the social, economic and environmental importance in the programmes introduced by the Authority.

The programmes of the Authority are implemented with the funds received up to date and the activities of the development programmes will be decided on the allocations.

Arrangements have been made to use the main development progammes namely the basic development plan, soil conservation, and water shed management, home gardening and diversification of crops, “Sisunena Pavura” the environmental programme based on schools, rural community nutritional programme, “tharuna aruna” entrepreneur development programme in the development programme which are carried out by obtaining the community participation in the maximum level.

It is targeted to develop 4000 hectares with the participation of 11500 farmer families residing in 40 D.S. divisions which have an environmental importance in Kandy, Matale, Nuwaraeliya, Kegalle, Ratnapura, Kalutara and Matara districts by using Rs.70.0 million allocated by the Treasury in 2014.

The financial and the physical progress of each development project achieved as at 31st August 2014 is given below.

1. Basic Development Plan.

1.1 Community participatory development plan.

Rural development plan is being prepared by targeting to obtain the participation of the rural community and the rural leadership in the maximum level for the development programmes of the Hadabima Authority. The existing rural, physical and human resources are identified at this stage and the annual development time frame too is prepared according to the activities of the Authority by giving priority for the problems which have to be solved early. As such 76 programmes were completed out of the 80 pogrammes targeted for 2014. Rs.0.37 million was spent for this purpose.

1.2 Leadership training programme.

The youth with abilities were identified at the community level when the above community participatory development programme is implemented at the first stage in the village level and a formal training is being given to them in agricultural development, leadership qualities and social activities and thereafter action has been taken to employ them as mediators who are implementing the development programmes of the Authority in the village. Accordingly 360 community pilots were trained out of 400 proposed for it and it was able to employ them in the field activities. Rs.0.8 million was spent for this purpose.

2. Soil conservation and water shed management.

2.1 Subject oriented training in soil conservation activities.

This is the most important development task of the Authority and action has been taken to provide formal practical and theory training in soil conservation for each farmer family who are identified under this programme. The farmer community will be motivated to follow the soil conservation methods as per the approved standards depending on the location of the lands, the state of the soil, and the resources available there. Although it was planned to conduct 80 field training progammes in 2014. 73 programmes were held and 8500 farmer families were trained. Rs.0.3 million was spent for this purpose.

2.2 Supply of necessary equipment for the soil conservation activities.

Arrangements have been made by the Authority to supply a mammoty as an agricultural equipment for the targeted farmer families as stated in the Mahinda chinthana policies to supply an agricultural equipment to each farmer family for their activities and it is proposed to distribute 12,500 mammoties in 2014. 2154 were already issued and Rs.3.9million was spent for this purpose.

2.3. Soil conservation activities.

The farmer community was motivated to engage in the soil conservation activities systematically in their lands while providing the necessary technical training and the agricultural equipment. It is proposed to carry out soil conservation activities in 4000 hectares during 2014. Soil conservation activities were completed in 1333.5 hectares by the end of August 2014

2.4. Payment of an incentive for soil conversation activities.

It is proposed to pay an incentive for the farmers who are engaged in the soil conservation activities properly in order to motivate them to engage in the soil conservation activities. It is expected to pay Rs.7500.00 for each hectare. However nearly Rs.50,000/- per hectare is required for soil conservation activities and the Authority is planning to obtain the services of the farmers for this task by paying the above amount as an incentive for them. It is expected to pay Rs.30.0 million for this activity in 2014. Rs.5.5 million was already spent for this purpose by the end of August 2014 and paid for 738.3 hectares.

3. Redeveloping the soil conservation programme.

3.1 Technical training .programme.

The lands where the soil conservation activities have been done after the soil erosions are not suitable for the cultivations as the land has to be redeveloped before it. At this stage it is more suitable to use organic manure for the land. The subject oriented progammes are organized at the field level to inform the farmer community to produce organic manure. Accordingly 80 training programmes were targeted in 2014. 80 training programmes were conducted towards the end of August 2014 and 7139 farmers were trained to accomplish for this task. Rs.0.32 million was spent for this purpose.

3.2 Supply of inputs for the redevelopment of the soil conservation programme.

It is proposed to supply a necessary equipment free of charge for all the targeted farmer families in order to encourage them in the production of organic manure. It is expected to spend Rs.4.8 million for this purpose and to distribute 6500 equipment. 978 equipment were distributed by the end of August 2014 and spent 2.1 million.

3.3 Organic manure production.

A required target was given for 6500 beneficiaries to produce 6500 tons of organic manure by requesting each family to produce 1 ton of manure. Accordingly the total value of the organic manure production will be Rs. 65 million.

4. Land development and crop productivity programme.

It is proposed to implement the following activities with the objective of motivating to use a systematic crop pattern in the lands prepared for suitable crop cultivation with the introduction of soil conservation and soil development programmes.

4.1 Organizing the subject oriented technical programmes.

Training programmes are organized at the field level with the objective of giving them a formal training for the targeted farmer families about land development and crop productivity. Action has been taken to provide a training in crop cultivation, land development through these training programmes 80 training programmes were targeted for 2014 and 19 programmes were held. 1903 farmers were trained and Rs.0.09 was spent on it.

4.2. Short term crop cultivation programme.

Action has been taken to distribute better quality seeds required for the supplementary crop cultivation to the targeted farmer families. As such the following varieties were supplied to them towards the end of August 2014. Rs.4.6 million was allocated for this purpose and has spent Rs.0.3 million to purchase the seeds.

|Seed Variety |Amount supplied Kg. |Amount Rs. |

|Chillie |20.7 |68,310.00 |

|Kurakkan |141 | 28,200.00 |

|Cowpea |823 |222.210.00 |

|Blackgram |66 | 16,500.00 |

4.3. Supply of crop seeds and planting materials.

Action has been taken to distribute seeds and planting materials among farmers to motivate them to engage in the annual and by annual crop cultivation activities in addition to the short term crops. Rs.5.0 million was allocated for this purpose and supplied the following variety by spending Rs. 1.0 million.

| Variety | Amount supplied Kg |Amount spent Rs. |

|Turmeric seeds |14,425 |1,065,370.00 |

5. Environment and agricultural programme based on schools.

This programme was carried out in about 50 identified schools with the objective of conserving the resources and introducing new agricultural technologies by using the environmental resources in the optimum manner. Accordingly it is expected to carry out the following sub activities.

5.1 Basic awareness programme.

It is expected to give a basic knowledge in protecting the environment and to use the new agricultural technologies at a special workshop organized for the students in the selected schools. The schools were already identified for the implementation of this project and it is proposed to conduct them during the third term of the school.

5.2 Establishment of environmental and agricultural models.

It is proposed to establish model units in the premises of the schools to get a practical knowledge with methods and results by using their basic knowledge. Rs. 0.5 million was allocated for the entire programme in 2014.

6. Domestic nutritional development programme.

The farmer community identified for the development programme of the Hadabima Authority are in the poverty stricken level or within the limits of it. As a result of it they have to face the nutrition problems. Specially the children in these areas are suffering with the health problems. Considering the above reasons, this programme is initiated to fulfill the domestic animal protein supplies and as an income generating programme for the farmer families in the area. The target of this programme is to provide 7500 chicks to the identified 750 farmer families and 7490 chicks were distributed already among 749 families by fulfilling the required targets by August 2014. Rs.2.6 million was spent for this purpose.

7. Tharuna Aruna programme.

It is identified that the youth are not involved in the agricultural sector of Sri Lanka and this has created a major issue in that field. Involvement in the agricultural sector is not accepted, the expenditure that has to be incurred for it and the fluctuating prices in the sales sector of the agricultural produce, are some of the reasons for it. Besides the objective of this project is to enroll is to identify 1000 youth as entrepreneurs at the commercial level by paying attention to those issues. This project will assist to develop the positive thinking of the youth, to enhance their subject oriented knowledge and to provide required basic funding facilities. Rs.0.25 million was allocated for this activity in 2014 and it is hoped to launch the basic works with the funds already allocated and continue the future activities of the project from 2015.

8. Rural income generating programme.

This programme proposes to enrich the knowledge, skills and attitudes of the farmers and promote them as successful commercial entrepreneurs who contribute for the agricultural produce sales promotional network already implemented by the Hadabima Authority. It is also expected to strengthen the agricultural produce sales chain. Accordingly it has been decided to include about 100 entrepreneurs already identified in 2014 as commercial entrepreneurs in the sales network. It is proposed to spend Rs. 0.2 million for it and plans have been made to implement the future progammes of this project in stage 4.

9. Agricultural produce sales promotional network

Arrangements have been made to extend the agricultural produce sales programme by the Authority further in 2014. It is also hoped to establish new sales units in different areas of the island. Rs.5.5 million was already allocated for this task in 2014 and constructions of new sales centres are in progress in the following areas.

|Place |Present position |

|Horana/Ingiriya Sales Centre |Constructions are continued. |

|Matara/Weligama Sales Centre |Constructions are continued. |

|Kundasale Sales Centre |Basic activities are done. |

|Kurunegala Sales Center |Proposed |

10. Media and publicity promotional programme.

The Hadabima Authority has launched eloctronic, printed and demonstration programmes to promote the agricultural development activities at the national level island wide. As such the Authority has planned to carry out the following activities in 2014.

Deyata kirula agricultural exhibition.

Jathika govi Sathiya

Divi negumata ranbima Rupavahini programme.

Haritha magazine

Rs.1.0million was allocated for the above activities and Rs.0.7 million was already spent for the above programmes by the end of August 2014.

Special Development Projects.

|S/N |Special Development Projects |Provision |Progress |

| | |(Rs.Mn) | |

| | | |Financial |Physical |

| | | |(Rs.Mn) | |

|01. |Project to increase the supplementary|1.236 |1.096 |To increase the supplementary food production with the |

| |foods in parallel to the Deyata | | |assistance of 1000 farmer families in Ganewatte and |

| |Kirula exhibition Kurunegala district| | |Ibbagamuwa D.S. divisions in the Kurunegala district. |

|02. |Humanitarian agricultural Assistance |5.251 |3.5 |Conducting awareness programmes for farmer community. |

| |– Supplementary food crop development| | |Distributed of 500 agri. equipment for 500 Benificiaries.|

| |programme. | | |Supply of Seeds Mung (1198Kg) / Cowpea (1250Kg) / Chilli |

| | | | |seed (100Kg) /Groundnut (1000 Kg) |

|03. |Mihisaru promoting the production and|3.502 |0.14 |Organizing the technical training |

| |use of organic manure project | | |programmes for 1414 farmers. |

|04. |Commercial field development project |4.0 |0.0 |it is hoped to initiate in the fourth quarter of 2014. |

| |Total |13.989 |4.736 | |

Proposed Development Programmes for 2015

The development plan for the year 2015 has been prepared based on the experience practical situation gained by the Hadabima Authority and the summary of it is given below.

|S/N |Projects/Programmes |Provisions (Rs,Mn)|Implementing Areas |

|01. |Farmer training programmes. |1.0 |Kandy,Matale, |

| | | |Nuwara Eliya, |

| | | |Badulla, |

| | | |Kurunegala, |

| | | |Kegalle,Matara, |

| | | |Kalutara, |

| | | |Rathnapura |

|02. |Soil conservation & watershed management. |51.25 | |

|03. |Soil fertility implementation. |10 | |

|04. |Crop productivity programme. |11.179 | |

|05. |"Sobasisu Nana Paura" School based soil conservation programmes. |0.75 | |

|06. |Community development. |1.0 | |

|07. |“Tharuna Aruna” programme |1.0 | |

|08. |Back yard nutrition development programme. |3.6 | |

|09. |Agro product supply chaning development programme |2.25 | |

|10. |Human resource development |2.6 | |

|11. |Media and promotion programme |1.75 | |

|12. |Planning / Monitoring |0.5 | |

|13. |Institutional development & Admin cost. |3.121 | |

|Total |90 | |

09.3. Hector Kobbekaduwa Agrarian Research & Training Institute.

Introduction:

The Hector Kobbekaduwa Agrarian Research & Training Institute of Sri Lanka incorporated by Act No. 5 of the year 1972 comes under the purview of the Ministry of Agriculture. The main thrust of it has been to research the socio-economic issues related to agriculture as well as agrarian development and to submit their findings and recommendations to policymakers for making prudent decisions. In addition, collecting and disseminating information including market prices required to decide on essential food items as well as for agricultural planning, facilitating transfer of research findings to all stakeholders in the form of publications and conducting workshops and seminars are the other functions. Changing attitudes, improving the know-how and skills of other parties including farmers, officers and traders through training programmes in the respective field are also important functions of the Institute.

Financial and physical progress:

A total of 164 million was allocated by the Treasury for the year 2014. The financial progress up to end of August 2014 is presented in Table 1 given below.

Table 01:

|Nature of |Allocation |Expenditure |

|Expenditure |(Rs. Mn.) |(Rs. Mn.) |

| | | |

|Recurrent |184.38 |89.054 |

|Capital |12.00 |3.55 |

|Research |28.57 |7.47 |

|& Training | | |

The number of planned studies for the year 2014 is 17 and 04 special studies commenced later on the request of stakeholders. During the year 2014, two funding studies worth of 2.6 Mn. and 1.2 Mn. are being implemented with the assistance of World Food Programme (WFP) and International Union for Conservation of Nature (IUCN) respectively. The progress of the research studies shown in table 01 and table 03 presents the expected output of the research studies. The table 04 presents the progress of the training programmes.

Table 01: Research progress

|Progress % of Target |No of Research studies |

| |Financial Progress |Physical Progress |

|Above 80 |08 |13 |

|80-70 |01 |05 |

|69-60 |02 |- |

|59-50 |02 |02 |

|Below 50 |08 |01 |

Agriculture Market Information Service (AMIS):

After deregulation of agricultural markets with the introduction of open economy, one of the major tasks of the government is monitoring market operations. As a national research institute this was explained to the policymakers and the suggestion was accepted and implemented. Accordingly in 1979, Marketing, Food Policy and Agribusiness Division initiated a comprehensive market monitoring system in which prices are collected regularly (daily & weekly) and up to date price information is disseminated via printed and electronic media.

This facilitated timely dissemination of market information to the stakeholders in the supply chain including farmers and policymakers to make informed decisions on production, marketing and food policy. Major activities of AMIS include collection, analysis and dissemination of price information. Wholesale prices (rice, vegetable and other field crops) are collected from 21wholesale markets, retail prices from 34 retail markets and producer prices from 24 producer points. Prices are collected on a daily and weekly basis and disseminated in weekly and monthly bulletins, institute’s website, newspapers, radio and television. Also through Mobitel Short Message Service (SMS) price information of 09 major wholesale markets and 23 vegetable varieties are disseminated. In future it will be expanded covering all vegetable varieties. Market information system is well recognized in the country mainly due to timely dissemination of accurate price information.

|Table 02: Expected Outputs of the Research Studies – 2014 |

|Title |Output / benefit |

|Causes and effects of paddy land filling in Western |Identification of causes & effects of paddy land filling and the remedial |

|Province |measures to be followed |

|2.  Present situation and future prospects of non-farm |Information on current situation & potential employment opportunities, |

|employment opportunities in the Mahaweli areas |obstructions in initiation of new employment opportunities and expansion of |

| |available employment opportunities |

|3.  Evaluation of agro-entrepreneurship development |Information on present situation of agro-entrepreneurship programme of |

|programme |Department of Agriculture, its impact on entrepreneurs, its weaknesses etc. |

|4.  Evaluation of women’s agricultural extension programme|Information on present situation of the women agricultural organizations, |

|implemented by DOA |activities performed by them, the impact on the participants, livelihoods |

|5.  Consequences of free holding rights of LDO lands on |Information on settlers’ views about providing free holding rights for LDO |

|farming community and agricultural sector |lands, good and bad effects of it on settlers etc. |

|6.  Problems and challenges of vegetable |Report containing problems of small producers/ suppliers of vegetables to the |

|producers/suppliers for the export market |exporters |

|7.  Industrial uses of spice crops and prospects for |Information on present situation & future prospects of value addition of spice |

|development |products, reasons for not engaging in that. |

|8.  Identification of factors affecting |Information on feasibility of mechanization in OFC sector, reasons for slow |

|poor mechanization of other field |process of mechanization |

|crops | |

|9. Assessment of backyard poultry promotion programme |Report containing present situation and contribution to income & nutrition of |

| |rural households |

|10. Opportunities and barriers in income diversification |Report explaining the ways & means of maximizing the labour time utilization |

|of irrigated paddy farmers in Anuradhapura District |of paddy farmers, reluctance of the people in involving in income |

| |diversification |

|11. Unregulated utilization of groundwater: Issues and |Policy gaps in groundwater utilization and its impacts |

|Consequences | |

|12. Impact Assessment of Mau Ara |Information on potentials of introducing perennial crops & livestock in the |

|project |system, impact of the project on livelihoods of the settlers |

| 13. Effect of irrigation reservations on the |Knowledge on the effects of irrigations on maintenance of tank water levels, |

|sustainability of minor irrigation and waterways |crop production and income of the people |

|14. Monthly review of fertilizer supply |Information on availability, distribution and utilization of fertilizer |

|15.  Market Information Project |Weekly & Monthly Bulletins |

|16.  Price dissemination via mobile |Timely access to vegetable prices |

|phones. | |

|17. Traditional rice sub sector in Sri Lanka; Present |Information on consumer decision making in selection of varieties and market |

|status, constraints and future prospects |outlets, potentials for promotion and export |

|18.  Government Intervention on Paddy Marketing in Sri |Knowledge on strengths and weaknesses in the present paddy marketing system |

|Lanka: Issues on Purchasing and Post Stock Management. | |

|19.  Special Studies: | |

|Problems of leafy vegetable farmers in Matara District |Socio-economic information and problems of leafy vegetable farmers |

|Alternative ways of productively using infertile lands |Ways and means for productively utilizing the referenced lands |

|around Nilvala River |Production and other issues of farmers |

|Problems of farmers in Matara District. | |

|20. Measurement of minimum Cost of |Improving household nutrition condition, identifying the required cost and |

|Diet (COD) |economical and most accessible food items to fulfill the nutritional needs |

| | |

| | |

| | |

| | |

| | |

|Table 03: Training Programmes-2014 | |

|Planned Programmes |Output / benefits |

|Training program on application of participatory |To train Govt. officers engaged in agrarian development sector. |

|techniques (RRA, PRA and PCM) for planning and management |Progress: One programme was conducted and 60 farmers/officers trained. |

|of Rural Community Development project. | |

|2.Training program on Social |To train social mobilizers of rural/agrarian development sector - Progress: |

|Mobilization |Two programmes have been planned. |

|Training programme on Training Methodology |To train field level trainers in agrarian sector |

| |Progress: Two programmes have been planned |

|Training program of marketing |To train Agricultural Instructors and other agricultural extension staff - |

|extension |Progress: Two programmes were conducted and 60 agricultural officers were |

| |trained |

|Training of farmer leaders on |To train leaders of farmer organizations |

|strengthening farmer organizations |Progress: 26 programmes were conducted, 805 farmer leaders were trained |

|Leadership and skills development training programme |To train field level officers/farmers to become independent. |

| |Progress: 22 programes were conducted under Govisathiya and 2200 farmer leaders|

| |were trained. |

|7. Training programme on database development |To train field officers One programme was conducted for the field officers of |

| |the Department of Export Agricultural Crop Development and 40 field officers |

| |were trained |

|CIRDAP-HARTI Collaborative international training |Knowledge sharing on post-harvest preventive methods, 35 international and |

|programme on reduction of post harvest losses in fruits |local participatants were trained |

|and vegetable supply chain | |

|9. Research symposium |Disseminating research findings at national level |

| |Progress: Scheduled for November |

|Table 4: Research Planned 2015 | |

| | |

|Title |Output / benefits |

|1. Impact of drought on rainfed farmers (seasonal crops) |Explains vulnerability, impact on the livelihood and existing coping strategies|

|and potential strategies to minimize the vulnerability |of rainfed farmers to the drought related shocks, and suitable measures to |

| |enhance the resilient capacity of rainfed farmers to adapt to the consequences |

| |of drought. |

|Determination of discrepancies in paddy land data: Pilot |A report explaining to which extent to discrepancies exist in paddy land data |

|project in low country wet zone |and associated issues of the same. |

|Prospects and constraints of off season (Maha season) big |The knowledge generated from this study might be helpful in achieving |

|onion production programme in Hambantota district |objectives of the off season big onion production programme. Next, findings of|

| |this research might be useful in taking long term policy decisions to ascertain|

| |the sustainability of the Maha big onion production programme |

|Assessment of livelihood development component of the |Information useful to evaluate the present situation of the livelihood |

|Samurdhi poverty alleviation programme in Sri Lanka |development component of the Samurdhi programme with respect to level of |

| |success, success factors, constraints upon the growth and development of |

| |enterprises |

|Consumer buying behavior and preferences for fresh milk |Analyses in consumption patterns and consumption trends are very important and |

|and milk powder: the case of DCD contaminating issue |applicable for policy modeling purposes and useful to provide guidelines for |

| |expansion of future capacity of the dairy sector in the country |

|Special Studies |These are demand based problem oriented research which are being identified |

09.4. Institute of Post Harvest Technology.

Introduction.

The institute of Post Harvest Technology (IPHT) operating under the Ministry of Agricultural Development was established on 19th 2000 by the Extraordinary Gazette of the Democratic Socialist Republic of Sri lanka No 1137/10 under the provisions of the State Agricultural Corporations Act. No. 11 of 1972 for the purpose of carring out post harvest research and development activities pertaining to cereals,pulses,oil seeds,other field crops,fruits,vegetables and spice crops. The Institute has taken over the functions of the Rice Processing Research & Development Center (RPRDC) of the Paddy Marketing Board, which was set up with FAO/UNDP assistance in 1976. The Institute is regarded as the ‘apex’ Institute in Sri Lanka where all areas of crop post harvest research and development activities, namely, harvesting, handling, storage and preservation, primary and secondary processing, product development, quality assurance and by-product utilization are carried out. Some of the main aims and objectives of the Institute are as follows;

a) Prevention of post harvest losses and deterioration in quality occurring in grains, other field crops, fruits, vegetables, and spice crops due to adaptation of improper post harvest handling, storage and processing techniques so that the quality of these essential food commodities reaching the market is significantly improved. Improvement of product quality will enable the farmers to sell their ‘value added’ products at an attractive price in the competitive market and thereby increase their income from agriculture.

b) Improve farm level storage and preservation facilities to enable the farmers to sell their commodities during off seasons at attractive prices and thereby increase their incomes.

c) Introduce improved post harvest techniques that utilize minimum labour in order to reduce production costs of agricultural commodities.

d) Develop and transfer viable agro-based industries at rural level in order to increase income and employment opportunities of the rural farming sector and thereby improve the farmers standard of living.

e) Popularize the use of foods prepared from grains, pulses, fruits, vegetables, and spice crops among consumers in order to create a higher market demand for the local grain production. Increased consumption of thses foods of high nutritional value will also lead to an improvement in the nutritional status of the country.

In conducting all these activities the research and development center is situated in Anuradhapura. And for further dissemination of technologies more efficiently to other areas, field centers have been established in some districts namely, Ampara, Nuwara eliya, Kandy, Hambantota,Polonnaruwa, Kurunegala, Matara, Jaffna and Galle. Other areas of the country are being covered by the research and development center in Anuradhapura.

|Progress of Development Projects & Programmes. |

|Progress up to 31st August 2014. |

|No. |Name of the project |Target |Progress |

| | |Physical |Financial |Physical |Financial |

| | |No.of Trainning |No. of |No of Units |(Rs. Mn) |No. of Trainning |No. of |No. of Units |(Rs. Million) |

| | |Programmes |Trainees | | |Programmes |Trainees | | |

|1 |Conducting awareness programs for school canteen owners to popularize rice flour based products among |10 |

| |school children | |

|1 |Establishment and improvement of rice mills to improve the quality of rice produced |0.3 |

| |i.     Workshops – 02 | |

| |ii.   Units improved - 20 | |

|2 |Initiation of rural level rice based product manufacturing units |0.1 |

| |i.     Workshops – 02 | |

| |ii.   Units improved - 10 | |

|3 |Development of rice flour processing industry |0.15 |

| |i.     Workshops – 01 | |

| |ii.   Training programs - 04 | |

| |iii. Units improved - 20 | |

|4 |Rural level spice processing |0.1 |

| |i.     Workshops – 02 | |

| |ii.   Units improved – 10 | |

|5 |Initiation of rural level fruit based product manufacturing units |0.2 |

| |i.     Workshops – 02 | |

| |ii.   Units improved - 10 | |

|6 |Oil Extraction |0.1 |

| |i.     Workshops -02 | |

| |ii.   Units improved - 05 | |

09.5. National Food Promotion Board.

Introduction.

The Sri Lanka National Freedom from Hunger Campaign Board is a statutory Board under the purview of the Ministry of Agriculture constituted by an Act of Parliament in 1973 with the auspices of UN – FAO. On 2009.05.15 the Cabinet has decided to change the name of the Board as National Food Promotion Board. Initially, the Board operated as a facilitator and coordinating body to the foreign funded projects. Since 1978 the FFHC – Sri Lanka is directly implementing various community development projects aiming to alleviate poverty among the most vulnerable and marginalized groups in Sri Lanka.

Development activities in 2014

Many number of development projects have been conducted by the Board during the year 2014. The ‘Poshana Malla’ project has been operated in three districts - Kegalle , Moneragala and Hambanthota . Mawposha pack-31,387 and Suwaposha pack-62,774 were produced. In addition Rice flour project, Farmer Product Selling Centers at Dehiwala and Narahenpita have been continued during the year. Plant Nurseries has been continued with the same capacity. Buttala and Thanamalwila farm development work was stopped due to lack of funds. But their maintenance is being done. From the month of August Farm development work starts due to receiving funds from the Ministry.

Waddakachchi farm was handed over to the Civil Defense Force in January. Suwandal Slow Food Restaurant at Battaramulla and Villamulla fruit drink factory were stopped due to financial losses. Suwandal Slow Food Restaurant was shifted to Narahenpita and now functioning as a Healthy Food Restaurant.

|Progress Up to 31.08.2013 |

|Activities |Target/ |Finacial Progress |Physical Progress |

| |Progress | | |

| | |Expen. |Income | |

| | |(Rs.Mn) |(Rs.Mn) | |

|1. Plant Nursery - Narahenpita |T |4.2 |7.2 | |

| |P |3.1 |3.5 | |

|2 Farmers Product Selling Center |T |60 |66 | |

|Dehiwala | | | | |

| |P |29.3 |31.9 | |

|3. Promotion of Rice Consumption in|T |136 |162 |Special Rice Flour Mixture, Thosay Mixture and Rice Flour|

|Plantation Sector | | | |were distributed in the estates through the Plantation |

| | | | |Human Development Trust |

| |P |6.3 |7.7 | |

|4. Suwaposha Project |T |2.5 |3.0 |Distributed 62,774 Suwaposha 200 gr packs with ‘Poshana |

| | | | |Malla’ project. |

| |P |3.1 |4.4 | |

|5. Healthy Food Restaurant |T |7.5 |9.0 | |

| |P |8.9 |7.4 | |

|6. Buththala Farm |T |7.388 |0.0 | |

| |P |0.42 |1.5 | |

|7. Thanamalvila Farm Development |T |2.32 |0.0 | |

| |P |0.74 |1.5 | |

|8. Ambalanthota |T |11.26 |0.0 | |

| |P |0.14 |0.0 | |

|9. Local Food Promotion Programmes |T |9.54 |0.0 |Conducted 34 district programmes in Matara,Hambantota and|

| | | | |Kilinochchi/conducting 350 Rural food promotion |

| | | | |programmes. |

| |P |2.9 |3.18 | |

|10. Organic Fertilizer Production |T |1.9 |2.6 |Production of 250 Mt of Organic Fertilizer/Already |

| | | | |produce 60Mt. |

| |P |0.42 |0.42 | |

Expected Development Programs for 2015

In 2015, the Board expects to continue the projects in greater extent. Mainly Poshan Malla project is expected to cover two more districts increasing the amount of districts to 5. In addition Promotion of Rice Consumption in Plantation Sector project will be corrected by avoiding the present difficulties with special instruction given by His Excellency the President at the progress review meeting of Ministry of Agriculture.

Farmer product selling centers at Dehiwala, Narahenpita and Plant Nursery of Narahenpita have been successive projects of the NFPB since 2005. Local Food Promotion program would be expected to continue in 2015 in entire country. This program addresses the issue of bad dietary patterns which has an impact on non-communicable diseases in Sri Lanka. Healthy Food Restaurant will be continued in office premises Narahenpita.

The Buttala and Thanamalwila farms will be developed in 2015 and the development work has been already started. Ambalantota Farm will be converted as a Matured Budded Fruit Plant Production Nursery.Further,a nutrient pack will be distributed for students named as "Sisuposha".

|Activities |Financial Targets (Rs.Mn) |

| |Expenditure |Income |

|1. Farm development(Buttala,Thanamalwila,Ambalntota) |12.16 | |

|2. Deyata Kirula |0.86 | |

|3. Promotion of Rice Consumption in Plantation Sector |14 |16 |

|4. Poshanamalla Project |86 |90 |

|5. Healthy food Restaurant – Narahenpita |24 |26 |

|5. Plant Nursery |7 |8.5 |

|6. Farmers Product Selling Center (Narahenpita,Dehiwela) |62 |67.5 |

|anic Fertilizer Production |3 |5 |

|8. Local Food-District |6.21 |0 |

|9. Local Food-Regional |3.3 |0 |

|10. Sisuposhana |- |- |

|Total |218.53 |218.53 |

09.6. Sri Lanka Council for Agricultural Research Policy.

Introduction:

The pivotal role envisaged for the necessity of an overarching apex body resulted in the establishment of SLCARP on 22nd December 1987 by the Act No.47 of 1987 mandated to facilitate, promote and strengthen agricultural research in order to establish a vibrant and effective research system able at delivering the necessary technological outputs contributing to increase in productivity, production, employment and thereby contributing to the socio economic development of the nation.

Functions of the Council:

The mandated functions of SLCARPgives provision to advise the Government on all matters related to agricultural research, formulation of agricultural research policy & priorities, to coordinate agricultural research, arrange for and fund inter-institutional agricultural research projects, Human Resources Development to fill up existing lacuna and strengthen capacity of the researchers, foster national and international linkages to access scientific information and modern technology, give recognition to the contributions of scientists and to be the key organization in the National Agricultural Research System, (NARS) to provide the necessary facilitation to promote excellence in agricultural research.

The Progress from January-August 2014:

A. The Financial Progressof Research Programmes from January-August 2014:

B. The Physical Progress of Research Programmes from January-August 2014:

Programme 01-National Agricultural Research Plan 2014: The National Agriculture Research Plan is a consolidated research plan, identifying need based research,where funds are released by the General Treasury based on the recommendation of SLCARP.The research plan aims at conducting research programs which are of national priority, infrastructure development of agriculture research Institutes and skill development of researchers. Funds arranged amounting to Rs. 59,600,000 for implementation of 53 new research projects and 28 on-going research projects in year 2013. Arrangements for funding of 37 new, 06 phase ii and 22 ongoing NARP research projects for implementation in year 2015.Allocation being recommended for funding in Year 2015 is Rs. 79,270,000. The outcome of the research projects identified for NARP 2014 and 2015 will provide high yielding crop varieties, generate new technologies and reduction on application of pesticides to improve safety, effective control measures and information to resistance of pests.

Programme 02-National Agricultural Research Policy and Priorities: NAPOL 2012-2016 published is a guide to facilitate national level accurate decision making to meet the challenges of the sector.Priorities for the first time in Natural Resources Management and Agriculture Machinery & Equipment compiled.

Programme 03-Enhance the effectiveness of the National agriculture research programmes: Monitoring and Evaluation of all on-going NARP projects from January-June 2014 by National Committees completed. On-site M & E visits of 12 research projects by expert panels completed.

Programme 04-Recommendation on research institutions & establishment :Upgrading of the INFORM database partially completed and guidance provided for updating of INFORM data bases at research Institutes of the Department of Agriculture, and updating of the INFORM data bases is progressing.

Programme 05-External Review of NARS Institutes: The external review of the Department of Agriculture is being conducted.

Programme 06-a) The SLCARP International Symposium; Conducted on 10-11 August 2014, at the Sri Lanka Foundation, attended by 331 local participants and 34 foreign participants. Created a vibrant platform for enriching scientific knowledge. b) SLCARP Journal; Journal under compilation targeted at publication this year. c)National Awards of SLCARP:Candidates selected for National Awards. d) Research Allowance: 52 applications were evaluated and 39 scientists were given approval for the research allowance d)Amendment to the SLCARP Act: Recommendations made to the Council for amending the Act.

Programme 07 - Formulation of making an interface between NARS and Government: Activities initiated.

Programme 08 - Inter- institutional research programs: In year 2014, SLCARP has strengthened this program through theSLCARP International Symposium.

Programme 09 - Awareness programs on access to information resources: Open access to SLCARP publications.Literature searchers conducted and 84 research papers provided to NARS scientists. Subject bibiliographies hosted on SLCARP web site.

Programme 10 - Establishing linkages among national and international institutes: Activities initiated to expand linkages. MOU drafted with Malaysia. Activities in year 2014 initiated under Work Plan 2013-2014 between ICAR-SLCARP signed. Collaboration initiated with Korea.

Programme 11 - Addressing important & timely issues relevant to Agriculture: National forum organized on Research Proposal Writing in Post harvest Technology and Human Nutrition.

Programme 12-Capacity development of the CARP: Short Course at postgraduate level initiated for 20 junior researchers at the PGIA in Plant Protection. Training manual compiled for short term and long term training for overseas training. Training requirements of the NARS identified.

Programme 13-Interactive Visits to NARS Institutes:New program planned for this year, to provide guidance and assistance for R&D activities of the Institutes. Activities initiated.

Budget for 2015

SRI LANKA COUNCIL FOR AGRICULTURAL RESEARCH POLICY (SLCARP) - 2015

|S/N |Name of the Programme |Expected output |Estimated Budget |

| | | |(Rs. Mn.) |

|1 |National Agric. Research plan (NARP) |Agricultural innovations |1.5 |

|2 |National Agric. Research policies & Priorities |Agricultural innovations |2.0 |

|3 |NARS research programs based on national priorities |New technologies |2.0 |

|4 |Recommendations on operations of research institutions & establishments |Agricultural research |2.0 |

|5 |External review of NARS institutions |High performance |2.0 |

|6 |Excellence in Agricultural research |Food security and contribution to |10.0 |

| | |GDP | |

|7 |Formation of an interface between NARS & Government |Development of linkages in the |0.5 |

| | |sectors of agriculture | |

|8 |Inter institutional collaborative research program. |New technologies |10.0 |

|9 |Awareness programs on access to information resources |Strong agricultural information |1.5 |

| | |system | |

|10 |Establishing linkages among national & international institutions |New technologies |8.0 |

|11 |Addressing important & timely issues relevant to Agriculture |Smooth functioning national |10.0 |

| | |agricultural sector | |

|12 | |High performing agricultural |10.0 |

| |Capacity building & Human Resource development of NARS |research community | |

|13 |Interactive Visits to NARS Institutions |High performing NARS |1.0 |

|14 |Rehabilitation and improvements of capital assets |High performing SLCARP |14.5 |

|Total | |75.0 |

09.7. National Fertilizer Secretariat.

Introduction:-

In terms of the Regulation of Fertilizer Act No. 68 of 1988 the National Fertilizer Secretariat was empowered to carry out its functions & responsibilities. The vision of the Institution is to ensure the timely supply of organic & non-organic fertilizer in due standard as scientifically recommended for all crops being cultivated in Sri Lanka.

As per provisions of the Regulation of Fertilizer Act, the National Fertilizer secretariat has been engaged in an extensive national mission such as provision of data & recommendation for formulation of natural policies on fertilizer, declaring standards of fertilizer & user recommendations, regularization of fertilizer entrepreneurship activities, regulation of fertilizer import, formulation, distribution & stock positions, and identification of fertilizer requirement & regulations of distribution, formulation of methodologies for implementing government’s fertilizer subsidy programmes, taking action to prevent irregularities in the use of fertilizer & maintaining updated data system of fertilizer use..

According the National Fertilizer Secretariat discharge its functions & responsibilities in terms of the Regulation of Fertilizer Act No 68 of 1988 which include the identification of fertilizer based on scientific recommendations, ensure the supply of the requirement in time in due standard & quality, regulation of the fertilizer use recommended for each crop, implementation of government’s fertilizer subsidy scheme, regularization of functions of institutions engaged in fertilizer related activities, minimization of irregularities in fertilizer use & publication of official data on fertilizer .

With the objective of discharging its responsibilities & undertakings smoothly, the National fertilizer secretariat is functioning under 04 main divisions namely Technological & Development division, Economic Analysis & Distribution Division, Fertilizer Import & stock control Division, & Management Development Division. In addition a special regulation unit is also operating for co-ordination of fertilizer requirements, stock positions & distribution in each district. 21 Assistant Directors have been appointed to discharge duties & responsibilities of the National fertilizer secretariat. They are functioning under direct supervision of district secretaries. .

Activities & Progress of 2014:-

Progress as at 31.08.2014 of each Division of the National fertilizer secretariat & District officers are as follows.

1) Technological & Development Division

Fertilizer quantity subject to quality analysis in Metric Tons (31.08.2014)

|Type the Fertilizer |Total (Mt) |

|Urea |248,297 |

|Muriate of Patash |105,214 |

|Triple Super Posphate |60,349 |

|Ammonium Sulphate |59,267 |

|Kesarite |7,540 |

|Sink Sulpate |737 |

|Di Ammonium Pospate |1,613 |

|Calcium Ammonium Nitrate |50 |

|Epsam Salt |224 |

|Calcium Nitrate |464 |

|Anhydrous Magnicium Sulpate |20 |

|Borate |72 |

|Salphar Beutonite |205 |

|Magnicium Nitrate |12 |

|Magnicium Sulphate Maiohydrate |20 |

|Seaweed |14 |

|Liquid Fertilizer |184,857 |

|Mixed Fertilizer |4,583 |

2) Economic Analysis & Distribution Division.

Distribution of fertilizer for “Maha” season of 2013/2014 has been finalized based on cultivation extend of paddy & fertilizer recommendations. The assessment & distribution for “Yala” season of 2014 has also been finalized based on the cultivation extent of paddy & fertilizer recommendations.

“Maha” Season 2013/ 2014

|Subject |Major Irrigation |Minor Irrigation |Rain Fed |Total |

|Cultivation Targets (Ha) |315,382 |190,019 |198,003 |703,404 |

|Fertilizer Requirement |134,921 |36,669 |42,156 |213,746 |

“Yala” Season 2014.

|Subject |Major Irrigation |Minor Irrigation |Rain Fed |Total |

|Cultivation Targets (Ha) |

|Subject | Urea |T.S.P |M.O.P |Total |

| |(Mt) |(Mt) |(Mt) |(Mt) |

|Fertilizer Requirement |103,805  | 26,087 |32,292  |162,184  |

The supply of subsidy fertilizer for paddy cultivation in state farms & in paddy lands owned by the state institution as at 30 July 2014 are as follows.

“Maha” Season 2013/ 2014

|Cultivation Targets (Ha) | Urea |T.S.P |M.O.P |Total |

| |(Mt) |(Mt) |(Mt) |(Mt) |

“Yala” Season 2014.

|Cultivation Targets (Ha) | Urea |T.S.P |M.O.P |Total |

| |(Mt) |(Mt) |(Mt) |(Mt) |

3) Fertilizer Import & stock control Division.

• Regulation of fertilizer Act No. 68 of 1988 has been referred to Fertilizer Advisory council for amendments.

• Issue of new license & renewal of old license to be issued for fertilizer entrepreneurship activities are operating under sound follow up.

|Import |Formulation |

|New License |Renewal |New License |Renewal |

|Target |Progress |Target |Progress |Target |Progress |Target |Progress |

|- |15 |41 |36 |- |01 |15 |11 |

|Production |Distribution & Marketing |

|New License |Renewal |New License |Renewal |

|Target |Progress |Target |Progress |Target |Progress |Target |Progress |

|- |- |05 |03 |- |80 |194 |46 |

• An income of Rs. 400,000 was received from new license while Rs. 970,000 from renewals which were credited to the state Account.

• Fertilizer Advisory committee met in January, April & July & the next meeting will be held in October.

• Stock Positions of state Fertilizer Companies are as follows.

|Subject | Urea |T.S.P |M.O.P |

| |(Mt) |(Mt) |(Mt) |

|Stock position as at 01.02.2014 |19,413.24 |6242.65 |12414.79 |

|Imports & other receipt up to September 2014 |112,924.48 |31817.40 |31707.50 |

|Distributions up to 31.08.2014 (Paddy & other crops) |67997.04 |16550.16 |19836.95 |

|Stock positions as at 31.08.2014 | |20038.63 |20456.11 |

| |50357.70 | | |

• Information on stock positions of private Fertilizer companies

|Subject | Urea |T.S.P |M.O.P |

| |(Mt) |(Mt) |(Mt) |

|Stock position as at 01.02.2014 |11,885 |3,431 |17,431 |

|Imports & other receipt up to September 2014 |247,297 |105,214 |60,349 |

|Distributions up to 31.08.2014 (Paddy & other crops) |44,499 |8,653 |39553 |

|Stock positions as at 31.08.2014 | |99,992 |38,227 |

| |214,683 | | |

• Payment details under fertilizer subsidy scheme.

|Subject |Amount paid as at 31.08.2014 (Rs.) |

|For paddy fertilizer subsidy |10,405,029 |

|Other agri crop & plantation crops |17,739,790 |

• The following committee meetings were hold in respect of the procurement of fertilizer.

|Committee |Number of Meetings |

|Cabinet Appointed standing procurement price |03 |

|Committee for deciding commercial price for fertilizer in respect of each quarter. |03 |

• Fertilizer quota planned for import as at 31.08.2014

| Type of Fertilizer |Annual Fertilizer Requirement (Mt) |

| Urea |269,610 |

|T.S.P |51,800 |

|M.O.P |108,624 |

• Estimated cost on fertilizer import for 2014 is Rs. 38 Bilion

Programmes & Targets for 2015

1. Registration of importers & producers.

2. Direction of fertilizer Import, Stock control & distribution.

|Details |Anticipated Target |

|Inspection of stock in main stores |330 |

|Inspection of stock in regional stores |140 |

|Inspection of eligibility for issuing license |60 |

|Stock inspection after obtaining samples |1,100 |

3. Distribution of fertilizer for paddy during “Maha” season 2013/2014 & “Yala” season of 2014

4. Improvement of fertilizer sample obtaining methodology.

|Details |Anticipated Target |

|Sample testing at field level |350 |

|Sample testing of importers |1,100 |

Soil Testing:-

|Details |Anticipated Target |

|Soil testing in paddy lands |125 |

|Soil testing in dry lands |125 |

5. Payments for subsidized fertilizer.

6. Direction of programmes for training of farmers & entrepreneurs.

|Details |Anticipated Target |

|Education of farmers on proper use of fertilizer |100 |

|Education of officers on proper use of fertilizer |50 |

Progress of District level programmes implemented under the direction of National Fertilizer Secretariat from 01.01.2014 – 31.08.2014

|District |No. of Training |Beneficiaries |Samples |Inspection of stores|Soil Testing |Expen. (Rs.) |

| |programes | | |& verification of | | |

| | | | |stocks | | |

| | | | | | | |

|3. Kalutara |- |- |14 |40 |- |40,000 |

|5. Matara |07 |380 |- |- |- |40,000 |

|7. Rathnapura |12 |1050 |08 |20 |08 |48,000 |

|9. Kandy |06 |320 |10 |60 |12 |90,000 |

|11. Matale |- |- |- |20 |06 |90,000 |

|13. Puttalam |02 |74 |49 |20 |- |10,000 |

|15. Polonnaruwa |03 |464 |02 |06 |01 |21,080 |

|17. Trincomalee |08 |400 |- |20 | |20,000 |

|19. Badulla |03 |150 |09 |13 |19 |91,000 |

|21. Vavuuiya |03 |150 |- |02 |- |25,000 |

09.8. Ceylon Fertilizer Company Limited.

Legal Background.

1. The Ceylon Fertilizer Corporation was established in 1964 in terms of the state Industrial corporations Act No. 49 of 1957 with financial & technical contribution from Federal Republic of Germany with the objective of meeting the fertilizer requirement of the farmer community in Sri Lanka.

2. This corporation was reestablished in the name of the Ceylon Fertilizer Company Ltd. With effect from 15 September 1992 in terms of the converting of state corporations & Government owned business undertaking in to Public Liability companies Act No. 23 of 1987.

3. It has been reregistered under New companies Act No.07 of 2007.

4. Thamankaduwa Agro-Fertilizer company Ltd. Was amalgamated on 01.08.2008 with the Ceylon fertilizer company Ltd. & the farmer is now operating as regional fertilizer store complex at Polonnaruwa of the Ceylon fertilizer company Ltd.

Role of the Ceylon Fertilizer Company in the Field of Agriculture.

The undertaking of the company include importing, formulating, competently marketing & distribution all type of fertilizer requirements for tea, coconut, rubber being traditional export crops & other agricultural crops in the competitive market. The CFC has gained reputation as the leading institution which district nearly.

70% of the total subsidy fertilizer for paddy cultivation at subsidized prices under “Mahinda Vhinthana” Policy. It has been able to prevail upon a big share of market competing with other private fertilizer companies in the process of supplying subsidized fertilizer for other specified crops.

Administrative Structure.

In addition to the offices of the chairman, working Director & the General Manager this company consist of the Divisions of finance Human Resources, Procumbent, Marketing, Distribution, Internal Audit, Legal, Industrial & Information Technology.

Distribution Net work.

The main administration office & central store complex is located at Hunupitiya,Wattala. In addition 53 district fertilizer stores have been established to cover the entire island. The mach store complex has the capacity of storing 67,000 Mt, Polonnaruwa retinal complex 18,500 MT & all other retinal stares have the capacity of storing 146.655 MT.

Institutional Progress.

• To mark the 50th Gold Jubilee of our institution, constructing of anew bus halt & designation of the Hunupitiya Rood as “Lak Pohora Gold Jubilee Mawatha”.

• Construction of a new Laboratory.

• Being the winner of Silver Award – 2014 at the National Agri – Business Award are many presented by the National Agri – Entrepreneurship Board.

• Winner of the Silver Star Award 2014 at the enterprise stare award are many organized by the Sri Lanka Chinese Business Co-operation council.

• 2nd place winner for production & services 2014 at National Productivity Award ceremony organized by the National Productivity Secretariat.

• Winner of the Merit Award 2014 at the best Manufacture Award help by the National Industrial Board.

Contraction of the circuit bungalow in Nuwara Eliya commenced which is due to be opened December this year.

Initiating a organic fertilizer distribution programme for farmers.

Opening of two new stores at warani, Jaffna & the other at Murunkan, Mannar.

Development Programmes for 2015.

1. Marketing of 253,291,000 MT of subsidy fertilizer as at 31.03.2015.

Marketing of 120,000,000 MT of subsidy fertilizer for other crops as at 31.03.2015

Financial & Physical (From January to August 2014)

Financial Progress :-

|Project / |Main |Annual Provisions Rs. Mn |Financial Targets from 01.01.2014|Physical Progress from 01.01.2014 to 31.08.2014 |

|Programme |Activities | |to 31.08.2014 | |

| | |Subsidy |Market Value| |Progress Rs Mn. |Parentage % |

| | |Value | | | | |

| | |Rs. Mn. |Rs. Mn. | | | |

| | | | |Subsidy Value Rs. |Market Value |

| | | | |Mn. |Rs. Mn. |

| | |Subsidy Value |Market Value | | |Progress |Parentage % |

| | |Rs. Mn. |Rs. Mn. | | |MT. | |

|Fertilizer import & |Distribution of | 1,773.04 | 15,560.30 |253291 |189255 |70055 |

|distribution |subsidy fertilizer | | | | | |

| |of paddy | | | | | |

|January |1,436 |303 |505 |60 |2,304 |48.16 |

|March |1,364 |373 |609 |90 |2,436 |50.92 |

|May |1,418 |403 |437 |80 |2,339 |48.89 |

|July |1,298 |259 |271 |75 |1,904 |39.8 |

|Total (MT) |15,030 |2,588 |3,310 |

| |Urea |T.S.P |M.O.P | | |

| |(MT) |(MT) |(MT) | | |

|Anuradhapura |1809 |394 |468 |2671 |16.78 |

|Baticoloa |1054 |252 |261 |1567 |9.84 |

|Galle |122 |66 |140 |328 |2.06 |

|Hambanthota |1719 |395 |428 |2542 |15.97 |

|Kandy |205 |60 |110 |375 |2.36 |

|Kilinochchi |80 |0 |20 |100 |0.063 |

|Mannar |361 |71 |142 |574 |3.61 |

|Mathara |348 |148 |320 |816 |5.13 |

|Mulathive |71 |13 |17 |101 |0.063 |

|Polonnaruwa |1999 |448 |493 |2940 |18.47 |

|Rathnapura |660 |165 |201 |1026 |6.44 |

|Vawnia |474 |88 |103 |665 |4.17 |

Proposed Development Programs for the Year 2015

|Programme |Target |Estimated Cost |

|Constraction Warehouse Complex Near tha Hambanthota |Before November 2015 |126 Million |

|Harbor at Magampura to the extent of 24,000 sqft | | |

|Implements the computer networking system (Enterprise|Before December 2015 |15 Million |

|Resource Planning System) | | |

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Rice

Other Field Crops

Horticulture

Mt

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