Abstract:
There is a recent trend among farmers in Sri Lanka to practice organic paddy cultivation.
This is due to higher market prices and demand for traditional rice varieties. However,
studies to compare economic benefits of two systems are lacking. Therefore, the objectives
of this study were a) to understand social and economic aspects which are pertinent for the
adoption of organic rice production, and b) to compare economic profits between two paddy
cultivation systems. Kalutara District was selected as the study area as farmers in the
District practice both systems successfully. The survey was conducted in three divisional
secretariat areas, Horana, Ingiriya and Madurawala that were randomly selected. One
hundred and ten (110) and forty six (46) farmers practicing conventional and organic
methods respectively were selected for the study. Data on quantities and prices of inputs
and outputs during Yala season 2014, other farming practices, and socioeconomic
information of farmers were collected using a structured survey schedule. Data were
analyzed descriptively, all economic benefits and costs were valued and farm budgets were
computed.
The results indicate that paddy cultivation in the area is mainly practiced as a secondary
income generation activity. Contribution by female labour is 20% higher in organic
cultivation. Farm size of conventional farmers is 0.4 ha while that of organic farmers is 0.2
ha. Costs for labor and organic fertilizer are higher in organic mode, whereas costs of
machinery and agro-chemicals are higher in conventional mode. Total revenues are high
for conventional farmers. However, the ratio of total returns to costs is higher in organic
mode than in conventional mode with 2.15 and 2.06 as values for organic paddy and
conventional paddy respectively. Higher environment benefits occur in organic cultivation.
Based on the findings it can be concluded that the organic system of cultivation is
economically and environmentally more profitable than the conventional system of
cultivation. Implications for policy include the need to provide adequate incentives for
practicing organic farming.
