In a primary initiative of its kind to strengthen agricultural value chains through the public-private partnership model, the Ministry of Agriculture has approved a proposal from Ninjacart, an agri-fuel chain platform, to develop a cluster of corn in the Uttar Pradesh.
As part of the Public-Private Partnership for Agriculture Value Chain Development (PPPAVCD), Ninjacart aims to obtain 25,000 tonnes of corn per year from more than 10,000 farmers in five state districts. Corn will mainly be provided to ethanol production units, according to sources.
Sources have declared that to FE a number of other projects under the PPP model of the Ministry of Agriculture, including the development initiatives of the value chain for ginger and turmeric in Odisha by Heifer International, and a group of potatoes in the Uttar Pradesh by the world processor of potatoes Agristo Masa. Memorandums of understanding (MOUS) for these projects should be signed shortly.
Officials said that the key area of thrust on the creation of values channels will be on impulses, oilseed seeds, corn, millen and horticultural products while paddy and wheat have been excluded from the initiative region.
As part of this model, private entities should introduce modern technologies, improve agricultural practices, provide quality seeds and Agridic entries and guarantee redemption provisions. Each project will extend over 3 to 5 years and will involve convergence with various regimes of the central government and the State to extend financial and technical support to farmers.
Under PPPAVCD, a group of 500 to 10,000 farmers is formed in which they obtain the assurance of a buy -back arrangement, innovative agricultural practices and the convergence of various government regimes at the levels of the center and the State which would allow financial services to be transferred to their bank accounts by farmers through direct services.
Currently, 18 of these projects through Karnataka, Uttar Pradesh, Odisha, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana and Tamil Nadu are at various development stages. These projects cover key crops such as corn, fruits and vegetables, potatoes, soybeans, spices (ginger and turmeric) and millers, and should collectively benefit from nearly 100,000 farmers with an investment expenditure of around 1,000 breaks of rupes.
The objective is to increase farmers’ income by 35 to 40% and agricultural productivity by 20 to 25%, said a manager.
The discussions are underway with several Agri-Majors, notably Syngenta, Bayer Crop Science, JK Foods, ADM Agro and the Madhya Pradesh Women Poultry Producers Company to develop value chains specific to basic products in different agro-climatic areas.
The PPPAVCD directive was approved last year by the Ministry of Agriculture and is led by entities such as private actors, producing producer organizations (FPO), Agri-Startups and cooperatives.
Paddy and Wheat have both developed value channels where farmers have remunerative prices thanks to a takeover provided by the government and the private processors of basic products, according to officials.
As part of the convergence model, implementation agencies or private entities can benefit from advantages for farmers cultivating legumes and oil seeds under Pradhan Mantri Bima Yojana and payment regimes for prices for the Ministry of Agriculture.
“Currently, there are no robust links between farmers or FPOs and end buyers of the products due to intermediaries or intermediaries in addition to logistical challenges,” said an official in Fe.
He said that the unavailability of formal credit in value chains, inaccessibility of inputs, including quality seeds, fertilizers and lack of awareness of various government regimes, remain a challenge in the development of the food chain.
These entities were responsible for identifying basic products according to the agro-climatic zones to develop the value chain while the consent of farmers to participate in the proposed project would be crucial.
