Component B: Value Addition and Agri-enterprise Development
This component is being implemented, to enhance market access for farmers through value addition at the farm level, through improved post-harvest handling of their produce, to meet the demands of high value markets; and support increased private investment in the development of value chains, processing, marketing, and other field services.
B.1 Product Aggregation and Sale through Producer Associations
The objective of this component is to organize the producers into farmer producer organizations (30 FPCs), develop their capacity and skills for marketing for accessing wider markets, and investment support to these FPCs for establishing common services centres (30 CSCs). The CSCs are the small scale aggregation places owned, managed and operated by FPOs.
The objective of creating FPCs is to undertake various activities such as bulk purchase of inputs for sale to individual members, marketing of produce, grading and quality control, and enhancing access to distant and higher value markets and by-passing existing market inequities. The benefits to the members of FPCs are expected to be higher prices through the combination of larger critical mass of saleable produce, thereby providing economies of scale, savings in transaction costs, and strengthened negotiation positions, coupled with the added value achieved through primary grading and packing
B.2 Supply Chain Infrastructure Support and Piloting Negotiable Warehouse Receipts
The objective of this sub component is to establish a modern supply chain, that prevents wastage and value erosion, and allow access to more distant markets, and enable secondary and tertiary processing that creates higher value for the produce. To achieve this goal, this sub-component is supporting upgrading, and modernizing the supply chain infrastructure, consisting of cold chain and processing facilities, of HPMC to be operated on a for-profit basis under suitable operational management arrangements.
The activities include modernization and upgrading of HPMC existing pack houses, controlled atmosphere (CA) storage, processing facilities based on fruit production volumes in the later years of the project; feasibility studies; investment support for goods and equipments; consultancy services; capacity building and training.
B.3 Agri-Business Promotion Facility (ABPF)
The objective is to establish an Agri-Business Promotion Facility (ABPF) with the main objective of: (i) promoting private investment in local horticulture agribusiness, fostering backward and forward linkages in horticulture value chains, and promoting positive policy change; and, (ii) providing agribusiness incubation services, with the objective of identifying and supporting entrepreneurs and facilitating their investment in the local agribusiness sector � this will consist of both technical support and business mentoring to develop the required skill sets.
Under ABPF matching grants is provided to new and existing agro enterprises (including commercial and existing agro enterprises, commodity associations and producer collectives) that are actively seeking to expand their operations.