Is investing on agriculture despite ailing market viable?

Meedhoo people, unlike rest of Addu, have been engaged in farming, either at home or on the piece of land obtained from the government, for the past two decades. I remember when I was a child people, especially Hulhudhoo, heading towards Meedhoo every day evening during Ramazan to buy fruits and vegetables. At that time there might be few farmers with limited produce and yet they had huge demand. However with the help of Ministry of Fisheries and Agriculture and increased number of investors in agriculture, today Meedhoo has the capacity to produce and supply vegetables to nearby resorts continuously; yet channeling their produce to the end-user is widely unknown.

Mr. Ibrahim Rasheed, 30, has joined Meedhoo farming population in late 2007 and today, he is one of the leading farmers and suppliers of agricultural products in Addu. “During last year we were able to supply 100kg of Brinjal alone to Herathera Island Resort on a daily basis and monthly yield from agriculture mounted to Mrf50,000” Ibrahim Rasheed stated. He explained “I was satisfied with the income generated from farming although my farm was run below capacity”. He further stressed “poor” market as the reason for running his farm below capacity then and quoted as justifying “if circumstances changes I would quadruple my productivity”.

Explaining the many problems Rasheed faces in the industry he said selling his produce below market rate, multiplying arrears and securing crop are inevitable. He said “as there are many local suppliers in Addu and elsewhere in Fuvahmulah, our produce had to be sold below market rate”. Agriculture needs continuous investment, season after season. “If we don’t get money for what we sell duly or in a month, then we wont be able to invest for the next season” he said. According to him there are unpaid bills pending for his supplies to Herathera Island Resort and other retailers in Addu. Securing crop is one of the biggest problems faced by farmers. Rasheed highlighted lack of constitutional punishment for continued vandalism on their farm fields.

As the ministry of fisheries and agriculture is encouraging farmers and farming in the country by means of training, subsidies and loan schemes, many people have started to enter into the industry. Local farmers have approached banks to obtain loans to reinvest in their farm. Since Ramazan is ahead, farmers want to cultivate as many varieties of fruits and vegetables as they can. Ramazan is considered a good season for agricultural products every where in the country and yield from its harvest hits highest point.

Investing in agriculture is essential. However as the economic downturn and global pandemic of ‘swinflu’ is affecting the economies globally, it is advisable for farmers to secure their market before clinging on spending huge amount of money on farming. Government authorities and ministry of fisheries and agriculture must pay greater attention on establishing means and ways for farmers to settle their problems peacefully. Unless these problems in the industry are correctly addressed, investing in agriculture is not feasible.