In order to bring about sustainable transformation and business orientation into the Indian Agriculture sector, there have been schematic interventions to promote unique forms of social capital for farmers, called Farmer Producer organizations (FPOs). Many stakeholders, particularly NGOs, are involved in promoting and handholding these FPOs in a target-driven mode by promoting a large number of such institutions across the country.
India is witnessing dwindling gains from agriculture for the smallholder farmers because of high cost of inputs, changing climate impacting production, fluctuating market prices of outputs, and weak delivery of services at the last mile. The value share of farmers in the commodity supply chain needs to be increased to ensure that farming remains a remunerative livelihood option. There has to be a wider acceptance of the fact that the country needs partnerships among multiple players with complementary knowledge and expertise for its agricultural development.
The International Fund for Agricultural Development (IFAD) financed the second Cordillera Highland Agricultural Resource Management Project (CHARMP2), in areas where poverty is most severe among indigenous peoples in the highlands of the Cordillera Region in northern Philippines. The aim is to reduce poverty and improve the livelihoods of indigenous peoples living in farming communities in the mountainous project area. The indigenous peoples consist of many tribes whose main economic activity is agriculture.
The creation of Competitive Research Grants (CRGs) is globally recognized as an institutional innovation for improving the effectiveness of agricultural research. Unlike block grants for research, CRGs are expected to bring in many top-quality proposals from a wide range of actors, selecting the best out of them and thus getting more value for money.
In India, Farmer Producer Organizations (FPOs) are considered as the most preferred institutional mechanism for enhancing productivity and income of farmers. This is based on the resounding success of a few farmer collectives that have aggregated their produce to realise better incomes. However, when efforts were made to scale up this interesting model across the country, several challenges emerged.
The Agribusiness for Trade Competitiveness Project (ATC-P), branded as Katalyst, is a pioneer market systems development project contributing to sustainable poverty reduction in Bangladesh. It is implemented by Swisscontact under the umbrella of the Ministry of Commerce, Government of Bangladesh. The project has been operating in Bangladesh since 2003 in three phases.
This publication is providing a glimpse into how Katalyst is realising systemic change by making market systems more inclusive. As a result of the systemic changes, farmers are empowered to increase their incomes and improve their livelihoods, private companies are changing their business models as they recognize the buying power of small farmers and cater to their needs, and the public sector fulfills its role of supporting the poor more effectively by creating conducive enabling environments.
This booklet describes some recent, stand-out innovations and achievements that are the fruits of this future-oriented partnership, fully supported by the Katalyst project. As Katalyst is in its third phase of operations, some of the milestone achievements of the project are reviewed. The project expects to expand on these successful models to be implemented throughout Bangladesh.
Often, farmers excessively use chemical pesticides with detrimental effects on environmental and human health.The ‘Commercialising Bio-Pesticides in Bangladesh’ mini case study explains how the Katalyst project and private sector partner Ispahani Agro Ltd. formulated a policy recommendation on the amendment of the 1985 Pesticide Act to make the proper registration and marketing of “Bio-Pesticides” possible, allowing companies to market and distribute IPM products to a mass audience.
The goal of both of this report is to draw lessons from Katalyst’s experience which could be used more broadly. As the private sector assumes a more significant role in the architecture of development it is important to understand more clearly what benefits companies might get from greater engagement; and also what actions work best to facilitate inclusive market approaches.