Abstract:
Purpose : Vegetable subsector being a foremost source of income and employments, plays an outstanding
role in Sri Lankan economy. However, profits from vegetable farming have become low due to low
prices and frequent price fluctuations. Thus, this study identifies the existence of profitable markets,
profitability, economic efficiency and price fluctuations of selected upcountry vegetables; bean, tomato,
potato, cabbage and knol-khol in Bandarawela Divisional Secretariat Division, Badulla district. The
aim of the study is to address the key issues in Sri Lankan upcountry vegetable sector.
Research Method : Stratified random sampling was applied to draw a sample of 150 vegetable growers
to collect primary data. Market window analysis was done to identify profitable markets for each crop.
Profit function, economic efficiencies, seasonal price indexes, coefficients of variation of prices and
Garret’s ranking technique were employed to examine profitability, price fluctuations and factors that
have contributed to above situations from farmers’ point of view.
Findings : The results indicated that, market windows were existed during the year 2016 for all crops
considered. When compared profits, tomato and bean have produced high profits in Yala; the shorter
rainy season (4910.35 US$ ac-1) and Maha; the longer rainy season (2301.35 US$ ac-1) respectively.
Moreover, the production of cabbage (Yala2.75) and bean (Maha 1.14) was economically more efficient
compared to the other crops considered. The seasonal price index disclosed that, prices of vegetables
tend upward during the festival seasons, especially during the months of March and April. The coefficient
of variation of price fluctuations over the years and seasonal variation and variability of prices observed
were mainly due to seasonality in production, oversupply of production and low level of shelf life of
vegetables. As per the constraint analysis, the price fluctuations were the highest perceived obstacles
followed by unreasonable price for the fresh produce.
Limitations : Limited availability of historical data was a constraint during the study and that was
avoided using data for a base year.
Value : It is better to conduct a study on market window analysis and profitability evaluation for
upcountry vegetables in order to find out profitable market existence for each vegetable because, these
evidences are useful to the farmer, trader and planners.
