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Abstract
This study focused to identify the likelihood factors affecting
on farmers’ higher gain from paddy marketing in the North
Central Province of Sri Lanka, where the main paddy cultivation
area of the country. The required data was drawn from the field
survey carried out in three irrigation systems covering 257
farmers during July to August 2010. The empirical logit model
was used to assess factors. The study found that imperfections
of existing paddy marketing system in the area due to concentrated
market power among few oligopolistic buyers. Furthermore,
land size, land ownership, poor accessibility in formal sector
credit market and farmers involvement in informal sector
credit sources are critical to farmers’ decisions to gain higher
returns from paddy marketing. The results further showed the
need of reviewing the roles and functions of government
extension services and farmer organizations with regard to the
paddy marketing.