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. 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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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.