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Agri-Business Promotion Facility at RACP

 

1. The Project Development Objective (PDO) of Rajasthan Agricultural Competitiveness Project (RACP) is to establish the feasibility of sustainably increasing agricultural productivity and farmer incomes through a distinct agricultural development approach by integrating agriculture water management and agricultural technology, farmer organizations and market innovations in selected locations across all the Cluster areas of the Project spread in the ten agro-ecological zones of Rajasthan.

 

2. The guiding principles under the project are:

(i) sustainable and efficient use of water resources, including improved on-farm water use efficiency, reduced water-intensive cropping patterns, and using the resultant savings of water from agriculture sector for economic purposes outside of agriculture in support the state’s water policy objectives;

(ii) increased private sector participation in the development of value chains in processing and marketing in support of the state’s agro-processing and agri-business policy; and

(iii) improved public sector capacity in delivering agriculture support services.

 

3. Thus the Project envisages huge focus on providing better Marketing facilities for farmers for their produce including enhanced income from marketing of goat from the small ruminants.

 

4. The Project therefore would be making structured interventions in the areas of :

(i) Improved Water Use Efficiency;

(ii) Technology Transfer and Market Led Advisory Services;

(iii) Livestock Support Services for Small Ruminants (Goats);

(iv) Agri Business Promotion Facility;

(v) Market Information and Intelligence Services;

(vi) Warehouse Receipt Development and Virtual markets.

 

5. The underlined principles of the Project interventions is to benefit the farming community at large and accordingly value chain approach shall be adopted for improving marketing and processing efficiency. Farmer groups and farmer common service centers (FCSC) and Producer Company shall provide primary value addition by cleaning, grading and packaging services. With capacity building support, PCs would be able to help in input management to bring to its members economy of the scale.. Capacities of these PC would be enhanced and market linkages facilitated to market their produce. Goat value chain also shall be studied and supported for primarily benefitting the goat rearers.

 

6. 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 shall help 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 shall be done by organizing producers into higher level institutions (such as cluster level producer groups) and develop their capacity and skills for marketing. It is expected that produce aggregation shall bring economies of scale in procurement of inputs and marketing of agricultural produce, thus enabling access to wider markets. These producer organizations shall be an important vehicle for promoting market-oriented production in their geographical jurisdiction and can act as centers for technology dissemination and input / output marketing. Project shall support

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

(ii) Develop alternate market channels. The crucial human resource development support for agribusiness infrastructure in order to  achieve competitiveness in agricultural marketing is envisaged to be provided through a strong Agri Business Promotion Facility (ABPF). Thus, ABPF is one of the significant components of RACP.

 

7. The overall objective of the Agribusiness Promotion Facility (ABPF) is to increase the contribution of the agribusiness sector to Gross Domestic Production of the State, foreign exchange earnings of the agricultural producers, and employment. ABPF shall improve the ability of agribusinesses in Rajasthan to produce and market their products both domestically and in foreign markets.

 

8.      Agri-Business Promotion Facility (ABPF), established under the project, shall facilitate:

(i) The roll out of the participative value chains identification and stakeholder consultation;

(ii) Promote investments in agribusiness, foster backward and forward linkages in the value chains for agricultural products, facilitate access to finance to agribusiness entrepreneurs, and promote positive policy change;

(iii) Facilitate the implementation of Rajasthan’s  latest Agribusiness Policy and

(iv)  Mobilize national and state grants.

 

9.      The Structure and Coverage.

ABPF project area shall be spread over all the clusters  under seventeen districts viz. Jaipur (Mokhampura), Kota (Sangod), Bundi (Gudha), Tonk (Deoli-Anwa), Baran (palatya), Jhalawar (Manoharthana), Chittorgarh (Orai, Bassi), Pratapgarh (Jakham), Ajmer (Pisangan), Nagaur (Ladnu), Sawai Madhopur (Bonli), Alwar (Bansur), Dholpur (Bari), Sri Ganganagar (z-distributory), Bikaner (Phoolasar), Jaisalmer (Kheruwala) and Banswara (Kushalgarh).

ABPF shall establish one headquarter and three sub offices based on the coverage and effectiveness of operations at cluster level.   The establishment shall include:

a.       Head Office-Jaipur, Districts covered- Jaipur, Alwar

b.      Sub Office-1: Base-Kota. Districts covered- Kota, Bundi, Baran, Jhalawar, Tonk, Sawai Madhopur, Dholpur

c.       Sub Office-2: Base- Chittorgarh, Districts covered- Ajmer, Pratapgarh, Banswara. 

d.      Sub Office-3: Base-Bikaner, Districts covered- Bikaner, Sri Ganaganagar, Jaisalmer, Nagaur.  

 

10.  Scope of work:

        Agricultural production and its marketing are interrelated activities and RACP through ABPF aims at promoting entrepreneurship and development of business plans for, among others, Producer Companies, MTAs (Multi Task Associations) and help further refine and develop Agri Business Policy for bringing higher income to farming community. Considering the scope of further improving sustainability of agriculture, value addition to agriculture produce is most important critical factor. Development of various business activities either supporting agriculture or based on agriculture production will add to the income of the farmers. Thus scope of work shall include:

(i) Identification of potential commodities and their value chain study with special focus on micro level gaps at cluster level and               suitable intervention plans for identified gaps.

          (ii) On the basis of cluster specific value chains and available resources (Land, water, infrastructure, etc.) design suitable and replicable                 business models/plans for agriculture entrepreneurs and Community based organizations (CBOs).

          (iii) Financial linkage of prospective agriculture entrepreneurs or CBOs to financial institutions including available government schemes                   for credit and grants.

          (iv) Incubation and agriculture enterprise skill development of prospective entrepreneurs and CBOs.

          (v) Knowledge dissemination through workshops, seminars and web portal. Managing network of producers, experts, industry,                            aggregators, processors, exporters and publication of successful business models.

          (vi) Cluster specific inputs and market linkages  for agriculture and Goat

 

11. Deliverable cluster wise have been worked out. Further the ABPF is to work in total harmony to promote the stipulated Agri Business Policy of the State. It is sincerely hoped that Agri Business intervention of RACP will address the long awaited needs of our farmers in the project areas  and will provide them the necessary market linkages to enhance their incomes.