CONTENTS   secretary eastern development   seed paddy farmer’s company

July 2003

Visit of Secretary Ministry of Eastern Development

Mr D. Dissanayake, Secretary Ministry of Eastern Development and Muslim Religious Affairs visited IFSP Trincomalee on 7 and 8 July 2003. He inspected projects in villages in the DS Divisions Town & Gravets and Kuchchaveli and held intensive talks with communities. Mrs Rohini Singarayer, PD IFSP and IFSP staff members accompanied the Secretary. Mr Dissanayake expressed his satisfaction about the many village development projects supported by IFSP. He particularly appreciated the people centred approach which encourages ownership and sustainability. He emphasised on the significance of the Sri Lankan budget contribution to IFSP. Mr Dissanayake commended the 'Quick Impact Programme' (QI) for returning IDPs which includes the self-help based construction of about 300 houses, water supply and sanitation, opening of land for cultivation and the facilitation of services: "People see that they benefit from the MOU. IFSP has successfully contributed to integrate returning IDPs into local structures." During the mid-term review meeting 2003 which followed the field visit the Secretary expressed his fullest support for a smooth transfer of IFSP: "We need to secure the wealth of experience and knowledge."

Need for establishment of a seed paddy farmer’s company

Muthur Seed Cleaning Centre                                                            top

The lack of quality seed paddy is one of the major limitations to improve the paddy economy in Trincomalee district. The Department of Agriculture with the support of IFSP had initiated a seed paddy outgrowing programme with farmers in the Muthur DS Division since 2001.To date more than 600 farmers participate. In September 2002 a seed cleaning and sorting machine was installed at the Seed Cleaning Centre Muthur in cooperation with the MPCS. Seed paddy outgrowing ensures high farm returns.

Need for a Farmer’s Company                                                            top

It is now time to establish a farmer’s company to make full use of the cleaning and sorting machine. DOA and IFSP support the establishment of a farmers company to run the Seed Cleaning Centre Muthur in cooperation with the MPCS.

Two aspects are important: i) What is the economic return of consumption paddy and seed paddy cultivation? ii) What are the conditions to successfully establish a farmer’s seed paddy company as a commercially viable business?

Preparatory Activities                                                                         top

A first intensive meeting and dialogue with seed paddy farmers from the six AI ranges of Muthur, Thoppur, Sampoor, Killiveddy, Eachchilampattai and Manampodiveddai was held on 21 June at Zahira Maha Vidyalayam in Palathoppur. ADA AOD, PD IFSP and staff of the DOA including ADA, AIs and AOs explained the steps to form a farmer's company and discussed with farmers.

This was the first meeting conducted with the two communities of Tamils and Muslims after the communal riots of April and May 2003.

Farmers realise the importance of forming a farmer’s company as the best solution for ensuring good quality seed paddy, marketing and trading agricultural inputs. It was suggested to undertake a study tour to visit two successfully functioning farmer's companies in other areas of Sri Lanka.

Study Tour                                                                                           top

On 4 and 5 July 2003 about 50 farmers and officers from the DOA Trincomalee and IFSP staff visited Rajanga Isuru (Pvt) Seed Paddy Farmer’s Company Ltd. in Anuradhapura and the Right Bank (People’s) Company Ltd. in Akkaraipattu.

At the Rajanga Isuru (Pvt) the group received first hand information about the initial steps of establishing the company, selecting a board of directors and methods of mobilising initial capital. It was concluded that the collective strength of the members is the prime condition for success.

The next day the Akkaraipattu Right Bank (People’s) Company was visited. The focus of information gathering and discussion were on the legal procedures of establishing a company, methods of sharing profits, auditing and maintenance of accounts. Demonstration plots of seed paddy were inspected.

On the way back to Trincomalee the seed paddy growing farmers from Muthur expressed their strong intention to proceed with the initial establishment activities for their own company. Farmers, officers from DOA and IFSP will be providing all support that the company can be officially established during the 3rd quarter 2003.