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(GIST OF KURUKSHETRA) ODOP: Providing Framework for Value Chain Development

(FEBRUARY-2024)

ODOP: Providing Framework for Value Chain Development

Introduction:

Agricultural Development is the backbone of the Indian economy. The development agenda focuses on making balanced regional development, which can be accomplished by various mechanisms and means; and this is essential for agri-based ecosystem. The overall positioning of India in global economy has gone up significantly with Atma Nirbhar Bharat initiative, which inculcates self-reliance as the new currency of the economic system. In true sense, it has focused on contribution to development within nation, and also aiding to global economy, which is an integral component of ‘Vasudhaiva Kutumbakam’ philosophy from India. In this regard, ‘One District One Product’ (ODOP) under ‘Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme’ is a welcome initiative, taken by Government of India to foster the inclusive development, which is harnessing the export potential of each districts and helps in integrated development of local economy.

PMFME Initiative

The food processing sector has played a vital role in the economic development agenda due to its strong linkages and interactions between ‘agriculture’ and ‘industry’. With continuous changes in standard of living and lifestyles, the growth in demand of processed food items, thus increasing the scope and opportunities for food processing sector. It helps in diversification and commercialisation of farming ecosystems, increasing efficiency of resources usage, generating employment, promoting entrepreneurship and on the overall bringing a balanced regional development.

Value Chain Development, Infrastructure and Marketing Support

Common Infrastructure: The ODOP scheme has made provisions for usage of common infrastructure facilities at rural areas for all the FPOs, SHGs, Cooperatives, while the private enterprises use the facilities on hiring basis, thus making the best use of existing capacity. The infrastructure facilities can be utilised for sorting, grading, warehousing, and cold storage of ODOP products. In addition to these benefits, the common processing facilities are also available along with incubation centres involving one or more product lines. To promote common infrastructure, the credit-linkage grant would be made available at 35%, by considering its contribution to the value chain.
Development of Clusters: There can be more than one cluster for one product in one district or it can be extended beyond two or more districts, particularly for value chain development and alignment of relevant support infrastructure, depending upon the nature of products and perishable goods. The ODOP products can be of perishable products, agri-based products, cereal based products, or any other value-added products produced in the districts. The major list of such products are tomato, litchi, mango, potato, tapioca, millets, milk, fruits and vegetables, etc. The scheme also supports strengthening of forward and backward linkages to provide common facilities, skilling/training, incubation centres, research and development, marketing, and branding.
Value Addition: The cluster-based approach adopted by various States/UTs in India have played an enabling role regarding storage for agri-based products, preventing the wastages, facilitating processing and most importantly ensuring effective marketing ecosystem for the various products under ODOP. The value addition to the products and enabling access to the customers is a significant leveraging point in respect of avoiding wastages and enhancing value on the other side.

ODOP Prospects and Benefits

The ODOP scheme has variety of benefits for the local and rural community, for different states and for the nation, which can be summarised as:

Local and community development like in-situ employment, empowering rural women and youth, nurturingthe sustainable livelihoods, thus improved standard of living;
Promoting and preserving the local best practices/ micro-enterprises, thereby creating the local ecosystems of self-reliance;
Skilling, upskilling. reskilling and training of local talent to enable localised entrepreneurship and region-specific innovations; and
Local to global approach thereby enhancing exports/foreign exchange earnings to nation, thus boosting the inclusive and integrated development, which includes agri-based MSME development and therefore contributing to the ‘Aatmanirbhar Bharat’ movement.

Way Forward

The success of ‘Democracy and Swaraj’ depends upon ‘how we plan for the unplanned and how we reach the unreached, how we get the best out of everyone, every district and every sector’. In a broader framework, to ensure contributions of all the people and from all places in the development agenda, that can be best achieved through ODOP of PMFME. It enhances value chain for majority of products, including agri-based products, marine, milk, and processed products, etc.