Market Infrastructure, Market Information and Intelligence Services
This sub component will cater to build strategic linkages amongst the value chain participants with a view to increase competitiveness, productivity, and quality and market access. Market Infrastructure support will be provided to support farmer groups with matching grant investments in rural market infrastructure and for productive infrastructure (formation of farmer common service center) such as storage facilities, cleaning, grading and sorting infrastructure, collection centers etc. The grants provided under these activities will be supported by contribution from the FPCs ranging from 25% to 50% in cash/ kind depending upon the activities and support requested from beneficiaries.
Successful farmer groups would be graduated to a higher level enterprise viz., producer organizations that can undertake storage and trading of commodities, primary processing of agriculture, horticulture and animal husbandry products, direct linkages with commodity exchanges, etc. Such producer organizations will essentially be community owned business entities who will undertake various activities such as bulk purchases of inputs and delivery to individual members, selling and marketing of produces after cleaning, sorting, grading, quality control and linkage to markets. The producer organization will also provide a comprehensive package of economic and technical services to all its members in a particular value chain. The benefits to individual members of such producer organization will be both through sharing of profits, lower cost inputs and marketing of produces linking them to big corporates leading to lesser risk of selling at lower cost. This process would be facilitated by the specialized business support organizations.
A database of industry experts, suppliers, subject matter experts has been developed under the project. This will be a support to the FPC and its members to get help from these resources in the development of business of FPCs on every possible dimensions.