Thursday, February 10, 2011

Traditional Paddy Cultivation; A Farmer in Kamburupitya of Sri Lanka Making a Forward Purchase Agreement with REN

Upon a technical enquiry obtained by Janathakshan during the year 2010, team was able to advice farmer Melvin de Silva in Kamburupitiya to try out traditional paddy cultivations for more profitable and healthy harvest that has a growing demand in the current market.

In recent years, these traditional paddy varieties are highly demanded by health conscious niche market segments in urban areas of Sri Lanka. Therefore, the farmers tend to obtain higher profits for their harvests. Furthermore, best practices such as organic and traditional eco friendly farming adds high value to their products.

Farmer Federation in Homagama was linked with the farmer. But the farmer was still suspicious of market potentials and seed paddy availability. However, he obtained “Mada Thawalu” traditional variety from them and cultivated in a 3 acre extent of his 9 acre paddy farm.

Further to the dialogue, Janathakshan team coordinated the Rural Enterprise Network; a leading brand in the small medium enterprise sector, which is an initiative of IA2 of Practical Action, to purchase traditional and organic future harvest of the farmer Melvin.  A forward agreement of purchase was signed between REN and farmer Melvin on January 31, 2011. The necessary seed paddy was coordinated by REN. As an encouragement to the farmer, REN agreed to purchase the traditional paddy harvest of his present 3 acre land.

The new forward purchase agreement and seed paddy coordination have cleared all ambiguities relating to traditional paddy cultivations of the farmer Melvin. Hence, he extended his 3 acre traditionally organic paddy cultivations to the entire 9 acre field. 

Farmer Melvin reading the terms and conditions of the forward agreement
Farmer Melvin and the Quality Assurance & Marketing Manager Isuru of REN signing the agreement
Annex 01: Technical inquiry received by Janathakshan team of Practical Action Sri Lanka





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