1. Public-Private-Partnership in Agriculture: A Paradigm Shift Needed
Dr.K.M.Singh
Director
State Agricultural Management & Extension Training Institute, Patna
28th - 30th August 2007
State Agricultural Summit Bihar , Hotel Maurya, Patna

2. Changing Scenario: Agriculture vis-à-vis Market
Globalization and liberalization
Changing consumer interest & preferences
Diversification of food basket
Quality food products
Value added/ processed food products
Competitive prices
Raising and stabilizing income over seasons

3. Shift of Focus in Agricultural Sector
From staples to high value crops
From narrow agricultural focus to broader policy context – including global impacts
From focus on crop yields to market demands and incomes
From primary production to entire food chain
From agriculture to rural space
From thinking of farms as homogeneous to heterogeneity
From public to public-private partnerships, including community driven development
From avoidance of issues to head on approach (biotechnology, forestry, water)

4. Factors challenging Agricultural Sector
Agriculture Sector today:
Fixed or reducing Resources
Growing economy
Globalization, competition, productivity
Population growth, resulting into growing demand
Technology, biotech, precision farming
Effects:
More sophisticated growers emerging
Need for higher yields/lower costs
Value shift from chemicals to seeds
Integration of industry partners

5. New Initiatives in Bihar Agriculture
Recent trends in Bihar include:
Specialized & localized production
Market - led Production & diversification
Use of hybrid seeds
Uniform quality
Contract and Organic farming
Repeal of APMC Act provides opportunities for:
Establishment of Market Yards in private sector.
Establishment of specialty market.
Contract farming
Value addition and Processing
Other initiatives include:
National Horticulture Mission for Fruits, Vegetables, Spices, Flowers & Medicinal & Aromatic plants
Macro Management for cereals
ISOPOM for pulses, oilseeds & Maize
Establishment of ATMA in all the districts to bring all stakeholders on one platform and to promote P-P-P.

6. Agril. Products from Bihar with high market potential
Cereals like Maize, Rice and Wheat
Sugarcane
Vegetables, like Cucurbits, Okra. and Brinjal
Flowers, like Tuberose, Gladioli, Roses, Marigold
Makhana
Litchi and Mango
Honey and allied products
Dairy products
Select spices like turmeric, ginger, garlic
Aromatic oils like menthol, lemon grass, citronella

7. Some success stories and opportunities to build in Bihar’s agriculture include
Makhana processing
Organic rice
Litchi
Exotic vegetables
Litchi honey
Tea
Aromatic oils- mentha, lemon grass

8. Constraints and challenges
Low productivity, due to low level of technology.
Poor infrastructure in the rural areas.
Unstable and generally low quality production.
High transaction costs due to poor post-harvesting handling, storage, and packaging.
Lack of credible market information systems.
Lack of experience among local producers in dealing with developed markets.
Limited access to cheap credit.
Agriculture generally termed as high risk area for commercial bank affecting credit flow

9. Towards Action on Public-Private Partnerships

10. Key factors for partnerships
Each partner must bring something to the table
Common objective
Value creation for both
Complimentary roles
The way forward 
Stop depending too much on the government…
Stop thinking the private sector as greedy and unreasonable
Combine the efforts of the public, private sectors and community (civil society) together to get the best benefits

11. Opportunities for partnership exist
Partnerships can improve access to:
New technologies, and tools
New research expertise
New infrastructure
Private equity markets
Donor funding
New product markets and new customers
New marketing and distribution networks
Synergies through knowledge sharing, joint learning, scale economies, resource pooling, and cost sharing

12. But there is a confusion on roles
With changes in the global agri-food system,
the roles of the state, industry, and society
remain contested,
Controversy over ownership of new knowledge
Issues over distribution of benefits and risks
Concerns over lack of pro-poor emphasis
Unease over environmental, social sustainability
Learning from other sectors e.g. the health and ICT sectors

13. Practical Options Working together on “how to”
Delivery mechanisms and marketing
Management tools of research and innovation
Technology collaboration and related issues
Collaboration which could impact rights on knowledge in public domain

14. Government’s role: Policy environment
Change in mindset
From Regulator to Facilitator
Engage in Partnerships for Skills development & complementation
Legal Framework
Move to a single window dispensation in spirit & practice
New legislations be made facilitative rather than regulatory
Effective IP protection and enforcement across the board
Multiplicity between centre and states in regulation is discouraging

15. Industry’s Role
Partnerships are taking place but pace needs acceleration.
Industry should focus on national goal of increasing food production in a sustainable manner.
Private investment in agriculture should increase.
Enabling environment is already in place.
Several examples of partnership already exist and can be built upon.

16. Benefits of P-P-P to Private Sector
More competitive locally
Expand market for private sector
Allows exports in foreign markets
Benefits form Public-Private Consortia
Public sector stronger
More money
Research more relevant for industry and farmers
Private knowledge of market
Private germplasm and technology
Private sector benefits from
Technology
Access to knowledge

17. Concept of Corporate involvement Corporate involvement
The corporate extension agencies would ensure supply of quality seeds, extension services, better yields, market access and buy back price support.
Quality seeds
Accessible market
Extension Services
Corporate involvement
Higher yields
Price support

18. Areas of Corporate involvement
The Corporates should ensure forward and backward linkages with the farmers to co-ordinate and promote production and marketing of agriculture produce
Produce quantity and quality as per requirements of Corporate
Farmer
Corporate
Provide support in terms of extension services, agri-inputs, credits, farm practices, markets and fixed price

19. Warehouses / Cold storage chain
Typically contract farming will need corporate involvement to address...
Identification of high yielding alternatives which give better returns than conventional farming
Marketing security and technical assistance in a
multi-crop program
Removal of infrastructural bottlenecks and enabling regulatory framework
Warehouses / Cold storage chain
Dryers
Transportation

20. Example: Value Chain On Agricultural Products
Important Aspects
Most Critical Missing Links
Potential Consortium Partners
Identification and estimation of pesticide residues
Packaging of the products
Consumption
(Safety & Quality)
CENTRAL & STATE INSTITUTES
Demand & supply (domestic & global) analysis
Market intelligence
Policy Research bodies like NCAP, NCAER
Marketing
Proper grading & Standardization
Lack of Uniform production Technology by growers
Private Sector, Research Institutes
Processing
Research on plant protection
Research on GAP
SAU, Private Partners
Production
KVKs, E-Chaupal, ATMAs, FOs, PRIs, KVKs, SHGs
Farmers
Processors
Traders/Exporters
Consumers
Government

21. There’s high potential for Partnerships in Bihar due to:
Conclusion
There’s high potential for Partnerships in Bihar
due to:
Political stability and visionary leadership
Favorable conditions to produce a variety of products,
Access to preferential markets
Constraints being appropriately addressed systematically.
Public-Private Partnerships are crucial for success.
Agriculture development, agro-industrialization, creation of a proper business environment to investment are priorities to the Governmental program.

22. THANKS