Prabhash Chandra Ray, IFSCommissioner of HorticultureLalbagh, Bangalore -560004

E-mail: horticommissioner.kar@gmail.compppihdkarnataka@gmail.com

Journey of PPP-IHD in Karnataka

Inception: 2015-16

Number of projects approved till date: 22

Projects under implementation: 18

Projects completed implementation: 3

Projects dropped: 1

Farmers covered: 7155

Area covered (in Acres): 12154

Major crops: Banana, Vegetables, Spices, aromatic crops.

The initiation of PPP –IHD:

Initiated since 2015-16 as per the GOI frame work of PPP- IAD.

Tripartite partnership- farmers(FPO), corporate and state government

Mainly to address the complete value chain of a crop in a cluster approach and provide direct marketing linkages.

Collaboration on Inputs including technical support, Improvement of productivity, Efficient post harvest management and market linkages.

Objectives Enhancing production and productivity.

Post-harvest management and value addition.

Promoting, developing and disseminating technologies

Making horticulture farming a viable business proposition.

Improving the economic status of horticulture farmers.

Nutritional security .

Addressing environmental concerns

Good management practices.

Main features of PPP–IHD

Target atleast 100 farmers or atleast 100ha over the project

period.

An integrated value chain approach

Average investment per farmer - Rs.1.0 lakh desirable .

Overall project cost sharing is expected to be 50% by government

and remaining 50% shall be shared by company and farmers.

Govt share for any component of DPR to be as per the guidelines

of state/centrally sponsored programme.

Key interventions which must feature

Mobilizing farmers into producer groups/ utilize FPOs

Technology infusion

Value addition

Marketing solutions

Project management and online monitoring system

Addressing Environmental concerns.

Steps for Implementation:

Proposal by private partners to concerned District DDH / DOH.

Evaluation of proposals at PMU and further scrutiny by the

scrutiny committee.

Submission of projects to State level Project Approval Committee

Approval of the projects by PAC

Signing of MoU

Issuance of operational guidelines

Rolling out of project.

Proposal – How to start

Strategies to be adopted:

Identify the regions/crop to be taken up

Organize growers/utilize existing FPOs/ Groups.

Identify/select aggregators for tie-up with established FPOs/

farmers /associations / groups

Identify area of intervention (minimum 3 of objectives)

Submit a Detailed Project Report (DPR)

Working with Farmer groups for Supply Chain Development Collectivisation of farmers under various department

programmes since 2010-11.

Registration of FPOs started since 2014-15.

So far 86 FPOs registered under Companies act 2013.

Formation of another 6 FPOs is in pipeline.

73 FPOs have established CHCs

About 60 FPOs have started input business

About 20 FPOs have started produce sales

5 FPOs linked to corporates under PPP-IHD

Who can apply?

Input supply/ technology

driven companies Processors

Exporters/

Retailers

Farmer Producer Organizations

(FPOs)

Consortium of all / any of these.

The template for DPR would essentially include (not limited to) information on following.

Introduction & Background

Baseline survey

Company/Private Partner profile

Objectives

Scope of project

Implementation plan- Component wise details, Interventions proposed for end to end value chain, Strategy for rolling out the project with availability of man power in project area

Procurement plan

Roles & Responsibilities of different stake holders

Innovations proposed

Monitoring & Evaluation

Result Frame Work

Benefits of the programme: A win-win situation

Farmers

Assured market for produce at farm gate

and better price.

Corporates:

Assured quality and quantity

produce to suit buyers

requirement.

Government:

Collective approach for

monitoring and transfer of

technologies.

PPP-IHD Projects under Implementation

Slno Company Name & District Project Name

No of

Farmer

s

Area

(in

Acres)

CropsSharing Pattern

Total

Project

Cost

Govt Comp Farmer

2015-16

1 M/s. Sanjeevini Agro

Belagavi

Quality production and

Value addition of Banana250 250 Banana var.

Grande Nine109.94 130.10 148.56 388.60

2 M/s. Vegifresh Agro

Belagavi

Development of value

chain for supply of

vegetables

100 150 Okra, Green

Chilli,

Bittergourd and

Beans

84.30 87.90 23.90 196.10

2016-173 M/s Vikram Global

Chickballapura

Development of value

chain for export of Rose

Onion

250 350 Rose Onion 55.33 53.30 46.20 154.83

4 M/s. Lawrencedale

Agro Processing India

Pvt Ltd (LEAF)

Mandya

Production and

Procurement of Quality

Vegetables

130 404 Vegetables 50.80 53.00 44.50 148.30

5 M/s. ITC Ltd

Bellary

Food Safe Production of

Chilli in Karnataka200 500 Chilli 33.55 41.87 23.78 99.20

6 M/s. Poorthi Plantain

Chamarajanagar

Integrated Banana Value

Chain in Chamarajnagar

District

600 900 Banana 548.90 364.60 343.80 1257.30

7 M/s. Zivatara Impex

Pvt. Ltd

Chitradurga

Banana Export Value

Chain Development in

Chitradurga District

350 350 Banana 194.30 157.30 120.00 471.60

(Rs. In lakhs)

Completed Projects Weak linkage

Slno Company Name Project Name DistrictNo of

Farmers

Area

(in Acres)Crops

Sharing PatternTotal Project

Cost

Govt Comp Farmer

2017-18

8 M/s. Big Basket Vegetable supply chain Mysore 150 150 Vegetables &

Banana

76.53 29.67 71.84 178.04

9 M/s. Silmoda Value chain project on

Enhanced Productivity

and Profitability of

Patchouli

Hassan 350 500 Patchouli 310.77 503.97 249.71 1064.45

10 M/s. Dhata Integrated Banana Value

Chain

Mandya 400 400 Banana 279.09 243.04 151.40 673.53

11 M/s. Kadamba

Marketing

Development of value

chain for production,

processing & marketing

of organic spices &

Horticulture crops

Uttara

Kannada

500 1300 Spices & Fruits 92.95 106.80 52.45 252.20

12 M/s. We Care

Society (WCS)

The Production,

Procurement &

Processing of Quality

Chilli

Raichur 500 1000 Red Chilli 203.43 127.26 156.91 487.60

13 M/s. Yasu & Co Integrated Value chain

development for

production of export

quality vegetables

Mysore 200 300 Vegetables 84.77 36.60 75.76 197.13

(Rs. In lakhs)

Slno Company Name Project Name District

No of

Farmer

s

Area

(in

Acres)

Crops

Sharing Pattern Total

Project

Cost

Govt Comp Farmer

2017-18 (contd..)

14 M/s. Basil

Technologies

Value Chain

Proposition for

Turmeric grown in

Chamarajanagar

District

Chamarajana

gara

400 500 Turmeric 123.92 150.26 80.00 354.18

15 M/s. Agrich Global

LLP

Vegetables

Production,

Marketing, and Value

Chain Development

Madikeri 200 200 Vegetables 232.26 227.40 148.84 608.50

16 M/s. Farm Folks

Agro Pvt Ltd

End to End Supply

Chain Programme for

Banana Robusta in

Mysore Region

Mysore 200 250 Banana 119.00 95.30 85.40 299.70

17 M/s. Lawrencedale

Agro Processing

India Pvt Ltd (LEAF)

Production of Quality

Assorted Vegetables

at Hoskote TQ

Bangalore

(Rural)

205 100 Vegetables 40.08 34.27 33.43 107.78

18 M/s. Nourish INC Development of Value

Chain for Sweet

Potato” in Garag Hobli

of Dharwad District

Dharwad 500 1250 Sweet Potato 401.38 583.30 139.13 1123.80

(Rs. In lakhs)

Slno Company Name Project Name District

No of

Farmer

s

Area

(in

Acres)

Crops

Sharing Pattern Total

Project

Cost

Govt Comp Farmer

2017-18 (contd..)

19 M/s Green valley

Organics Spices

Integrated Value Chain

Approach for Spices

Uttara

Kannada

500 1500 Spices 217.05 229.95 135.50 582.5

20 M/s Bio Green Agri-

Tech

Integrated Value Chain

Development for

Banana and

Vegetables

Tumkur 670 650 Banana and

Vegetables

385.31 230.20 247.27 862.78

21 M/s I Grow Pomegranate

processing, export

and cold chain supply

Bellary 300 500 Pomegranate 118.85 156.25 32.10 307.20

22 M/S ITC Ltd Food Safe Chilli

Production

(Karnataka)

Bellary 200 650 Red Chilli 85.06 210.73 80.96 376.75

Total 7155 12154 3847 3853 2491 10192.07

(Rs. In lakhs)

Success

The farmers of Malavalli HFPCL having associated with

M/s Lawrencedale Agro Processing India Pvt ltd (LEAF)

are happy to harvest the crop grown under Good

Agricultural Practices (GAP) at a reduced the cost of

production.

Success

Banana, the major crop under the PPP-IHD projects has

enhanced the confidence amongst the farmers to grow spot

free banana for export purpose.

Success

M/s Vegifresh Agro Exports Pvt. Ltd being an exporter ofvegetables to the European union has succeeded in educating thefarmers in residue free vegetables cultivation and extending thesupport for export market under PPP-IHD programme by creatingthe necessary post harvest infrastructures.

Success (contd..) The Bangalore Rose Onion is a GI tagged crop. The

Sadaliamma HFPCL, Shidlaghatta taluk of Chickballapur

district (FPO) in association with the private partner,

M/s Vikram Global Commodities India Pvt. Ltd. have been

able to establish direct marketing linkage, thus ensuring higher

returns to the farmers.

Success (contd..) Red chilli: Due to indiscriminate use of chemicals there

were huge rejections in export. M/s ITC Ltd joining the

hands with the farmers of Bellary have been able to

produce food safe chilli reducing the levels of afflatoxins

and improving the quality grades and thus higher returns

to the farmers.

Issues faced Private companies not owning the land for infrastructure

development. In case of informal leasing, availing credit from

banks and extending subsidy is difficult.

Involving the startups- Some policy guidelines could be included

under the frame work of PPP-IAD.

Guidelines to assist for high cost customized and innovative

components.

(RKVY allows providing subsidy up to 25% for innovative

components. However companies expect a higher subsidy due to

the cost involved.)

Either lack of interest by the company or higher expectation

about the project by the farmers – Non implementation of project

by M/s Vegifresh Agro Exports Pvt. Ltd

Development of Value Chain For Supply of Vegetables

Development of Value Chain For Supply of Vegetablesby M/s Vegifresh Agro Exports Pvt. Ltd

Rose onion sorting, grading and packing unit under constructionBy M/s Vikram Global Commodities India Pvt. Ltd.,

Banana chips making unit setup by M/s Sanjeevani Agro

Reefer Van purchased by M/s Lawrencedale Agro Processing India Pvt. Ltd (LEAF)

under PPP- IHD programme

Thank you