Wednesday, 15 July 2015

The Impact of Price on the Organic Rice Farming Sector in Sri Lanka

By Chatura Rodrigo
Research Economist, IPS 

Developing the organic rice farming sector and ensuring that it makes a significant contribution towards the rice consumption in Sri Lanka is a necessity today. However, for the past decade, the spread of organic rice production in the country was limited to marginalized lands. Many farmers cultivate for their own consumption; while only a portion of rice is sent to urban markets. This too targets a selected segment of consumers, mostly the upper middle income and high income groups. While many argue that the slow growth in the sector is due to the difficulties in production, one cannot ignore that the high price of organic rice has a possible impact on the reduction in the demand for consumption.