Will Privatization Of Plantation Research Management Benefit?

Innovations from in-country research and private technology transfer, often with little or no formal adaptive research, have had a major impact on agriculture in developing countries. Private research has expanded rapidly in the past decade, notably in Asia, at a time when public-sector research in many countries, particularly inAsia, was thriving.

A number of Asian governments, often with the encouragement of foreign aid donors and private foundations, have pushed policies and invested in programs to encourage private agribusiness to finance and conduct agricultural research.On the other hand, some government scientists and nongovernmental organizations (NGOs) argue that private agribusiness has introduced very little technology and done little in-country research and development (R&D) of use to smallholder farmers and poor people, and that much of the technology introduced by the private sector has negative social and environmental effects.

PLANTATION INDUSTRY
The plantation industry comprising mainly of tea and rubber, had been a vital factor in the economy of Sri Lanka, until the early 1950s. The country’s economy became more diverse in the 1970s and 1980 and in 1986, textiles surpassed tea for the first time as the country’s single largest export.
Now the plantations are known to be influenced by many extraneous factors such as global economy, weather, demand/supply, key players, workforce agitation, cost of inputs, crude oil price etc. over most of which the plantation management seems to be having very little control. The plantation economy, therefore, is no longer a dominant force in the economy of the country.

Therefore, based on the emerging needs of the plantation industry, it is considered necessary to re-examine the subject of plantation research system, a subject that was discussed a few years ago, and improvements to the conventional style of research management is proposed with the singular purpose of enhancing the usefulness of the research findings to the industry, a vital factor in the economy of the country.

PLANTATION RESEARCH SYSTEM
The major objective of the Plantation Research Management system should be to increase the efficiency and relevance of the plantation research institutes for continued, sustained development of the plantation industry. But the issue in question is, it is not happening?Plantation crops research institutions, the nodal public sector research and development agency in the country appears to be moving from bad to worse. They are now faced with the daunting task of maintaining their traditional glory and rendering the much needed assistance to overcome the industry’s current problems and to meet its long term goals.

The global developments also indicate that Sri Lanka is no longer in the forefront of plantation crops research. Most producing countries are now well enriched with their own research efforts. These indications of a setback trend now seen in Sri Lanka require reversing through appropriate changes in research policy and management.

This is one of the tasks before industry leaders and policy makers engaged in the country’s prime agro-asset. It is generally accepted that where the state has too great an involvement in the provision of goods and services that would be more efficiently undertaken by the private sector, transfer of management of such services will not be counter productive.

What is contemplated is the transfer of only the management of the state owned institutions from the public sector to the private sector for greater effectiveness. More pointedly, promotion of public - private sector partnership to jointly develop the plantation industry.

RESEARCH PROGRAMMES
Productively improvements, product diversification/value addition and cost control are the three macro-level features for the plantation crop scenario with particular reference to their research dimensions.Bridging the yield gaps that exist between the current experimental yields in the region of 5000 kg/ha, and 3500 kg/ha for tea and rubber respectively and the likely maximum yield potential (theoretical perspective) of about 15,000 kg/ha and 10,000 kg/ha for tea and rubber, over the next ten years should be the foremost research efforts, besides increasing the share in product diversification/value addition. While labour wages and cost of imported materials are bound to rise, the extent to which they could be neutralised in terms of unit cost of production through a combination of improved agricultural practices, optimising key inputs and mechanization of field and factory operations where possible are the challenges before the plantation industry.

ADAPTIVE RESEARCH
Research institutes should also undertake adaptive research trials especially suited for smallholdings, as an area of priority.This should be followed by appropriate extension techniques and a process of interaction with the relevant smallholder institutions such as TSHDA, RDD etc. not only to ensure their adoption by smallholder but also to obtain a feed back from them on the appropriateness and changing needs, including aspects such as specifically selected planting material, integrated soil and plant nutrient management pests and disease control programmes, integrated farming, harvesting systems and standards etc. Presently, this is done on an adhoc basis but the arrangement needs to be institutionalized.

RE-ORGANISATION AND POLICY ISSUES
A total privatization of research management is considered necessary at this stage, because the system of cess collection and treasury grants, to these Institutions is not working satisfactorily. Although these should have been some of the reasonably funded research institutions in the country, but it is not happening.An alternative system should be substituted involving contributions from plantation management companies directly in the form of a Research levy for the services rendered, towards a research fund maintained directly by the respective institutes.

The privatisation suggested could be achieved, first, by making appropriate changes in the composition of the Boards, and second, by giving the Board more autonomy and subjecting it to only such minimal controls are necessary by the government in the changed situation.Basically, the changes contemplated are two fold: first, the office of the Chairman who should have scientific and industry orientation (to ensure internal check) and appointed by the plantation companies and second, the other members who should, to the extent possible, be nominated by representative organizations relevant to the crop involved, so as to be aware of the challenges to their respective industry/sector. Small farmer representation should also be guaranteed.

The present composition of the Boards requires changes. More scientific and private sector representations, covering areas of research specific to the crops concerned is important. This would enable the Board to provide support and guidance to the Directors on matters pertaining to research specific to the crop. In any event, the changed situation will offer a greater degree of counseling on industry affairs to the Indstr and Government by the Institutes.

AUTONOMY
The need to invest the Boards with full delegatory powers can hardly be over emphasised. In effect, it should be well within the competence of the Boards to decide and take action on all functions listed under its power without reference to the Ministry.

However, in order to ensure that the powers so invested are not misused or the decisions taken could have adverse repercussions in parallel institutions, a provision could be incorporated into the Act to enable the Minister to withhold, suspend any decision of the Board, until further clarification is obtained.

INTERNAL RESTRUCTURING
Making allowances for a higher requirement and activity at the headquarters of these institutes may seem disproportionate to the developments in the country where plantation crop production are distributed at different elevations/regions.To that extent, regional needs and aspirations have to be met which could be done by strengthening regional activities. Each region should independently deal with range of regional issues, undertake locationspecific investigations and adaptive trials and work closely with the respective regional organizations unless problems that crop-up are so complex as to require intervention by specialist scientists from the Headquarters.

ESTATES OF THE INSTITUTES
Expectations were that estates under the management of the Institutes would serve as models for emulation by the industry. This had not happened and it is reported that several of the practices adopted by them are at variance with those recommended by the research institutes.Moreover, the purpose of linking these estates with the research institutes had also been to (i) layout field and factory experiments (ii) Serve as testing ground for the Institutes’ recommendations and (iii) Generate a surplus for plough back into research. This has also not happened effectively.

It is therefore worth while considering the desirability of entering into a research contract with established plantation management companies initially for a period of 5 years or so on a pre-determined agenda and cost to ensure the scientists the freedom to undertake research trials with no disability with regard to land, labour materials etc.

These estates many function as t he Regional Research Centres for the research institutes. Apart from negating any academic bias that could otherwise have penetrated under the exiting arrangements, this would also provide the opportunity to view research programmes in wider perspective. Interaction with the industry from the very inception would bring the scientists to the practical requirements of the growers.

SCIENTISTS
The foremost asset of the Institutes is its’ pool scientists and it is their collective effort that makes or breaks their reputation.
All researchers are assisted in no small measure by the management to be well qualified. The laboratory and equipment are also in good order to render an output commensurate with the needs of the industry.

Yet, it is well known that the full potential of scientists remain unutilised in the absence of participatory approach to fulfill the overall objectives of the Institutes. Leadership and motivation and aspects which will bring the scientists to the practical requirement of the working planter should be explored.

ROLE OF DIRECTORS
With greater compartmentalization of research, rapid proliferation of experiments and too many bureaucratic directives, the role of the Director has now tended to become more of a coordinator than a leader of a team of scientists.Irrespective of whether such a situation exists elsewhere, this primary function and responsibility must be returned to these Institutes and their Directors who are Chief Executive Officers to provide dynamism and leadership to future research efforts.

COST-BENEFIT OF RESEARCH
In the ultimate analysis, the issue centres around the extent to which the plantation industry and indeed, the country benefits from the operations of these Institutes. During the post-war period it was noted that on certain research outputs, the gain in output until late ‘60s resulted in an overall cost benefit ratio of 1 : 100.

Not that such a fancy return is ever contemplated, but in the current or emerging situation, judging by the parameters established in agricultural research, the plantation industry would be more than satisfied with internal rate of return of 40 to 50 percent on its’investment on research.