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FOCUS ARTICLE

biggest corporate houses in our
country have joined hands with the
Government to develop agricultural
marketing infrastructures like food
Public Private Partnership in parks, terminal markets, state-of- the-
art mandis etc. One such model is that
of Mahindra Shubhlabh Services
Agricultural Marketing Limited (MSSL) which has an
agreement with the Government of
Punjab to facilitate contract farming of
PPP will become more meaningful if strategic relationship between partnership maize in one lakh acres for
is made sustainable with respect to clear deliverables, results and targets agreed diversification for supply to Indonesia
upon —By Dr Som Dutt through Punjab Agro Foodgrains
Corporation (PAFC).
The Rajasthan Government has
The Public Private Partnership (PPP) profits. Developmental theorists have
also created various multi- chamber
provides a sustainable solution to poor proved that PPP generates poor
cold storage, mobile soil testing labs,
linkages in marketing channels with linkages in marketing channels and
static soil testing labs, warehouses
poor marketing infrastructure which poor marketing infrastructure are
and market roads through PPP modes.
lead to small share of consumer’s rupee leading to small share of the consumer
Two focus areas for PPP in agricultural
reaching the farmers and higher rupee reaching the farmers and higher
marketing are farm- to market roads
fluctuations in consumer’s prices. fluctuations in consumer prices. larger
WHAT DOES PPP STAND FOR? and trading centres. The farm to market
roads are crucial in linking various
The PPP broadly refers to long-term,
contractual partnerships between In Brief elements of agricultural value chain like
public and private sector agencies, input suppliers, farmers, village
 PPP provides a sustainable traders, wholesalers, processors etc.
especially targeted towards financing,
solution to poor linkages in Good connectivity encourages farmers
designing, implementing and operating
marketing channels with poor to directly sell his/her produce at
infrastructural facilities. Each partner,
marketing infrastructure. market rather than depending on village
through legal binding contract agrees
 PPP broadly refers to long- traders. Thus, roads definitely help in
to share responsibilities, risk, reward
and resources. The PPP helps reduce term contractual partnerships reducing intermediaries. Since
considerable wastages, deterioration between public and private horticultural produce are highly
in quality and frequent spatial and sector agencies. perishable in nature, they need to be
quickly transported to reduce losses.
temporal does not match between  BOT, BOO, Joint Ventures,
demand and supply. Leasing, etc are some of the With better road connectivity flow of
The PPP combines the best successful models. information among farmers, extension
features of public and private sectors workers, traders, buyers and suppliers
 High investment risk and lack also gets enhanced.
together, making a win-win situation
of assured returns are inherent In India, Build Operate Transfer
for both the partners. The private
problems related to our (BOT) model of PPP is most
sector leverages its advantages in
agricultural sector. successful for roads. Project like
financing, greater operational
 In India, BOT model of PPP is widening of existing roads,
efficiency, better marketing practices,
lower costs, efficient delivery systems, most successful for roads. maintenance and new constructions are
taken up to link farm to markets. The
faster decision making, management
wholesale market and trading centres:
flexibility, quality service and better up
APMC Model Act 2003 permitted
scaling technologies. social benefits by creating symbiotic
participation of private sectors in
Whereas public sector can leverage relationship between the partners.
upon administrative base, public DERIVING WORK FROM DIFFERENT developing infrastructures for
support, certifications, market base, MODELS wholesale market and trading centres.
Financial assistance in the form of
extensive infrastructure, institutions of There are many successful models
subsidy are also given to private
higher learning that can generate based on experience of developed
companies and corporate houses
knowledge through basic research and countries for the benefit of farmers and
involved in creating such infrastructures.
vast pool of both teachers and trained society at the large. These include Build
The National Horticulture Mission
human resource. The public sector has Operate Transfer (BOT), Build
(NHM) has initiated modern terminal
also the capacity of solving all Operate Own (BOO), Joint Ventures,
problems that do not have immediate Leasing, Operational Management
rewards in the for m of monetary Contracts and Concessions. Some (Contd on page 64)
March 2018 Competition Wizard 61