The Integrated Rurban Development and Climate Resilience Project (IRDCRP) of the Agriculture, Livestock, Land and Irrigation Ministry, funded by the World Bank, has partnered with KIST, a renowned brand of Cargills Food and Beverage Ltd, to support the smallholder farmers in the Kalutara district through an integrated value chain partnership.
The initiative aims to strengthen local passionfruit cultivation by providing farmers with reliable market access, technical expertise and financial support. The initiative will target 300 selected smallholder farmers from the region in cultivating a total of around 200 acres, creating opportunities to diversify their farming activities and develop passion fruit as a commercially viable crop. Passion fruit cultivation was introduced to the Kalutara district in the early 1960s and was once an important source of income for local farmers. However, marketing difficulties led many to move away from the crop and focus on tea cultivation. Through this partnership, efforts are being made to encourage farmers to return to passion fruit cultivation by providing the support and market access needed to make it a viable income-generating activity.
Under the partnership, the Agriculture Department will provide technical training on land preparation, planting, crop management, fertiliser application and pest and disease control. The Agriculture Insurance Board will provide agricultural insurance to help farmers manage production risks and support access to financing.
Cargills Food and Beverage Ltd, which markets the KIST brand, will facilitate the collection of harvested passion fruit and purchase the produce under a buyback arrangement at a guaranteed price. The fruit will be processed into value-added products, including nectars, cordials, fruit juices and jams, at the company’s processing facility in Katana. These products will reach consumers through an islandwide distribution network across modern and general trade channels. Further strengthening the initiative, Cargills Bank will facilitate dedicated bank accounts for participating farmers, provide individual agricultural loans and conduct training programmes in financial literacy.
The IRDCRP, supported by the World Bank Group, focuses on enhancing market access, through productive partnership and developing value chains in agriculture, livestock, fisheries and aquaculture. This has been associated with the Agri-connect initiatives, which enhance the livelihoods of over 400,000 farmers for Sri Lanka.
Bankable value chain investments will be identified and financed through cost-sharing arrangement, whereby a portion of investment cost will be covered by the IRDCRP.
