Agribusiness environment and policy

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Agribusiness environment and policy

  1. 1. AGRIBUSINESS ENVIRONMENT AND POLICY
  2. 2. INTRODUCTION AGRICULTUREFrom a subsistence primary product oriented system tocommercialized agriculture producing high value andprocessed products.
  3. 3. MeasuresDeregulating the sector from licenses, import duties and relaxing FDI normsAddressing the major policy issues in the development of this sector : i) modifying the Agriculture Produce Marketing Committee (APMC) Act, to enable the private sector to procure directly from the farmers; ii) harmonizing the plethora of currently existing foodSafety regulations and replacing it with the Food Safety and Standards Act
  4. 4. Initiatives to create agricultural infrastructure by investment in packaging centers, modernized abattoirs, terminal markets, value added centers, irradiation centers, etcCreating supporting institutions and mechanisms like Agricultural and Processed Food Products Export Development Agency (APEDA), “Agribusiness Clinics” and “Agri centers” to provide technical support to farmers, Small Farmers Agricultural Consortium to provideventure capital funds for projects
  5. 5.  Institutional changes to carry out projects in Public Private Partnership mode to capitalize on the flexibility of the private sector, while maintaining the accountability of the public sector
  6. 6. Critical issues for (inclusive andequitable growth)i) Involvement of small and marginal farmers in modern value chains. Work of NGOs, donor groups and government agencies in linking farmers to markets is an important step in this direction. Other initiatives such as “Rural Business Hub”, formation of “producer companies” will contribute to linking farmers to markets.ii) As most of the processing is in the unorganized sector, enabling this sector to meet the requirements of the new food safety laws is critical to link them to the modern system.iii) Finally, balanced regional growth is important so that far flung regions of North-east and other lagging states do not get left out of the modern value chains.
  7. 7. FAO : Rapid growth in agricultureSecond , agri-food systems world-wide are increasingly being dominated by vertically coordinatedThird, the near absence of agro-industry and agribusiness resulting in low level of value addition of agricultural commodities has been one of the main causes for stagnation in rural incomes.
  8. 8. What is the current situation of agro industries development in India?What are the challenges to development of a processing sector?What are the future prospects – what is the vision for the industry? What are the characteristics of an enabling environment? What are critical issues from development perspective?

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