Determinants of Exit of Barn Owners from Flue Cured Tobacco Farming in Sri Lanka

Abstract

Tobacco is a well-known cash crop cultivated in different areas and it contributes more to the Sri Lankan agriculture. Ceylon Tobacco Company (CTC) is the monopoly holder of the cigarette tobacco business in Sri Lanka. There are two types of cigarette tobacco termed as air cured tobacco and flue cured tobacco. Flue cured tobacco is cured through heat stream while air cured tobacco is cured from air. The success of the business depends on the relationship between the CTC and the barn owners. Barn owners are the people who have direct contact with the CTC and they have barns to cure tobacco leaf. When consider the barn owners, their state of functionality (weather they continuously function-CF, Random Function -RF or Exit -EX) towards the business is a considerable factor to be studied. When analyzing the data base of barn owners’ involvement to the business, it can be revealed that, even though there is a better accountability for cigarette tobacco production in the existing business context, considerable percentage of registered barn owners are exit from the business. The objective of the study is to find out the determinants of the exit of the barn owners from flue cured tobacco farming