IIPMB , ABMS, Presented by Pramod

1. PUBLIC-PRIVATE PARTNERSHIP IN
AGRICULTURE
 Name: Pramod Gawade
 Roll No: PGDM-ABPM 54

2. Meaning and Concept
 A public-private partnership is a contractual agreement between a public agency
(federal, state or local) and a private sector entity.
 Through this agreement, skills and assets of each sector (public and private) are
shared in delivering a service or a facility for the use of the general public.
 Each party shares risks and rewards potential in the delivery of the service and/or the
facility.
 The public partners in a PPP are government entities, including Ministries,
departments, municipalities, or state-owned enterprises.

3. Need of PPP in Agriculture
 Slow growth rate of agriculture in India (average growth rate of 2.7% per year)
 Agriculture is the primary source of livelihood for about 58 per cent of India’s
population
 The country accounted for 2.07 percent of global agricultural trade in 2012
 India, the second-most populated country in the world, has to meet food
consumption needs of people.
 Development of Hybrid and genetically, modified seeds, mechanization, irrigational
facilities needed which requires more institutional credits

4.  Challenge to make agriculture and allied sectors more profitable, and to ensure
that rural population has a larger income to share.
 The role of technology in meeting challenge is critical. So the need for new
technologies with potential to provide holistic solutions, and the issues that relate
to their dissemination and commercialization.
 Government has limited resources.

5. There is a need of PPP in agriculture sector for
following reasons:
 Increasing focus on research and Development in agriculture
 Rising MSP incentivize farming
 Institutional credit for farmers
 Growing yield and use of quality seeds
 Increasing mechanization of farming
 Growing area under irrigation
 Food securing for increasing population
 Agricultural inputs (Crop protection, Agricultural services, Seeds and fertilizers)

6. Advantages
 Help in to modernize agriculture and revitalize rural economies
 Benefit to small-scale, resource-poor and marginalized farmers
 Efficient and cost effective delivery of projects
 Increased efficiency
 Creation of added value
 Leads to innovation
 On‐time delivery
 Maximizes the use of each sector’s strength

7. Advantages
 Helps in providing better public services
 A way of developing local private sector capabilities
 Creating diversification in the economy
 Supplementing limited public sector capacities
 Shared risk
 Shared responsibility so more effectiveness
 Integration of resources

8. Challenges of PPP
 Misperceptions between public and private sectors with regard to intentions, goals and
credibility of achievements.
 Lack of accurate mapping of proprietary assets and responsibilities between these
sectors for effective functioning.
 Lack of political leadership, vision and strategy.
 Risky investment for private organization.
 Gap between private sector and government ideology
 Cost in PPP projects are likely to be greater than for traditional government
procurement processes
 politically or socially challenging projects
 Private sector will do what it is paid to do and no more than that , Government
responsibility continues.

9. Some examples of PPP Project
 Project Golden Ray:
PPP between the Government of Rajasthan and MIL which aims at improving economic
self-sufficiency of tribal maize farmers by enhancing maize yields and incomes in five
districts; Banswara, Dungarpur, Udaipur, Pratapgarh and Sirohi.
 e-Choupal:
(run by ITC, a private sector entity) shows how mutual cooperation between ITC, rural
entrepreneurs, state agricultural universities and the Indian government's extension
machinery has served to bolster the farmer's expertise and day-to-day awareness of what
needs to be done to cope with myriad agricultural needs.

10.  Maharashtra government has initiated a Private-Public Partnership (PPP) for
Integrated Agriculture Development (PPP-IAD) project under the World Economic
Forum’s (WEF) “New Agriculture Initiative”. The idea is to create a value-chain in
agriculture by involving corporates that will work with farmers’ groups or
from production to marketing stage. Twenty-two companies, 12 of them private
mills, have been selected and have agreed to partner with such group in everything
from inputs and processing to marketing. They will be working in seven categories
produces — sugar, cotton, oilseed, pulses, fruits, vegetables and poultry.

11. Suggestion for further:
 Need for transparency and trust for mid-term review and for bilateral agreement for
developing new technologies.
 There is a need to create awareness among the stakeholders regarding various
Government Schemes.
 Moreover, to mitigate high risk in the sector, the investment proposal/schemes should
include sufficient incentives to attract private entrepreneurs.
 Collective action is needed for fulfill the needs of resource poor farmers and
food‐insecure consumers.
 In order to increase this share, policymakers should look at setting up an independent
institutional structure for PPP handling, sector-specific regulatory mechanisms and
higher level of transparency of information for PPP.

12. Thank You