Wednesday, 31 December 2025

The CSIAP Empowers Farmers through Market Linkages and Value Chains

The Climate Smart Irrigated Agriculture Project (CSIAP) adopted a comprehensive, value chain–oriented strategy to enhance agricultural commercialization, farmer incomes, and institutional strength among smallholder farmers. Key interventions included the formation and strengthening of Producer Societies (PSs), facilitation of market linkages, development of selected value chains, investments in post-harvest management, and extensive capacity building of farmers. Together, these interventions addressed critical constraints across production, processing, and marketing, enabling farmers to better integrate into competitive markets.

Market Linkages and Income GenerationThrough targeted market facilitation efforts, the project successfully established 63 market linkages, directly benefiting 3,193 farmers. These linkages enabled the sale of 5,484 metric tons of agricultural produce, generating a total income of Rs. 1,946.11 million. This outcome reflects strong market integration and improved access to reliable buyers, significantly increasing income opportunities for participating farmers. The structured engagement with markets helped farmers reduce dependency on intermediaries, improve price realization, and gain confidence in commercial agriculture.

Institutional Strengthening through Farmer Business School
A cornerstone of the project’s institutional development approach was the Farmer Business School (FBS) program. Through FBS, 11,859 farmers graduated from structured training programs focused on agribusiness management, entrepreneurship, and market-oriented farming. These trainings strengthened farmers’ skills in planning, record keeping, cost-benefit analysis, and decision-making, laying the foundation for sustainable agricultural enterprises and long-term resilience of farming communities.

Advanced Capacity Building and Exposure
Beyond FBS, the project provided customized training programs and exposure visits tailored to the needs of individual farmers and groups. A total of 47 trainings and exposure visits benefited 1,392 farmers, enhancing their capacities in value addition, quality improvement, packaging and labeling, and new product development. The impact of these capacity-building efforts was clearly demonstrated through farmer participation in provincial-level trade fairs, expanded market reach, and documented success stories highlighting improved business performance.

Strengthening Producer Societies and Market Connectivity
The project identified 41 Producer Societies for registration as cooperative societies, with 13 PSs achieving readiness for formal registration. This progress marks an important step toward building legally recognized, collective farmer institutions with stronger bargaining power and improved access to inputs and services. In parallel, 38 PSs were successfully linked to markets, including 11 linkages formalized through sales agreements. These arrangements created stable commercial relationships, enabling consistent supply, better price negotiations, and participation in formal market systems.

Trade Fairs and Agribusiness Promotion
To promote agricultural commercialization, agri-entrepreneurship, and Business-to-Business (B2B) engagement, the project supported the organization of three trade fairs. These platforms connected producers with buyers, processors, and service providers. Seventy-four beneficiary farmers from 22 PSs participated, showcasing their products, expanding commercial networks, and establishing 14 B2B linkages, demonstrating improved value addition and market readiness.

Post-Harvest Infrastructure and Partnerships
Significant investments were made in post-harvest management. A 1,000 MT grain storage facility and Other Food Crops (OFC) store was constructed and operationalized at Koolamurippu, Mullaitivu, through a Public–Private Partnership (PPP) model. In addition, 2,853 tarpaulins were distributed to 9,991 farmers, facilitating improved handling of approximately 1,706 MT of produce and reducing post-harvest losses. Strategic partnerships, including collaboration with Mullai Agribusiness Limited, further strengthened a harmonized market access mechanism for PSs.

Overall Impact
Collectively, these achievements demonstrate a holistic and integrated approach to agricultural development. By strengthening institutions, enhancing skills, improving post-harvest practices, and forging sustainable market partnerships, the project significantly improved livelihoods, economic viability, and competitiveness of CSIAP beneficiary farmers and rural enterprises in Sri Lanka’s agricultural sector.
Dr. Kumudini Gunasekara, Agri-Business & Market Linkage Development Specialist, PMU, CSIAP