In The News - How Can Sustainable Agriculture Benefit Through Public Private Partnerships (PPPs)? - India

In The News - How Can Sustainable Agriculture Benefit Through Public Private Partnerships (PPPs)? - India

In one of my previous blogs, I focused on how the Central Ohio Regional Council is pushing for sustainable agriculture through various methods, which has since then prompted me to search for similar scenarios but in different parts of the world where different circumstances are faced. In this blog I focus on the situation the Indian agriculture is facing regarding sustainability and what is being done to raise sustainability awareness.

With a population of 1.2 billion, India has fast become an influencing power in global economics, and by 2025 will be the 5th largest consumer economy in the world. With the rate of urbanization expected to rise rapidly in this time, alongside food consumption with population growth, a corresponding increase in agricultural production will eventually drive an increase in demand for crop nutrients (Agrium 2015). But as the government regulates both fertiliser and crop prices, how can Indian agriculture become sustainable?

Livemint.com recently featured an article covering the issue, and argues that PPPs are a ‘major game changer’ in the agricultural sector - reporting that PPPs tie together the influencing figures in the agricultural system - from the government through to research and development. The aim, of course, is to transform the sector at all levels. According to Parvathi (2015), India has the highest number of organic producers in the world, with 650,000 farmers, and also has the third highest number of fair trade producers globally, so it is understandable as to why Chaudhry of Livemint.com focuses on India’s sustainable agriculture prosperity - but recognises and augments how infrastructure and harvest losses makes India experience some of the highest food losses in the world - hence why PPPs have become a popular possible solution.

There are three key parts to the PPP model. The first of these is investing in smarter value chains. For example, The extension of farm services can be provided by the advancement of the processing industry, who with support from investments from the government can enhance price realization and ultimately improve the agricultural supply chain. Catalysing private sector investments is also another smarter chain move, as it would lead to a reduction in waste and greater value addition.

The second key part to the PPP model is improving access to credit, technology and markets for organic farmers. According to Agrium 2015, from 2014 to 2018, India’s compound annual growth rate is estimated to be 2.5% annually for consumption of nitrogen, phosphate and potash, but through PPPs, information technology and biotechnology can raise production levels and outputs alongside correct and suitable guidance of these fertilisers, with the aim to reduce their environmental effects.

The third and final part of the PPP model is building farmer resilience to environmental shock. Due to India’s geographical location, the country is quite commonly subject to adverse weather conditions - ultimately taking its toll on arable land and industries. PPPs aim to insure farmers and their land and help the agricultural sector deal with weather shocks. PPPIAD is a successful PPP enterprise and is developing integrated value chains for selected crops through PPP and co-investment, and now has 33 value-chain programmes with more than 60 participating countries. PPPs as such are examples that need to be followed for rejuvenating sustainable agriculture. An upcoming blog of mine will focus on a case study organic farming and fair trade in India to see what is successful and what ultimately benefits farmers - stay tuned!