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  1. 1. Public-Private Partnerships in Market-led Extension: Case Studies Market-led Extension Dr A.S.Charyulu MANAGE, Hyderabad for academic useonly2. Constraints to Agricultural Growth No breakthrough technologies in therecent past Low level of productivity Inadequate market linkagesInadequate extension support Degradation of natural resources Inadequateinvestment in agriculture3. Strengths Strong network and wide reach Cover broad spectrum ofagriculture Weaknesses Multiplicity of Technology Transfer SystemsNarrow Focus of the Agricultural Extension System Lack of Farmer Focusand Feedback Inadequate Technical Capacity within the Extension SystemInadequate capacity building of farmers Weak Research-Extension-Farmer-Market Linkages Inadequate operating resources and financialsustainability Public Extension4. Strengths Better quality service for high value crops Able to serve theValue Chain Weaknesses Limited reach in terms of farmers and cropsInadequate network Poor farmers not adequately coveredHence………………………….. Supplemental efforts with plurality ofinstitutions is the key Public extension network with NGOs, FO, Paratechnicians, Corporate House, Cooperatives, SHGs, Input Dealers etc.Private Extension5. Commercialisation of agriculture Constraints in Public Research andExtension System Globalisation, Liberalisation and Privatisation Public andPrivate Systems to seek strategic partnerships Business, Developmentaland Social Goals Why Partnership?6. Role of Public System Facilitator – Stakeholder – Partner in theenterprise Contribute or facilitate in the chain of partner-input--processes-output Public system need not be a shareholder in profit Networking - amajor role of Public Institutions (ATMA-Agricultural TechnologyManagement Agency or like institutions)
  2. 2. 7. Elements of Public-Private Partnership Govts. (Centre / State) NGOsCorporate Sector Cooperative Sector FIGs & FOs, SHGs, FFs, FarmersPublic & Private Financial Institutions, Insurance Companies InputsManpower resource Financial resource Infrastructural resource Skill,knowledge and advisory resource Time resource Agricultural input andother service resource Process Relationships among various stakeholdersin different combinations through formal / informal / written (MOUs,Formats etc.) arrangements Around one or more defined functions in theagri value chain Sharing the output (profit or loss, social responsibility,professional and personal satisfaction, fulfillment of corporate and officialobligations etc.) Outputs Necessarily the direct and instant output –increase in income of the farmers Upgradation of natural resources,economic viability, environmental sustainability, social accountabilityPartners From the Concept note on PPP by Dr Vikram Singh, MANAGE8. Agri-business companies Input dealers Agri-clinics Technically qualifiedagricultural consultants Para professionals Farmer‟s organisations Co-operatives NGOs Mass media Potential Private Partners9. Potential Areas for Market-led Extension Supply of Inputs - seeds,fertilizers, pesticides, machineries, feeds, medicines etc. Extensionservices – Advisory, information support, field visits, exposure visits,demonstrations, exhibitions Processing of products – Grading, standards,quality, post-harvesting, storage Marketing of products – Buy-backarrangement, market intelligence, facilitate export.10. Issues in Operationalisation of PPP Selection of activity andprogramme Designing delivery mechanism Working out MoU coveringtime, roles of partners, implementation process and expected end results.Soliciting expression of interest Selection of partners Execution of MoU.11. Framework of MoU Selection of programme Expected output Processof implementation Clarity of roles, responsibilities and contributions of thepartners Area under coverage Duration of the programme /activity
  3. 3. Monitoring and evaluation Conditions of renewal Regulation mechanismArbitration12. Diversification from groundnut, paddy and sugarcane to maize inChittoor district of Andhra Pradesh, India Poultry Association, CommodityInterest Groups of farmers are linked and networked by ATMA with a buy-back arrangement of maize at a fixed price. ATMA conducted 22awareness camps, 6 exposure visits to Karnataka, printing and distributionof pamphlets & leaflets and arranging interaction with experts. PoultryAssociation provided 2 MT of poultry manure free of cost to the networkedfarmers and the quality seed of maize was supplied by ATMA. Areaexpanded from 60 hectares to 1150 hectares with an average income ofRs.22,000/- per hectare – resulting into crop diversification. Technical andknowledge support by BTT on crop production. Case1: Market-ledPartnership ATMA, Chitoor- Poultry Association- Commodity InterestGroups13. Serve entire value chain through FIGs and FOs including Soil testingfor micro nutrients, balance use of fertilizers, Advisory, Input supply andMarketing Cost Sharing @ 50:50 between ATMA and Chambal for theservices Developing an organic linkage through Uttam Krishi Sevak (UKS)through continuous feedback Dissemination and extension of agriculturalservices using ICTs at FIAC established by ATMA and operated by UKS.Case 2: Uttam Bandhan Chambal Fertilizers-ATMA, Sangrur-FIGs-FOs14. Rich biodiversity identified as strength of Patna district through SREP.ATMA facilitated and promoted the cultivation of medicinal and aromaticplants by converging farmers into FIGs in a buy-back arrangement withBaidyanath and Ayurvedshri Herbals. Capacity building of FIGs incultivation of medicinal and aromatic plants by CIMA-Lucknow and FFDC-Kannauj facilitated by ATMA. Area expansion, crop diversification andenlarged coverage in 6 villages and number of FIGs going up. Case 3:Cultivation of Medicinal and Aromatic Plants ATMA, Patna-FIGs- CentralInstitute of Medicinal and Aromatic Plants, Lucknow- Fragrance and
  4. 4. Flavour Development Centre (FFDC), Kannauj, U.P- Baidyanath andAyurved shri Herbals.15. Case 4: NGO Initiated Partnership Patliputra Samaj Kalyan Sansthan,Patna entered into buy-back arrangement of mushroom through federationof FIGs at a pre-determined prices. ATMA promoted CIGs, convergedthem into Federation and linking with Patliputra Samaj Kalyan Sansthan .Patliputra Samaj Kalyan Sansthan, Patna-ATMA, Patna-FIGs16. Case 5: Export Oriented Partnership M/s Pamer Agro Ventures (P) Ltd.promoted production of snow pea by supplying seed and other inputs andagronomical practices to FIGs through the interventions of ATMA. Exportedthe snow pea and realised highly remunerative prices by the farmers undera buy-back arrangement in the supervision of ATMA. M/s Pamer AgroVentures (P) Ltd, Patna-ATMA, Patna-FIGs17. Case 6: Market-led Production of Basmati Rice Traditional rice varietiesare replaced by Basmati rice M/s. Aditya Agro-clinic and Agro BusinessCentre, Munger -a Basmati exporter and FIG leaders for Barh entered intocontract for production and procurement. ATMA Patna facilitated FIGformations and market linkages. M/s. Aditya Agro-clinic and Agro BusinessCentre, Munger,Patna-ATMA, Patna-FIGs18. Case 7: Partnership for Direct Marketing of Alphanso Alphansopredominant h orticultural crop in Ratnagiri, Kokans region of Maharashtra.99% of growers sell the produce at 1/4 th price that too through middlemen Sindhudurg district organised Mango fair in Mumbai in 2002 andfarmers got 4 times as compared to earlier prices. Learning fromSindhudurg mango fair, ATMA – Ratnagiri promoted 13 GIGs and trainedon quality mango production, better handlings through KVK – Shirgaon andSAU-Dapoli. 13 FIGs established stalls at Mango fairs, farmers got betterprices and consumers got quality mangos at cheaper price than in theregular market. ATMA, Ratnagiri- KVK – Shirgaon- SAU-Dapoli-CIGs
  5. 5. 19. Case 8:Collective Marketing of Vegetables ATMA, Sangrur facilitateddiversification from wheat – rice to vegetables in Dhuri block of Sangrur inPunjab through CIGs. The agronomical practices other technologies wereprovided by ATMA and PAU. National Horticulture Research andDevelopment Board, Bhati entered into contract farming with FIGs throughATMA and procured vegetables. Also low cost cooling unit were providedby ATMA. Collective marketing by FIGs was the key for the success.ATMA, Sangrur-PAU- National Horticulture Research and DevelopmentBoard, Bhati-FIGs20. SBI, Dabur tie-up to finance farmers State Bank of India has signed anagreement with Dabur India for financing farmers for production ofmedicinal and aromatic crops under contract farming arrangements. TheMoU constitutes a broad understanding between SBI and Dabur India,manufacturer of ayurvedic medicines, to finance farmers for cultivation ofmedicinal and aromatic crops in Uttaranchal. Case 9:Partnering forAyurvedic Medicine State Bank of India-Dabur India-Farmers inUttaranchal21. M/s. Prabhat Seed Trader makes arrangement with the farmers toprocure seed usually at higher rates than the market price. The trader hasmachinery and undertakes treatment of the seeds and obtains certificationof seeds under the brand name „Prabhat Seeds‟ from the State Authorities.Under the partnership, Chambal Fertilizers authorized to sell these qualityseeds to the farmers through its market network. M/s. Prabhat SeedTraders started its activity with a production of 300 MT of wheat seed perannum and now it has touched more than 1500 MT per annum. Case10:Partnership for Quality Seed Chambal Fertilizers-State Government,Haryana-University-Farmers‟Groups-M/s.Prabhat Seed Traders inKurushektra.22. Case 11: Market Linkage for Export of Litchi ATMA taken initiative toform Litchi farmers into CIG National Horticulture Board offered know-howto produce quality litchi production Market linkage agreement with Agro-
  6. 6. Venture Pvt. Ltd., for buying litchi ATMA arranged loan for farmers withcooperative bank. Farmers income reached Rs.30-40 thousands per acreand average returns of Rs.8000 per month per farmer. Farmers startedproducing cherry, tomato, baby corn and sweet corn with market linkage.ATMA, Kangra- National Horticulture Board - Agro-Venture Pvt. Ltd-FIGs23. Case 12: Cashew Ratna ATMA mobilised farmers into processorsgroups 10 processors groups were federated at block level. Commongodown facility was created at block level for grading and packing 7 blocklevel cashew processors groups were federated at district level. Districtfederation undertake further grading, packing and marketing. CashewRatna brand was promoted by ATMA at domestic and export market. Buy-back agreement with traders after processing with the facilitation of ATMAfor reasonable profit. ATMA, Ratnagiri-FIGs-Traders24. Case 13: Rosemary Cultivation in Tamil Nadu MYRADA KVK capacitybuilding and linkage, technological backstop, facilitator, participatorymonitoring, fund mobilization CMRC- Selection of farmers, formation ofcommittee, agreement preparations, participatory monitoring, updatingmarket information, employment generation Departments - Technicalsupport, provision of subsidy, components TNAU-Technical backup;DRDA-Oil Extraction Unit; Spice Board-Drying Yard ITC- Timely fundallocation, well defined harvesting procedure, buy-back agreement Hopesin Nilgiris-Marketing arrangements 114 farmers formed into institutioncalled “Rosemary Growers Association” to enable their entrepreneur ability.MYRADA-Farmers‟ Groups /CMRCs-Spice Board-TNAU-HorticultureDept.-DRDA-ITC, Kolkata-Hopes (Marketing Agency), Nilgiri25. Lessons MoU indicating feasible activities in appropriate areas aimedat specific outcomes is the key Role clarity, contributions andresponsibilities of partners decides the success of partnership Requirescontinued commitment and periodical dialogue between the partnersOrganizing Farmers‟ Groups / Commodity Interest Groups enable farmersto engage in partnerships ATMA intervention and guidance help in
  7. 7. fostering public-private partnerships Public-private partnerships under theguidance of ATMA like body help amiable linkage between farmers andindustry26. Thank you [email_address