The objective of this programme is to increase the incomes of farm owners and especially landless youths by 20-30% through a combination of better prices for farmers, increased farm productivity and value addition to processed farm products.
This programme is expected to operate through three main elements. They are:
- Creating value chains and market links throughout the island
- Promoting micro credit facilities in 5 selected Districts
- Providing programme management and policy support
01. Creating value chains and market links throughout the island
The main stakeholders that will be engaged in projects undertaken under value-chain development are primary agricultural producers, community-based organizations and the private sector. The simplest form value-chain development projects could exist is as a production function agreed between private companies and agricultural producers based on trade contracts. However, this programme will give priority to the creation of rural companies based on agribusinesses that are formed encompassing all relevant stakeholders and comprising the share capital and to making of the farming community the shareholders of such companies. Its main purpose is to increase their income level and to convert the farming community to entrepreneurs.
Private Sector-Led Value Chain Development
Organizing and operating contract farming systems
2. Promoting micro credit facilities
Financial facilities were provided to start various businesses to enhance income generation of the poor people who do not have agricultural lands living in the five Districts of Ratnapura, Kegalle, Puttalam, Kurunegala and Ampara through the microfinance component. Provision of microfinance credit facilities, which had been undertaken through the regional development banks under the supervision of the Central Bank of Sri Lanka, has been suspended at present and the report of the Supervisory Operations Committee produced during February 2015 by the International Fund for Agricultural Development (IFAD) has recommended that the allocations be used for the development of value chains according to the needs.
3. Providing programme management and policy support
It has been scheduled to establish a monitoring and evaluation system through programme management and policy support, to conduct initial surveys and performance impact evaluation surveys, to conduct researches on the policy problems that arise during implementation stage, and to use the findings of these for a policy dialogue.