MoA, FICCI launch joint initiative to attract PPP in agriculture

MoA, FICCI launch joint initiative to attract PPP in agriculture
FICCI will coordinate with the Department of Agriculture and state Governments on the one hand and private sector companies on the other to realise the goals of the initiative

New Delhi: Minister of Agriculture and Family Welfare, Narendra Singh Tomar today launched a PMU on public-private partnership (PPP) in agriculture which is a joint initiative of Ministry of Agriculture and Farmers welfare and FICCI.

Tomar emphasised the need to strengthen the agriculture sector as it would help in strengthening other sectors as well. He further stated that PPP model could be the ideal model for growth in the agriculture sector and PPP projects must focus on benefitting the farmers through enhancement of their income.

Speaking on the occasion, Manoj Ahuja, Secretary (A&FW) said that government should play a catalytic role in facilitating investments in the agriculture sector. The private sector and NGOs should come together and partner with the government on projects in agriculture which would have a multiplier effect, he added.

Shubrakant Panda, Senior Vice President, FICCI expressed confidence that the PMU initiative for PPP in agriculture launched today will accelerate large-scale PPP projects in agriculture by leveraging the private sector investments and bring convergence of government schemes and subsidies.

Abhilaksh Likhi, Additional Secretary (A&FW) and other senior officers of DA&FW and FICCI were present on the occasion. Representatives from states and industry had joined online.

Agriculture investments and increasing gross capital formation in agriculture are key to modernising the agriculture sector. Combining public investments, in the form of various Central and state government initiatives in agriculture along with the private sector investment can be a force multiplier for the agriculture sector. The government is keen to incentivise PPP initiatives in the agriculture sector to improve yields, reduce losses and enhance farmer incomes. PPP initiatives will crowd in private capital in agriculture, leverage public investment and align the Central and state governments, the private sector, and farmers in a shared vision of dynamic and value-added growth in the sector. PPP initiatives will also lead to the convergence of various schemes to benefit farmers and improve their impact, FICCI said in a statement.

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The primary objective of this PPP initiative is to enhance the income of small farmers by creating additional value, from the provisioning of quality inputs, technology extension to market linkages, and value addition. PPP initiatives are also expected to lead to modernising agricultural practices, building climate resilience among farmers, developing agriculture and rural infrastructure, and increasing agricultural exports. A particular objective is to assist the states to unlock the full potential of their respective agro-climatic regions, and a wide variety of agri produce and help producers to integrate better with domestic and export markets.

Against this backdrop, the Department of Agriculture and Farmers’ Welfare, Government of India and FICCI have announced a joint initiative to develop PPP initiatives in agriculture.

Role of FICCI in this partnership
  • To reach out to the private sector and facilitate the submission of proposals for PPP projects in the agriculture sector
  • To identify the government schemes which could be directly or indirectly leveraged by the private sector
  • To help the private sector design the PPP agriculture project proposals as per the guidelines and the schemes available for a particular value chain
  • To monitor the private sector and PPP investments in agriculture and consolidate the total investments in the agriculture sector
Role of the Ministry of Agriculture and Farmers’ Welfare
  • To inform the state governments about this partnership and the creation of PMU
  • To coordinate with the state governments for getting the proposals approved
  • To formulate policies which will accelerate PPPs in the agriculture sector

FICCI will coordinate with the Department of Agriculture and state Governments on the one hand and private sector companies on the other to realise the goals of the initiative. The PPP initiative will be reviewed on a regular basis jointly by the Department of Agriculture and Farmers Welfare and FICCI and necessary course correction undertaken as and when required.

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