INTEGRATING POOR INTOINTEGRATING POOR INTOMARKET SYSTEMSMARKET SYSTEMS

WHY MARKET PARTICIPATION ?WHY MARKET PARTICIPATION ?

- INPUT FOR PRODUCTION SYSTEM- INPUT FOR PRODUCTION SYSTEM

- SELL THE PRODUCE- SELL THE PRODUCE

INCOME GENERATIONINCOME GENERATION

- WHY SOME MAKE MORE MONEY- WHY SOME MAKE MORE MONEY

STATUS OF SMALLHOLDERS’ STATUS OF SMALLHOLDERS’ PARTICIPATION IN MARKET PARTICIPATION IN MARKET

PROCESSPROCESS SMALLHOLDERS IGNORED / BYPASSED BY SMALLHOLDERS IGNORED / BYPASSED BY

MARKETMARKET REQUIRED PRODUCTS / SERVICES NOT REQUIRED PRODUCTS / SERVICES NOT

APPROPRIATE / AFFORDABLEAPPROPRIATE / AFFORDABLE SMALLHOLDER PRODUCTION SYSTEM NOT SMALLHOLDER PRODUCTION SYSTEM NOT

IN TUNE WITH MARKET DEMANDIN TUNE WITH MARKET DEMAND SIZE AND LOCATION OF SMALLHOLDER SIZE AND LOCATION OF SMALLHOLDER

PRODUCTION SYSTEMPRODUCTION SYSTEM

THE NATURE OF MARKETS

SMALLHOLDERS BELONG TO

- MARKETSHED

THE VALUE CHAINTHE VALUE CHAIN

COMPRISES OF ALL DIFFERENT ENTITIES COMPRISES OF ALL DIFFERENT ENTITIES WHO CONTRIBUTE IN MAKING A PRODUCT / WHO CONTRIBUTE IN MAKING A PRODUCT / SERVICE AVAILABLE TO THE CONSUMERSERVICE AVAILABLE TO THE CONSUMER

AT EACH LEVEL OF VALUE CHAIN THE PRICE CHANGES

THERE COULD BE PARALLEL FLOW LINES IN THE VALUE CHAIN

IMPROVING EFFICIENCY AT ANY ONE POINT MAY OR MAY NOT CHANGE THE STATUS OF CLIENTS

THE VALUE CHAIN IN THE VALUE CHAIN IN AGRICULTUREAGRICULTURE

COMPONENTS : CONSTRAINTSCOMPONENTS : CONSTRAINTS InputInput – seed, sapling, fertilizer, – seed, sapling, fertilizer,

pesticide, irrigation ………pesticide, irrigation ……… On-farmOn-farm – agronomy, crop selection, – agronomy, crop selection,

crop timing ……..crop timing …….. OutputOutput – market access, price info – market access, price info

across seasons, transport, market across seasons, transport, market practices practices

Constraint AnalysisConstraint Analysis

List out all identified constraintsList out all identified constraints Group them on supply and demand side Group them on supply and demand side

– it will provide clarity on their impact– it will provide clarity on their impact Identify critical constraintsIdentify critical constraints Identify existing / probable providersIdentify existing / probable providers Explore market mechanism for needed Explore market mechanism for needed

products and services including market products and services including market assessment and mode of paymentassessment and mode of payment

Intervention design – Intervention design – criteria for selection of criteria for selection of

interventionintervention Number of smallholders servedNumber of smallholders served ImpactImpact SustainabilitySustainability Cost of interventionCost of intervention Resources availableResources available Synergy with other interventions, Synergy with other interventions,

programs and partnersprograms and partners TimeframeTimeframe

Delivery strategy – who Delivery strategy – who delivers, who pays, mode of delivers, who pays, mode of

paymentpayment

Who will deliver the Who will deliver the products/servicesproducts/services

Who will pay for the Who will pay for the products/servicesproducts/services

What will be the mode of payment What will be the mode of payment How delivery system will be made How delivery system will be made

sustainablesustainable

IPMAS MODEL - INPUTIPMAS MODEL - INPUT

SERVICESERVICE PROVIDEPROVIDERR

RECEPIENTRECEPIENT PAYMENTPAYMENT

SEEDSEED AGRI-AGRI-INPUTINPUT

DEALERDEALER

FARMERFARMER DIRECT BY DIRECT BY FARMERFARMER

SAPLINGSAPLING NURSERYNURSERY FARMERFARMER DIRECT BY DIRECT BY FARMERFARMER

FERTILIZEFERTILIZERR

PESTICIDEPESTICIDE

AGRI-AGRI-INPUTINPUT

DEALERDEALER

FARMERFARMER DIRECT BY DIRECT BY FARMERFARMER

IPMAS MODEL - INPUTIPMAS MODEL - INPUT

SERVICESERVICE PROVIDERPROVIDER RECEPIENTRECEPIENT PAYMENTPAYMENT

WATER TECH WATER TECH SYSTEMSYSTEM

MANUFACTUREMANUFACTURERR

DISTRIBUTODISTRIBUTORR

DIRECT BY DIRECT BY DISTRIBUTODISTRIBUTORR

WATER TECH WATER TECH SYSTEMSYSTEM

DISTRIBUTORDISTRIBUTOR DEALERDEALER DIRECT BY DIRECT BY DEALERDEALER

WATER TECH WATER TECH SYSTEMSYSTEM

DEALERDEALER FARMERFARMER DIRECT BY DIRECT BY FARMERFARMER

SYSTEM SYSTEM INSTALLATIONINSTALLATION/ SAS/ SAS

INSTALLER / INSTALLER / ASSEMBLERASSEMBLER

FARMERFARMER DIRECT BY DIRECT BY FARMERFARMER

IPMAS MODEL – ON FARMIPMAS MODEL – ON FARM

SERVICESERVICE PROVIDERPROVIDER RECEPIENRECEPIENTT

PAYMENTPAYMENT

AGRI. AGRI. TECHTECH

AGRI AGRI INPUT INPUT DEALERDEALER

FARMERFARMER EMBEDDEEMBEDDEDD

CROP CROP SELECTIOSELECTION N CONCEPTCONCEPT

AGRI AGRI INPUT INPUT DEALERDEALER

FARMERFARMER EMBEDDEEMBEDDEDD

CROP CROP SELECTIOSELECTION N CONCEPTCONCEPT

K.V.K.K.V.K. FARMERFARMER FREEFREE

IPMAS MODEL - OUTPUTIPMAS MODEL - OUTPUT

PAYMENTPAYMENTRECIPIENRECIPIENTT

PROVIDERPROVIDERSERVICSERVICEE

DIRECT BY DIRECT BY FARMERFARMER

FARMERFARMERAGRIWATCAGRIWATCHH

MARKET MARKET INFO.INFO.

DIRECT BY DIRECT BY FARMERFARMER

FARMERFARMERINTERNET INTERNET KIOSKKIOSK

MARKET MARKET INFO.INFO.

SustainabilitySustainability

InstitutionalInstitutional FinancialFinancial

Role of facilitatorRole of facilitator

Tread lightlyTread lightly Develop competitionDevelop competition Provide opportunity and flexibility to modifyProvide opportunity and flexibility to modify Develop contractual relation between Develop contractual relation between

facilitator and providerfacilitator and provider Focus subsidy on promotion and not on Focus subsidy on promotion and not on

transactiontransaction Have clear exit strategyHave clear exit strategy Coordinate with donors/facilitatorsCoordinate with donors/facilitators