Market window analysis: a case of tobacco, paddy and big oinon farmers in Galewela, Sri Lanka

Abstract

The study was carried out to determine profitable market existence for tobacco, paddy and big onion cultivations. The research was conducted in Galewela DS division in Matale district. Tobacco, paddy and big onion were considered major cultivating crops in the area during the Yala season. The market existence for each crops were evaluated using market window analysis. “Market window” refers to a period of time when the prices received by producers for selected crops were greater than the production costs. Profitability and economic efficiency of each crop was measured in order to identify most suitable crop for the season. Cost of production and budget for each crop was prepared using primary data obtained from the field survey in Galewela DS division. Historical prices were collected from economic centers of Dambulla, Meegoda and Ceylon Tobacco Company. Results revealed that profitable market exists for each crop. There was no market existing for tobacco green leaf before 2009 and the profitable market was emerged for paddy after year 2007. Market for big onion cultivators was profitable during studied time period (2003 – 2009) but volatile in its pricing pattern. Highest profitability and the economic efficiency were observed for big onion cultivation. Study revealed that most economic crop for Yala season was the big onion. DOI: http://dx.doi.org/10.4038/suslj.v11i1.5890 Sabaragamuwa University Journal 2012; V. 11 No. 1 pp 95-108