Abstract:
This study mainly focused to disclose the farmers’ perception towards government intervention
in paddy purchasing, exploring the present situation of paddy marketing and assessing benefits
and challenges of Paddy Marketing Board (PMB). The primary data were collected by using a
pre-tested questionnaire from randomly selected 150 paddy farmers in Ambalantota divisional
secretariat (DS). Data were analysed by using parametric and non-parametric statistical
methods and descriptive statistics. Key findings revealed that paddy farmers’ perception was
negative towards government intervention in paddy marketing (z= -2.67, p<0.05). The choice of
paddy selling agency was significantly influenced by farmer’s experience in paddy farming and
availability of transport facilities (X2 =10.808, p<0.05 and X2 = 93.204, p<0.05, respectively).
Majority of farmers (85%) have refused to sell their paddy to the paddy marketing board.
Farmers have stated negative agreement with current ceiling price of paddy (z= -9.962, p<0.05).
Study further revealed that PMB is significantly more beneficial than private agencies due to
higher guaranteed price for paddy (t= 10.57, p<0.05), linkage with government (t= 15.439,
p<0.05) and restriction of the intervention by third parties (t= 8.901, p<0.05). According to the
respondents, main challenges faced by PMB were, (a) high quality maintaining cost (t=-22.73,
p<0.05), (b) limited purchasing (t=-155.45, p< 0.05), (c) documentary (t=-22.98, p<0.05), (d)
purchasing period (t=-6.985, p<0.05), (e) high weight losses after drying (t=-18.224, p<0.05), (f)
time consumption (t=-14.392, p<0.05), (g) inconvenience for cleaning and drying paddy (t=-
14.238, p<0.05), (h) quick cash accessibility (t= -3.417, p<0.05) and (i) transport facilities (t=-
8.769, p<0.05). Key suggestions from farmers in order to improve the government intervention
in paddy marketing were providing transport costs (75%), accepting higher moisture level of
paddy at purchasing (72%) and increasing purchasing quantity (63%). It is recommended to
launch awareness programmes on the importance of quality maintenance in paddy, establish
drying beds in purchasing centres to maintain quality and provide moisture meter to farmer
organization, establish local purchasing centres at village level to reduce the transport cost and
utilize IT facilities to reduce unnecessary documentation and to enhance quick payment method.
