SRI LANKA – Cooperative action advancing healthy rice for communities

In Kurunegala District, Sri Lanka, rice farming has long sustained rural livelihoods. Yet for many smallholder farmers, the cycle has been difficult to break—harvesting paddy only to sell it immediately at low prices, often to repay debts. This practice left farmers with minimal income and limited control over their produce.

A transformative shift began in 2020, when SANASA International, through its business incubation center, SEFEC (SANASA Entrepreneur Financial Expertise Centre), launched a pilot initiative to change how farmers engage with the rice value chain. Rather than remaining raw material suppliers, farmers were encouraged to become processors and entrepreneurs by producing parboiled, nutrient-rich rice known locally as Poshana Sahal (healthy rice).

The initiative started with selected SANASA cooperative societies, led by the Ahugoda SANASA Cooperative Society. Farmers were introduced to the concept of value addition, storing their harvest, improving post-harvest practices, and processing paddy into rice that could command higher market prices.

Technical capacity building played a central role in the program’s success. In collaboration with the Institute of Post-Harvest Technology, farmers received hands-on training in parboiling techniques. This included understanding nutrient retention, proper boiling duration, drying methods, and maintaining consistent quality standards. These processes ensured that the rice produced was both nutritious and market-ready.

Equally important was the role of cooperative leadership. Local leaders mobilized farmers, encouraged risk-taking, and facilitated access to financial services. Through low-interest loans, farmers were able to invest in equipment such as boilers, purchase inputs, and delay selling their harvest until market conditions improved. This financial flexibility marked a significant departure from traditional practices.

The impact has been both economic and social. Farmers who previously sold paddy at low prices are now earning more by selling processed rice. Standardized production methods, supported by quality testing and monitoring, have allowed cooperatives to market rice under a unified brand, ensuring consumer trust.

Women have emerged as key actors in this transformation. Most rice processors are women, managing boiling, drying, and handling operations at the household level. This has not only increased household incomes but also strengthened women’s roles in local economies.

In 2023, the initiative received additional support from the APFP-FO4A program, which provided USD 13,030 to strengthen the Ahugoda SANASA Cooperative’s business model. This support enabled scaling of operations and improved production efficiency.

To address market access challenges, SANASA leveraged its extensive cooperative network. Urban cooperatives in Colombo District began sourcing healthy rice directly from producer cooperatives. These partnerships also included consumer awareness programs promoting the benefits of unpolished, chemical-free rice.

Today, the initiative has expanded to eight SANASA societies across multiple districts. More than 50 small-scale processors—over 80% of them women—are actively engaged in rice production, while at least 200 farmers benefit from a stable and reliable market.

Beyond income gains, the program represents a broader shift toward sustainable and community-driven food systems. Farmers are increasingly adopting indigenous and low-chemical farming methods, contributing to healthier food production and improved environmental outcomes.

The Poshana Sahal initiative demonstrates the power of cooperative action in transforming rural economies. By integrating production, processing, financing, and marketing within a single ecosystem, SANASA cooperatives have created a model that enhances farmer resilience, promotes nutrition, and strengthens local value chains.