Promotion of processing, value addition and marketing is essential for bringing higher economic returns to the farming community. The major challenges are supply chain infrastructure and institutional gaps, inadequate link between production and processing, seasonability of operations, low capacity utilization and lack of product development and innovation. Federating farmers in to producer organisations and forging of a healthy farmer-industry partnership can ensure assured market at pre-determined prices, increased investment in technology and inputs, increased productivity and returns to the farmers.
ABPF under the Project envisages improvement of the existing market infrastructure and help in development of policies and development of value chain. Agribusiness activities will be related to agriculture production, per se, creating backward linkages, e.g. providing quality inputs, and forward linkages, e.g. pulse/seed/spices handling unit to clean, grade and pack. ABPF will work in close association with PMU of the Project.
Agricultural production and its marketing are interrelated activities and it addresses these firstly by improving agricultural extension system, and secondly by providing upgraded marketing infrastructure which will be made accessible by traditional as well as alternative marketing channels. Besides these interventions, the competitiveness of the farmer will be improved by capacity building. Development of various business activities either supporting agriculture or based on agriculture production will add to the income of the farmers. It is therefore proposed to include the Agri-business Promotion Facility (ABPF) as a subcomponent under this Project.