Karnataka has now embarked on an initiative to link farmers with consumers by involving corporate firms on public-private partnership basis. This was unveiled in Bengaluru on Tuesday to insulate farmers from the problem of volatile markets that have increased the risk of them not earning profits despite reaping bumper harvests.
Under the project titled Public-Private Partnership for Integrated Agriculture Development (PPP-IAD), around 50 farmers’ groups will be launched this year, according to Agriculture Minister Krishna Byre Gowda.
The project envisages the formation of farmers producers’ organisations (FPOs), which will be assisted in integrated farming by a few chosen corporates. These firms, along with the Agriculture Department, will not only provide all the technological and scientific interventions to farmers but will also ensure availability of quality seeds and other agricultural inputs.
These firms will also provide marketing solutions by entering into buyback agreements with farmers for their produce. The agreement to buy produce at farm gates at a pre-determined price, irrespective of any fluctuation in market rates, is expected to reduce the risks for farmers. The project promoters are hoping that the farmers’ procurement price levels will increase by 20-25% through this initiative.
Infrastructure
In addition to this, the corporates are also expected to play a crucial role in establishing the infrastructure required for post-harvest management and value addition of produce in a bid to reduce post-harvest losses. While the government will also provide financial assistance on the project, the use of funds under Corporate Social Responsibility in the area of operation will be encouraged.
While such FPO-based projects have already kick-started for horticultural produce, this initiative focusses on agricultural produce.
Mr. Krishna Byre Gowda suggested that the authorities bring all the FPOs, including those dedicated to horticultural farmers and the proposed ones for agricultural farmers, under one umbrella so that there can be better coordination.
He pointed out that already 92 such groups have been formed by the Horticulture Department. The National Bank for Agriculture and Rural Development too has taken up forming a few such groups.
Agriculture Commissioner G. Satish said the project would benefit small and marginal farmers who with less than one hectare of land. Pointing out that the State has a total cultivable land of 95.98 lakh hectares, he said most of the farmers hold less than an acre.
