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.
Participatory Guarantee Systems (PGS) and short organic supply chains have emerged as promising solutions for smallholder farmers to provide organic produce to nearby consumers. PGS is an institutional innovation that builds trust among producers, traders and consumers through a low-cost transparent and participatory certification mechanism. They have particularly gained a foothold among smallholder farmers in middle- income countries, where third-party certification costs are often unaffordable.
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.
This report provides summary findings and conclusions from a set of five case studies examining the scaling up of pro-poor agricultural innovations through commercial pathways in developing countries.
The Private Sector Driven Agricultural Growth (PSDAG) project is a five-year (August 2014–August 2019) USAID-funded initiative implemented by International Resources Group, a subsidiary of Research Triangle Institute (RTI) International. The goal of PSDAG is to increase incomes of smallholder farmers by promoting private sector investment through two complementary objectives: (1) to assist the Government of Rwanda to increase private sector investment, and (2) to facilitate increased private sector investment by upgrading agricultural value chains.
The Agribusiness and Market Development (AMDe) project is funded through USAID Ethiopia’s Feed the Future program from June 2011 to May 2016. It goal is to sustainably reduce poverty and hunger by improving the productivity and competiveness of agricultural value chains that offer jobs and income activities for rural households.
This assessment has been conducted over December 2015 to May 2016 under the Powering Agriculture Support Task Order (PASTO). PASTO is funded by USAID and implemented by Tetra Tech ES, Inc. PASTO provides support services to the Powering Agriculture: An Energy Grand Challenge for Development (PAEGC) and its Founding Partners to enable their effective management, monitoring and evaluation of the program.
The Agribusiness Linkages Global Development Alliance (GDA) was to contribute to sustainable rural development throughout Egypt by enhancing the capacity of smallholder farmers to profitably serve as reliable suppliers of high-value horticulture to processors and other buyers by integrating 3,000 farmers into a sustainable and competitive high-value horticultural value chain anchored by HEINZ in the governorates of Sohag, Qena, Luxor, and Aswan in Upper Egypt; El Minya and Assiut in Middle Egypt; Beni Suef, Giza and Fayoum in Northern Upper Egypt; and the Nubaria area in lower Egypt.
The USAID-Inma Agribusiness Program focuses on developing Iraq’s private agribusinesses by facilitating the formation of fully-integrated value chains and improving agricultural quality and production. Inma, the Arabic word for ‘growth’, connects farmers to markets, increases the competitiveness of Iraqi agribusinesses, and facilitates domestic and foreign agricultural partnerships.