Public Private Partnership in Agriculture Value
Chain Development
Learning and Progress with National and State Governments
2
The Hon. Prime Minister has laid out a challenge to double farmers’
income by 2022
I wish to double the income of farmers by
2022 when India will celebrate 75 years of its
Independence
– Hon. Prime Minister
Bareilly (Feb 28, 2016)
I have laid this out as a challenge. But it is
not merely a challenge. With a good
strategy, well-designed programmes,
adequate resources and good governance in
implementation, this target is achievable
– Hon. Prime Minister
Special focus
on irrigation
with sufficient
budget, with
the aim of
“per Drop
more Crop”
Provision of
quality seeds
and nutrients
based on soil
health of
each field.
Large
investments
in ware-
housing and
cold chains to
prevent post-
harvest crop
losses
Promotion of
value
addition
through food
processing
Creation of a
National
Farm Market,
removing
distortions
and
e-platform
across 585
stations
Introduction of
a New Crop
Insurance
Scheme to
mitigate risks
at affordable
cost
Promotion of
ancillary
activities like
poultry,
beekeeping
and fisheries
To achieve this target, the Hon. Prime Minister has advocated a seven point strategy
3
To meet Hon. PM’s challenge of doubling farmers’ income, it is imperative
that all stakeholders work together towards a shared vision and goal
…. to this?How can we go from this …..
$$
$
$$
Government
Business
In order to double farmers income in five years, there is a need to create more
alignment among sectoral schemes & programs in agriculture and to encourage
well designed, commodity based integrated value chains connecting smallholders
farmers to consumers, retailers, processors & exporters
4
The World Economic Forum’s New Vision for Agriculture has catalyzed and
supported partnerships in 21 countries
• Launched in 2009, the New Vision for Agriculture (NVA) advances food security, economic
opportunity and environmental sustainability of agriculture through a market-based and
multi-stakeholder approach.
• NVA engages over 600 organizations, and has catalyzed multi-stakeholder partnerships in
21 countries
• Mobilized $10.5 billion in investment commitments, of which $2.5 billion has been
implemented, catalyzing 90 value chain partnerships and benefiting over 10.5 million farmers to
date.
• Grow Africa, covers 12 countries; reached almost 10 million farmers; and creating
over 80,000 jobs
• Grow Asia, has catalyzed partnerships in 5 countries. Reached over 500,000
smallholder
• NVA Latin America has catalyzed national partnerships in Mexico, Nicaragua and
Colombia (2017).
• NVA India has catalyzed and supported PPPIAD initiatives in Maharashtra, Karnataka
and Andhra Pradesh.
5
Since 2009, World Economic Forum has been with stakeholders to develop
state-level agriculture partnership platforms that can support farmers’ income
2009 2012
World Economic
Forum launches
New Vision for
Agriculture (NVA)
which over the
years engages over
600 organizations
and catalyzes public
private partnerships
in 21 countries
GoI launches Public
Private Partnership
for Integrated
Agriculture
Development
(PPPIAD) under
Rashtriya Krishi
Vikas Yojana (RKVY)
2013
Maharashtra
PPPIAD is
launched with
support from
World
Economic
Forum and
partners;
catalyzes
several value
chain projects
2014
Evaluation of
Maharashtra
PPPIAD by FICCI
on 5 projects finds
increases in
farmer income by
10-30%
2015 2016
With support from
World Economic
Forum, Andhra
Pradesh
launches PPP on
value chain
development
2017
Building on Forum’s experience
with state level platforms,
Ministry of Agriculture
recommends setting up
Agricultural Value System
Partnership Platform
Cabinet rebrands RKVY as
RKVY-Remunerative
Approaches for Agriculture &
Allied Sector Rejuvenation
(RAFTAAR) with a budget
allocation of US$ 2.5 billion
Karnataka
launches
PPPIHD focusing
on horticulture
crop
Maharashtra
PPPIAD reaches
half a million
farmers; CM
Fadnavis sets
goal of reaching
2.5 million
farmers by 2020
6
The Government of India launched PPPIAD framework in 2012 to support
value chain
• In 2012, the Government of India launched the Public Private Partnership for
Integrated Agricultural Development (PPPIAD) under the Rashtriya Krishi Vikas
Yojana (RKVY).
• PPPIAD conceived as an alternative mode of implementation under RKVY, which
facilitates large scale integrated projects led by the private sector.
• The objectives of the PPPIAD:
• Develop integrated value chain projects
• Enhance production and productivity
• Improve farmer income
• Support aggregation of farm produce and links to markets
• To demonstrate technologies in public and private domain
• Create employment opportunities
7
Agribusiness Value Chain Investment Promotion Framework
Tax Incentives CorporatesRetail/Exports/
Processing
Corporates
GovernmentSMEs Grading
Aggregation
Production
Producer
Company
F-SHGMFI NGO Govt.
Banks NGO
8
Enabling policies, initiative and partners for implementing PPPIAD at
the state level
Convergence of government resources possible through following initiatives:
• Rashtriya Krishi Vikas Yojana
• National Food Security Mission
• National Horticulture Mission
• National Mission on Sustainable Agriculture
• National Mission on Agri-Extension & Technology
• National Mission on Oilseeds and Oilpalm
• National Livestock Mission
Implementing Agencies can include:
• State Government (Agriculture, Horticulture, Animal Husbandry Department, Food
Processing)/State level agencies)
• Private sector partners, FPOs and NGOs
• Enabling agencies can include Small Farmers Agri-Business Consortium (SFAC),
international organizations or donors
9
The Maharashtra state-level partnership platform has worked with more than
60 organizations on value chain projects that have shown good impact
2012-13 2013-14 2014-15
No. of Projects 11 16 33
Participating Companies 20 20 62
Projects Costs ($million) 14.87 17.83 63.73
Government Share in $million (share %) 6.05 (41%) 6.08 (34%) 21.06 (33%)
Farmers Share in $million (share %) 6.50 (44%) 9.89 (55%) 21.10 (33%)
Private Sector Share in $million (share %) 2.32 (15%) 1.86 (11%) 21.54 (34%)
Area (Ha) 79138 106608 349818
Farmers (No.) 115525 167040 488285
Impact
• Increases in farmer income through reduction of production cost, improved productivity
and better price realisation
• Income increases ranging from 10-30%.
• Soybean-ADM: Impacting 120,000 farmers. Average increase in farmer income 35%
• Pulses-Rallis: Productivity increase of 30-65%.
• Maize-Input companies: Farmers saved 3-5% of overall cultivation costs, increased
average yields by 35% and received of 3-5% higher effective sales price
Example of Partners Involved:
ADM, Bayer, DuPont/Pioneer, Hindustan Unilever, UPL, Jain Irrigation, KayBee Exports,
Rallis, among others.
10
Early results from the Karnataka and Andhra Pradesh is showing
increasing momentum and impact on farmers income
• Karnataka partnership focused on improving
horticulture value chains through technology, value
addition and marketing solutions.
• Example, despite drought situation, a high value
vegetables project brought down cost of
production by 10% and expected yield
improvement of 8-10%.
• The Government is expanding scope beyond
horticulture crops. Agriculture Secretary preparing
PPPIAD framework to include five crops
• Andhra Pradesh partnership focused on
achieving double digit inclusive primary
sector growth in the state.
• Example, first ever export of banana
achieved from Andhra Pradesh.
Expected increase of farmer income over 5
year period by 75-100% for banana project
Andhra PradeshKarnataka
2015-16 2017-18
(Oct)
No. of Projects 2 18
Participating Companies 2 18
Projects Costs ($million) 0.9 12
No of Farmers Engaged 350 12,000
Change in Yield (%) 15-20
Change in farmers’ income
(%)
20%
2017-18 (Oct)
No. of Projects 19
Participating Companies 20
Projects Costs ($million) 60
Farmers (No.) 24,500
Change in Yield (%) 15-20
Change in farmers’ income
(%)
16-18
Example of Partners Involved:
ITC, LEAF, bigbasket.com, CropIn
Example of Partners Involved:
ITC, INI Farms, Future Group, Jain
Irrigation, Bayer, LEAF, Mondelez
11
Building on this partnership approach, the Committee on Doubling Farmers
Income has recommended setting up a multi-stakeholder Agricultural
Value System Partnership Platform
Bring about a transformation of the food value chain system in India
through market-led and multi-stakeholder participationObjective
▪ Brokering of new value chain partnerships at state and national levels for
integration into system-wide value chain
▪ Initiation of new produce-specific cross-sectoral projects at the national level
▪ Strengthening and scaling up of existing partnerships at the state level, and
their collaboration across states
▪ Provide an enable policy environment through convergence and dovetailing of
various schemes and initiatives
▪ Share learnings, develop capacities and promote best practice exchanges
amongst states
▪ Develop and roll out a results based framework to monitor the overall impact
on markets/trade development and take corrective action as necessary
Key role of
the platform
▪ Market-led production (fork to farm)
▪ Market risk management
▪ Higher degree of monetization of farm produce
▪ Spearhead nation-wide systemic transformations
Expected
outcomes
Please visit:
http://www.agricoop.nic
.in/doubling-farmers
Volume 4, Chapter 8,
Pages 124-132
12
Structure of Agricultural Value System Platform (AVSP)
State level Agricultural Value
System Platform
National level Agricultural Value
System Platform
District level AVSP\Task Forces
▪ AVSP to cover all agricultural
sectors (crop, livestock, fisheries,
forestry) and activities ranging from
pre-production to production to
post-production monetization
GoI supports States to investment in value chain development in partnership with the private sector
PPP-IAD provides a proven framework for facilitation and management for a market driven partnerships
Leadership commitment and close follow-ups required to get the initial projects off the ground
Clear business case, building trust, flexibility and long term interest critical from both sides
Strong program organization structure with clear accountability, processes and monitoring key to scale up
13
Key Points