1. Ministry of Rural Economic Affairs

Transcription

1 1. Ministry of Rural Economic Affairs 1.1. Vision A Prosperous Nation through a Sustainable Rural Economy 1.2. Mission Livelihood development, development of livestock-farm products of high quality to match the local demand and promotion of prosperous, local producers capable of meeting the demands of the competition in the local and the international market successfully, aiming at raising the economic status of the rural population 1.3. Objectives Provide financial support required for implementing rural livelihood development projects for economically uplifting the rural people and promotion of rural infrastructure facilities of small entrepreneurship development Raise livestock of high productivity for development of the livestock sector, and offer requisite technical guidance and assistance in order to ensure the hygienic quality of food Propagate animal feed of quality with a view to raising a healthy animal population and ensure an efficient veterinary health service capable of prevention and control of diseases affecting animals Propagate optimal utilization of animal gene resources of superior quality obtainable from livestock, towards generating a high capacity of production, and develop indigenous animal species Encourage the relevant partners to market animal-based products, process and add value to them, in order to set up a systematic marketing network Provide incentives towards achievement of the targeted growth in the production of milk, while strengthening the local dairy farmer Purchase agricultural products at the regional and village levels, store them and coordinate marketing of agricultural products, through the establishment of fully empowered National Agricultural Marketing Authority Establish Dedicated Economic Centres with the objective of retaining the prices of agricultural products at a sustainable level by linking wholesale traders and consumers with agricultural producers 1

2 Functions and responsibilities assigned to the Ministry of Rural Economic Affairs by the Gazette Extraordinary No. 1933/13 dated 21 September 2015 by H.E. Maithripala Sirisena, President of the Democratic, Socialist Republic of Sri Lanka, are spelt out below. Formulation of policies, programmes and projects within the scope of work assigned to the Departments and Statutory Institutions operating under the Ministry, relevant to the subject of Rural Economy, and implementation, follow up and evaluation of projects Implementation of Rural Livelihood Development Projects Formulation of Regional Development and Rural Development Policies and Strategic Development Policies Development of Rural Infrastructure Facilities and Small Enterprises Provision of financial assistance for Rural Economic Activities Provision of necessary facilities for enhancement of livestock products Animal Welfare and the related activities Taking steps necessary for Promotion of Livestock-based Products, their Propagation and Development Expansion of the Research Division of the Livestock Sector utilizing modern technology and taking measures for qualitative and quantitative development of products, based on the research findings Propagation of Scientific Breeding Methods for proliferation of the animal population and quarantine activities The above functions assigned to this Ministry are implemented under 04 main Thrust Areas. Development of rural livelihoods for economic upliftment of the rural people Fulfillment of the local demand through the development of high quality livestock products Regularization of the market by setting up a systematic marketing network for marketing, processing and value addition of livestock products Producing local manufacturers capable of facing the competition within the local and the international markets, through co-ordination of purchase, storage and marketing of agroproducts 2

3 The institutions operating under this Ministry for efficient execution of the functions assigned to it are as follows. 1. Department of Animal Production and Health 2. National Livestock Development Board 3. Milco (Private) Limited 4. Mahaweli Livestock Enterprises Limited 5. Sri Lanka Poultry Development (Private) Limited 6. Paddy Marketing Board 7. Dedicated Economic Centres 8. Rural Resuscitation Fund 9. Rural Resuscitation Fund (Finance) Inactive Funds 10. Janadiriya Fund (Gramodaya Mandala Fund) 1.4. Progress of the Livestock Development Division of the Ministry during the year under review (up to 30 September) Introduction The Livestock Sector is playing a vital role in the local economy not only contributing towards food security but also supports rural livelihoods. At present, approximately one million families of the island are engaged in dairy, goat, poultry and swine farming, the majority of whom representing the rural sector. The Livestock Development Division of the Ministry is planning various programmes and projects with the objectives of meeting the increasing demand through marketing of healthy and quality animal production and saving of foreign exchange to be incurred on the import of livestock products. Livestock development programmes and projects implemented during the year under review are as follows. 3

4 Progress of Development Programmes and Projects implemented by the Livestock Development Division during 2016 (as at 30 September) S/No. Programme / Project Budgetary provision 2016 (Rs.mn.) Physical Progress (%) Financial Progress (Rs.mn.) Remarks 1 Facilitation and Promotion of Liquid Milk Consumption 2 Establishment of Animal Breeder Farms 3 Medium Term Livestock Development Programme 4 Importation of Dairy Animals (GOSL /Australia) 5 Development of Small & Medium Scale Poultry Farming System 6 Swine Industry Development in Sri Lanka 7 Establishment of Dairy Processing Plant at Badalgama (GOSL/Denmark) 8 Empowerment of Dairy Extension Services through knowledge update (GOSL/Belarus) Commitments have been made of Rs.25 mn in addition to the above value and settlement documents are being received at the time of review. Commitments have been made of Rs.19 mn in addition to the above value and settlement documents are being received at the time of review. Commitments have been made of Rs.27 mn in addition to the above value and settlement documents are being received at the time of review. Commitments have been made of Rs mn in addition to the above value and settlement documents are being received at the time of review. Commitments have been made of Rs.9.8mn in addition to the above value and settlement documents are being received at the time of review. Commitments have been made of Rs.9 mn in addition to the above value and settlement documents are being received at the time of review. Initial constructions of the factory are now in progress. Machinery and equipment parts required for construction and 08 containers of construction materials have been imported upto September Memorandum of Understanding is now subjected to the process of legal observation. 4

5 S/No. Programme / Project Budgetary provision 2016 (Rs.mn.) Physical Progress (%) Financial Progress (Rs.mn.) Remarks 9 Integrated Rural Development through improvement of Export Agriculture and Dairy Sector in Kurunegala and Gampaha Districts (GOSL/Saudi) 10 National Food Production Programme Commitments have been made of Rs.9 mn in addition to the above value and settlement documents are being received at the time of review. Commitments have been made of Rs.58 mn in addition to the above value and settlement documents are being received at the time of review. In addition, activities relating to islandwide competition for selecting the best Dairy Farmer & Milk Processor are in progress. Total 1, Facilitation and Promotion of Liquid Milk Consumption Quality of Milk Production Improvement Programmes for Small Scale Dairy Farmers at Veterinary Range Level This project is implemented at the district level with the objective of increasing the quality of milk produced in the mini dairy farms. This will provide the dairy farmer with higher price for their milk production and also increase their living standards. The selected beneficiaries are provided with financial assistance upto a maximum of Rs.60,000 each with 50% Government contribution which may be used for obtaining milk collecting equipment, procuring facilities for pasture/grass land development or obtaining a dairy cow of high breed. This programme is being implemented through the Provincial Departments of Animal Production and Health and provides benefits to a total of 500 beneficiaries islandwide, with 20 beneficiaries to be selected from each district. During the period under review, 383 project proposals have been approved, 40 of which have already been implemented Programme for Quality Improvement of Small scale Milk Processors through Women Empowerment This project is implemented at the district level. Its objective is to upgrade the quality of milk production of female milk producers whose milk produce is not less than 20 litres per day. It is also expected to enhance the living standards of female milk producers. 5

6 The selected beneficiaries will be provided with financial assistance subjected to a maximum of Rs. 50,000 each with 50% government contribution and suitable mediation is made with the objective of increasing the quality of milk and milk-based products. Accordingly, mediation involves provision of equipment such as fat-removing machines, deep-freezers and bottle freezers. 10 beneficieries will be selected from each district totalling 250 to receive benefits under this programme. During the period under review, 125 project proposals have been approved all of which are now under implementation Consumption Promotional Programmes for School Children This programme is implemented islandwide as a joint undertaking by the Ministry of Rural Economic Affairs and the Ministry of Education with the objective of promoting fresh milk consumption among school children. The competition consists of 14 competition events under the theme Fresh Milk Consumption and they included essays, verse compositions, television scripts, logos on fresh milk production and art creations. The competition events were evaluated by a panel nominated by the Ministry of Education. Presentation of awards and certificates to winners of the competition was held on 15 June 2016 at the Bandaranayake Memorial International Conference Hall in the presence of His Excellency the President, Maithripala Sirisena. Events at the presentation of awards and certificates 6

7 Establishment of Animal Breeder Farms Establishment of Breeder Farms The project on establishment of breeder farms is being implemented island-wide at the provincial level to overcome the shortage of dairy cows of high breed required for increasing local milk production.accordingly, approval has been granted to establish 218 animal breeder farms during the year Purchasing of animals suitable for breeding and constructin of cattle sheds also come under this project. Rs.6.82 mn including advance payments has been spent out of the total allocation of Rs.22 mn. Number of Breeder farms in operation during 2016 Province Breeding Farm Target Approved Number Central Eastern Northern North-Central North-Western Sabaragamuwa Southern Uva Western Total Of these projects 68 have been completed while provisions have been requested for another 67 projects. Breeder Farms established 7

8 Establishment of Medium Scale Breeder Farm A medium scale breeding farm is to be established at Ridiyagama owned by the National Livestock Development Board. This farm will be utilized for rearing baby heifers of the first generation born to mother cows imported from Australia and are being reared in this farm. The prime target of this undertaking is to distribute baby heifers of the second generation born to the first generation animals. Anticipated investment in this project is around Rs.5 mn. Mother cows being reared in Ridiyagama farm of the National Livestock Development Board Support and Encourage Smallholders in Dairy Sector in Sri Lanka The objective of this programme is to provide cows or heifers with 50% contribution of the value to small dairy farmers who have the capablity and interest in rearing dairy cows and to the new entrants in the field to increase their earnings. This year s target is 100 beneficiaries under the allocated provisions of Rs.3.0 mn. Out of the approved 49 projects, 10 have been completed Pasture Development Project This project is implemented with the objective of encouraging farmers to feed their animals with quality and nutritious species of grass and undertaking commercial grass cultivations.supply of equipment for grass cutting/piecing and grass conservation are also included under this project. A financial contribution upto a maximum of Rs.100,000 is made available to a single farm as financial assistance. Rs.4.0 mn has been provided to 18 beneficiaries. At present, 03 projects are under implementation. 8

9 Grass cutting machines made available to beneficiaries Medium Term Livestock Development Programme In view of the vast potential for developing the livestock sector in the Northern Province, arrangements have been made to enhance the supply of services in this field through establishment of veterinary offices and infrastructure facilities. The activities undertaken during the period under review are as follows. Physical Activity Progress Construction of the male hostel of the Kilinochchi 88% Animal Husbandry Training School Construction of Veterinary Official Quarters at Palai 87% Construction of Veterinary Official Quarters at 25% Mannar & Manthei (West) Construction of two official quarters for resources 20% persons of the Kilinochchi Animal Husbandry Training School Male hostel of the Kilinochchi Animal Husbandry Training School Veterinary Officials Quarters at Palai 9

10 Importation of Dairy Animals Arrangements have been made to import 4,500 dairy cows in batches with the objective of providing dairy cows of high breed and upgrading the dairy cow pool of the National Livestock Development Board. Accordingly, 2,000 pregnant dairy cows have been imported in 2012 and 2013 for distribution among liverstock farms belonging to the National Livestock Development Board at Bopathtalawa, Manikpalama and Dayagama. In addition, existing traditional cattle sheds were modernized to facilitate removal of animal waste and for increasing efficiency of imported animals. In 2015, 2,489 dairy cows were imported by the National Livestock Development Board for rearing at Ridiyagama farm where the land has been developed and grass cultivated to feed the animals, in addition to construction of modern cattle sheds equipped with efficient methods of removing animal waste creating artificial environmantal conditions. The remaining payments of the project were made utilizing provisions allocated for this project during the year Imported animals are fed with nutritious food and official quarters constructed for the staff. The total milk production of Bopaththalawa, Manikpalama and Dayagama farms during the period July 2012 to August 2016 was million litres while the total milk production of the Ridiyagama farm during the period August 2015 to September 2016 stood at 6.74 million litres. The current sale price of milk produced in these farms ranges from Rs to Rs ,029 heifer calves and 2,124 bull calves born to dairy cows of high breed imported for Bopaththalawa, Manikpalama and Dayagama farms have been distributed among farmers. In addition, 363 heifer calves and 824 bull calves from dairy cows imported to the Ridiyagama farm have been issued to other farms of the National Livestock Development Board. 1,284 female animals and 192 male animals are being reared in the Bopaththalawa, Manikpalama, Dayagama and Ridiyagama farms for future generation Development of Small and Medium Scale Poultry Farming System This programme is implemented with the objective of making the country self-sufficient in poultry products, targetting the export market. Under this programme, new entrepreneurs are attracted to the poultry farming while existing entrepreneurs also are encouraged. It has also been planned to proliferate production of chicks, eggs, chicken as well as animal food production.it is also expected to increase the egg and chicken production so that every individual could consume at least 03 eggs per week and 10 kg of chicken per year. It is planned to establish 1,500 small and medium scale poultry farms in During the year under review, 1,037 small scale farms have been established and it is expected to complete initiatives to establish the remaining farms during this year. 10

11 Project proposals to establish 18 small-scale animal feed production plants have been approved and at present arrangements are made to establish 07 of them. It is expected to complete the remaining projects before end of this year. Project proposals have also been approved to establish 17 small scale chicken processing centres and initial work in respect of 12 projects have been completed. The remaining projects are to be completed during this year. In addition, 06 beneficiary awareness programmes have been implemented Swine Industry Development Programme In 2015, male and female pigs were imported to establish a piggery at Horakele farm owned by the National Livestock Development Board, with the objective of increasing productivity of the swine industry. Piglets born to imported animals are issued to farmers for breeding aimed at imporving their strain. Insemination activities of the Animal Husbandry Training Centre, Kotadeniyawa of the Western Province are also expanded. Under this programme, construction of a modern swine shed in the Martin farm as an extension of the Swine farm of the National Livestock Development Board is now in progress. The anticipated investment is Rs.3.5 mn. It has also been planned to upgrade 70 existing small swine farms in the Western, North-Western, Sabaragamuwa and Eastern Provinces to make them environmental friendly. During the period under review, 65 project proposals have been approved and preliminary work undertaken in respect of the remaining proposals. 16 projects have been completed while provisions have been made for another 21 projects. It is expected to invest Rs.2.0 mn in the establishment of a Model Training Swine Farm affiliated to the Faculty of Veterinary Medicine of the University of Peradeniya whereby it would be possible to provide training in swine farming for swine farmers and field officers of the Central Province as well as undergraduates of the Faculty of Veterinary Medicine. Workshops to identify problems and educate beneficiaries and officers engaged in the swine industry in the Western and North-Western Provinces have been held under the Swine Industry Development Programme. It has been planned to hold a number of similar workshops in the future Establishment of a Dairy Processing Plant at Badalgama It has been decided to relocate the milk factory at Narahenpita, Colombo owned by the Milco (Private) Limited within the Siringapatha Farm at Badalgama owned by the National Livestock Development Board. This project is implemented with the assistance of the Government of Denmark and the foundation stone was laid on for constructing the 1 st stage of factory and preliminary constructions of which are now in progress. Rs.10.0 mn has been made available from the local funds for this purpose. During the period under review, 08 containers of machinery,equipment and construction materials have been imported. 11

12 Empowerment of Dairy Extension Services through Knowledge Update Under this project opportunity is available for ten officers to attend 06-week training in dairy farming at the Agriculture University of the Belarus Government. Draft of the Memorandum of Understanding between Sri Lanka and the Government of Belarus has been refereed to the Legal Draftsmen for observations and advice Integrated Rural Development through improvement of Export Agriculture and Dairy Sector in the Kurunegala and Gampaha Districts This project is implemented to cover two districts; Gampaha and Kurunegala aimed at developing dairy industry at a project cost of Rs 10.0 mn. The following activities are implemented in each district Formation of Clusters of Dairy Farms in two Districts Provision of dairy cows of high breed to selected 80 beneficiaries, assistance to undertake grass cultivation, machinery required for milk production and grass cutting with 50% government contribution subjected to a maximum of Rs.60,000 are envisaged. Accordingly, during the period under review 80 project proposals from the Kurunegala district and 45 projects from the Gampaha district have been approved Establishment of 04 Small-scale Dairy Processing Centres Under this project, milk-processing equipment will be made available to the four selected beneficiaries under the 50% government contribution subjected to a maximum of Rs.50,000. During the period under review 02 project proposals from the Kurunegala district and one from the Gampaha district have been approved National Food Production Programme Strengthening of Small-scale Dairy Farms This project is implemented to encourage quality milk production at small dairy farms utilizing provisions available under the National Food Production Programme. 50% of the Subsidy Fund will be provided to each beneficiary subject to a maximum of Rs.60,000. Under this project which is implemented through the Provincial Departments of Animal Production and Health and the Milco (Private) Limited, 500 beneficiaries are to be selected. During the period under review 270 projects have been implemented. 12

13 Strengthening of Small-scale Goat Farms Project This project is implemented with the twin objective of uplifting the living standards of beneficiaries engaged in small scale goat rearing and increasing the production of local goat milk and mutton to improve the nutrition level of the people. The project investment is Rs.20.0 mn for the establishment of 330 farms. One beneficiary will receive a sum of Rs.60,000 each to purchase one male animal and 04 female animals. Relevant activities are in progress in respect of 170 project proposals have already been approved Establishment of Small-scale Layer Farms The objective of the mini poultry farm development programme is to increase the nutrition level of the people by assisting to develop poultry farming at the household level. Consequently a project is being implemented under which each householder will receive 10 one month-old chicks. Under this programme it is planned to establish 7,555 small and medium scale poultry farms islandwide. Accordingly, during the period under review 480 such farms have been established. In addition, funds required for establishment of another 1,253 farms have been released to the Department of Animal Production and Health. In addition, preliminary work relating to the establishment of 2,031 farms has been completed Procurement of Layer Parents Stock (through the National Livestock Development Board) The first stage of importing egg laying chicks of the mother breed have been completed Selection of Best Farmers / Best Milk Processors Competition Arrangements have been made to select the best farmer and best milk processor from among the dairy farmers and milk processors who are engaged in the livestock sector. Accordingly, winners are to be selected under 06 sub-fields at the district, provincial and national level who will be awarded valuable prizes and certificates. Best milk farmer Small scale cattle Small scale buffalo Medium scale cattle Medium scale buffalo Best milk processor Small scale sector Middle scale sector At present district level competitions have been held and arrangements made to conduct provincial level competitions 13

14 Progress of implementing 2016 Budget Proposals by the Livestock Development Division Provision of Subsidy Payment to Local Milk Powder Producers According to the Budget Proposals 2016, it has been decided to reduce the maximum retail price of a 400 g locally produced powder packet from Rs.325 to Rs.295. The objective is to encourage local milk producers to increase production in keeping with the Government Policy of encouraging them. Accordingly, a provision of Rs.1,000 mn has been allocated to grant local milk producers a subsidy of Rs.30/- per 400 g packet of milk powder. By the end of October 2016, Pelawatta Dairy Industries and Milco (Private) Limited were provided with reimbursement grants of Rs mn and Rs mn respectively, on the recommendations of the Ministry of Rural Economic Affairs Examining the Availability of Foreign Market Opportunities for Local Poultry Farm Products A preliminary discussion in this regard was held with the participation of the Ministry of Special Assignments and the Department of Animal Production and Health together with the Sri Lanka Poultry Farm Producers Association. An analysis report on the possibility of offering those products to the foreign markets has been submitted. It has also been proposed to look into the possibility of establishing the Poultry Farming Focal Point in the North-Western Province targeting foreign markets Programmes and Projects to be implemented by the Livestock Development Division in 2017 Programmes identified by the Livestock Development Division for implementing in 2017 are as follows. Development Programme Establishment of Dairy Development Zones at Provincial Level to Enhance the Productivity of Small-scale Dairy Farms Establishment of a Buffalo Farm at Commercial Level and Development of Polonnaruwa Farm as Buffalo Breeding Farm Total Estimated Cost (Rs.mn) Financial Requirement for 2017 (Rs.mn) Strengthening of Goat and Sheep Industry Increasing the Buffaloa Milk Production through Genetic Upgrading of Buffalo Population in Sri Lanka Promotion of Self-employed Private Artificial Insemination Technicians for Productivity Improvement of Small- scale Dairy Farms Estimation of Water Foot Print in Dairy Industry in Sri Lanka Establishment of Dairy Technology Institute 2, Total 4, ,

15 1.6. Progress of the Development and Planning Division of the Ministry during the year under review (up to 30 September) Kitul Development Project As there is an increasing demand for Kitul related products in both local and foreign markets, there is good potential for developing the local Kitul industry commercially. Developing the Kitul industry will open out opportunities to generate available to generate self-employment for rural people and to increase the income of Kitul Industrialists and Entrepreueurs whereby rural economy will be boosted. The Government mediates in the development of Kitul Industry in the following manner. Training of Kitul flower tappers Providing them with protective belt Providing flower tappers with suitable knives and pans Introducing Casfer Technology & traditional technology into the Industry Raising the standard of Kitul Industry related products such as Kitul Syrup and jaggery Registration of Kitul producers and issuance of identity cards Financial provisions amounting to Rs.30 mn was made available from local funds for the Kitul development project in Details of activities relating to the development of Kitul Industry which cover 12 districts and 56 Divisional Secretariat Divisions and provided benefits to 3,289 beneficiaries are as follows. District Number of DS Divisions which provided benefits Number of beneficiaries Provisions allocated (Rs.) For technical training (Rs.) For providing equipment (Rs.) Kalutara ,701, ,000 1,570,000 Kegalle ,510,540 80,000 2,120,000 Galle ,036, ,000 2,825,100 Badulla ,077, ,000 7,318,000 Kandy ,309, ,000 3,122,500 Matara ,280,060 52,000 2,182,000 Matale ,158,300 60,000 1,075,000 Ratnapura ,532, ,000 4,261,400 Hambantota ,495,200 40,000 1,425,000 Nuwaraeliya ,756,400 60,000 1,661,000 Kurunegala ,100 20, ,000 Ampara ,750 20, ,000 Total 56 3,289 29,696,260 1,137,000 28,341,000 15

16 Development of Traditional Handicraft Villages Financial provisions amounting to Rs.29 mn was made available for this project from local funds in Its objective is to economically empower handicraftsmen, upgrading of traditional industries and craft skills in line with modern technology, enhancing the living standards of those involved in handicrafts and expansion of market opportunities for handicraft products. This project envisages provision of technological equipment and common facilities, introduction of market oriented creative designs, development of creative skills and the provision of material and equipment. Arrangements have been made to develop traditional handicraft villages islandwide within the 68 Divisional Secretariat Divisions identified. Rush based handicraft goods Plamyrah leaf based handicraft Gunny fibre based productions Traditional handicraft development fields Production of clay ware Wood based handicraft Kitul fibre based productions Production of equipment at village level workshops (Kamhal) Indi kola based handicraft Jewellery Jewellery & Hemp Production villages Lac ware production sale outlets Cane based productions Granite based productions Arica based handicraft Bamboo based productions An event of goods distribution at the Koralaipattu Divisional Secretariat under the patronage of Hon. Deputy Minister of Rural Economic Affairs and the training programme conducted at the same venue 16

17 Development of Handicraft Villages Provision of training in technology and management to those engaged in the handicraft sector & the equipment & tools required and establishment of handicraft villages aimed at widening market opportunities for handicrafts are among the activities of this programme. Financial provisions amounting to Rs.6 mn have been made available from local funds for implementing this programme in Accordingly, handicraftmen in 12 selected districts have benefited under this programme. District D. S. Division Village where project is being implemented Nos. of benefici aries Name of project Total provisions (Rs.) For technical training (Rs.) Provision of equipment (Rs.) Anuradhapura Horowpathana In the 15 Handicraft 632,780 20, ,000 Divisional Secretariat Kegalle Deraniyagala Anhettigama 30 Wool 122,470 20, ,000 handlooms village Mawanella Pattagama 12 Clay industry 510,310 20, ,000 Kilinochchi Kaddawalai In the Divisional Secretariat Kurunegala Panduwasnuwara Rambepitiya Mangulagama Alawwa Ihala Kalalpitiya 30 Plamyrah leaf base Productions 30 Cane based handicraft 30 Plamyrah leaf base Productions 326,600 20, , ,450 20, , ,120 20, ,000 Mallawapitiya Koralegedera 18 Manufacture of 102,060 20,000 80,000 Drums Narammala Rukmale 16 Clay industry 704,230 20, ,000 Galle Baddegama Ginimellagaha 25 Bamboo, eakle 20, , ,700 & cane based handicrafts Trincommalee Thampalagamam Paththinipura 25 Plamyrah leaf 275,050 20, ,000 base handicrafts Werugal In the 30 Plamyrah leaf 153,100 20, ,000 Divisional Secretariat base Productions Puttalam Arachchikattuwa - 10 Clay industry 428,660 20, ,000 Baticaloa Koralaipattu Kirana 30 Plamyrah leaf 224,500 20, ,000 base handicrafts Monaragala Medagama Koongolla 15 Cane based 530,700 20, ,000 handicraft Jaffna Kopai Nirweli 25 Banana fibre based productions 469,450 20, ,000 Ratnapura Opanayaka Midelgoda Waraketiya 25 Coconut shell based handicrafts 403,150 20, ,000 Hambantota Beliatta Kosgahagoda 50 Coir based 199,000 20, ,000 handicrafts Total 416 5,939, ,000 5,480,000 17

18 No. of beneficiaries Ministry of Rural Economic Affairs > Progress Report Development of Pottery Villages This project has been implemented with the objective of encouraging industialists engaged in rural pottery industry to produce quality goods with the use of new technology, to produce goods with market potential, developing their skills and introducing modern equipment. Financial provisions amounting to Rs.5 mn was made available in 2016 for this purpose.this project was implemented in selected Divisional Secretariat Divisions within the districts of Anuradhapura, Kegalle, Matara and Kalutara, the details of which are as follows. 1 District Divisional Secretariat Dlivision Village/Villages where project is implemented Thirappane Pandithrembewa 35 Higher technical training (Rs.) Provisions of equipment (Rs.) Total Allocation (Rs.) 910, , Thambuththegama Mehiellawagama , , Anuradhapura Mihinthale Katlupotha 25 60, , , Nochchiyagama Kanduwewa , , Kebithigollewa Kurulugama 175, , Sub total , ,942, ,003, Mahawa Heenuggala 40 40, , , Kurunegala Ibbagamuwa Wagura/Gallindakotuwa , , Ganewatte Thiththawella 20, , Sub total 65 60, , , Badulla Haldummulla Nikapotha/Viharagala 21 20, , , Matara Sub total 21 20, , , Kirinda Puhulwella Wavulabokka 25 20, , , Sub total 25 20, , , Kalutara Kalutara Diyagama/Dodammulla 25 20, , , Sub total 25 20, , , Total , ,670, ,847,

19 Hon Minister of Rural Economic Affairs donating equipment to pottery industrialists in the Divisional Secretariat, Nochchiyagama Establishment of Handicraft Production and Marketing Village Arrangements are being made to establish handicraft production and marketing village in Kaithady area in Jaffna district under a grant from the Indian Government. This project is being implemented by the National Craft Council under the supervision of the Ministry of Rural Economic Affairs. In additon to Rs.21 mn, a grant from the Indian Government, Rs.4 mn will be invested from local fund in The relevant Memorandum of Understanding between the two countries was drafted and submitted to the Indian High Commissioner s Office with amendments of the Ministry of Foreign Affairs for approval Rural Economic Development Programme ( ) Rural Economic Development Programme has been planned with the objective of implementing rural livelihood development projects as well as rural infrastrlucture development and small enterprises development projects aimed at increasing living standard of the rural people. Accordingly such projects are to be implemented covering rural areas in all districts in the island. The Cabinet of Ministers has approved local fund of Rs.300 mn for 2016 to commence this project from August 2016 as a pilot project. The project period is This pilot project is to be implemented in Anuradhapura, Polonnaruwa and Batticaloa districts and provisions amounting to Rs.170 mn, Rs.100 mn, Rs.30 mn have been allocated to Anuradhapura, Batticaloa and Polonnaruwa districts respectively depending on the number of Divisional Secretariat Divisions belonged to those districts. Approval has been granted to implement identified projects by respective Divisional Secretariats under the supervision and guidance of District Secretaries depending on the availability of resources and requests of rural people in those districts. 19

20 Details of infrstructure and livelihood development projects approved for 2016 under this programme are as follows. District Anuradhapura Batticaloa Polonnaruwa Anuradhapura Name of Project Development of rural roads & other common facilities Drinkiing water projects, rehabilitation of agricultural roads including bridges & culverts & gravel laying of roads Drinking water projects, road development & preparing drains Culverts, development of rural roads, preparing drains Provisions allocated (Rs.mn) Location of Project Infrastructure Development Nochchiyagama, Manupa, Mahawilachchiya Rambawa Establishment of 03milk collecting centres 30 Distribution of 250 dairy cows among farmers Supply of maize seeds to 5,000 farmers for cultivation of 5,000 acres of maize Supply of tools including fishing nets to 1,000 fishermen engaged in fishing in main tanks Provide mobile sale facilities to 150 persons those engaged in adhoc trading near main roads Other D. S. Divisions except D. S. Divisions referred to above All D. S. Divisions All D. S. Divisions Livelihood Development Projects Nochchiyagama, Manupa, Mahawilachchiya Mahawilachchiya Nochchiyagama Manupa, Rambewa, Nachchidoowa, Galenbindunuwewa, Horowpathana, Kahatagasdigiliya, Thirappane & Palugaswewa Ipalogama, Kebithigollewa, Galnewa, Padawiya, Galenbindunuwewa, Palagala, Mihinthale Rajanganaya, Thalawa, Horowpathana D. S. Divisions where main roads are located Progress Rural road development activities commenced in parallel to Road Week. Restoration of Nochchiyagama wewa road in Nocdhchiyagama D.S. Division has been commenced. Action has been taken to get the Project estimate approved. 37 projects have been approved. 41 projects have been approved. Locations have been identified. Initiative has been taken. Maize Seeds have been made available to farmers. Arrangements have been made to purchase required accessories. In the process of identifying beneficiaries. Quotations were called for construction of sale outlets. In the process of identifying beneficiaries. 20

21 District Batticaloa Polonnaruwa Name of Project Supply of 500 kerosene water pumps to 500 farmers cultivating aggricultural crops under special projects Supply of mini fishery tools, sewing machines and equipment for self employments For poultry farms, Agricultural eqluipment projects & selfemployment projects Provisions allocated (Rs.mn) Location of Project 25 All D. S. Divisions All D. S. Divisions 15.9 Thamankaduwa, Dimbulagala, Welikanda, Hingurakgoda, Elahera, Medirigiriya Progress Quotations were called through public news paper press notices. In the process of identifying beneficiaries. 64 projects have been identified and provision given to the District Secretary. 14 projects have been identified and provision given to the District Secretary. Hon. Minister is distributing maize seeds to farmers in Galenbidunuwewa, Thirappane & Nochchiyagama Divisional Secretariat Divisions Hon. Deputy Minister of Rural Economic Affairs is opening the Palainagar Road Commissioning Drinking Water Project at Arfa Nagar to the Community by Hon. Deputy Minister of Rural Economic Affairs 21

22 1.7. Progress of implementing Budget Proposals 2016 by the Development & Planning Division Establishment of Cold Storage Facilities The proposals established under Budget Proposals 2016 envisaged establishment of 05 cold stores under private sector management for storing of vegetables and fruits in close proximity to Dedicated Economic Centres at Nuwaraeliya, Dambulla, Embilipitiya, Keppetipola and Thambuththegama. The objective is to maintain the stability of market price and to minimize post harvest lossess. Accordingly, approval of the Cabinet of Ministers has been granted to establish 02 cold stores as a pilot project ( instead of proposed 05 cold stores) one in Dedicated Economic Centre Dambulla for selected varieties of vegetables and fruits including big onions and the other at the Dedicated Economic Centre, Keppetipola for selected varieties of vegetables and fruits including potatoes. Cabinet approval has been received to transfer a land of 01 acre 0 rood and perches in extent, owned by the Urban Development Authority and located near Dedicated Economic Centre, Dambulla to the Ministry of Rural Economic Affairs to construct the cold store while one acre land available in the premises of Dedicated Economic Centre, Keppetipola is to be used for construction of the the other cold store. A detailed feasibility study was carried out by a committee consisting of experts who represent various fields in the state and private sector institutions and universities, on the establishment of cold stores. Procurement activities are now in progress for selecting a consultancy firm to construct these 02 cold stores. Constructions are to be commenced once the Consultancy Firm is selected Establishment of Dedicated Economic Centres in the Northern Province Rs.200 mn has been allocated through the Budget Proposal 2016 for construction of a Dedicated Economic Centre at Vavuniya in the Northern Province as an agro-marketing development strategy.representations were made to the Cabinet Committee on Economic Management on the difficulty of finding a suitable land near Vavuniya for construction of a Dedicated Economic Centre. Consequently, it has been proposed to construct 02 Dedicated Economic Centres in suitable locations-one at Mankulam in Mullaitivu district and the other near Vavuniya Town or as would be decided by the Ministry of Rural Economic Affairs. Cabinet approval has been granted to establish 02 Dedicated Economic Centres, one at the Mankulam town in the Mullaitivu district and the other at Mathavuvithakulam in the Vavuniya district.constructions of Dedicated Economic Centres are to be completed under 02 stages with an investment of Rs.200 mn each. At present, lands suitable for construction of these 02 Dedicated Economic Centres have been identified and necessary action is being taken to transfer the same to this Ministry. Cabinet approval has been granted on to transfer the land 22

23 located in Mathavuvithakulam, Vavuniya to this Ministry for the proposed construction of the Dedicated Economic Centre, Vavuniya. Action is being taken to effect formal transfer of this land. The Central Engineering Consultancy Bureau has been informed to submit detailed plans and estimates to the Ministry on the construction of the Dedicated Economic Centres Progress of Relevant Programmes included in the Policy Statement of Hon. Prime Minister Establishment of Fully Empowered National Agricultural Marketing Authority Co-ordination the marketing activities of agricultural products, development of the existing markets and transport & storage facilities, purchasing and storing of agricultural products at divisional and rural levels, establishment of cold storage facilities for food preservation are the main expectations of establishing the Agricultural Marketing Authority. The responsibility of the establishment of fully empowered National Agricultural Marketing Authority has been entrusted to us. A several round of discussions were held with state and private sector stakeholders involved in the agriculture marketing and production at which their views were obtained on main thrust areas i.e. the necessity of establishing this Authority its duties/functions and alternative methodologies applicable for establishing such an Authority. Accordingly, action was taken to draft the National Agricultural Marketing Authority Act under the following two alternatives having paid attention on views and proposals submitted by each stakeholder. Establishment of the National Agricultural Marketing Authority by amalgamating the Paddy Marketing Board, Dedicated Economic Centres and Department of Food Commissioners Establishment of the National Agricultural Marketing Authority as an Independent Institution which regulate duties and functions of all institutions involved in the field of agricultural marketing & production This was referred to the Cabinet Committee on Economic Management for selecting the best alternative and this matter was taken up for discussion at the Cabinet Committee on Economic Management Meeting held on 27 May It was also discussed at the Official Committee on Economic Management to receive consistency of other Ministries responsible for establishing this Authority is due to take a policy decision. 23

24 1.9. Programmes and Projects to be implemented by the Development and Planning Division in 2017 Having properly identified the needs of industrialists engaged in Kitul, traditional handicrafts, handicrafts and pottery products, it is expected to undertake development activities island-wide depending on the requirements of beneficiaries and utilizing provisions made available from local funds for Rural Economic Development Programme 2017 Under this programme it has been planned to implement livelihood development projects and infrastructure development projects in identified rural areas (except Town Councils and Municipal Councils and Pradeshiya Sabha urban limits). It is expected to invest Rs.1,100 mn in 2017 for implementing this programme in the Anuradhapura, Batticaloa, Polonnaruwa, Moneragala and Galle districts with the allocation of Rs.15 mn per one Divisional Secretariat Division. Relevant District Secretaries are responsible for supervision of the implementation of the programme. 24

25 Contribution of the Ministry towards Special Programmes and Our Achievements Rajarata Navodaya- President s Programme ( ) Agro-based Industries and Agro Economic Centre Project Among the sectors comprising the Multi Sectoral Development Programme Pibidemu Polonnaruwa, establishment of Agro-marketing Chains and an Agro-economic Sales Centre has been recommended as one of the major and primary requisites under the Rajarata Navodaya Presidential Programme. It has been agreed to provide financial facilities required for implementing the Agro-based Industries and Agro Economic Centre Project under the complimentary financial facilities of the Chinese Government. The Ministry of Rural Economic Affairs works in coordination with the Sinohydro Corporation Limited of China in the implementation of this project. Accordingly, the following sub projects have been identified by the Ministry of Rural Economic Affairs and the relevant stakeholders. Establishment of the Agro-Economic Centre at Kaduruwela Improvements to 15 Weekly Fairs in the Districts of Polonnaruwa and Anuradhapura Renovation of the Dedicated Economic Centre at Thambuttegama Establishment of 07 Paddy Stores each with 3,000 mt capacity in the District of Polonnaruwa Establishment of Rice Mill with a daily capacity of 100 mt and a Paddy store with a capacity of 10,000 mt at Oyamaduwa in the Anuradhapura District Establishment of new Dairy Farms at the locations of Polonnaruwa, Welikanda, Kandekaduwa, Thrikonamaduwa, Oyamaduwa and Paragasanvewa, belonging to the National Livestock Development Board, and development of infrastructure facilities at the Mahaweli Livestock Farm at Thambuttegama and at the Animal Husbandry Training School at Seeppukulama, belonging to the Department of Animal Production and Health. Having considered the proposals submitted by the Ministry of Rural Economic Affairs and the relevant stakeholders, the Sinohydro Corporation Limited has submitted feasibility study and environmental clearance reports of the above project. Approval of the Cabinet of Ministers has been granted on 25 October 2016 to enable for speedy commencement and accomplishment of the project during the period Accordingly, the Supply Contract Agreement with the 25

26 approval of the Attorney General s Department was signed on 17 November 2016 for awarding this contract to Sinohydro Corporation Limited of China at a sum of US$ mn. An Event of Signing Supply Contract Agreement of the Project by Sinohydro Corporation Limited of China and the Ministry of Rural Economic Affairs Establishment of Farm IQ Database The Ministry of Primary Industries of the Government of New Zealand and our Ministry has basically agreed on for the establishment of Farm IQ database for collection and updating of important data and information relating to dairy farming in Sri Lanka. Accordingly, it is expected to adhere to networking of data and information relating to milk production in all dairy farms in the island, animal health, breeding and animal feed. The pre-pilot project on the same is due to commence from end of November Partnership Agreement for Excellent Training Approach on Local Milk Production Partnership Agreement for excellent training approach on local milk production was signed during visit to Sri Lanka by the Prime Minister of New Zealand and the Ministry of Foreign Affairs and Trade of the Government of New Zealand and the Ministry of Rural Economic Affairs of the Government of Sri Lanka were present as stakeholders to the Agreement. Under this, the Government of New Zealand agreed to provide its contribution for enhancing the quality and the capacity of extension services to be provided to dairy farmers by the Department of Animal Production and Health. 26

27 Formulating New Acts and Amending the Acts Drafting a Bill on Animal Welfare A draft of new Bill, in place of Animals Act of 1907 on Prevention of Cruelty of Animals has been formulated and submitted to the Department of Legal Draftsmen for necessary amendments. Amending Animals Act No. 29 of 1958 Based on the Concept Paper, Animals Act No. 29 of 1958 has been submitted to the Department of Legal Draftsmen for required amendments to implement and enforce the existing regulations maid under thee said Act to ensure their welfare and protection. Amending the Animal Feed Act No. 15 of 1986 Animal Feed (Amended) Act No. 15 of 2016 has been gazetted by making amendments to the Animal Feed Act No. 15 of Official Mission Mobile Service Polonnaruwa District (July 2016) Contribution made by our Ministry and institutions operating under its purview for implementing various programmes under official Mission Mobile Service with the objective of providing necessary input and technological knowledge for empowering farmers engaged in livestock sector in Polonnaruwa district are given below briefly. National Livestock Development Board Providing 1,170 village chicks to 117 farmers Department of Animal Production and Health, North Central Province Issuing of 30 Female Goats to 15 beneficiary farms Milco (Private)Limited Supply of 42 heifer calves of high breed to 42 beneficiary dairy farms under 50% beneficiary contribution Supply of 170 aluminum milk cans each with 5 litre capacity to 170 farmers Supply of Identity Cards to the Dairy Farmers Establishment of 500 litre capacity mini milk coolers at Dehiattakandiya and katuwanwila 27

28 2. Department of Animal Production and Health 2.1. Introduction The Department of Animal Production and Health established in 1978, is the main State Institution responsible for Livestock Development in Sri Lanka. This is also the national institution holding legal authority for conducting research and development activities in the livestock sector, aimed at prevention and control of animal diseases, provision of technical leadership, expertise and back-up services on animal production and health. Furthermore, training of trainers, formulation of projects for enhancing livestock development, economic evaluation and implementing special development programmes are among the main development activities undertaken by the Department in the whole island. With the establishment of Provincial Councils, field level activities of the Department of Animal Production and Health were entrusted to nine (09) Provincial Departments of Animal Production and Health. The Department of Animal Production and Health is contributing immensely towards the development of livestock industry by providing technical leadership, specialist medical service and other supportive services to Provincial Departments of Animal Production and Health. The veterinery offices at Peradeniya managed by veterinarians, is functioning as the focal points in the Department of Animal Production and Health.In addition 324 divisional vetarinary offices are operated in almost all the Divisional Secretariat Divisions under the respective Provincial Departments of Animal Production and Health Vision To be the Premier Organization leading the livestock sector towards socio-economic development of Sri Lanka 2.3. Mission Provide technical guidance and support to achieve sustainable development in the livestock sector by maintaining a healthy animal population and enhanced productivity ensuring food safety and contributing to food security 2.4. Thrust Areas Increasing the productivity of farm animals Enhancing health of animals being reared at farms International trading & quality assurance Improvement of research and development activities Better management in the field of livestock development 28

29 2.5. Objectives Ensure the availability of effective and efficient animal health services for prevention and eradication of animal diseases Promoting the utilization of animal gene resources at the highest possible level Promoting the utilization of quality animal feed and food resources Promoting the drvelopment and growth of animal feed industry Engaging in research and development activities for sustainable livestock development Technically empowered human resources development Effective and efficient distribution of information and ensuring the supply of technological services Planning, monitoring and evaluation of projects and programmes Ensuring the safety of animal productions Promotion of formal animal husbandry methods and facilitating for same Ensuring the welbeing and healthy rearing of animals Efficient management of departmental functions 2.6. Functions/Services Handling of the national insemination service Keeping records of animals pedigree and performance for breeding purposes Preservation of animals gene resources Enhancing the breeds of goats Implementation of the programme for rearing heifer calves Production of nutritious grass & silage and promotion the marketing of grass Implementation of the national vaccination programme for preventing animal diseases Preventing and curing of mastritis Controlling of tick fever Cattle abortion control programme Enhancing the healthiness of dairy farms Production of vaccination for controlling foot and mouth diseases Establishment of new livestock investigation centres Enhancing the testing facilities to meet the increasing demand Production of mammory infusions 29

30 Increasing laboratary facilities & infrastructure facilities of quarantine units Controlling of Salmonellosis and Raniket diseases Introduction of efficient pre-alarming system against deadly bird flu Augmentation of the identification ability of poultry diseases Increasing milk- technology- related laboratory and infrastructure facilities Increasing divisional level milk analytical facilities Providing analytical and advisory services in respect of dairy farming Implementation of the Programme for increasing the possibility of preserving milk and milk-based products Perform animal recognition activities at the field level Ensuring the sufficient availability of high quality animal feed in the market Regulaltion of livestock production Regulation of management of the poultry farming Implementation of animal quarantine activities Implementation of livestock research programmes Dissemination of information through electronic, printed and demonstrative means Model Farm Unit demonstration programme Development and maintenance of various farm units of the livestock techno-park Study of socio-economic impact of the livestock sector Formulation and distribution of statistics on livestock Establishment of veterinary offices 2.7. Progress of Programmes and Projects implemented during 2016 (Up to 30 September) Livestock Development Dairy Cattle Sector Prevention of communicable diseases of animals Existence of effective animal health services throughout the island is of utmost importance for preventing and curbing of animal diseases and for ensuring the good health of the country s animal population and fulfilling the needs of increased livestock production and productivity. The Department of Animal Production and Health in collaboration with the Provincial 30

31 Departments of Animal Production and Health is implementing vaccination programmes to prevent the spread of communicable diseases among animals. Vaccines for foot & mouth diseases, heamorrhagic seppticemia, Black Quarter and Bruscella are produced by the Livestock Research Institute. During the period under review, it has produced 118,690 vaccine doses for Heamorrhagic Seppticemia, 142,131 vaccine doses for Black Quarter and 17,000 vaccine doses for Bruscella. Thus, by September 2016, 542,507 animals were vaccinated against foot and mouth diseases and 133,691 animals against Black Quarter and 4,779 animals against Brucellosis Improvement of the breeds of animals and breeding of animals Under the main animal breeding programme, insemination is carried out using sperm of cattle of high breed for multiplication of hybrid cattle and the buffalo population to increase the local milk production. Production and distribution of sperm, training of inseminators, introduction of grass and nutritious grass varieties and training in grass clutivation are among the main activities of this programme. During this year 258,699 sperm doses have been produced at 02 insemination centres located at Kundasale and Polonnaruwa respectively while 164,084 inseminations were conducted through Divisional Veterinary Offices. In addition 48,527 womb inspections of those cows/heifers were treated by Veterinarians and 48,238 births have been recorded during the period under review Rearing of heifer calves In the implementation of insemination programme, the main problem faced by veterinarians was how to lookafter newly born heifer calves. This has to be overcome to derive the actual benefits of the programme and to increase milk production. A Subsidy payment scheme is being implemented for purchase of inputs, registration of heifer calves and to obtain technological advice with the increasing number of heifers within the country suitable for breeding for increased local milk production. During the period under review 8,752 heifer calves have been registered Establishment of a Milk Technology Laboratory attached to the Livestock Research Institution A special Laboratory has been established within the Livestock Research Institution to function as a focal point for streamlining investigation centres. Through this initiatives it is expected to assist the milk producer to increase the quality of milk and milk-based products. It will also undertake the supply of analytical and advisory services, provision of laboratory facilities and 31

32 conducting field investigations and training. During the period under review, 864 milk samples were analyzed and relevant reports were issued Mastaitis Control Programme This programme was commenced in 2014 with the objective of reducing the rate of spreading Mastitis from 30% to 1% whereby enhancing productivity upto 25%. Accordingly during the period under review 15,080 mammary infusions were produced Goat Industry Two goat breeding farms are in operation under the Department at Imbulandanda and Thelahera to meet the demand for goats of high breed. During the period under review, 289 Jamunapari Goats and 63 Goats of other improved breeds were made available to farmers engaged in Goat rearing to increase both production and productivity. In addition 2,992 artificial inseminations were carried out at field level for increasing goat population Swine Industry At the Livestock Training Centre at Kotadeniyawa a swine insemination unit is in operation where frozen sperm doses are produced. In addition, 62 artificial inseminations were done by September Poultry Industry In the poultry farming sector, the government s role has been limited only to making regulations and issuing standard certificates. In view of the possible threat of birds flu spreading, strict preventive measures are taken through quarantine offices established at Airports and Ports when importing animals belonged to parental and ancestral generations. At present 74% of the requirement of parental broiler animals are produced at 03 farms where ancestrol broiler animals are reared. Upto the month of August this year these 03 farms have produced 668,946 animals belonged to the broiler ancestral generations. In addition, 13,720 animals of broiler ancestral generations, 235,076 animals of broiler perantal generations and 97,699 animals of Layar Parental generation have been imported. Furthermore, during this period million broiler chicks and 4.25 million egg-laying hens have been produced through local breeding farms. Besides, anti-raniket vaccines are being produced by the Livestock Research Institution for distribution among smallholder poultry farmers, free of charge. During the period under review 4,925,800 Raniket vaccine doses have been produced and by September 2016, 2,606,106 animals had been vaccinated. 32

33 Improvement of Animal Health Preventing bird flu from entering into this country Sri Lanka has been in a position to stand free from bird flu wheras certain Asian countries were hard hit by this deadly disease. However, the Department of Animal Production and Health has taken appropriate measures to curb and to face up to any emergency in the event of bird flu invading this country. The Livestock Research Institution has expanded the diagnostic facilities. In addition, staff of the Department of Animal Production and Health have been trained in prevention and eradication of bird flu. Under the bird flu investigation programme 11,229 samples obtained at the field level were tested and all were pronounced disease free during the period under review Strengthening of Animal Quarantine and Testing Service The first safety measure to be adopted against any alien (foreign) animal disease entering into the country is administering the animal quarantine service. This project was launched in 2008 with the objective of subjecting imported hybrid chicks quarantine procedure and ensuring healthiness of export oriented ornamental fish farming. During the period under review, 22 batches imported day-old chicks were subjected to quarentine. In addition, 45 fish farms were also subjected to testing Human Resources Development Skill Development, Education & Training This institution implements educational/skill development programmes on practical aspects of livestock farming for the benefit of the technical staff and farmers. Accordingly, during the period under review, 11 farmer-training programmes have been conducted while 290 entrepreneurs/officers were trained. Further, 172 students have been admitted to 02 year diploma courses conducted by the Animal Husbandry Training Schools at Karandagolla and Seeppukulama Dissemination of Information The Department of Animal Production and Health has participated in 08 exhibitions/demonstration programmes conducted at the national level, the details of which are as follows: 33

34 Name of Exhibition Poison Free Country Exhibition Yovunpuraya Promotional Programme for Fresh milk consumption Farmer Training Progamme & Exhibition Farmers Conference Presidential Mobile Service Agricultural Exhibition Livestock Exhibition Venue Colombo Sigiriya Colombo Seeppukulama Ampara Polonnaruwa Nuwaraeliya Homagama Knowledge of technology was imparted to school children and the general public who are interested in livestock farming and to small and middle level entrepreneurs who are already engaged in livestock farming. 25,144 booklets containing such information were issued during this period and 108 publicity programmes were broadcasted Legal Functions and Services Registration of Poultry Farms Registration of Poultry farms through the Divisional Veterinary Offices was carried out in 2016 and it has been helpful in controlling the spread of communicable diseases, conducting technological supportive programmes and maintaining the quality of animal production. By the end of August 2016, the Department has been able to register 10,519 livestock farms through the Divisional Veterinary Offices. It was posible to establish electronic data system too Identification of Animals and Establishment of a Central Data System Under this project, the field project officers inspect the registered farms and mark ears of animals reared in them. Upto date, ear-marks have been placed on to 89,843 animals. The remaining animal population and their kids are to be identified. This animal identification programme is helpful in maintaining accurate data on animal population being reared in livestock farms of the country, preventing illegal transportation and killing of animals, forecasting of dairy production and removal of unproductive animals Improvement of Service Delivery Systems of Veterinary Offices of the Government The Department of Animal Production and Health has been established to fulfill the needs of those engaged in animal husbandry at the field level. The principal active units functiong under this Department are the Veterinary offices connected to the network islandwide. Service delivery at the ground level depends mainly on the nature of facilities available at those offices. Therefore, facilities for diagnosis, extension service, communication and travelling are being provided at minimum level to the field staff in those offices. 34

35 Construction of 04 veterinary offices at Nachchaduwa, Soranathota, Welioya and Arachchikattuwa which commenced in 2014 had been completed by the end of September Construction of Deraniyagala, Trincomallee and Lunugamvehera Veterinary offices commenced in 2016 and 32 percent of their construction have been completed. Veterinary office at Nachchaduwa Veterinary Office at Welioya 2.8. Financial Progress of Programmes and Projects Implemented in 2016 (upto 30 September) Programme/Project Financial Provisions 2016 (Rs.mn) Financial Progress 2016 (Rs.mn)) Socio Economic Development Programme Quality Control Programme Control of Contagious Diseases Livestock Health Improvement Programme Implementation of Livestock Research Livestock Breeding Project Livestock Promotional Programme Increase the Availability of High Quality Heifer Calves Improvement of Service Delivery System of Field Veterinary Offices Locally Production of Vaccines against foot & mouth diseases Animal Identification and Traceability System Expansion and Modernization of Animal Quarantine Units Establishment of Milk Technology Laboratory Establishment of Livestock Technology Park Publication of Books & Periodicals Expansion of Animal Health Surveillance Export Facilitation of Chicken Meat and Eggs through Poultry Health Management Exploring Commercial Fodder Production for Dairy Development Mastaitis Control Programme Skill Sector Development Programme Total

36 2.9. Programmes and Projects to be implemented in Livestock Development Dairy Sector Main development programmes undertaken in 2016 are to be continued in 2017 as well Identification of Animals and Establishment of Central Data System This programme undertaken in 2010 for the establishment of a Central Data Base and for identification of animals is to be continued in 2017, too. Under this project, the registered farms will be inspected by field extension officers during which animals being reared in them are marked. This activity is helpful in maintaining accurate data on animal population, prevention of illegal transporting and killing of animals, etc Availability of Heifer Calves of High Breed Under this programme, it is planned to register 19,000 heifers in Improvement of Animal Health The main activities undertaken for increasing livestock production and improving the quality of production are intensifying disease investigation and disease diagnosis and establishment of a testing laboratory network. Accordingly, it has been planned to establish 03 livestock investigation centres in the Kalutara, Galle and Mannar in Legal Activities and Services Registration of Animal Poultry Farms The programme for registration of animal and poultry farms will continue in 2017 as well. In addition, internel data collection was initiated at the divisional level to facilitate the farm registration programme Improvement of Service Providing Network of Government Livestock Veterinary Offices Under this programme, it is planned to construct 10 Divisional Veterinary Offices with official quarters. 36

37 New Development Projects Ensuring the quality of animal feed and livestock production to facilitate food preservation and export activities Local production of livestock vaccine of right quality and standard to substitute imported vaccines Island-wide programme for control and eradication of Rabies Reduction of disease communication risk among both people and animals through wildlife disease prevention 37

38 3. National Livestock Development Board 3.1. Introduction The National Livestock Development Board was established in 1973 under the Agricultural Corporation Act No.11 of Its field activities began in Vision To be the best self-sustaining organization in Sri Lanka to generate livestock and agricultural products of quality to enhance the socio-economic standard of the people 3.3. Mission To run a self-sustaining chain of Livestock and Crop-Integrated Farms in different Agro- Ecological Zones with skilled workforce 3.4. Objectives Develop livestock activities within a reasonable time period to issue required breeding animals continuously to farmers with the intention of making the country self-sufficient in livestock and dairy products Develop livestock and agricultural products using modern technology to increase the turnover and profitability of the organization Cultivate cash crops in selected farms to support the cash crop production programme in the Country Achieve optimum productivity levels in livestock and agricultural sectors Obtain maximum productivity from Livestock and Crop-Integrated Farming Systems and adopt Eco-Friendly Cultivation Practices Maintain all farm activities at the optimum level, utilizing surplus funds available coconut-based industries for viability Introduce new technology, expertise and capital with better management practices to reduce cost, improve productivity to be able to successfully compete in the market Explore possibilities of accessing new markets using better marketing strategies in order to convert farming units into profitable business entities with the participation of the private sector 38

39 3.5. Expectations In order to achieve the above objectives, the National Livestock Development Board has made arrangement to issue animals of high breed at a reasonable price to livestock farmers, Livestock Producer Societies, various Non-Governmental Organizations, Samurdhi Recipients and to ongoing Government and Private Projects. The National Livestock Development Board has implemented programmes to impart knowledge on animal husbandry to be able to maintain the farms as profitable ventures. In order to achieve this objective, cross- breeding and pure-breeding programs s u i t e d t o e a c h agroecological zone were undertaken. The livestock development sector contributes immensely to create self-employment avenues, improve living standards and nutritional levels of the people. In addition, eco-friendly land management techniques are practiced to prevent soil degradation and to increase the supply of organic matter in lands managed by the National Livestock Development Board Activities Breeding and multiplication of livestock Issuance of quality animals to farmers at a reasonable price, for breeding Maintaining coconut plantations at the optimum level to generate maximum profits Introduction of Livestock-Crop Integrated Farming System, wherever feasible Providing training and opportunities of demonstration to farmers, school children, officials involved in agriculture and especially, to the smallholders of livestock Establishment and maintenance of marketing outlets to supply quality farm products at reasonable prices Generation of value added products using raw material produced in farms to obtain a high profit margin Maintaining a sale outlet network to popularize consumption of fresh milk among the public 39

40 3.7. Contribution of the National Livestock Development Board towards development of livestock and agricultural production Farms and Training Centres owned by the National Livestock Development Board The National Livestock Development Board runs 30 farms and 02 training centres. Manikpalama, Bopaththalawa, Dayagama and Rosita farms operate in the up-country zone while Mahaberiyathenna, Karandagolla and Haragama are farms belonged to Mid-country zone. Furthermore, farms at Marandawila, Melsiripura, Beligama, Polonthalawa, Andigama, Galpokuna, Koulwewa, Narangalla, Horakele, Martin, Rukaththana, Sringapatha, Marawila, Welisara and Miriswaththa are located in the Coconut Triangle. In addition, 08 farms are in the Dry Zone. They are located at Polonnaruwa, Oyamaduwa, Parasangaswewa, Welikanda, Kottukachchiya, Weerawila, Rediyagama and Nikaweratiya. The Mid-country Livestock Development Centre and the Livestock Development Centre in the Cocount Triangle are the Training Centres operating at present owned by the National Livestock Development Board. Implementation of Livestock-Crop integrated farm project for maximum productivity.. The extent of the land area owned by the National Livestock Development Board is 12,600 hectares of which 4,164 hectares. are under coconut cultivation. Marandawila, Malsiripura, Beligama, Polonthalawa, Andigama, Galpokuna, Koulwewa, Narangalla, Horakele, Martin Estate, Rukaththana and Siringapatha are the main coconut cultivating farms. Rubber is cultivated in Beligama, Andigama and Koulwewa farms. The total extent of rubber cultivation is 45 hectares Milk marketing outlets and farm-based sale outlets operating under the National Livestock Development Board Farm-based sales centres and milk sales outlets established by the National Livestock Development Board with the aim of providing people with fresh quality milk- based products and farm products are as follows. 40

41 Farm-based outlets Head Office Sale outlet Narahenpita Polonnaruwa Narangalla Beligama Haragama Karandagolla Martin Rosita Weerawila Koulwewa Miriswatta Welisara Nikaweratiya Melsiripura Head office sales outlet - Narahenpita Sales outlets being implemented under Head office 39 Franchise Sales outlets 09 Sales outlets being run by Agents 24 Litres Expansion in Sales of Fresh Milk ( August) 700, , , , , , , August August Litre 79,489 79, , , , ,338 A considerable decrease in the sale of fresh milk in 2015 due to increase in the price of fresh milk and a downward trend in their bulk sales due to heavy rainfall in 2015 is observed. 41

42 On-going livestock and cultivation projects in farms owned by the National Livestock Develpment Board S/No. Farm Animal Species Family Crop 1. Menikpalama Cattle Jersey Friesian Cross bred 2. Dayagama Cattle Jersey 3. Bopaththalawa Cattle Jersey Friesian Cross bred 4. Rosita Cattle Friesian, Jersey, Jersey Friesian Cross bred Pigs Well grown up pigs Goats Sanan Hares Newzealand white Califonia giant 5. Maradawila Cattle Sahival Cross bred Buffaloa Mura Cross bred Coconut 6. Nikaweratiya Cattle Sahival Buffaloa Niliravi 7. Adigama Cattle Sahival. Sahival Cross bred Coconut & Rubber 8. Galpokuna Cattle Sahival Cross bred, Jersey Friesian Cross bred Coconut Village cocks 9. Kovulwewa Cattle Sahival Cross bred Coconut, Goats Sanan Rubber 10. Rukattana Cattle Sahival Cross bred Sheeps Jaffna local sheeps Coconut 11. Narangalla Cattle Sahival Cross bred Coconut 12. Mahaberiyatenna Cattle Jersey Friesian Cross bred Pigs Well grown up pigs Commercial egglaying Shever brown hens Commercial Cob 500 broiler 13. Polonnaruwa Buffaloa Mura 14. Siringapatha Cattle Sahival Cross bred Kalukum Nikalas Coconut Coconut 15. Oyamaduwa Cattle Shahival Cross bred Sheeps Cross bred 16. Melsiripura Cattle Sahival Cross bred Buffaloa Mura Cross bred Commercial egglaying Shever brown hens Commercial Cob 500 broiler animals Coconut 17. Beligama Cattle Jersey Sahival cross-bred Coconut, Rubber 42

43 S/No. Farm Animal Species Family Crop 18. Parasangaswewa Cattle Salvage animal Commercial egglaying Shever brown hens Commercial Cob500 broiler animals 19. Polonthalawa Cattle Sahival Cross bred Coconut 20. Haragama Buffaloa Mura Cross bred Commercial egglaying Shever brown hens Commercial Cob 500 broiler animals Quails Japanese Quails 21. Martin Pigs Durock, Large white,land race Coconut Coconut 22. Goats Jamnapari Sri lankan Bears Cross Kottukachchiya breeding Sheeps Cross bred 23. Ridiyagama Cattle Jersey Friesian Cross bred 24. Weerawila Buffaloa Mura Cross bred 25. Welikanda Cattle Kilari 26. Horakele Pigs Durock, Large white,land race Sheeps Cross bred 27. Welisara Pigs Durock, Large white,land race Cross bred 28. Miriswatte Broiler parent Cob 500, Indian River animals 29. Marawila egg-laying parent animals Shever brown 30. Karandagolla Broiler parent animals Cob 500, Indian River Coconut Coconut 3.8. Progress of Programs and Projects implemented during 2016 ( up to 30 September) Establishment of Curd Production Plant A large scale curd production plant was installed at Polonnaruwa farm on 30 July 2016 with the objective of providing consumers with quality and healthful curd. It is also expected to provide the consumers with other milk based by-products such as yoghurt, butter and cheese in the future through this plant. This project was established at a cost of Rs.25 mn. and its production capacity is 3,000 litres per day. 43

44 Hon. Deputy Minister of Rural Economic Affairs is inspecting the new Plant Inside view of the Plant Establishment of a Milk Toffee Production Plant A milk-toffee production plant has been established at Galpokuna farm with the objective of increasing quality of milk toffees. Through this production unit it is expected to provide consumers with quality milk toffees at a reasonable price. The investment in the project is Rs.1.2 mn. Milk Toffee Producing Plant Establishment of a Mechanized Milking Unit at Polonnaruwa Farm A mechanized milking unit has been established at the Polonnaruwa farm with the objective of providing consumers with healthy fresh milk of quality. The installation cost of the plant was Rs.10 mn and Rs.0.8 mn was invested in the construction of the relevant building. 44

45 Mechanized Milking Unit Pibidemu Polonnaruwa Project Under the District Develpment Project of the Rajarata Navodaya Programme Pibidemu Plonnaruwa, it is planned to raise 1,400 cattles at Polonnaruwa farm by To meet the food requirement of these animals two Silage Bunkers are being erected within the farm to produce Silages. The expected total investment in the project is Rs.6.5 mn. Given below are the proposed extent of land where it is expect to cultivate imported grass/nutritians grass seeds parallel to the initiation of this project. The anticipated investment is around Rs.8.0 mn. Species Anticipated extent of cultivation (in Acres) Bekeria Dikambance 100 Co3 type grass 75 Maize 200 Sorghum

46 New Silage Bunker under construction Land being prepared for cultivation of grass Erection of sheds for feeding of animals Steps have been taken to erect feeding sheds for feeding cattle at Galpokuna farms supplied with concentrated & hard food on a regular basis. Feeding of animals with nutritious food is helpful in production and improvement of breeding. The expenditure incurred on this project was Rs.0.1 mn. Food Supplying Sheds Constructed at Galpokuna Farm Modernization of Goat & Sheep Sheds The dilapidated goat and sheep sheds at Kottukachchiya and Oyamaduwa farms have been modernized by making them storied sheds. The objective is to increase nutritious and hygienic level of the animals enable supply of high breed to farmers for breeding purposes. The investment in the project is Rs.2.4 mn. 46

47 Modernized Goat Shed at Kottukachchiya Farm Modernized Sheep Shed at Oyamaduwa Farm Erection of New Pig Shed at the Horakele Farm Under the Ministry provisions for 2016, a new pig shed has been constructed by the National Livestock Development Board for breeding of piglets. The cost of the project was Rs.5.7 mn Construction of a New Shed for Fattening Pigs It has been decided to erect a pig shed at the Martin Farm for fattening of piglets obtained through cross breeding of female pigs belonged to pre parental generation, imported in Accordingly it is expected to maintain the Martin farm for breeding and rearing of pigs mainly for fattening Construction of New Pig Shed New Pigs Shed at Horakele Farm Steps have been taken to construct a new pig shed which is a long felt need, for cross breeding under the project presently being implemented at Mahaberiyatenna farm. In addition, all existing sheds for fattening pigs at the same farm have been repaired with project investment of Rs.2.6 mn. 47

48 New Pigs Shed at Mahaberiyatenna Farm Erection of Covered Structures for Poultry Farming It has been decided to construct covered structure for hens of parental generation which has been a long-felt need at the Marawila farm with space for rearing 5,000 animals at a time. Anticipated project expenditure is Rs.19.0 mn. Covered Poultry Shed under construction Construction of a New Shed for Heifers Arrangements have been made to erect a new fully equipped shed to enable rearing and growing of calves obtained from 2,500 heifers imported from Australia and presently retained at the Ridiyagama farm. Of the total project cost of Rs.11.0 mn, Rs.5.0 mn will be provided by the Ministry and Rs.6.0 mn is from the institutional funds. Besides, it is proposed to construct fully equipped two new cattle sheds in the Koulwewa and Siringapatha farms in the Coconut Triangle with Rs.10.0 mn. funding from the Institution. 48

49 New Cattle Shed at Ridiyagama Farm under construction Introducting a New Duck Rearing Project Steps have been taken to open duck rearing project for 500 ducks costing of Rs.1.3 mn at the Horakele farm to meet the current local demand for duck flesh and duck eggs Establishment of Animal Feed Production Plant It is expected to maintain higher growth in the production of milk by providing a mixed food ration to meet the nutrition requirements of calves bred from imported animals at the Ridiyagama farm. Under this project, animal feed production plant has been set up with a capacity 30 metric tons of concentrated feed per month at the Weerawila farm. Animal Feed Production Plant Established at Weerawila Farm Development of Grass Cultivation Of the cultivation target of growing 1,942 acres with grass and grain legumes during the year 2016 aimed at meeting concentrated feed requirement of dairy cows, 1,446 acres were cultivated during the period under review. The balance is expected to be cultivated during the Maha season. The excess grass production is to be preserved at the respective farms for a Silage and 49

50 Straw. The grass thus preserved is utilized for feeding animals during periods of prevailing dry weather conditions. A sum of Rs.14.5 mn has been spent on this project. Co3, Maize, & other Grass Cultivated in the Farms Introduction of Animal Species Details of farms where animal species were introduced during the year are as follows. Farm Siringapatha Roshita Melsiripura Galpokuna Rukaththana Haragama Animal species Kalukum Rabbits Ducks Village Cocks Jaffna Local sheep Japanese quails 50

51 Projects where Animal Species were introduced Other Development activities undertaken by the National Livestock Development Board Establishment of 03 bio gas units at the Mahaberiyatenna, Martin and Welisara Farms. The Central Environmental Authority has provided provisions of Rs.1.3 mn for this purpose. Erection of electric fences Through the erection of mobile electric fences it has been possible to prevent animals from entering grazing pastures in haphazard manner as well as to reduce labour costs. Steps have also been taken to protect pastures/grass lands from wild elephants and other wild animals by erecting permanent electric fences around the Dayagama and Polonnaruwa farms. The total cost of the undertaking is Rs.4.3 mn. 51

52 Construction of official quarters for employees 02 official quarters have been established with all facilities in the Ridiyagama farm at a cost of Rs.3.7 mn. Permanent Electric Fence at Polonnaruwa Farm New Official Quarters at Ridiyagama Farm Repairing of Circuit Bungalows The Mid country Livestock Development Centre and the circuit bungalows in Anuradhapura have been repaired adding modern facilities to provide accommodation for local and foreign tourists for promoting tourism. Repairing of the sales outlet at Melsiripura These repairs have been undertaken with the objective of further increasing and expanding the sales output of Malsiripura sales outlet with the investment of Rs.0.4 mn. Establishment of new vehicle parks It is expected to construct new vehicle parks in the Beligama, Koulwewa, Narangalla, Martin, Welisara and Melsiripura farms with an investment of Rs. 1.0 mn. The objective is to provide parking facilities to consumers. Development of infrastructure facilities of farms Fifteen tractors have been purchased and distributed among the farms depending on the need with the objective of increasing the efficiency of growing grass and crop cultivation development activities. The National Livestock Development Board has invested Rs mn in this project with the approval of the Ministry of Finance. 52

53 Distribution of Tractors by Hon. Minister of Rural Economic Affairs Physical Progress of the Programmes implemented during the period under review Activity Cow milk production Buffalo Milk Production Unit million litres million litres Target as at Actual value as at Percentage achieved (%) Remarks It was not possible to reach the anticipated milk production targets due to unexpected dry wheather condition prevailed during the year adversely affecting grass lands. Goat milk Production litres 11,337 7, Coconut production Nuts 16,798,802 16,967, Production of Broiler chicks Number 2,089,490 1,840, Production of egg-laying hens Number 389, , Importation of chicks of parental generation due to decrease in demand for chicks caused by reduction of prices of eggs at the end of last year. Commercial egg production Number 802, , Production of broiler chicken Number of animals Issuing of animals for breeding 62,655 27, Unfavorable weather compel to limit the number of boiler animals at the Parasangaswewa Farm, in Anuradhapura Cattle Male Number 1,781 1, Cattle - Female Buffalo - Female Number Number 1, Issuance of animals had to be limited to outside parties as the group of animals who were not up to the expected standard in comparision with the number of animals of existing breeding groups of the farms where cattle & buffaloas are reared Buffalo- Male Number Goats Number Sheeps Number Piglets Number 3,889 2,

54 Rs.mn. Ministry of Rural Economic Affairs > Progress Report Financial Progress of the Institution The Sales Income and the Net Profit of the National Livestock Development Board are as follows. Details (Jan.-Augt.) Sale Income (Rs.mn.) 1, , , , Net profit (Rs.mn.) (86.08) Total Assets of the Livestock Development Board Total Assets owned by NLDB ( ) as at 30 June as at 30 June 2016 Total Assets (Rs.mn) 3, , , , Programmes and Projects to be Implemented in Implementation of Farm Development Projects The National Livestock Development Board has concentrated on modernizing the farms at Oyamaduwa and Parasangaswewa on a development proposal submitted by the Chinese Government to develop them as prospective dairy farms with higher production capacity. Under this project it is expected to rear cows of European species with higher production potential, in cattle sheds specially built for them. It has been planned to make arrangement to supply available milk production to meet the nutrition requirements of the people in the North-Central Province. 54

55 4. Milco (Private) Limited 4.1. Vision To be the foremost nutritious food supplier in Sri Lanka 4.2. Mission To be an active partner in achieving goals in the supply of fresh milk while empowering the local dairy farmer and to follow continuous development initiatives with modern technology to provide consumers with nutritious food at a reasonable price 4.3. Thrust Areas The company operates its functions and activities under 03 main fields. Collecting milk from the local dairy farmers Producing milk products Distribute the same under the brand name of Highland Products 4.4. Objectives Supply of high quality milk and milk products Contribute to make the country self-sufficient in fresh milk Empower the local dairy farmers Ensure the sustainability and the development of local dairy industry Ensure satisfaction of those contributing to the success of the Mission 4.5. Sectoral Objectives Increase the number of self-governing dairy farmer societies up to 4,500 by the year 2020, popularize and strengthen self-governing dairy farmer society concept through registration of the same by empowering the milk collecting network Increase the daily milk production of selected 2,000 farmers up to 100 litres by 2020 Reduce the production cost of selected 2,000 dairy farmers by 5 percent by the year 2017 Ensure uninterrupted supply of Highland milk products into the market 55

56 While increasing the standard of productions upto the international level by 2016, achievement of 50% reduction of existing losses through modernization of production facilities Reaching the optimum production capacity by end of 2017 Exceed the annual trade turnover over Rs.12 billion by end of 2017 Achievement of 50% of the national requirement of milk-based products by 2020 Expanding the distribution network covering 50,000 retail outlets islandwide by end of 2016 Establishment of 600 new franchise sales outlets at schools, hospitals and other important places 4.6. Functions and Services Based on the collection, production and distribution of milk and milk-based products which are the main areas of operation of the institution, the following main functions and services are performed by the Company. Empower the dairy farmers by making them quite aware of the Self-governing Dairy Farmer Society Concept - At present nearly 2,200 self-governing dairy farmer societies are in operation island-wide of which around 60,000 famers have become members. Develop dairy farming through provision of effective extension services and facilities. Ensure safety of the local dairy farmer by introducing a higher guaranteed price for their fresh milk supplies - At present the local dairy farmer has been offered a guaranteed price of Rs.70 per litre for the supply of quality fresh milk. Continuous provision of facilities for easy marketing of fresh milk through an efficient milk collection network. 86 milk chilling centres owned by the company are in operation at present. Free transportation is available for farmers to take their fresh milk to cooling centres which costs Rs.20 mn monthly to the company. Provide financial benefits to dairy farmers and their family members on 18 important occasions identified, through the Milco Dairy Farmer Social Security Fund - Benefits to the value of Rs. 27 mn were extended to 5,602 beneficiaries during the last year. Manufacturing of 52 items of products of various flavours, varieties and sizes using eleven nutritious and healthy milk products through the company-owned milk factories at Colombo, Digana, Ambewela and Polonnaruwa. 56

57 Supply of Highland milk products at reasonable prices to consumers through sales agents appointed island-wide covering all districts Progress of Programmes and Projects implemented during 2016 (up to 30 September) Collection of milk Collection of milk during 2016 in comparision with the year 2015 has recorded a progress exceeding 6 percent while the income of the dairy farmer has increased by about 14 percent which means the income earned by dairy farmers has also gone up. In addition, the price paid to them per one litre of milk in comparison with the previous year has also been increased by about 7.3 percent. Comparative Analysis of the Progress of Monthly Milk Collection and 2016 Month Milk collection (Litre) Payment for milk (Rs.mn.) Average Price per Litre (Rs.) January 3,946,580 4,385, February 3,959,314 4,401, March 5,006,941 5,368, April 5,242,284 5,686, May 5,872,286 6,152, June 6,064,557 6,283, July 6,390,481 6,635, August 6,265,966 6,954, September 6,407,708 6,340, Total 49,156,117 52,207,655 3,079 3, Comparative Growth(%)

58 Development of Dairy Farms Development activities undertaken in the dairy farming sector are as follows. Establishment of 2 milk cooling centres in Damminna and Kebithigollewa areas by November Commencing 183 new self-governing dairy farmer societies. Establishment of 17 dairy farms with a daily production capacity of 200 litres and 17 dairy farms with a daily production capacity of 100 litres in various provinces of the island. Steps taken to motivate farmers to undertake milk production and to collect them in the evening aimed at increasing their income. For this purpose, 15 mini freezer tanks have been established in identified areas. Accordingly, at the end of the period under review the daily milk collection has swelled upto 15,800 litres. 47 calves (bulls/heifers) of high breed have been distributed among selected farmer societies and farmers for breeding purposes in order to obtain a higher milk production. Distribution of milk collection cans among 1,412 farmers. Provision of 11 grass-cutting machines to farmers. Training programmes for 140 Extension Officers conducted. 820 officers of self-governing dairy farmer societies have been trained. Training given to nearly 3,450 dairy farmers in farm management. Dairy farmer receiving a milk collecting can 58

59 Manufacturing of various Milk-based Products Details of the milk based products are as follows. Production Item January to December 2015 January to December 2016 Pasteurized milk (litre) 2,384,243 2,541,700 UHT milk (litre ) 8,403,252 8,541,470 Sterilized milk (litre ) 1,415,312 2,127,432 Yoghurt (litre ) 4,750,923 4,469,963 Curd (litre ) 441, ,447 Ice Cream (litre ) 3,515,886 4,523,621 Ghee (kg) 59,757 60,600 Cheese (kg) 12,191 15,416 Butter (kg) 603, ,978 Milk powder (kg) 3,216,055 3,343,288 Condensed milk (kg) 271, ,832 In comparison with the year 2015 an increase has been recorded in milk production during the year under review. Production Comparative growth % Pasteurized milk 6.60 Sterilized milk Curd 8.60 Ice cream Cheese Milk powder DESMI Factory Modernization Project DESMI factory modernization project which commenced through the mediation of the General Treasury with an investment of Euro 33.8 million has reached the final stage by now. Its objective is to inftroduce modern high-tech machinery and equipment for minimizing losses and breakdowns by replacing old machinery and equipment which have been used for more than 40 years and doubling the production capacity to enable the facotry to purchase the milk harvest of the dairy farmers systematically. All modernization activities of the Polonnaruwa factory have been completed and production process commenced. 99% of the modernization in Digana factory and 90% of Ambewela factory have already been completed. The entire modernization process is expected to be completed during The Waste Water Purification Plant being operated in an ineffficient manner at the Digana factory was upgraded with financial contribution of JICA at a cost of around US$ 1million. 59

60 DESMI Factory Modernization Project Establishment of a New Milk Processing Centre in Badalgama In view of the continuous long-term use of machinery and equipment at the milk processing factory, Narahenpita which is located in a highly populous area, steps have been taken to set up a new milk processing factory with modern facilities in Badalgama in the Gampaha. At the initial stage its production capacity will be 200,000 litres per day and it would be possible to increase the same upto 400,000 litres per day. As this production increase depends on engineering plans, it will not be necessary to bear an additional cost on civil engineering activities. The estimated investment of the undertaking is Euro 64 million. Financial assistance is to be provided through the Treasury mediation. Laying of foundation stone for construction was ceremonially held on 18 May Foundation Stone laying for the new factory and unveiling of Plaque by Hon Minister of Finance, Hon. Minister and Hon. Deputy Minister of Rural Economic Affairs with the participation of distinguished guests 60

61 Expansion of Marketing Network During the period under review new marketing areas were demarcated and 21 sales agents have been appointed. Further expansion in respect of the retail and franchise sales network is in progress Turnover of Sales and Profitability The sales income during the period under review of the year 2016 was Rs.6,446 million recording a twelve percent increase over that of Programmes and Projects to be implemented in Milk Collection and Dairy Farm Development Programme It has been planned to increase the normal milk collection in 2017 upto 266,000 litres through self-governing dairy farmers society network for which the following measures are to be taken. Establishment of 30 mini cooling centres for providing farmers living in rural areas with more facilities to sell their daily milk collection. The estimated cost of this project is Rs.165 mn of which a greater percentage is expected to be met from provisions available from the Ministry and outside sources of financing. It has been planned to launch 280 self governing dairy farmer societies at an estimated cost of Rs.38.0 mn which will be financed using the institutional funds. It is expected to recruit around 4,000 new members to these newly established societies and increase their income through the purchase of their milk collection. With the establishment of 40 dairy farms with a daily milk production capacity of 200 litres and 50 farms with a 100 litres production capacity per day, it is expected to provide bank loans to the respective farmers selected from various parts of the island and to provide the relevant extension services through the Extension staff of the Company. It is expected to augment the knowledge of 2,400 selected dairy farmers, in dairy farming management methods with the obejctive of increasing the milk production by 50 percent. The estimated cost of this project is Rs.1.5 mn which is to be met from the institutional funds. Furthermore, dairy farmers will be encouraged to obtain milk in the evening as well. Taking action to provide selected self-governing societies with 100 calves of high breed for breeding purposes at an estimated cost of Rs.6 mn with the institutional funds. 61

62 It is expected to educate 10,000 dairy farmers and 3,000 office bearers of the societies under one-day training programmes in the administration of self-governing societies and also 200 extension officers through training workshops. The anticipated investment in these training programmes is around Rs.16 mn Introduction of New Products and Increasing the Production Capacity It has been planned to introduce new products through research and development to suit the consumer requirements. Accordingly, with the adoption of new technology the Ambewela factory is to introduce a type of milk powder that instantly desolves in water. It is expected to increase the production capacity by 100% in Making the Marketing Process Efficient The Company has planned to achieve a trade turnover of Rs.12 billion in Accordingly it is expected to appoint new distribution agents for vacant areas and demarcating new areas by increasing the number of sales agents to 250. It is due to open 300 franchise sales outlets in

63 5. Mahaweli Livestock Enterprises Limited 5.1. Vision To be the leading producer and supplier of quality day-old chicks and broiler chicken in the local market at a fair price 5.2. Mission Quality improvement of day-old chicks and broiler chicken on par with international quality standards utilizing modern technology 5.3. Objectives Production of chicken and eggs required for human consumption aiming equilibrium in market prices and breeding of chicks Encouraging farmers in the Mahaweli System H to engage in agricultural and livestock activities increasing their earnings, creating employment opportunities and providing welfare facilities thereby 5.4. Thrust Areas Production of quality day-old broiler chicks and chicken meat 5.5. Functions Maintain mother poultry units consisting of animals imported or locally purchased Maintain a semi automatic incubator Maintain a commercial broiler unit Operate an Extension Division for co-ordination of farmers who are engaged in poultry farming in Mahaweli System H Maintain the semi automitic Processing Factory enabling production of healthy chicken and in due standards Produce of poultry feed Maintain sales outlets for marketing of company s production 63

64 5.6. Progress of Programmes and Projects implemented during 2016 ( up to 30 September) Increasing mother animal population Number of mother animals (As at ) 9,107 Number added during the period under review 8,132 Number of mother animals removed from the 1,690 group during the year under review Number of mother animals died during the year 1,052 Number of mother animals (As at ) 14, Production of Eggs Number of eggs obtained from mother animals during the period under revliew are 904,274 which represent 38 percent increase over Nos. 160,000 Production of Eggs 140, , ,000 80,000 60,000 40,000 20,000 0 Jan. Feb. Mar Apr May Jun Jul Aug Sep ,217 85, , ,911 83,026 53,170 37,633 30,433 46, ,493 91,009 84,217 71, ,453 98, , , ,

65 Production of chicks The total number of chicks bred during the period under review are 582,478. Monthly progress of breeding chicks are as follows. Increase of the production of chicks Month January 78,151 45,231 February 66,077 72,717 March 75,316 68,798 April 80,951 38,453 May 51,515 48,488 June 39,834 74,575 July 24,530 62,220 August 17,522 79,710 September 13,039 92,286 Total 440, , Production of chicken The total production of broiler chicken during the period under review is metric tons. Production of Chicken (kg) Month January 10,952 21,311 February 11,794 22,780 March 17,081 25,771 April 13,607 22,453 May 18,564 25,383 June 12,795 20,551 July 14,614 29,663 August 19,418 31,834 September 12,778 19,790 Total 131, ,536 kg Production of Chicken Jan. Feb. Mar Apr May Jun Jul Aug Sep

66 Financial progress of the institution Income and expenditure summary of the institution during the period under review are as follows. Income & Expenditure of the institution (Rs.mn.) Month Income Expenditure Profit Income Expenditure Profit January February (0.82) March April (0.87)* May (1.59) June (0.12) July (2.20) August (1.86) September (2.22) Total (2.73) *The decline in physical and financial progress in April 2016 was caused by higher temparature followed by flash floods. Rs.mn Profit (2015, 2016) Jan. Feb. Mar Apr May Jun Jul Aug Sep Profit 2016 Profit 66

67 Special Projects Rehabilitation and modernization of the farm, internal roads protective fence and the bio protection system Modernization and repairing of the building where incubators are installed Repairing of poultry sheds where old mother animals are reared Repairing of hostels and official quarters 67

68 Clearing of 10 acres of mother poultry farm & clearing of 25 acres of commercial poultry unit, Kalankuttiya Development of farmland & purchase of new tractor to meet the transport requirement. Modernization of sale outlets located in the farmland of the company and those in the Mahaweli Centre and running of them profitably 5.7. Programmes and Projects to be implemented in 2017 Name of the Project Benefits Projects funded by the Government of China Construction of 6 environmantal friendly poultry Increase the egg prodction in the farm by two-fold sheds to rear 12,000 mother animals Enlarge the building where incubators have been Doubling the production of one-day old broiler installed and installation of setters & hatcheries chicks Rearing of 30,000 commercial hens and Doubling the broiler chicken production & construction of 06 environment friendly poultry increasing the profit margin of the company sheds Modernization & construction of chicken Standardized production of market-oriented healthy processing factory, cooling units & stores chicken Establishment of waste recycling unit Adding value to waste materlial and environmental conservation Construction of a new office building Administrative affairs of the company make easier Construction of an electric fence around the farm Damages from wild elephants prevented Projects to be funded by the Organization Dragon fruit cultivation Increasing the profit of the Company & utilization of lands Banana and papaw cultivation Increasing the profit of the Company and utilization of lands 68

69 6. Sri Lanka Poultry Development (Private) Limited 6.1. Vision Enhancement of the socio-economic standards of the rural people through efficient management of the entity as a leading poultry farm development institution in Sri Lanka 6.2. Mission Management of the limited resources available at the optimum level to achieve sustainable development by replication of rural level poultry resources 6.3. Thrust Areas Coordination of farmers in the private sector with state institutions and the relevant Ministries Continuous breeding activities related to layer and broiler production in poultry farming. Making available farm production to consumers at reasonable price through sale outlets of the institute Encouraging production of facilities within the farm itself the entire requirement of poultry feed and warehouse Eggs and chicken production required for nutritional enhancement of the rural people at fair prices Distribution of the requirement of chicks among smallholder poultry farms Proper maintenance of coconut cultivation within the farm for generation of income and using the same for poultry farm development Taking action to gain maximum economic productivity by expanding the cultivation of cash crops and supplementary crops within the farms 69

70 6.4. Objectives Identify other projects associated with the development of poultry industry and apply technological knowledge required for same Obtain human resources and financial provisions required for development of poultry industry Identify producers, consumers and purchasers required for development of poultry industry and make all institutional coordination including food and drugs required for that industry Work in collaboration with the state poultry breeding farms Mobilization and empowerment of Community-based organizations island-wide dealing with poultry farming Organic fertilizer production 6.5. Functions Ensure availability of quality day old chicks to farmers Supply of eggs and chicken at competitive price to consumers through institution s sales outlets and increase nutritional position Provide practical and theoritical training on poultry farming to all those interested in poultry industry including the students of the country studing in primary and secondry education Sale of planting material and organic fertilizer required for cultivation Attend to welfare of employees in the institution 70

71 6.6. Progress of Programmes & Projects implemented during 2016 (upto 30 September) Broiler breeding activities Given below are the increases of broiler bred chicks during the period under review. Batch Age of the birds (weeks) Number of Birds Male Female For breeding purposes Quantity of Eggs For Rejected sale Total 1 Batch /01(03) Jan , Feb ,918 24,438 5, ,119 March ,787 37,696 4, ,972 April ,644 33,470 2, ,755 May ,601 31,764 2, ,125 June ,565 28,935 2, ,191 July ,510 27,818 1, ,781 Aug ,467 26,536 1, ,067 Sep ,428 25,400 1, ,754 Total 236,057 20,656 1, ,014 2 Batch / ,905 3 Batch / ,627 Progress of bred chicks Month Age(weeks) Total number of eggs Hatchable eggs Total chicks Batch January ,609 26,082-8,802 14,278-7,307 13,587 - Feb ,352 19,551 1,404 8,195 9,894 1,050 6,145 8, March ,024 19,162 30, ,555 26, ,753 24,282 April 40 16,608 33,683 11,618 28,258 7,378 19,487 May 45 2,577 38,062 1,580 29,886 1,065 22,616 June 49 28,605 23,207 16,441 July 54 32,932 26,161 17,703 Aug ,807 15,569 12,715 Sep ,804 21,041 16,792 71

72 Progress of Commercial Layer Unit Summary of the progress achieved by Commercial Layer Unit during the period under review are as follows. Age of the No.of the Cumulative Total egg Batch Birds (weeks) Birds Mortality production 2014/ , , / , , / , , / , / , / , Total 8,967 2,175 1,004, Progress of Commercial Broiler Unit Progress of Broiler Unit achieved during the period under review is as follows. Batch No. Details of birds received Details on sold birds Mortality % Food Conversion Live Weight Date No. of Animals Date No. of Animals Ratio (%) (kg) 2016/ , , , / , , / , , / , , / , , , / , , , / , Ruminants Population Sheep Herd Ram Ewe Ram Hogget Ewe Hogget Ram Lamb Ewe Lamb Total

73 Coconut & Copra Production Coconut Production Monthly progress of coconut production during the period under review is as follows. Month Jan. Feb. March April May June July Aug. Sep. Total Coconut 15,574 35,963 5,850 57,935 52,485 41,398 25,763 56,759 10, ,853 Production Copra Production Production Group Production (k.g.) 2015/ / /02 1, / Details on Copra sale (kg) 01 grade 02 Grade 03 Grade Total 660 1,140 1,180 2, Modernization of infrastructure facilities 80 percent of the rehabilitation work of old Animal Feed Mixture in the farm has been completed. The animal slaughter house not in usable condition has been converted into an official quarters at a cost of Rs.1.5 mn. 25 percent of the machine rehabilitation work of broiler animal breeding centre has been completed Obtain mother animals and layer animals for breeding At the end of the period under review, 3,000 broiler mother animals have been obtained reaching the target. 4,580 animals have been obtained for commercial layer Divisions by exceeding the target of 4,500 animals Financial Progress of the Institution during the period under review (Rs.mn) Details Jan. Feb. Mar. April May June July Aug. Sep. Total Sales Income Cost of Sales Net Profit Other Expenditure Net Profit/Loss (1.14) (0.54) (0.47) 0.80 (0.31)

74 6.8. Programmes and Projects to be implemented in 2017 Launching operational activities of the modernized animal feed production plant Its objective is to produce the required quantity of animal feed within the farm itself in due standard whereby minimizing cost on animal feed. Purchase of broiler mother animals and commercial layer animals for breeding purposes It is planned in 2017 to purchase 6 groups of broiler mother animals consisting 1,500 animals per each group in every two months and 6 batches of hen chicks for commercial layer animal division with the objective of increasing existing production level of the farm. Rehabilitation of machines in dilapidated condition in the incubating house aiming increased production Measures will be taken to provide quality chicks giving priority to small-scale farmers who rear broiler animals with ultimate objective of increasing production for marketing purposes. Cultivation of Coconut It is planned to cultivate 1,800 coconut plants covering an extent of 50 acres of land area. Thilapiya Fish Farming Programme It is planned to commence Thilapiya fish farming using the small tank available within the farm. Accordingly, it is expected to rear 10,000 fish within first 03 months period in Development of infrastructure facilities Measure are to be taken to develop infrastructure facilities with the objective of increasing productivity. Increasing sheep population Initially it is expected to increase the animal population up to 400 animals. 74

75 7. Paddy Marketing Board 7.1. Vision To be the premier national institution of purchasing and handling agricultural products 7.2. Mission Implementing a market mechanism which leads to satisfy both agricultural manufacturer and the consumer 7.3. Thrust Areas Maintaining the stability of prices of paddy and other major cereals Maintaining the quality of rice and cereals of high standard Encouraging the producer, processor and trader to make products of high quality to the market Efficient and effective utilization of resources Facilitating the consumer to purchase rice and cereals at affordable prices Ensuring food security for Sri Lankans 7.4. Objectives Running of business ventures of purchasing, selling, supplying and distributing cereals Encourage to increase the quality of cereals Processing and distribution of cereals for consumption Maintaining a buffer stock of food in order to ensure food security in complying with the needs of the government Taking measures to make cereals of high quality available to the consumers at affordable prices Taking steps to enhance the quality of life of farmers by ensuring a certified price for their products The Paddy Marketing Board has been established by a Parliamentary Act No.14 of Arrangements were being made to liquidate this institution during the period from 2000 to However operational activities of the Board recommenced from 01 December

76 7.5. Services The objective of the government in re-establishing the Paddy Marketing Board was to suggest a certified price to rice producing farmers in order for them to maintain a steady income and creating a stable market in which consumers can purchase rice at affordable prices. Carrying on business activities of purchasing paddy and selling and making available of rice Carrying on business activities of paddy milling, polishing and processing 7.6. Progress of Programmes and Projects implemented during 2016 ( up to 30 September) National Paddy Purchasing Programme The total extent of paddy cultivation in 2015/16 Maha Season was around 791,369 hectares and the anticipated paddy production was 2.98 million metric tons. Out of which, it had been planned to purchase 160,000 metric tons of paddy by the Paddy Marketing Board. Accordingly, a total of 131,981.7 metric tons of paddy has been purchased in 2015/16 Maha season by the Paddy Marketing Board. The extent of paddy cultivation druing 2016 Yala Season was 392,336 hectares and the anticipated production is million metric tons. Of this quantity, it has been planned to purchase 120,000 metric tons of paddy by the Paddy Marketing Board. The total quantity of paddy purchased in 2016 Yala season was 25,438 metric tons. Farmers sold their paddy directly to the Paddy Marketing Board along with the information sheet certified by the respective Agricultural Research and Production Assistant. The Paddy Marketing Board purchased paddy from farmers subject to the maximum recommended limit of 2,000 kg from one farmer. The standard of the paddy purchased by the Paddy Marketing Board Moisture (Max)14% Waster matter (Max) 1% Mixture of Variety (Max) 6% Empty paddy (of volume) 9% (Max) Should be devoid of discolored grains Should be devoid of grains damaged by insects and insect eggs and other instances of insects 76

77 Paddy Purchasing Stock of paddy purchased by the Paddy Marketing Board in previous seasons is given below. Quantity purchased (mt) Season Maha - 38,000 70,771 3, , ,650 4, , ,981 Yala 5,722 13, ,756 75,172 10,476 94, ,266 25,438 Total 5,722 51, ,527 78, , ,026 4, , ,419 Paddy Purchases in Mt. 200, , ,000 Maha Yala 50, The guaranteed price of paddy in 2016 was Rs per one kilogram in respect of Keeri Samba and Rs per kilogram in respect of Samba and Rs per kilogram in respect of Nadu. Available Paddy Stock as at 30 September 2016 Zone Paddy Stock (mt) Keeri Samba Samba Nadu Total (mt) Polonnaruwa 2, , , , Anuradhapura , , , Southern , , , North-Western , , , Ampara 2, , , , Northern , , , Eastern , , , Veyangoda/ Walpita Total 5, , , ,

78 Investment made on the National Paddy Purchasing Programme The Paddy Marketing Board obtained the funds required for implementing paddy purchasing programme from the State banks in the form of loans. Investment made in 2016 Institution Amount (Rs.mn) Bank of Ceylon (2015/2016 Maha, 2016 Yala) 4,100.0 People s Bank (2015/2016 Maha, 2016 Yala) 2,698.2 Total 6,798.2 Loans and Advances payable by the Paddy Marketing Board (as at ) Institution Amount (Rs.mn.) General Treasury 8,895.0 Bank of Ceylon 9,957.8 Peoples Bank 4,945.4 Total 23, Income earned through Sale of Paddy Income earned through paddy sales during the period under review are as follows. Details Quantity(mt) Amount (Rs.mn) Providing paddy for animal feed 88, , Providing paddy for rice-based 2, productions Sale of paddy on cash 130, ,617.2 Total 222, , Grants to the World Food Programme 3, metric tons of rice was made available as grants during the period under review Modernization of Stores and New Constructions During the period under review arrangements were made to increase the number of paddy stores owned by the Paddy Marketing Board and to expand their capacities. 78

79 Expansion of the number of stores and capacities Year Number of stores Store Capacity (mt) , , , , , ,624 Zonal wise capacities of Paddy Marketing Board owned stores as at 30 September 2016 are given below. Location Number of Stores Capacity (mt) Zone Polonnaruwa 27 46,737 Anuradhapura 40 44,475 Ampara 39 46,462 North Western 24 26,000 Western 22 14,300 Southern 27 33,400 Northern 19 13,250 District Colombo 01 5,000 Gampaha 03 17,000 Total ,624 Construction of new stores in 2016 Store Capacity (mt) Estimated Amount (Rs.mn.) Amount paid (Rs.mn.) Thissamaharama 5, Nochchiyagama 3,

80 Store Modernization & Renovation Activities Store Capacity (mt) Modernizations completed Amount invested (Rs.mn.) Palam Kadaura Kachchigalara 3, Ethimale 1, Pahalahalmillawa 1, Medagama 1, Weerawila 2, Regional Office- Northern 0.14 Regional Office- Southern 0.49 Circuit Bungalow - Hasalaka 0.47 Horowpathana 1, Thalpotha 02 2, Weppakulam 3, Kebithigollewa 1, Senanayaka 2, Muthukandiya 1, Pallemalala 1, Wijayabapura 1, th mile post Aranaganwila 1, Total 9.14 Modernizations in Progress Senanayaka 02,03 1, Nedunkarni 1, Park Road - Vavuniya 1, Pahalahalmillewa 1, Medawachchiya 5, Handungamuwa 1, Regional Office-Polonnaruwa 0.12 Yodakandiya 2, Circuit Bangalow-Monaragala 0.40 Hingurakgoda ,000 - Jayanthipura ,045 - Hingurakgoda ,045 - Hingurakgoda Hingurakgoda- 07 1,000 - Kusumpokuna 1,560 - Wijayapura 1,045 - Medirigiriya 1,358-80

81 Store Capacity (mt) Amount invested (Rs.mn.) Ampara 01 1, Palamkandaura 01 1, Palamkandaura 02 1, Weeragoda 01 1, Weeragoda 02 1, Medayaya 1, Komariya 01 1, Komariya 02 1, Akkaraipaththu 2,000 - Ampara 02 1,000 - Samanthurai Office - Samanthurai 01,02 1,040 - Quarters - Meetotamulla 5,000 - Edagala Welikanda 1, Galgamuwa (Kiyanam) 1, Padawiya 1, Swarnjayanthipura 1, Moraketiya 1, Srawasthipura 3, Pahalahalmillewa 1, Regional Office - Ampara 0.25 Thissamaharama New Office 0.97 Thabbowa 1, Pallewaththa 02 1, Pallewaththa 03 1, Total Computerizing of Stock Control In 2016, Rs.10.0 mn has been allocated for computerizing the stock control system. The stock control systems of North-Western and Ampara Zones have already been computerized and it has been planned to computerize stock control system of other zones depending on its success Purchase of Equipment Under this, Rs.117 mn was allocated for purchase of pallets, weigh bridges, ground scales, moisture meters and office equipment & furniture.office equipment to the Head Office and Regional Offices have been purchased at a cost of Rs.3.8 mn. Arrangements have been made to invite bids for other purchasing. 81

82 7.7. Programmes and Projects to be implemented during 2017 The anticipated provisions for construction of new paddy stores and modernization of the Paddy Marketing Board owned paddy stores to boost the national paddy purchasing programme are as follows Construction of new Paddy Stores Construction of new paddy stores District Anticipated provision (Rs.mn) Anuradhapura-Nochchiyagama 30.0 Hambantota-Weerawila 30.0 Batticaloa-Walachchena 30.0 Total Modernization of existing Paddy Stores It is expected to undetake major and midium scale modernizations covering seven Zones of the Paddy Marketing Board Major Repairs Major Repairs S/No. District Location of stores 1 Badulla Medayaya 2 Kurunegala Galgamuwa 3 Kandy Morayaya 4 Moneragala Medagama 5 Ratnapura Kaltota, Kuttigala Investment per one store amounted to Rs.20.0 mn Medium Scale Repairs The Paddy Marketing Board has identified stores on which repairs to be undertaken and the investment expected in this regard is Rs.300 mn. Accordingly it has been planned to undertake the repairing of 05 stores per each zone covering 07 Zones totaling the 35 stores Purchase of Equipment It is expected to purchase a total of 15,000 pallets during Computerizing of Stock Control System Computer networking is to be undertaken in Ampara and North-Western Zones and it is expected to undertake computer networking on the remaining 05 Zones depending on successfulness of the previous undertaking followed by monitoring. 82

83 8. Dedicated Economic Centres 8.1. Vision To transform Sri Lanka into a country with higher standard of living in Asia by uplifting the living standards of both Sri Lankan consumers and producers 8.2. Mission Supply of high quality products enabling to receive a higher rate for the producers and at an affordable rate to consumers 8.3. Thrust Areas Establishment of bulk/retail trade centres for promoting fair trading through creation of competitive marketing environment 8.4. Objectives Provision of reasonable prices for producers by creating a specific market for each product Facilitating the consumers to purchase food items at low prices Providing the opportunity for wholesale traders to purchase fresh fruits and vegetables directly from producers Encouraging traders by involving in a competitive trade environment 8.5. Functions Collection and distribution of fresh crops of high quality specially collection of crops on regional diversification Wholesale and retail trade Minimizing the involvement of middlemen in the distribution network from the producer to the consumer Facilitating the consumer to purchase all their requirements under one roof Assisting to maintain the stability of prices in a competitive trade environment All co-ordination and operational activities with all Dedicated Economic Centres are handled by Development and Planning Division of the Ministry of Rural Economic Affairs. 13 Dediacted Economic Centres are presently in operation and two more Dedicated Economic Centres are to be opened in Ampara & Kilinochchi Districts. 83

84 There are three types of Dedicated Economic Centres. Centres targeting Agro Products Centres targeting on the distribution of agro products and essential items of food on wholesale/retail basis Retail sales centres, focusing on urban areas All Dedicated Economic Centres are operating under direct supervision of the Ministry and each centre is managed by a Management Trust chaired by the District Secretary while relevant Divisional Secretary functions as its Secretary. Province Western Central Uwa North Central Sabaragamuwa Eastern Nothern Centres targeting agricultural products Nuwaraeliya Dambulla Kuruduwatta Kandehandiya Keppetipola Thambuttegama Embilipitiya Location of Dedicated Economic Centres Distribution Centres (wholesale/retail) Welisara Meegoda Veyangoda Ratmalana Retail distribution centres at urban areas Narahenpita Piliyandala Centres due to open Ampara Kilinochchi Trade Premises of Dedicated Economic Centres Dedicated Date Number of premises Economic Centre Opened Retail shops Stores Dambulla Nuwaraeliya Keppetipola Thambuttegama Embilipitiya Meegoda Welisara Veyangoda Narahenpita Ratmalana Piliyandala Kandehandiya Kurunduwatte Kilinochchi To be 40 Ampara opened 24 84

85 8.6. Progress of Programs and Projects implemented during 2016 ( up to 30 September) Modernization of Dedicated Economic Centres Provisions amounting to Rs.50 mn have been made available from local funds in 2016 for modernization of Dedicated Economic Centres. Project Construction of safety wall of Dedicated Economic Centre, Keppetipola Laying of interlocks in the vehicle park of the Dedicated Economic Centre, Thambuttegama Modernization of roof of the building of Dedicated Economic Centre, Welisara Construction of safety wall of Dedicated Economic Centre, Veyangoda Modernization of toilet system of Dedicated Economic Centre, Kurunduwatta Development of infrastructure facilities of Dedicated Economic Centre, Kilinochchi Construction of safety fence of Dedicated Economic Centre, Ampara Amount allocated (Rs.mn.) Physical progress 5.04 Constructio ns have been completed 3.07 Relevant undertaking has been completed 6.0 Relevant undertaking has been completed 4.06 Estimates have been prepared 0.41 Completed Developmen t activities are in progress (20%) 1.4 Approval has been granted Total Financial progress (Rs.mn.) Remarks 4.4 Provisions were made available to District Secretary, Badulla Provisions were made available to District Secretary, Anuradhapura Provisions were made available to District Secretary, Gampaha 0.41 Provisions were made available to District Secretary, Kilinochchi Provisions were made available to District Secretary, Ampara 85

86 Activities undertaken for the development of the Dedicated Economic Centres in 2016 Revision of Management Trusts for streamlining of administration of Dedicated Economic Centres and registration of suppliers in respect of maintenance of Dedicated Economic Centres District Secretary of the respective district has been appointed as Chairman of the Management Trust of Dedicated Economic Centres. Composition of Management Trust existed in 2015 has been revised and new members appointed as applicable to each Dedicated Economic Centre. In addition, an officer representing the Ministry and a representative of the Minister in charge of the subject has been appointed. Preparation of Management Trust Deeds Management Trust Deeds are being prepared in respect of all the Dedicated Economic Centres in terms of the revision of Management Trusts. Preparation of a Procedural Code Procedural Code has been prepared in respect of all Dedicated Economic Centres. All instructions relating to approved cadre of Dedicated Economic Centres making recruitments, placing on salary steps and preparation of duty lists are included in it. Obtaining assessed value of the Government for Dedicated Economic Centres Government s assessed value was called in respect of all Dedicated Economic Centres. Accordingly valuation reports had been received in respect of Dedicated Economic Centres of Kandehandiya, Narahenpita (store complex), Kurunduwatta, Meegoda, Kilinochchi, Ampara, Welisara & Thambutthegama by the end of the period under review. Accordingly action has been taken to revise monthly rent in respect of all business premises of these Economic Centres. Establishment of ownership of land of Dedicated Economic Centre Ownership of lands of Dedicated Economic Centres established in Narahenpita and Thambuththegama has been acquired by the Ministry and action is being taken to acquire ownership of lands in respect of other Dedicated Economic Centres. Leasing of non-used business premises Procurements have been made to lease/rent out non-used business premises of presently operating Dedicated Economic Centres and new premises of Dedicated Economic Centres (Kilinochchi/Ampara) due to be opened in the near future. 86

87 Implementation of Development Activities of Dedicated Economic Centres utilizing provisions of the Trust Fund Dedicated Economic Centre Development Activities Estimated Cost (Rs.) Physical Progress (%)) Financial Progress (Rs.) Keppetipola Main Canteen 2,885, ,361, Thambuththegama 1Development of drain system 24, , Painting security hut 24, , Construction of two gully 207, , pits Nuwaraeliya 1Construction of ceiling of 997, , building D 2. Providing water supply to 301, , all business premises in the centre 3. Repairing & Tarring of 200, vehicle path way of the premises of the centre 4.Fixing of 4 name boards 120, within the city limits at the access of 4 main roads to Nuwaraeliya 5. Increasing CCTV Camera 517, , system by 11 more cameras 6.Repairing of electric circuit 109, , of 4 buildings of the Centre Ratmalana 1.Repairing of electric system 86, , Repairing of the office 380, Repairing of the roof 1,409, ,268, Welisara 1 Install ABC on portion of 869, , the premises not carpeted 2.Fixing water meters to all 543, , business premises 3. Wiring of the premises & 92, fixing Bulbs 4. Repairing female toilets 303, , Constructing underground 110, , pit to dispose of residues of chicken Piliyandala 1. Repairing of electric lamps 177, Providing electricity supply to refinery system 486, ,

88 Regularization of Accounting Activities of Dedicated Economic Centres Training has been given to Managers, Assistant Managers, Development Officers and Officers in charge of Dedicated Economic Centres in order to equip them with proper understanding of the accounting activities. Necessary instructions were issued to the Management Trust for recruitment of Account Clerks and measures to this effect have also been taken. Information relating to the submission of final accounts of Dedicated Economic Centres to the Auditor General is as follows. Dedicated Economic Centre Accounting Year Dambulla up to 2015 Nuwaraeliya up to 2015 Keppetipola up to 2012 Thambuththegama 2012 to 2015 Embilipitiya Not prepared Meegoda 2012 to 2014 Welisara 2012 to 2015 Veyangoda 2008 to2013 Narahenpita 2008 to Ratmalana 2009 to Piliyandala 2010 to 2013 Kandehandiya 2013 to 2015 Kurunduwatta 2008 to Financial Progress of the Dedicated Economic Centres Rs. mn Summary of Income and Expenditure of Dedicated Economic Centres ( 30 September 2016) Total Income (Rs mn) Total Expenditure (Rs mn) 88