India to bridge link between farmers and industry via agri value chain development scheme
The Centre will soon release the standard operating procedures (SOP) to help roll out its Public Private Partnership for Agriculture Value Chain Development (PPPAVCD) programme at pan-India level to achieve its twin objective of demand driven crop production and better return for farmers.
As only a few States have so far implemented projects in PPPAVCD mode, the Union Agriculture Ministry has decided to put a special focus and recently shifted its implementation from the extension division to the investment division, sources said.
With better results coming from the Agri Infra Fund scheme, the government will try to push PPPAVCD similarly, the sources said.
Key to success
However, the interest of the State government will be the key to its success as States will have to take a decision on some controversial issues like marketing of agriculture produce, said an expert.
“Unless States allow freedom to the industry to purchase the raw material directly, and not through the agriculture market yards (mandis), why any private sector will be interested to join under PPPAVCD,” said an expert who has handled agri marketing for 20 years.
However, official sources said some in the private sector have shown interest as sourcing quality raw material and its timely and continuous availability are some challenging issues they face in the food processing sector.
Explaining the PPPAVCD mode, a senior official said there will not be any financial incentive for the private sector and the only benefit they will get is to source quality raw material in the periphery of their units.
On the other hand, farmers will be given all support by making available different government schemes at their doorsteps if they join the initiative, he said.
Setting up clusters
Under PPPAVCD, clusters of 500-10,000 farmers will be formed in which farmers will have access to new technology, innovative practices, and the financial benefits of the schemes will be transferred to their bank accounts through DBT.
“The main objective of the PPPAVCD is to facilitate large scale integrated projects, based on a value chain approach, led by entities such as private sector players, FPOs, agri startups, cooperatives in the agriculture and allied sectors, with a view to aggregating farmers, providing additional income to them and integrating the agricultural supply chain, with financial assistance directly to farmers under the direct supervision of State governments,” an official said quoting the guidelines.
Industry chamber FICCI has been operating a project monitoring unit (PMU) PPPAVCD programme to facilitate large-scale integrated projects based on a value chain approach.
The major area of thrust will be on pulses, oilseeds, maize, millets and horticulture produce while paddy and wheat have been excluded from the ambit of the programme. The government is also ready to offer the Price Deficit Payment Scheme to the farmers under the programme so that they receive at least the minimum support price.