The Public
Private Partnership for Agriculture Value Chain Development – AGRICULTURE
NEWS: Government
of India is preparing to release standard operating procedures (sop) to
facilitate the nationwide implementation of the public private partnership for
agriculture value chain development (pppavcd)
programme.
WHAT’S IN THE NEWS?
·
The Public Private Partnership for
Agriculture Value Chain Development (PPPAVCD) aims to achieve demand-driven
crop production.
·
It seeks to provide better financial
returns for farmers by integrating them more effectively into the agricultural
supply chain.
·
The Centre will soon release Standard
Operating Procedures (SOP) to implement PPPAVCD nationwide.
·
This initiative is under the Union
Agriculture Ministry, with recent shifts in responsibility from the extension
division to the investment division for greater focus.
Key Aspects of the PPPAVCD Programme
·
Focuses on aligning agricultural output
with market demand to increase efficiency.
·
Aims to reduce mismatches between crop
production and market needs, enhancing profitability for farmers.
·
Farmers will benefit from direct
integration into the agricultural value chain, ensuring stable and fair
pricing.
·
Access to new technology and government
schemes will support increased productivity and income.
Role of State Governments and Market
Reforms
·
The success of PPPAVCD heavily relies on
the involvement and policy reforms of state governments.
·
States need to decide on issues like
permitting direct purchase of raw materials by private entities, bypassing
traditional agriculture market yards (mandis).
·
Experts emphasize that private sector
participation will hinge on market liberalization.
·
Without direct purchasing freedom, private
entities may hesitate to join the initiative due to logistical and sourcing
challenges.
Interest from the Private Sector
·
Private sector companies, particularly in
food processing, have shown interest due to challenges in sourcing quality raw
material consistently.
·
PPPAVCD offers a reliable supply of
high-quality crops near processing units, which is appealing to these
companies.
·
Unlike other schemes, the PPPAVCD does not
provide direct financial incentives to private sector participants.
·
The primary benefit for private entities
is better access to high-quality raw material for their operations.
Cluster Formation for Efficient Farming
·
Clusters of 500 to 10,000 farmers will be
established, promoting group-based farming.
·
These clusters will access advanced
technology, innovative practices, and receive financial benefits through Direct
Benefit Transfer (DBT).
·
Government support will be extended
through existing schemes, which will be delivered directly to participating
farmers.
·
State governments will supervise and
ensure that farmers benefit from financial assistance and technological
resources.
Goals and Methodology of PPPAVCD
·
Projects will follow a value chain
approach, involving private sector players, Farmer Producer Organizations
(FPOs), agri start-ups, and cooperatives.
·
The focus is on aggregating farmers to
achieve economies of scale and better market access.
·
Aim to connect farmers with markets more
directly, reducing the number of intermediaries.
·
Enhanced value chain integration should
lead to higher profitability for farmers and more consistent supply for buyers.
Focus Areas and Exclusions
·
Key crops targeted under PPPAVCD include pulses,
oilseeds, maize, millets, and horticultural products.
·
Staples like paddy and wheat have been
specifically excluded from the programme’s scope to encourage diversification.
·
Emphasis is on crops that have higher
demand in processing and niche markets.
·
This approach aims to diversify
agriculture beyond traditional staples, encouraging farmers to cultivate a
wider range of high-value crops.
Project Monitoring and Oversight
·
The industry chamber FICCI operates a
Project Monitoring Unit (PMU) to support the PPPAVCD programme.
·
This unit facilitates the creation of
large-scale integrated projects, ensuring they follow a value chain-based
approach.
·
Collaboration between government bodies,
private companies, and farmer organizations is essential for the programme’s
success.
·
The government’s role is to provide
support and oversight, while the private sector contributes technical expertise
and market access.
Lessons from Agri Infra Fund
·
The government’s positive experiences with
the Agri Infra Fund scheme serve as a model for PPPAVCD.
·
A similar approach is anticipated,
focusing on infrastructure development and capacity building in agriculture.
Summary of Potential Benefits and
Challenges