FEASIBILITY OF COTTAGE-LEVEL SUGARCANE-BASED PRODUCT DIVERSIFICATION IN SRI LANKA

摘要

Sugarcane jaggery/sakkara and syrup production, which had been a thriving cottage industry in sugarcane-growing areas in Sri Lanka, has plunged into crisis after market liberalisation due to cheap imported sugar, badly affecting the livelihood of the cane growers and jaggery/sakkara and syrup millers. Sugarcane-based product diversification has been a dire need to provide a more secure livelihood for the sugarcane growers/millers in distant areas where cane cannot be transported to vacuum-pan sugar mills. Technical and financial feasibility of introduction of sugarcane-based fruit juice drink, vinegar and mushroom as a cottage industry was studied by conducting both laboratory and field studies, which included small-scale production of these three products and testing them and collection of relevant information. Costs and returns of the individual products were estimated and the viability of their production as an integrated project was evaluated by net present value, benefit/cost ratio and internal rate of return. It was found that, apart from jaggery/sakkara/syrup, production of good quality sugarcane-based fruit juice drink, vinegar and mushroom could be successfully carried out under the existing conditions. A ready market was available for these products. Jaggery/sakkara production has become less lucrative than fruit juice drink, vinegar and mushroom. Vinegar and mushroom were more attractive in financial terms than fruit juice drink. Integrated production of these products was more beneficial though its viability was highly sensitive to changes in costs and product prices. Thus diversification of cottage-level sugarcane industry by integrating with fruit juice drink, vinegar and mushroom was found to be a better alternative for the revival of the industry in distant cane-growing areas of Sri Lanka. But further studies are required to find ways of minimising costs of production of the sugarcane- based products to make them more viable home-business ventures.