Potato which conventionally grown through seed tubers, is an important crop in Sri Lanka for its high consumer preference and for high net profit. However, potato demands a heavy investment of about Rs.300, 000 per Hectare (Ha) during the cropping period in which seed material alone accounts for about 50-60% of the cost of production.

Potato originated in Andes highlands in Peru and Europeans [1] and it was introduced to Sri Lanka in 1850’s. At present potato is extensively cultivated in the district of Nuwara Eliya in two major seasons, ‘Yala’ (Feb – July) and ‘Maha’ (Aug – Dec.). It is also widely grown in Badulla District in paddy fields and high lands during ‘Yala’ and ‘Maha’ seasons respectively.. Jaffna and Puttlam are the other two districts where the potato is grown in lesser extent. Potato is the most popular crop of upcountry farmers due to its high net return. [2]

Potato popularly known as ‘The king of vegetables’, has emerged as one of the most important food crop in Sri Lanka after rice, and few other crops like chilies, onion, maize etc.. Therefore, Potato production in Sri Lanka is largely for the local food market and vegetable basket in the country is incomplete without Potato. Because, the dry matter, edible energy and protein content of potato makes it nutritionally superior vegetable as well as staple food in our country. Hence, potato may prove to be a useful tool to achieve the nutritional security of the nations in the any country. [3]

The production of particularly high value cash crops such as potatoes, chilies, and big onion, has been decreasing over the past decade. In addition, the cost of production of these crops is relatively high when compared to the other countries in the region. Local producers have had difficulty competing with imports of these commodities. This can be mainly attributed to the relaxation of import restrictions by the government in 1996. Farmers are now confronted with severe difficulties in marketing their products due to the availability of cheaper imports. Potato production has decreased from 88,709 MT in 2002 to 60,848 MT in 2009. Potato imports in 2009 were estimated at 99622 MT, which accounts for 80 per cent of the local requirement. More than 80 per cent of total imports are from India, China and Pakistan. Until 1996, potato remained a highly protected crop. [4] However, in recent years, the cost of production, estimated at around Rs 35.00 – 45.00 per kg, has remained extremely high and poor yield has eroded the profitability of this crop.

Based on these economic scenarios of the potato production and marketing, this paper is trying to review and analysis of major characteristics, recent developments and changes of the potato production and marketing system in Sri Lanka.

CHAPTER TWO

METHODLOGY

AIM

This paper is trying to review and analysis of major characteristics, recent developments and changes (Opportunities and Challenges) of the potato production and marketing system in Sri Lanka.

STATEMENT OF THE PROBLEM

Potatoes become “leading and lagging” sub farming sector of the economy. In recent years, “Potato Crisis” confront to the “agricultural development scenario” in Sri Lanka, are attributing the high incidence of farmers agitation, hunger strikes and many other forms of farmers demonstrations. A sharp decline of producer prices of potatoes, imports of potatoes and import liberalization, increased of cost of production and high prices of farm inputs, crop loss and market failures are the leading issues that encourage them to protest. Therefore, these empirical evidence reveals that there are some extents of the ailing features of crisis on the potato farming sector in Sri Lanka, and it can be concluded that the process of production and marketing of potato in farming sector is in wrong track. At presently, potato farming is struggling to rural adjust on economic, social and political reality. In the changing global economic scenario, they are now facing new challenges of improving the production of potatoes and finding new technologies at the farm level. The incidence of poverty and income inequalities in these communities has considerably widespread due to these reasons.