Initiatives by government and civil society have seen emergence of collectives of small and marginal farmers
Since time immemorial, foodgrains have been crossing continents for centuries. From the silk and spice routes to the current operations run by various alliances and agencies, humanity has witnessed acceleration of the commodity trading and intensifying as a constituent derivative of globalisation.
Throughout 2023, G20, which consists of countries accounting for 85 per cent of the global GDP, over 75 per cent of the global trade, and about two-thirds of the world population, will discuss a range of plans, which will reflect ambition and engagement of the member countries. The spectrum to create the global value chains encompasses some that are actively regulating a very diverse collection of interests of market forces and of a few individuals. The spectrum also includes a span of expected outcomes, with some looking for a detailed strategy for involvement of farmers collectively.
With the active participation and interwoven participation of state and non-state actors, new horizons have emerged. Therefore, this year might be remembered as a year of new-alliances to create a democratic and India-led global value chain. There is an opportunity to link Indian agriculture to the world to enhance export opportunities and address global food and nutritional security in the Indian way.
Agriculture at this juncture can provide huge support to the diplomatic community. It will not only help to localize the efforts undertaken to achieve the SDG targets but also benefit to democratize the value chains.
Moreover, the upcoming G20 meeting may open a new chapter on food diplomacy. For example, Kala Namak Rice of Uttar Pradesh, Chikori of Etah and Kasganj of Uttar Pradesh, Allahabadi Surkh Guava, Malihabadi Dasheri of Uttar Pradesh, and Malbhog Banana of Hajipur are a few items awaiting the attention of Indian diplomats.
Initiatives undertaken by various government departments and civil society institutions have seen an emergence of collectives of small and marginal farmers with robust financial transactions. The Government of India’s consistent and concerted endeavors to usher into reforms for boosting agricultural exports have created a background of this diplomatic exercise.
Further, the execution of agriculture export policy with subsequent waves of change in the cooperative sector after the formation of the Ministry of Cooperation and credit support have created a phenomenal change in the trade capacity of these collectives. For example, there is a readymade six clusters in Maharashtra through collectives for grapes, mango, pomegranate, banana, oranges and onion.
The active participation and active involvement of jumbo states like Uttar Pradesh with their own export policy in consonance with national policies has created a boon for this sector. Much awaited Warehousing and Logistic Policy 2018 and UP Food Processing Policy 2017 has not only created a robust supply chain but also has given ample opportunity to enable the FPOs with overseas markets.
In India, agriculture and horticulture production is around 600 million tonnes per year. Industrialists can also venture into agriculture as this will benefit farmers and will increase their earnings. Not only aromatic Spices but also Indian shrimps, basmati and non-basmati rice, grapes, bananas, pomegranate, vegetables, including potatoes, processed/value-added products, cashew, plant parts/medicinal herbs in value added form, including herbal medicines, food based nutraceuticals, aromatics, spices (cumin, turmeric, pepper), ethnic and organic food are a few potential winning sectors key to securing nutrition and food security to the global population.
The value chain here covers the entire network of actors involved in input supply, production, processing, marketing, and consumption, whilst operating inside an institutional environment that facilitates or hinders its performance. In this neo-system of agricultural value chain, farmers’ collectives will participate at all the three main levels.
Firstly, as they deal directly with the products by producing, processing, or trading. Next through the Startups/FPO/Cooperatives they act also as supporters and deal indirectly with the product, but their services add value to it in their way of innovation and subsequent supply chain. Lastly, where they need support for this festival of G20 diplomats to network with global contacts and long-standing relationships with international groups.
This yearlong diplomatic festival through G20 is going to bring new agribusiness value chain actors contains services of pre-farm production, like fertilizers, seeds, pesticides, tools and agricultural machinery; on-farm production, such as primary food processing and products, plus by-products; and post-farm production, related to secondary food processing, packaging and preservation.
To make the global agro value chains democratic, the international linkages have to do with the interdependencies of national and international markets, in which the agroindustry functions. The GVC has the specific condition that the market outlets negotiate with the foreign market, the latter comprising global wholesalers and retailers to reach out to international consumers. The retail sector of the Indian cooperative and support given through virtual platforms a new chapter can be written.
Laws, regulations, policies, international trade agreements, social norms, and public goods, all contribute to the agribusiness’ milieu. Consequently, our diplomats will negotiate every bit of this with their counterparts of the global north. There is an environment that comprises economic, political, cultural, and demographic factors that shape the development goals and strategies of India at this juncture by democratizing the value chain.
In accordance with the policies, there are also institutional linkages. These relationships, among the different types of organizations that operate and interact with the agroindustry production chain, tend to affect the dynamics of the production chain, the access to international markets.
The farmers’ collectives would be the ones which ultimately gain more benefit from these negotiations, instead of the fragmented farmers. Linking farmers’ collectives to the overseas market is also relevant as agro value chains are buyer-driven. We have an army of FPOs/cooperatives which are organised, coordinated, and can control the activities that reach the global consumer market through their core competencies of local products which have huge demand.
Therefore, in the context of a GVC, with support of G-20 negotiations our collectives may become the ones who define the “rules of the game” and appropriate the largest shares of the gains derived from agricultural production with collaborative effort of state and civil society.
Economic activity of these collectives is gaining a lot of public interest; for that the United Nations General Assembly declared 2023 as the International Year of Millets. Farmers-led GVC will serve as a means for linking local producers from developing countries to international markets. However, it is relevant to discuss the opportunities and challenges that come across this engagement, to analyze if it is beneficial for small farmers, lead firms or even public institutions. Many countries are intending to embrace a wide and diverse range of stakeholders in their design.
It is early to determine how widespread this will be. It is also not yet clear how inclusive this process will turn out to be. The participation of the relevant civil society actors may normally be vital to enable the farmers’ collective voices to be fully expressed and heard. This takes thought and planning of this momentous period to rejig the phrase “the Wonder that was the farming system of India.”
(The author is member, Pradhan Mantri-MSP Committee)
