# Smallholder Agribusiness Partnerships

Improvement of Productivity and Quality of Pepper with Channeled marketing and Processing for improving Income of Pepper Growers

Total Project Cost

RS. . 292,404,000.00

Locations of the Project


Number of Beneficiaries


Background of the Proposed Project

Problem Statement

Pepper growing is in the hand of subsistence farmers, who are dispersed and disorganized. Maintenance of cultivations is unsatisfactory. Therefore, the yield taken is far below the potential yield. Low inputs, such as fertilizer usage is almost negligible and which also contributes to low yield levels (Fig.1). Data collected from 1444 farmers shows that the average yield per bush is 2.5 Kg and 87% of the harvest is sold as raw pepper. Although the Productivity Improvement Program (PIP) of the Department of Export Agriculture (DEA) in the past included a grant for improving agronomic practices such as fertilizer promotion, soil conservation, shade manipulation and integrated nutrient management has not covered the area considered under the programme. Pepper has a ready market from immature harvest to mature harvest. Immature harvest is paid less. Drying of pepper depends on the availability of sunlight. Majority of pepper farmers prefer to sell their products in raw form via collectors or direct to retail traders in Rattota town or whole sale traders in Matale town. High cost is involved in transporting pepper from major producing areas in Rattota and Ambanganga DS areas to Rattota and Matale cities

Project Objectives

• Increase the existing pepper yield by two-fold of 2500 pepper growers by practicing appropriate agronomic practices from 2.5 kg/ bush to 5 kg/bush
• Adopting proper and timely harvesting methods to yield quality and hygienic produce of pepper
• Improvement of hygienic processing of pepper harvest at three multi-locational primary processing centers (Pussellamuduna, Kumbaloluwa and Weragama)
• Introduction of tools and machineries to reduce labor cost and efficient growing and harvesting of pepper
• Establishing local collection network and directly supply of unprocessed raw material to a processor for steady market
• Improvement of entrepreneur skills of pepper growers and cooperative
• Construction and provision of machineries for a secondary processing center at Rattota
• Obtaining fair-trade certificates and organic certificates for pepper farmers

Investment Plan

Social Impact

• Positive impact on foreign reserves of the country.
• Increased living standard of the farmer.
• Social enterprise in operation for betterment of the village society.