Germany supports a rice value adding centre in Ampara district

MARADHAMUNAI: A rice value adding center supported by the German Technical Cooperation (GTZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) was formally inaugurated in Maradhamunai, Ampara on February 26.

The centre is co-financed by the GTZ-assisted project "Promotion of Micro, Small and Medium Enterprises" (PMSME) with the aim to connect short-term reconstruction to the perspectives of a longer term economic development.

According to the National Agriculture Research and Training Centre, Ampara has been the highest rice producing district in Sri Lanka for many years, representing 12 to 15 per cent of the national production. Most coastal rice mills in Ampara were severely affected by the tsunami of December 2004, which crippled the rice processing sector immensely.

The situation also worsened as a result of the increased tensions in the country. "For sometime, most of the rice from Ampara entered the market in raw form. This is a pity since value added rice (colour sorted and polished) has good value, ample market access and can yield high profit margins in Sri Lanka and abroad," states Daya Gamage, Chairman of the District Chamber of Commerce and Industry (AMDCCI).

Rice Millers formed a nucleus (working group of entrepreneurs) with the support of the Ampara AMDCC, to address common issues and to continue developing their enterprises and the sector.

In order to stimulate the sector, the PMSME project started to work with an active organised body "Karawahu North Farmers, Livestock Farmers and Producers Cooperative Society" in the area. Nine members of the Society formed a Limited Liability Company, named Kanorp De Ltd and invested in a rice value adding facility.

"The two sets of equipments namely a colour sorting / glass polishing and a fully fledged weighing system were installed with the rice millers contributing 46 per cent of the total investment of Rs. 23,230,990.

This centre is providing its services to all rice millers in the area, even to non-members of the cooperative society so that the millers do not have to send their produce to Polonnaruwa (100 km away) for value adding any more," explains Michel Jamar, PMSME Senior Advisor. "The major part of the profit will be reinvested in the rice sector to improve processing methods and value adding techniques accessible to other rice millers in the region."

The overall objective of the PMSME project, which was initiated in October 2005, is to restore and in the medium term increase the economic strength of the supported micro, small and medium enterprises in tsunami-affected areas.

GTZ is an international cooperation enterprise for sustainable development with worldwide operations. For 30 years it has been providing viable, forward looking solutions for political, economic, ecological and social development in a globalised world.

GTZ supports complex reform and change processes, often working under difficult conditions. Its corporate objective is to improve people's living conditions on sustainable basis. GTZ's main client is the German Federal Ministry of Economic Cooperation and Development.