1. An analysis of feasibility of public
private partnership in Indian
Agriculture
Dr. S M Misal Sushilkumar Shinde
ResearchGuide ResearchScholar
Research Center:
DEPARTMENT OF COMMERCE & RESEARCH CENTRE,
SAVITRIBAI PHULE PUNE UNIVERSITY

2. An analysis of feasibility of public private partnership in
Indian Agriculture
Introduction:
Agricultural output growth is determined largely by technology and prices, in combination
with agricultural infrastructure such as roads, irrigation, and market and credit facilities. Given
the critical role of infrastructural facilities in agricultural growth, the Indian government has
accorded high priority to its development since the beginning of planning in the country.
Elaborating its pattern of priorities, the First Five Year Plan held that, ‘For the immediate five
year period, agriculture, including irrigation and power, must in our view have the topmost
priority…. The state in this initial period has to concentrate on the provision of basic services
like power and transportation’. In subsequent plans as well, stress was laid on building a
meaningful infrastructural network and providing basic services for the development of a
modern economy.
The provision of infrastructure facilities remained almost exclusively a domain of the state till
the early 90s, as, owing to the long gestation period of infrastructural projects and their
generally low profitability, private capital was not envisaged to flow into this area. However,
tight fiscal conditions in the 1990s, coupled with emerging concerns regarding the need to
provide efficient infrastructure services in a globally competitive set-up and rethinking on the
ability of government owned entities to supply ‘quality’ infrastructure, led to a perceptible shift
in the government's approach towards infrastructural development. Recently during the ethos
of development our average agriculture growth rate remains at slowest growing rate. To
achieve growth in the agriculture urgent need to work together to ring innovations via a

3. partnership between the private and public sector, farmers and government to meet India’s
agriculture need through new technology.
Public Private Partnership is a Contract between a public client and a Private Service provider‐
created to do business to achieve common objectives. During this project the partner share
risk, rewards and responsibility for shared investment. This partnership is not simply tools for
funding projects but they required the full commitment from all partners for entire
undertaking.
The PPP can help to build the agricultural infrastructure in following category:
 Farms to market road
 Water for irrigation
 Wholesale market and trading centres
 Agro-processing facility
 Information and Communication technology
The private sector consortium forms a special company called special purpose vehicle (SPV) to
planning, procurement design, develop, build, maintain, regulate and operate the asset for the
contracted period. PPP provides great opportunity to bring heavy investment in Indian
agriculture to invent golden Agriculture era.
Statement of the problem:
In Indian agriculture there is a strong need of investment to upgrade the countries
infrastructural services. There is a great demand of improving water management and
construction of irrigation projects to bring the huge rain-fed area under irrigation. It will
help to enhance the productivity and returns on investment of farming. Big private
conglomerates are more interested to invest in High value crops based on high returns.
Post harvest management, agro-processing facility, suitable supply chain, and storage
and transport infrastructure help to increase the profitability of farmers. The Private
sector can leverage its advantages in creating financing, greater operational efficiency,

4. lower costs of distribution, more complex delivery system, faster decision making,
management flexibility and innovation.
Assumptions:
 There is a need for heavy investment in Indian Agriculture in infrastructure
development.
 Private sector having huge potential and with the public sector can jointly fulfill the
investment required in agriculture sector.
 PPP enhance the efficiency of the project and make it more professional and
productive.
 It helps to minimize the cost and make it available for service within the time frame.
Justification of the objectives:
These objectives can provide detailed research work to understand the needs of
investment in Indian agriculture. It allows the study of different models of public private
partnership in the world and their feasibility with respect to Indian agriculture. This
study can provide analysis of potential of PPP to reinventing agriculture sector for
providing investment to promote develop and disseminate technologies for enhancing
the production and productivity.
Objectives of the study:
 To study the need of public and private investment in Indian Agriculture.
 To justify the importance of PPP for Indian Agriculture.

5.  To understand and explain the feasibility of PPP for improving agriculture
infrastructure.
 To study the different model of PPP and their suitability for Indian agriculture.
Statement of hypothesis:
 PPP in agro-processing development and warehouse development can help to better
transportation and minimize the post harvest losses of perishable agriculture
commodity.
 PPP project in research and development especially in biotechnology, agriculture
machinery, seeds, and integrated pest management can improve the production and
productivity.
 PPP in Information and communication technology helps to extend the government
extension activities and resourceful knowledge to farmers.
 PPP in Insurance can help to minimize the risk in agriculture through natural
calamities.
 Public private partnership projects for farm road constructions have the potential to
develop better transportation for agriculture farm produce.
 Public private partnership projects for irrigation water facility development have the
potential to increase the area under irrigation to enhance agriculture production.
Universe & sample size:
1) Maharashtra Agriculture competitive Project:
The Project Development Objective of the Maharashtra Agricultural
Competitiveness Project (MACP) is to increase the Productivity, Profitability and Market Access
of the farming community in Maharashtra. This would be achieved by providing farmers with
technical knowledge, market intelligence and market networks to support diversification and
intensification of agriculture production aimed at responding to market demand. Farmers will
also be assisted in establishing farmer organizations, developing alternative market channels

6. outside of the regulated markets and in supporting the modernization of promising traditional
wholesale markets. The project has three main components:
 Intensification and Diversification of Market led Production
 Improving Farmers Access to Markets
 Project Management Learning & Adjusting.
A) Project Coordinate Unit:
B) Project Implementations Unit:
C) Accounting Centre: (ATMA and DDRCS)
Area: Maharashtra.
2) Government Of Rajasthan and Monsanto India Limited:
PPP between the Government of Rajasthan and MIL which aims at improving
economic self-sufficiency of tribal maize farmers by enhancing maize yields and
incomes .
Area:
 Banswara
 Dungarpur
 Udaipur
 Pratapgarh
 Sirohi.
3) Government Of Odisha and Monsanto India Limited:
Last Kharif season, the Government of Odisha undertook Project Golden Rays
in 30,000 hectares in the state and partnered with MIL for the tribal districts
covering 8,000 hectares. By means of the project, farmers had access to the high
yielding hybrid maize seeds and training on improved agronomic practices. a result,
maize farmers in Odisha were able to increase yields and improve their quality of life
through enhanced incomes.
Area:
 Bolangir
 Kalahandi

7.  Nayagarh
 Nuapada
 Khurda
WorkingDefinitions of terms used:
 Public-Private Partnership (PPP):
participation by the private sector (the for-profit or not-for-
profit sectors) in the provision of infrastructure services in cases where, if left to the free
market alone, such private participation would not occur because of the low returns on
investment or the levels of risk involved, financial or non-financial.
 Special Purpose Vehicle (SPV):
SPV is an entity established for a particular purpose, such an
obtaining off-balance sheet financing, gaining tax advantages, or isolating the sponsors’ other
assets from the project’s creditors.
Research Design:
A) Literature Review
B) Descriptive Research design
To study the case studies of successful public private partnership projects in India.
PPP projects on Road constructions, water irrigation, ago-processing facility,
Information and communication technologies can provide the data which having
immense importance

8. Method and Sources of data collection:
A) Secondary Data.
 Previous resrch
 Official Statistic
 Government Reports
 Web Information
 Historical data and Information.
Bibliography/ Webliography:
A) Books:
1) S Ayyappan, Pritam Chandra & S K Tandon : ICAR-Industry Meet
Agricultural Transformation through Public-Private Partnership: An Interface.
2) Surabhi Mittal and Arpita Mukherjee: Food for policy; Reforming Agriculture.
Cambridge UniversityPress (2008).
B) Report/ Journals:
1) Varma, H.K., A.S. Dhingra, and D.T.V. Raghu Rama Swami: Exploring Public–Private
Partnership in the Irrigation and Drainage Sector in India a scoping study report.
ADB (2013)
2) GOI Planning Commission: Report on PPP sub group on social sector. (2004)
3) Akkawi, A. 2010. ‘INSEAD—PPPs as Policy Instruments’ in Ernst & young
Availableathttp://campuses.insead.edu/abu_dhabi/events/PPPPresentatin.
(2004)
4) LOUIS WITTERS, REVITAL MAROM, and KURT STEINERT, Alcatel-Lucent: The Role
of Public-Private Partnerships in Driving Innovation.
Sushilkumar Shinde Dr. S M Misal
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