International Journal of Social and Economic Research
  • Year: 2015
  • Volume: 5
  • Issue: 4

Market Orientation and Market Participation of Farmers in Awlegama, Wariyapola, Sri Lanka: Constrains and Potentials for Crop Diversification and Commercial Transformation

  • Author:
  • Gajanayaka Mudalige Pradeep Kumara1, Mallawathantrige Dilini Dayashani Perera2, Hasara Rathnesekara3, Lakshman Wasantha Galagedara4, Mohamed Ismail Mohammed Mowjood5
  • Total Page Count: 18
  • Page Number: 132 to 149

1M. Phil. Research Student, Postgraduate Institute of Agriculture University of Peradeniya Kandy, Sri Lanka

2MBA Student, Postgraduate Institute of Agriculture University of Peradeniya, Sri Lanka

3Lecturer, Department of Agricultural Economics and Business Management Faculty of Agriculture, University of Peradeniya Kandy, Sri Lanka

4Senior Lecture, Grenfell Campus Memorial University of Newfoundland Corner Brook, NL, Canada

5Senior lecture, Department of Agricultural Engineering, Faculty of Agriculture, University of Peradeniya Kandy, Sri Lanka

Online published on 8 January, 2016.

Abstract

Paddy cultivation has become uneconomical in marginal paddy lands, thus farmers have started crop diversification in marginal paddy lands. Commercial transformation of subsistence agriculture would result in sustainable food security and enhanced links between agricultural markets. Market Orientation (MO) and Market Participation (MP) are proxies for commercialization of agriculture through crop diversification. The objectives of this study were to find out the degree of crop diversification and commercial transformation in terms of MO and MP of farmers and to investigate the determinants of MO and MP by using socio-economic variables. Pre-structured questionnaire survey and focus group discussion were carried out to gather data from randomly selected 115 farmers in the study area. Data were analyzed using Software Package for Social Sciences and Microsoft Excel. Results revealed that, moderate MO and lower MP were recorded in the study area and determinants of MO and MP were varying for both cultivation seasons. Education, income and extension service are found as factors of utmost importance to enhance MO and MP. The significant effect of extension service on MP implied that a successful commercial transformation of farmers and need for strengthening of extension service to promote crop diversification and commercial transformation of paddy and other field crops among different farming communities. Proper policy planning, technological innovation, and organizational and institutional interventions aim at promoting commercial transformation of subsistence agriculture by improving MO at production level and facilitation of market entry and MP in output and input markets are needed.

Keywords

Market orientation, Market participation, Multiple regression, Tobit model, Wealth index