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

9. Towards Action on
Public-Private Partnerships

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

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. 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.

22. THANKS