Phone: (+61 8) 6488 4633
Fax: (+61 8) 6488 1098
Examining the Technical Efficiency, Income Distribution and Production Risks of Rice Farming in Sri Lanka with special emphasize on Fertilizer Subsidy Policy.
Despite the recent achievements of self-sufficiency in rice production, recent trends in paddy farming in Sri Lanka indicate an increase in small-scale paddy farmers, stagnation in paddy yields and reduction in real prices and income. In addition, the productive performance of this sector has been a subject of much debate over the years. Inflation in general food prices, which is partly attributed to a hike in rice retail price, has affected the real incomes and food security of the rural and urban poor.
These phenomena have resulted in state intervention at various levels by providing fertilizer subsidies and setting the retail price ceilings on rice.
The major objectives of the proposed research are:
• To examine the technical efficiency of the rice sector and recommend possible means of filling the efficiency gap.
• To analyse the effect of fertilizer price changes on the productivity of rice production at the farm level.
• To evaluate the production risks associated with input (fertilizer) usage and the determinants of risk attitudes.
• To measure the effect of food (esp. Rice) price changes on real income, food and nutrition security of different income deciles.
Outcome of the proposed research will help,
• To identify the policies likely to improve the efficiency of paddy farmers through a better use of the factors of production.
• Provide policy direction for the much debated issue of the impact of fertilizer subsidy on productivity and income distribution.
• To make sound policy recommendations to minimize production risks by better usage of inputs
• To identify the effects of state interventions and exogenous policies in the rice market on the rural and urban poor.
The study findings will enable policy makers understand the welfare effects of policy decisions on both the producers and consumers of rice. This could lead to improved efficiency, better productivity and higher living standard.