Agriculture public-private partnership formal framework is being developed by the government

13 Jul 2022 , 11:08 AM

According to news reports, the government wants to work with businesses to develop a PPP model that is not only highly replicable and upgradable but also highly viable over the long term. The proposal to formally bring in additional businesses to the sector comes six months after the Centre, under public pressure, abolished the three contentious agricultural legislation.

The government is eager to develop a formal, comprehensive framework for public-private partnership (PPP) for the agriculture sector with an emphasis on securing greater investments and expertise from private participants in the area.

Manoj Sinha, the agriculture secretary, said that work on the framework was still in progress and that commercial companies were welcome to contribute.

In order to scale up central initiatives like the drive to cut losses in the value chain for agricultural commodities, Sinha said it was essential to establish a framework that made it simple for more private actors to enter the market.

He also emphasized that despite the government's best efforts, there is still a lack of coordination between the needs of farmers, businesses,
and the government. "Each sub-sector of India's agriculture has a sizable number of participants. But coordination is necessary, "added Sinha.

Regarding the current local raw cotton crisis, Sinha stated that the textile industry had advised growing high-density cotton fields, but that a framework was needed to unite the farmers and the industry.

Six months after the three contentious agricultural regulations were revoked by the Center as a result of public outcry, the government has decided to formally bring in additional corporations to the field. One of the regulations offered farmers a legal foundation for entering commercial contracts in advance with private buyers that specified prices.

This had led to opposition to the agri value chain's expanding corporatization. Officials in attendance on Tuesday, however, emphasized that expanding synergy with the private sector continues to be a primary goal.

Samuel Praveen Kumar, Joint Secretary to the Department of Agriculture and Farmers Welfare, argued that there was a clear need for more PPAs in the agricultural sector and that the government wanted to work with businesses to develop a PPP model that was not only replicable and up scaleable but also highly viable over the long term.

According to him, PPP models were used for 70% of the central Agri infrastructure scheme projects over the past two years.

Kumar emphasized that the action will assist in lower risks, provide better accountability, provide complementary skills between the public and private sectors, aid in resource pooling, and enable last-mile deliveries.

"For agricultural products, post-harvest losses can account for up to 15-20% of production, while for horticultural products, they can reach 30—40%. New technologies like ICT and blockchain are being introduced into the market by private businesses. This must be intensified, "said he.

The government is currently not concerned about the rice production in the current season, according to official sources present at the event, since the plentiful monsoon is anticipated to produce a good harvest later in the year.

For the Kharif season, when 84% of the crop is grown, monsoon rainfall is essential. Kharif harvests occur in November and December, with sowing occurring between June—July. After the government had to restrict wheat exports owing to worries of a domestic shortage, a lot is riding on the country's forthcoming rice harvest.

After China, India is the second-largest producer of milled rice. According to the Observatory of Economic Complexity (OEC), an online platform for data distribution and visualization, it is the top exporter of rice in the world, sending out 35.8% of the rice that is exported internationally.