Abstract:
Ginger (Zingiber officinale) is mainly used for manufacturing oil,
oleoresin, essence, soft drinks, non-alcoholic beverages, medicines and
perfumery. Sri Lanka produces about 5,000 metric tons of ginger and also
imports about 2,000 metric tons annually. Ginger is mainly grown in
homestead areas in Sri Lanka. The cultivation of ginger was not much popular
in Galagedara area until year 2003. The commercial cultivation of ginger was
introduced to the area, under the “Gov/ sahanaya" system by the Central Bank
of Sri Lanka. Presently, 120 farmers have entered the commercial ginger
cultivation covering 22 ha including both uplands and lowlands in Galagedara
area. Kandurata Development Bank (KDB) provides loans valued Rs.90,000
per 0.4 ha for ginger cultivation. Ceylon Cold Stores (CCS) purchases ginger at
a reasonable price under forward contract system. Necessary quality and
quantity requirements are 2.5cm long ginger rhizomes of indigenous variety
sliced in to 10 and dried them well. Farmers are allowed to sell a minimum of
500kg dried ginger produced from 0.4ha of land. Forward Sales Contracts
(FSC) have been signed by farmers, Ceylon Cold Stores and Kandurata
Development Bank. This formal Forward Sales Contract mechanism is a triparticipate
arrangement among the farmers, buyers and the bank. The farmers
produce average 8,289 kg of ginger/year/ha spending average Rs.2,42,889.
Farmers sell ginger as dried ginger or seed rhizomes. The marketing channels
of ginger are very straight and have a simple marketing system. Farmers sell
seed rhizomes directly to colleague farmers or sell dried ginger to the company
through formal contract basis.
All ginger farmers in the area are the members o f “Ginger Farmer
Organization”. This farmer organization is maintaining a close relationship
with KDB. It helps the farmers in obtaining loans at correct time and provides
various support services to the member farmers. Farmers are able to present
their problems and difficulties to buyer (CCS) through the farmer organization.
The price of ginger is decided through a discuss all the parties including
farmers, company representatives, bank and Agriculture Instructor of the area.
Majority of the farmers accept the price as a better price. CCS pays Rs.375 per
(Proceedings o f the.Sixth Annual Research Session o f Aprictdiumf Graduates. University of<Sufiuna
I kg of dried ginger and Rs.100 per I kg of seed rhizomes. The money
transactions are solely done by the KDB based on the pre-determined contract
price. The FSC for ginger production has got a direct effect in increasing
income of the farmers. Hence it is important to apply the experience of
Galagedara to promote ginger cultivation in other ginger producing areas and
to improve the welfare of farming society.
