Impact of rice processing villages on house hold income of rural farmers in Anuradhapura District

Abstract

“Rice processing village” is a concept introduced by the Institute of Post-Harvest Technology in 2005 to promote quality rice production as a cottage industry with the assistance of a number of state and non-state sector organizations. An evaluation study conducted in 2009 revealed that, of the beneficiaries, 75% are females who were underemployed before. One family has processed an average quantity of 14,496Kg of paddy and has earned an average profit of Rs. 121,203 per annum. Profit earned per Kg of paddy was Rs. 9.02 and Rs. 11.83 including and excluding family labor respectively through processing. This is a financially viable and labor intensive enterprise that is appropriate for rural villagers. Due to the profitability, this enterprise has grown at an average annual rate of 172% during past five years.Financial problems, lack of storage and high prices of paddy unavailability of paddy during the off – season are some of the common problems faced by the producers while marketing was a problem in interior locations. Credit programmes, infrastructure development, supplying paddy at a stable price throughout the year and forming rice producer’s associations are some areas where state intervention is required. Keyword: Rice processing; Rice marketing; Rural development; Producer associations. DOI: http://dx.doi.org/10.4038/jas.v6i2.3864 The Journal of Agricultural Sciences, 2011, vol .6, no 2, pp92-99