Impact of the 2021 Fertilizer Policy on Paddy Yields and Farmer Income in the South Coastal Region of Ampara District, Sri Lanka

Abstract

Ampara District plays a key role in paddy production in Sri Lanka. However, there was a noticeable decrease in paddy production during the Maha season of 2021/2022. The purpose of this study is to conduct a comparative analysis of the decline in rice production in the South Coastal re gion of the Ampara District during the Maha sea son, which might be attributed to the fertilizer pol icy implemented in 2021. Data for this study were gathered using a structured questionnaire. Using the stratified random sampling method, 145 farm ers were selected from each Divisional Secretariat in the coastal region of the Ampara District. This study examines various aspects of paddy cultiva tion, including yield, urea usage, production costs, paddy prices, income, net profit, and cost-benefit ratios. Data were analyzed using descriptive statis tics, one-sample t-tests, paired-sample t-tests, and combined variance methods. The analysis reveals a significant decline in both paddy yield and urea us age during the Maha 2021/2022 season compared to previous Maha seasons and Yala 2021. The fertilizer policy in 2021 caused a significant rise in the cost of production, paddy prices, and urea prices. Average income in Maha 2021/2022 was higher than in Yala 2021 due to higher paddy prices, with little income variation between seasons and greater paddy price variation in Yala 2021. Despite higher income, net profit and return on investment were lower in Maha 2021/2022 compared to Yala 2021 due to increased production costs. The fertilizer policy of 2021 im posed harm on farmers (reduced profit and ROI) but was somewhat recovered through the increased selling price.