Agril summit 2007, patna

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Agril summit 2007, patna

  1. 1. Public-Private-Partnership in Agriculture: A Paradigm Shift Needed Dr.K.M.Singh Director State Agricultural Management & Extension Training Institute, Patna 28th - 30th August 2007 State Agricultural Summit, Bihar - 2007, Hotel Maurya, Patna
  2. 2. Changing Scenario: Agriculture vis-à-vis Market Globalization and liberalization Changing consumer interest & preferences Diversification of food basket Quality food products Value added/ processed food products Competitive prices Raising and stabilizing income over seasons
  3. 3. Shift of Focus in Agricultural Sector From staples to high value crops From narrow agricultural focus to broader policy context – including global impacts From focus on crop yields to market demands and incomes From primary production to entire food chain From agriculture to rural space From thinking of farms as homogeneous to heterogeneity From public to public-private partnerships, including community driven development From avoidance of issues to head on approach (biotechnology, forestry, water)
  4. 4. Factors challenging Agricultural Sector Agriculture Sector today: Fixed or reducing Resources Growing economy Globalization, competition, productivity Population growth, resulting into growing demand Technology, biotech, precision farming Effects: More sophisticated growers emerging Need for higher yields/lower costs Value shift from chemicals to seeds Integration of industry partners
  5. 5. New Initiatives in Bihar Agriculture Recent trends in Bihar include: Specialized & localized production Market - led Production & diversification Use of hybrid seeds Uniform quality Contract and Organic farming Repeal of APMC Act provides opportunities for: Establishment of Market Yards in private sector. Establishment of specialty market. Contract farming Value addition and Processing Other initiatives include: National Horticulture Mission for Fruits, Vegetables, Spices, Flowers & Medicinal & Aromatic plants Macro Management for cereals ISOPOM for pulses, oilseeds & Maize Establishment of ATMA in all the districts to bring all stakeholders on one platform and to promote P-P-P.
  6. 6. Agril. Products from Bihar with high market potential  Cereals like Maize, Rice and Wheat  Sugarcane  Vegetables, like Cucurbits, Okra. and Brinjal  Flowers, like Tuberose, Gladioli, Roses, Marigold  Makhana  Litchi and Mango  Honey and allied products  Dairy products  Select spices like turmeric, ginger, garlic  Aromatic oils like menthol, lemon grass, citronella
  7. 7. Some success stories and opportunities to build in Bihar’s agriculture include  Makhana processing  Organic rice  Litchi  Exotic vegetables  Litchi honey  Tea  Aromatic oils- mentha, lemon grass
  8. 8. Constraints and challenges  Low productivity, due to low level of technology.  Poor infrastructure in the rural areas.  Unstable and generally low quality production.  High transaction costs due to poor post-harvesting handling, storage, and packaging.  Lack of credible market information systems.  Lack of experience among local producers in dealing with developed markets.  Limited access to cheap credit.  Agriculture generally termed as high risk area for commercial bank affecting credit flow
  9. 9. Towards Action on Public-Private Partnerships
  10. 10. Key factors for partnerships  Each partner must bring something to the table  Common objective  Value creation for both  Complimentary roles The way forward   Stop depending too much on the government…  Stop thinking the private sector as greedy and unreasonable  Combine the efforts of the public, private sectors and community (civil society) together to get the best benefits
  11. 11. Opportunities for partnership exist Partnerships can improve access to: New technologies, and tools New research expertise New infrastructure Private equity markets Donor funding New product markets and new customers New marketing and distribution networks Synergies through knowledge sharing, joint learning, scale economies, resource pooling, and cost sharing
  12. 12. But there is a confusion on roles With changes in the global agri-food system, the roles of the state, industry, and society remain contested, Controversy over ownership of new knowledge Issues over distribution of benefits and risks Concerns over lack of pro-poor emphasis Unease over environmental, social sustainability  Learning from other sectors e.g. the health and ICT sectors
  13. 13. Practical Options  Working together on “how to”  Delivery mechanisms and marketing  Management tools of research and innovation  Technology collaboration and related issues  Collaboration which could impact rights on knowledge in public domain
  14. 14. Government’s role: Policy environment Change in mindset From Regulator to Facilitator Engage in Partnerships for Skills development & complementation Legal Framework Move to a single window dispensation in spirit & practice New legislations be made facilitative rather than regulatory Effective IP protection and enforcement across the board Multiplicity between centre and states in regulation is discouraging
  15. 15. Partnerships are taking place but pace needs acceleration. Industry should focus on national goal of increasing food production in a sustainable manner. Private investment in agriculture should increase. Enabling environment is already in place. Several examples of partnership already exist and can be built upon. Industry’s Role
  16. 16. Benefits of P-P-P to Private Sector  More competitive locally  Expand market for private sector  Allows exports in foreign markets Benefits form Public-Private Consortia Public sector stronger  More money  Research more relevant for industry and farmers Private knowledge of market Private germplasm and technology Private sector benefits from  Technology  Access to knowledge
  17. 17. Quality seeds Corporate involvement Accessible market Extension Services Higher yields Price support Concept of Corporate involvement The corporate extension agencies would ensure supply of quality seeds, extension services, better yields, market access and buy back price support.
  18. 18. Areas of Corporate involvement The Corporates should ensure forward and backward linkages with the farmers to co-ordinate and promote production and marketing of agriculture produce Farmer Corporate Produce quantity and quality as per requirements of Corporate Provide support in terms of extension services, agri-inputs, credits, farm practices, markets and fixed price
  19. 19. Typically contract farming will need corporate involvement to address... Identification of high yielding alternatives which give better returns than conventional farming Marketing security and technical assistance in a multi-crop program Removal of infrastructural bottlenecks and enabling regulatory framework Warehouses / Cold storage chain Dryers Transportation
  20. 20. Important Aspects Most Critical Missing Links Potential Consortium Partners Consumption (Safety & Quality) Marketing Processing Production 1. Identification and estimation of pesticide residues 2. Packaging of the products 1. Demand & supply (domestic & global) analysis 2. Market intelligence 1. Proper grading & Standardization 2. Lack of Uniform production Technology by growers 1. Research on plant protection 2. Research on GAP CENTRAL & STATE INSTITUTES Policy Research bodies like NCAP, NCAER Private Sector, Research Institutes SAU, Private Partners Farmers Processors Traders/Exporters Consumers Government Example: Value Chain On Agricultural Products KVKs, E-Chaupal, ATMAs, FOs, PRIs, KVKs, SHGs
  21. 21. Conclusion There’s high potential for Partnerships in Bihar due to: Political stability and visionary leadership Favorable conditions to produce a variety of products, Access to preferential markets Constraints being appropriately addressed systematically. Public-Private Partnerships are crucial for success. Agriculture development, agro-industrialization, creation of a proper business environment to investment are priorities to the Governmental program.
  22. 22. THANKS

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