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Public Private Partnership is a long-term, contractual partnership between the public and private sector agencies. It provides employment and helps to achieve agricultural advances for Indian farmers. Through PPPs, the advantages of private sector-innovation, managerial efficiency, access of the technologies and entrepreneurial skills are combined with finance, environmental awareness and regional knowledge of public sector in an effort to solve problems of the society and to generate better income. PPP can be utilized efficiently in elevating the problems of rural India .The partnerships necessarily have to meet the parameters on supply demand continuum for long term sustainability and maximize mutual benefits.

Farmers needs must be identified by the private extension agency with active participation of both private and government input agencies. The contribution of PPPs, in Agribusiness is attaining self-reliance in food production and rise is export percentage etc. Farmers needs must be identified by the private extension agency with active participation of both private and government input agencies. The contribution of PPPs, in Agribusiness is attaining self-reliance in food production and rise is export percentage etc. Successful implementation of any program a planned strategy to implement and have good linkages with the allied organization is must.

The need of the hour is to involve all the stakeholders in overall agriculture development. Public private partnerships have the potential to accelerate the process of agro-industrialization despite potential problems and complexities faced.

Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies.

Public-Private-Partnership or PPP is a mode of implementing government Programmers/schemes in partnership with the private sector. The term private in PPP encompasses all non-government agencies such as the corporate sector, voluntary Organizations, self-help groups, partnership firms, individuals and community based Organizations, PPP, moreover, subsume all the objectives of the service being provided earlier by the government, and are not intended to compromise on them. Essentially, the shift in emphasis is from delivering services directly, to service management and coordination. The roles and responsibilities of the partners may vary from sector to sector. While in some schemes/projects, the private provider may have significant involvement in regard to all aspects of implementation; in others s/he may have only a minor role.

There is no single definition of Public-Private Partnership (PPP). PPP broadly refers to long-term, contractual partnerships between public and private sector agencies, specially targeted towards financing, designing, implementing, and operating infrastructure facilities services that were traditionally provided by the public sector.

In a PPP, each partner, usually through legally binding contract(s) or some other mechanism, agrees to share responsibilities related to implementation and/or operation and management of a project.

This collaboration or partnership is built on the expertise of each partner that meets clearly defined public needs through appropriate allocation of: Resources Risks Rewards Responsibilities

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The allocations of these elements and other aspects of PPP projects such as, details of implementation, termination, obligations, dispute resolution and payment arrangements are negotiated between the parties involved and are documented in written contract agreement(s) signed by them. As per the Scheme for Financial Support to Public Private Partnerships in Infrastructure, of the Government of India,

1)The Public-Private Partnership (PPP) Project means a project based onContract or concession agreement between a Government or statutory entity on The one side and a private sector company on the other side, for delivering aInfrastructure service on payment of u OR 2)A Public-Private Partnership is a contractual agreement between a public agency (Government at central or local level) and a private sector entity to share the skills and assets of each sector in delivering a service or facility for the use of the general public, and also share the risks and rewards inherent in

Objective: To encourage and enable private sector to undertake such services and facility which it will not undertake simply based on market forces and mechanism due to varied reasons: low returns on investment or the levels of financial Understanding Public-Private Partnership Methods: Modalities for PPP may be different depending upon the nature of the services and sectoral requirements. PPP in agriculture development will require specific considerations different from other sector and activities.

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To achieve agriculture development approach of: High-Value/Low-Volume, Cash crop based, market led, export oriented and private sector driven development strategy for Prescriptions Strong agriculture research and supporting technologies for agroenterprises Encouraging Private Sector investment Supports and facilitations to agro-enterprise development Enhance of partnership Institutional development for agro-enterprises Conducive government policy

PPP is an initiative formed and operated through a partnership of government or a public sector entity and one or more private sector companies and / or NGO/Civil society organizations. Fundamental to forging this partnership is the understanding of why the partnership is required, the respective mandates and incentives of the partners, and their roles in the partnerships. Some examples of PPP in Asia discussed were ITCs e-Choupal, the LifeLinesIndia, Krishi Vigyan Kendra, Commonwealth of Learning supported Lifelong Learning for Farmers Project, the Kisan Call Centers, and Grameen Phones Community Information Centers, In India, e-Choupal (run by ITC, a private sector entity) shows how cooperation between ITC, rural entrepreneurs, state agricultural universities and the Indian government's extension machinery has served to bolster the farmers expertise and day to- day awareness of what needs to be done to cope with myriad agricultural needs.

Transfer of improved technology/practices for agricultural and allied development sectors has been largely remained with the government organization which had well knit organizational structure right from the state level to the grass root level but lacked spirit of dedication, initiative drive, sense of accomplishments and achievement motivation. Thus the level of non adoption of improved technology is alarmingly quite high about 70 per cent. The Agribusiness industries and input agencies which in the private sector are having a better efficiency and are running satisfactorily even if some of them not very well .

This mainly because there is commitment from the employees, and is sense of dedication, initiative drive and the motive of organization is both to earn profit .and to serve the cause of the beneficiaries and there is quick decision in private sector because they have specific goals and objectives set to be attained.

Percentage share of agricultural exports in the national exports is 14.21 which have to be increased to a significant level. Agriculture being the mainstay of Indian economy is essential to achieve self reliance at national level, food security at house hold level and equity in distribution of income and wealth resulting reduction in poverty level. ] Over 200 million farmers and farm workers are engaged in agriculture providing employment to more than 57 percent of the work force and generates 1/4th of the countrys GDP . So It is to be made clear that there have to be a proper partnership mode and collaboration of these agencies coupled with the active participation of the clientele including farmers, rural people, farm women and farm youth as well as the self help groups.

Some functions like reaching the weaker section, downtrodden and resource poor farmers with the government support could be left to the public sector organization, while the private sector organization could basically deal with the input supply and services and also agro processing, value addition and more of agribusiness and main to provide market to the farmers produce. The government will have to provide necessary policy guidance/ direction and will also have to play a monitoring role from time to time in order to keep the development on the right tract in the desired and defined direction. The NGOs could help in assuring the participation of grass root workers and beneficiaries via self help groups as secondary disseminators of technology. Public-private partnership provides employment especially to agri graduates

For E.g., 1 agro cell - agro service centers are functioning in Gujarat, Maharashtra, and Haryana. Government provides input at right time at reasonable price for farmers to take up farming activities. Where as Private Company helps to find market for the output. E.g. 2 ITC IBD commodity based coupals gives necessary information and technical guidance. E.g. 3 Tata chemicals kisan Kendra which gives input information and education and also helps to find market for farmers produce. Results of NARP studies have proved that private industries are highly competitive. Thus there ere shall be a strong linkage between public R&D institution and private input industry.

According to the centre for monitoring, 129 partnerships were forged in the various sectors of the Indian economy during 1998-99 alone. Since 1994 UNDP under its public private partnership has tried to initiate action by creating new enterprises, owned jointly by public authorities and private companies to deliver reliable, affordable, profitable, eco efficient infrastructure services in both rural and urban India.

As public sector faces with the constraints of lack of expertise and lack of commitment to quality besides the budgetary constraints. The private sectors also face difficulties in assembling large chunks of contiguous land. In ordinate delays and problems in approach from the local authority, development controls regulation non coordination with the local authorities. There has always been a problem in getting institutional finance for the private sector. Hence, public private partnerships when correctly structured even with the current policy and administrative constraints can help to lead to better results. Partnership assumes strategic dimension since they aim to tackle an important issue, policy or problem, which extends beyond the capabilities of a single individual and organization.

Public funded programmers are partially or fully delivered by private partners. Public private funded programmers are partially or fully delivered by private partners. Public sector infrastructure is utilized by private sector on payment basis. Public sector infrastructure is utilized by private sector where operational cost is met by public sector. Private sector investment on infrastructure along with public sector incentives. Contracting and extension support.

While the importance of PPP in supporting successful applications of agriculture was appreciated, it as noted that the challenges of striking successful partnerships are many fold. Main issue discussed is a common lack of clarity on the roles of the public and private sectors. This has meant that many initiatives aimed at helping the farming community either do not achieve their objectives or do not continue on for a long period of time (i.e. are unsustainable). As an example it is pointed out that many public sector programs that are subsidized and aimed at the farming communities stop as soon as the external funding ceases.

Similarly many initiatives led by the private sector falter due to a lack of credibility and/or appropriate prerequisites such as adequate infrastructure, which in some cases could have been provided by the public sector.

Infrastructure is not well developed in many rural areas, creating a significant challenge to agriculture initiatives. With poor basic infrastructure such as electricity, modern communication is severely hampered rural areas making it difficult for well-being initiatives to reach the farmers in time needed.

Reaching the last mile where connectivity is non-existent or severely limited poses significant challenges to both public and private sectors.

The key differences between public-privatepartnership and privatization may be summarized as follows: ` Responsibility: ` Ownership ` Nature of Service: ` Risk & Reward
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Area of mutual interest: are ` Private sector: maximize commercial gains by reaching a large number of customers (farmers) ` Public sector: fulfill the mandate of serving a large number of farmers

Private sector strengths:


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Innovation, investments Sustainable, farmer-friendly delivery models Competitive, offering more choices to the farmers Accountable to farmers

Public sector strengths:


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Large resource base Set policies and standards Safeguard public interest Generate reliable information on agriculture

Public extension is also constrained by limited resources, wide ratio between farmers and extension personnel and also by added responsibility of handling emerging issues like marketing extension, agri-business, quality consciousness and WTO.

The need of the hour is to involve all the stakeholders in agriculture in the development process. In the Indian context, such private extension service providers available are, ` unemployed agricultural graduates, ` agricultural consultants, consultancy firms, ` progressive farmers, farmers organizations, co-operatives, ` non-governmental organizations, NGO run KVKs, ` agri-business companies, input dealers, newspapers, agricultural magazines, ` private television channels, private sector banks, internet and donor agencies.

The task of managing agriculture in the future cannot be adequately addressed by the public extension agencies alone, but will require the combined strengths and synergies of a ` pluralistic, multi-agency system in which the private corporate sector, ` farmers organizations co-operatives, NGOs, Para professionals, small agri business, ` self-help groups, input dealers and suppliers, ` electronic and print media and information technology will each contribute according to its own strength and capabilities.

y y y y

Public benefits from partnering Joint learning Improved relevance through contact with real problems Maintaining research infrastructure and capacity Complementary (private) funding

Private benefits from innovations y Development of new products y Increase in production y Cost reduction y Increase in sales
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Private benefits from partnering


y y y y

Joint learning Complementary (public) funding Access to knowledge and technology Publicity

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Cost-effectivenessHigher ProductivityAccelerated Delivery Clear Customer Focus Enhanced Social ServiceRecovery of User Charges-

Despite potential problems and complexities faced, public-private partnerships are carefully planned can help to generate additional income in rural areas to farmers by establishing the enabling framework for development and linking business to national and international markets.
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In this way, PPP have the potential to accelerate the process of agro-industrialization. It has been shown that various forms of public-private partnerships are valuable instruments for leveraging the resources of both the public and the private sectors and of enhancing their capacities and capabilities for the welfare of the farmers, a way for national and local governments to achieve these development goals.
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The task for the public sector is to take the lessons learnt into account and consider how best to attract private parties to help bridge the infrastructure and support service deficit in agro-industry supply chains. In this way, public investment budgets and regulatory reforms can be directed towards optimizing the role of the private sector in Agri - Business.
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