Markets and Value Chains

Markets and Value Chains

The objective of Markets and value chain component is to enable farmers to engage in profitable market oriented production, that is sustainable and to promote partnerships and market linkages with other value chain participants and agribusinesses. The component helps the producer groups, agro-enterprises, and commodity associations, to actively engage in the development of commodity value chains by partially financing demand-driven investment proposals to producer organization through a matching grant. This will be done by organizing members of farmer’s producer groups to form farmer producer companies and develop their capacity and skills for marketing. It is expected that produce aggregation will bring economies of scale in procurement of inputs and marketing of agricultural produce, thus enabling access to wider markets. These producer organizations will be an important vehicle for promoting market-oriented production in their geographical jurisdiction and can act as centers for technology dissemination and input / output marketing. Under the project following activities are planned -

(a) Develop value chains aiming to establish longer term partnerships and market linkages between farmer groups and agribusiness enterprises, facilitated by an Agri-Business Promotion Facility (ABPF).

(b) Develop alternate market channels to

(i) Better alignment of production with market signals and resource constraints of the cluster.

(ii) Improved income due to reduction of input cost and access to higher margin markets.

(iii) Creation of community owned enterprises in the form of Producer Companies.


The specific activities supported under the Markets and value chain component are as follows:-

      i.        Establishing an Agri-Business Promotion Facility that promotes investments in agribusiness, foster backward and forward linkages in the value chain.

     ii.        Formation and strengthening of Farmer Producer Companies (FPCs)

    iii.        Infrastructure and Market Information for FPCs: Establishment of Farmer Common Service Center (FCSC) to develop business for FPCs through primary processing and development of marketing linkages.

    iv.        The roll out of the participative value chain identification and business incubation:  Cluster Commodity Profiles, Value Chain, Technology Detailed Project Reports and Expert database.