But the public-private partnership model could be just the game-changer Indias

agricultural sector needs. By drawing on the collective power of all agricultural

stakeholders, PPPs can transform the sector at multiple levels. With the
government providing and co-financing the back-end of the value chain, and the
private sector and farmer contributions doing the rest, the agricultural sector
could remain a primary engine of rural growth and poverty reduction in India.

Here are three ways PPPs could do that:

1. Investing in smarter value chains

PPPs could help spur the development of the food processing industry, one of the
newest sectors in Indian agriculture. The food processing industry must do more
than just increase the shelf life of food, preserve food nutrients and provide
fortified products. Instead, supported by government and private investments, it
should also look at providing farm extension services, enhance price realization,
cut out intermediaries and improve the supply chain through forward and
backward linkages.

An important role of the government, besides funding, will be to create an

enabling environment for private investment. This needs to be done through tax
rationalizations, duty exemptions, increases in public spending, priority sector
lending and FDI. It is steps such as these that will boost private sector investment
in supply chain infrastructure and services, leading to a reduction in waste and
more added value.

2. Improving access to credit, technology and markets

PPPs could help bring cutting-edge technologies and approaches to Indias

agricultural sector. IT and biotech stand to transform agriculture, raising its
production levels and outputs. We need PPPs focused on getting farmers access
to vital information, methodologies and the latest technology to help them in
areas such as crop rotation, weather patterns, fertilizer use and going organic
all at the click of a button or a simple SMS on their mobile phones.

Biotechnology, meanwhile, can equip growers with techniques for developing

high-yield crops, managing pests, better utilizing waste water and focusing on
nutrition. The remarkable breakthroughs made in the cereal production industry
show how much of an impact biotechnology can make. PPPs can help replicate
this success in crucial areas such as oil seeds and pulses, which are highly
import-intensive.

In the same way, PPP projects, when targeted at helping farmers connect with
their marketplaces and financial institutions for micro-funding, can usher in
massive alterations in the rural economy.

3. Building farmer resilience to environmental shocks

Indias farmers are constantly threatened by adverse weather and environmental

conditions that spell disaster for their produce. Extreme situations such as
flooding and droughts constantly plague Indias farming community. PPPs that
protect the agricultural sector against the vagaries of nature can be life savers. In
fact, in a country where farmer suicides are common, such interventions can
actually save lives. PPPs that help the agricultural sector deal with weather
shocks, and allow farmers to minimize risk through insurance, can be a crucial
helping hand.

While PPPs in the agri space are not commonplace, they need to be. The
Maharashtra government has already made a start with its Maharashtra Public-
Private Partnership for Integrated Agriculture Development (PPPIAD) project.
Under the aegis of this initiative, Maharashtra is developing integrated value
chains for selected crops through PPPs and co-investment.

Part of the World Economic Forums New Vision for Agriculture, the project aims
to develop integrated value chains. What began with 11 projects in 2012-13 now
encompasses 33 value chain programmes, with more than 60 participating
companies. The project focuses on 15 key crops and has already reached almost
half a million farmers, with a target of 5 million by 2020.

PPPs like the Maharashtra project are the way to go for Indias agricultural sector.
They are proving to be an important step in renewing and rejuvenating rural
economies and leading them to inclusive and sustainable growth.