Exploring the measurements of COVID-19-induced supply chain disruptions and their implications on the economic vulnerability of small-scale farmers

Abstract

Purpose – The main aim of this study is to explore the appropriate factors in measuring COVID-19-induced supply chain disruptions and the impact of these disruptions on the economic vulnerability of small-scale farmers in Sri Lanka. Findings – The findings revealed that most of the farmers have continued to cultivate even during the pandemic despite several challenges that affected their economic status. Therefore, it is concluded that COVID-19-induced transportation and demand disruptions exacerbated the economic vulnerability of small-scale farmers over the disruptions in supply and production. Practical implications – The findings of this study are crucial for formulating novel policies to improve the sustainability of the Sri Lankan agricultural sector and alleviate the poverty level of Agri-communities in the countryside. As farming is a vital sector in the economy, increased attention ought to be given on facilitating farmers with government-encouraged loans or allowances for their financial stability. Further, the respective government authorities should develop programs for importing and distributing adequate quantities of fertilizers among all the farmers at controlled prices so that they can continue their operations without any interruption. Moreover, the government could engage in collaborative work with private organizations to streamline the Agri-input supply process. There should be a government initiative for critical consideration of the issues of farming families and their continued motivation to engage in agriculture. Thus, farmers’ livelihoods and agricultural prosperity could be upgraded through alternative Agri-inputs and marketing strategies, providing financial assistance, encouraging innovative technology, etc. Originality/value – Despite the significance and vulnerability of the vegetable and fruit sector in Sri Lanka, there is a limitation in the empirical studies conducted on the supply chain disruptions caused by COVID-19 measures and their implications on the farmers’ livelihood. Furthermore, previous empirical research has not employed adequate quantitative tools to analyze the situation or appropriate variables in evaluating COVID-19-induced disruptions. Hence, the current study explored the appropriate factors for measuring COVID-19-induced supply chain disruption using exploratory factor analysis. Then, the impact of those factors on the economic vulnerability of the small-scale farmers was revealed through the ordinal logistics regression analysis.