VALUE CHAIN APPROACH

The MKSP-AAP Project has a focus on intervening in 3 sub-sectors namely Agriculture, Minor-forest Produce (MFP) and Livestock. Under MFP sub-sector the focus is primarily on Lac and Tamarind, similarly in Livestock the interventions would be around Backyard Poultry, Goat and Duck. The project has a mandate to do value chain intervention around these some of the key products around these sub-sectors. The Value Chain Approach would help in identifying the existing gaps in the market hence working on those gaps in order to make the chain more equitable in terms of profit distribution and building the capacities of the producers to graduate and take up higher degree roles in the chain for better returns. A total of 5 Value Chains have been identified with the help of scientific methods of data analysis and validation with the help of an International Agency. The products for the purpose of study are namely Lac, Tamarind, Backyard Poultry, Goat and Potato.

The studies have been initiated and are in the last stage for further analysis and developing strategies around the gaps identified. After the completion of the studies, based on the findings an Intervention Plan would be developed keeping in view the potential of the interventions. It is expected that around each Value Chain some enterprises would be developed which could be managed by the community institutions. However, all these interventions would be designed in an institutional framework which would revolve around a Farmers Producer Organization. The idea is to develop a local value chain within the identified commodities and provide a better market access to the poor producers. The value chain approach would not only provide a better access for the produce of the farmers but would also help in procuring the right quality seeds and inputs in a right price and time. It would ensure that the producers have the appropriate technology and capacities to work as per the market demands. The gaps in terms of capacities and knowledge would also be a part of the value chain approach.

This set-up will create institution like Producer Groups at the village level which would work with the Farmers Producer Organization (FPO) at the Block or District level. The FPO would establish the relevant enterprises which would add value to the commodities/produces and finally help the producers with a better share of consumer rupees. This approach will also help in developing the local economy in terms of investments and market penetration.