Incorporating Cultivation of Long-Uncultivated Paddy Lands in Sri Lanka through Alternative Wetting and Drying (AWD) Climate-Smart Practices

Sri Lanka, an agrarian society steeped in rich agricultural traditions, is currently facing a profound transformation in its farming practices, particularly in paddy cultivation. The changing climatic conditions, water scarcity, and unutilized paddy lands present challenges that require innovative solutions. The integration of climate-smart agricultural practices, such as Alternative Wetting and Drying (AWD), into the cultivation of long-uncultivated paddy lands offers a significant opportunity to generate passive income for farmers and uplift their livelihoods. This article delves into the business feasibility of such practices, supported by facts, figures, and an analysis of the potential for sustainable agricultural investment.

The Challenge: Long-Uncultivated Paddy Lands and Climate Change

Sri Lanka boasts approximately 1.1 million hectares of land under paddy cultivation, of which around 40,000 hectares have remained uncultivated over the past several decades. This phenomenon can be attributed to multiple factors, including shifting rain patterns, irrigation infrastructure challenges, labor shortages, and farmers' growing reluctance due to poor returns on traditional paddy farming.

The impacts of climate change are exacerbating the problem. Recent trends show increasing variability in monsoon patterns, leading to inconsistent water availability. In fact, the World Bank (2020) estimates that Sri Lanka could face a 1.2% annual reduction in rice production due to climate-induced water stress.

Despite these challenges, the long-uncultivated paddy lands offer a lucrative business opportunity when approached through innovative techniques that address water scarcity and labor efficiency. This is where AWD comes in, offering a practical solution for the resumption of paddy cultivation in a water-constrained environment while creating a profitable venture for farmers and investors.

Alternative Wetting and Drying (AWD): A Climate-Smart Practice

Alternative Wetting and Drying (AWD) is a water-saving technology developed by the International Rice Research Institute (IRRI) to address water efficiency in rice cultivation. Traditionally, rice paddies remain continuously flooded, consuming vast quantities of water. AWD breaks away from this method by intermittently allowing fields to dry, saving up to 30% of water without compromising yields. This is especially beneficial in Sri Lanka, where water stress is increasingly limiting agricultural productivity.

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AWD involves monitoring the field's water levels and irrigating only when the soil dries to a specific point. It not only conserves water but also promotes soil health, improves root oxygenation, and reduces methane emissions—a significant contributor to greenhouse gas emissions in agriculture.

According to the International Water Management Institute (IWMI, 2020), AWD can potentially reduce water usage by up to 25-30% while increasing net profit for farmers by 15-20% per hectare.

Investment Potential: AWD in Uncultivated Paddy Lands

Rehabilitating long-uncultivated paddy lands through AWD represents an attractive investment opportunity. Here’s why:

1. Lower Input Costs: AWD significantly reduces water use, cutting costs associated with irrigation, labor, and energy consumption. As labor costs continue to rise in Sri Lanka’s agricultural sector, AWD's ability to reduce manual labor in irrigation makes it more cost-effective compared to traditional methods.??

2. Higher Yields in the Long Term: Initial trials have demonstrated that AWD can improve paddy yields by promoting healthier plant root systems. Over a four-year period, pilot projects in Bangladesh reported yield increases of 8-12% using AWD (**FAO, 2021**). Applying this model to Sri Lanka’s long-uncultivated lands presents an opportunity to boost productivity sustainably.

3. Reduced Environmental Impact: AWD reduces methane emissions by up to 48% compared to continuously flooded rice fields, aligning with Sri Lanka’s commitments under the Paris Agreement to cut greenhouse gas emissions.

4. Government Support and Climate Funds: Sri Lanka's National Adaptation Plan (NAP) for Climate Change highlights the importance of climate-smart agricultural practices like AWD. Furthermore, the Ministry of Agriculture and the Climate Change Secretariat provide access to international climate funds (such as the Green Climate Fund) for projects that align with national adaptation strategies. This opens doors for investors to receive government incentives and international funding for AWD projects.

Business Feasibility: Revenue Generation and Passive Income for Farmers

A key advantage of incorporating AWD into paddy cultivation on uncultivated lands is the creation of passive income streams for smallholder farmers. By reducing water and labor requirements, AWD allows farmers to focus on diversified agricultural activities or seek off-farm employment, all while maintaining the profitability of their paddy fields.

The following business model outlines the potential for generating revenue through the cultivation of previously uncultivated lands using AWD:

1. Land Leasing Model

Investors or agribusinesses can lease uncultivated paddy lands from smallholders or local authorities, making a modest upfront investment to rehabilitate the land for AWD-based cultivation. The typical land lease for agricultural purposes in Sri Lanka ranges from LKR 15,000 to LKR 25,000 per hectare annually.

By incorporating AWD practices, operational costs such as water management and labor are reduced by 20-30%, allowing investors to realize savings that can be reinvested into increasing production efficiency.

2. Contract Farming Model

In a contract farming arrangement, investors can provide farmers with access to AWD technology, seeds, fertilizers, and training in exchange for a share of the final harvest. This arrangement guarantees farmers a steady income while minimizing their risk exposure, as production inputs are financed upfront.

In the Anuradhapura District, a contract farming pilot with 50 hectares of paddy land under AWD saw farmers’ incomes rise by 22% within the first two seasons, while investors achieved a return on investment (ROI) of over 18% (Ministry of Agriculture, 2022).

3. Agro-Ecotourism Model

As the demand for eco-friendly tourism grows, there is potential to integrate agro-ecotourism with AWD paddy cultivation. Investors can develop paddy lands into experiential tourism hubs where visitors participate in farming activities, learn about sustainable agriculture, and contribute to the local economy. This hybrid model creates additional revenue streams beyond agriculture alone and promotes environmental awareness.

Sustainability and Climate Adaptation Benefits

The integration of AWD in rehabilitating uncultivated paddy lands is aligned with Sri Lanka’s broader climate adaptation strategies. The National Adaptation Plan (NAP) emphasizes the need for resilient agricultural systems to mitigate the impacts of climate variability on food security and rural livelihoods.

1. Water Conservation: Sri Lanka's agriculture consumes 80% of the country’s freshwater resources. AWD's capacity to reduce water use by up to 30% contributes significantly to the sustainable management of this critical resource.

2. Methane Reduction: Paddy cultivation is responsible for a significant portion of agricultural methane emissions. By reducing the number of days fields are flooded, AWD can cut methane emissions by nearly half, helping Sri Lanka meet its targets under the Nationally Determined Contributions (NDCs)to combat climate change.

3. Increased Farmer Resilience: The financial savings and productivity gains associated with AWD reduce farmers' vulnerability to climate shocks, such as droughts and floods, by allowing them to maximize the utility of available water resources. This resilience is essential as climate change continues to challenge agricultural systems.

Uplifting Farmer Livelihoods

The successful rehabilitation of long-uncultivated paddy lands through AWD directly contributes to the upliftment of farmer livelihoods. By reducing input costs, increasing yields, and providing alternative income opportunities through passive income models, farmers stand to benefit in the following ways:

1. Higher Net Profits: AWD reduces the costs associated with irrigation by up to 30%. For a typical paddy farmer with one hectare of land, this could translate into a net savings of LKR 8,000-10,000 per season.

2. Increased Food Security: With higher yields and the reactivation of uncultivated lands, Sri Lanka’s overall rice production capacity will improve, contributing to national food security. Farmers benefit from both increased personal consumption and access to surplus production for sale.

3. Improved Access to Markets: Investors and agribusinesses involved in AWD projects can help farmer’s access local and international markets by aggregating production and creating economies of scale. This can enhance the marketing of organically produced rice, which is increasingly sought after in both local and export markets.

4. Capacity Building and Skill Development: AWD implementation requires training in water management, soil health, and pest control, all of which equip farmers with new skills that can be applied across various aspects of agriculture. This human capital development leads to long-term improvements in productivity and resource management.

?A Win-Win Investment Opportunity

The incorporation of Alternative Wetting and Drying (AWD) in the cultivation of long-uncultivated paddy lands offers a compelling opportunity for both farmers and investors. By combining climate-smart agricultural practices with innovative business models, Sri Lanka can unlock the potential of its underutilized land resources while uplifting rural livelihoods and enhancing food security.

The AWD approach not only reduces water usage and environmental impact but also provides a scalable, profitable venture that aligns with Sri Lanka’s national priorities for climate adaptation and sustainable development. For investors looking to make a positive social and environmental impact while generating solid returns, AWD projects represent a win-win opportunity in the country’s evolving agricultural landscape.

Dr. Hemachandra Udumulla,

Founder,

Harithodaya Movement,

Haritha Udaya National Environmental Trust