A report prepared by the FAO and the World Food Programme found that drought conditions in 2016 and early 2017 led to widespread crop failures, in particular for rice paddy, Sri Lanka’s staple food.
Total paddy production in 2017 is forecast at 2.7m tonnes, almost 40% less than last year's output, and 35% lower than the average of the previous five years.
Other crops, including pulses, chillies and onions, which rely mainly on rainwater, were also heavily damaged by the dry weather.
The situation was exacerbated by subsequent heavy rains in May. Floods and landslides in southwestern parts of the country caused deaths, large population displacements and damage to infrastructure. Meanwhile, the rains did not ease the water supply constraints in the drought-impacted north-central and eastern parts of the country.
Nearly 225,000 households now face food insecurity. The most vulnerable groups are struggling to earn an income after losing their own crops, and have fewer employment opportunities.
In 10 districts, a previous joint assessment showed that about one third of the drought-affected population had its regular income reduced by more than half, compared to the income generated from the 2015-2016 Maha season.
The situation may further deteriorate if the next cropping season fails. Due to a critical shortage of seeds and a lack of water for irrigation, the second 2017 paddy harvest—the Yala harvest in August and September—is forecast at 1.2m tonnes, 24% below last year's level.
Most families surveyed would usually grow their own food, but with the bad main harvest, many are now forced to buy food from local markets, where prices have risen sharply. Rice prices reached an all-time high in January 2017, reducing the ability of families to access nutritious food.
Many of those affected have been forced to eat less. Interviews with households and market vendors showed that people were buying cheaper food whenever possible. Many reported a reduction in the purchase of meat and fish.
To cover immediate needs, FAO and WFP are calling for the urgent provision of seeds, as well as planting and irrigation equipment for the next Maha planting season from September to December. Support for irrigation systems is also needed.
The poorest and most vulnerable families should also quickly receive targeted cash assistance to ensure adequate food intake and prevent families from incurring unsustainably high debt.
Recognising the increasing frequency of natural disasters affecting the agricultural sector and the impact on food security, the UN agencies also recommend longer-term measures like the promotion of drought-tolerant crops and livelihood diversification.
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Market update: Indian spices to be worth $18bn by 2020
Currently worth some US$6.2bn, India’s market for spices should spike to US$18bn by 2020, according to a new report.
India ships the likes of pepper, cardamom, chilli, ginger, turmeric, coriander and cumin to more than 50 countries. Other sizeable exports in the category include celery, fennel, fenugreek, ajwain, dill seed, garlic, tamarind, clove and nutmeg.
The market is largely unorganised, with the branded segment making up just 15%. This market is dominated by MTR, Badshaah, Catch, Everest and Ramdev, though recently Tata Chemicals launched its own spices brand, Tata Sampann Spices.
Spice exports from India grew to US$627m during the first quarter of 2015-16, an increase of over US$115m over the previous year—weighing in at 215,215 tonnes, according Research & Markets .
The market analyst predicts that the overall Indian spice market will be worth around US$18bn by 2020, with growth driven by branded spices and spice mixes.
Meanwhile, the Indian government has been aggressively promoting spice exports through various initiatives, such as by setting up of spice manufacturing parks, which offer common processing facilities to producers and exporters.