Markets and Value Chains


Markets and Value Chains

The objective of Markets and value chain component is to enable farmers to engage in profitable market oriented production, that is sustainable and to promote partnerships and market linkages with other value chain participants and agribusinesses. The component helps the producer groups, agro-enterprises, and commodity associations, to actively engage in the development of commodity value chains by partially financing demand-driven investment proposals to producer organization through a matching grant. This will be done by organizing members of water user groups into higher level institutions (such as cluster level producer groups) and develop their capacity and skills for marketing. It is expected that produce aggregation will bring economies of scale in procurement of inputs and marketing of agricultural produce, thus enabling access to wider markets. These producer organizations will be an important vehicle for promoting marketoriented production in their geographical jurisdiction and can act as centers for technology dissemination and input / output marketing. Project is being  supporting:-

(a) Develop value chains aiming to establish longer term partnerships and market linkages between farmer groups and agribusiness enterprises, facilitated through an Agri-Business Promotion Facility (ABPF).

(b) Develop alternate market channels. The expected results from this component are as follows :-

(i) Better alignment of production with market signals and resource constraints of the cluster.

(ii) Improved incomes due to reduction of input costs and access to higher margin markets.

(iii) Creation of community owned enterprises in the form of Producer Companies.


The specific activities supported under theMarkets and value chaincomponent are as follows:-

(i) Establishing an AgriBusiness Promotion Facility that promotes investments in agribusiness, foster backward and forward linkages in the value chain.

(ii) Providing pre investment advisory support by ABPF and specialized service providers to enable producer organizations and value chain participants to prepare proposals and business plans for grant funding under the project and commercial credits respectively.

(iii) Financing of approved proposals in market infrastructure to farmer groups.

(iv) Agribusiness development through financing of demand-driven investment proposals by producer organizations that are actively engaged in the development of commodity value chains.