October 19-20, 2005, FICCI Federation House, Tansen Marg, New Delhi, India

1. Public-Private
Partnerships for
Harnessing the Potential of
Rainfed Agriculture
Joachim von Braun
International Food Policy Research Institute
October 19-20, 2005, FICCI
Federation House, Tansen
Marg, New Delhi, India
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

2. Outline
 PPP in agriculture: The main options
and issues
 Less favored/marginal rainfed areas:
risks and opportunities
 Possibility of PPPs in the supply chain
management of high value and processed
commodities
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3. Agri-food systems are increasingly …
• Driven by market forces / consumers/ retail
• Globalized through international trade
• Influenced by new technologies
• Subject to stricter regulatory scrutiny
• Subject to greater ethical scrutiny
 But peoples’ ability to respond to this
changing context differs greatly between
regions, nations and communities
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4. Opportunities for partnership exist
Partnerships can improve access to
• New technologies, and tools
• New research expertise and infrastructure
• Private equity markets; donor funding
• New product markets and new customers
• New marketing and distribution networks
 Synergies through knowledge sharing,
joint learning, scale economies, resource
pooling, and cost sharing
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5. But roles remain contested
With changes in the global agri-food system,
the roles of the state, industry, and civil
society remain contested
 Controversy over ownership of new knowledge
 Issues over distribution of benefits and risks
 Concerns over lack of pro-poor emphasis
 Unease over environmental, social sustainability
Learning from others? e.g. the health and ICT sectors
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6. Yet our visions and goals often coincide
 a world free of hunger and malnutrition
 To provide solutions that cut hunger and
malnutrition
These goals are
good on humanitarian grounds
and good for business
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7. Real actions follow common interests
Delivery, Private Public Civil Society
Execution
Planning,
Financing
Private Commercial Private support Private support
projects to charitable to charitable
public projects NGO projects
Public Private Public projects NGO provision
provision of of public goods
public goods
Civil Society NGO
partnership
projects
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8. Outline
 PPP in agriculture: The main options
and issues
 Less favored/marginal rainfed areas:
risks and opportunities
 Possibility of PPPs in the supply
chain management of high value and
processed commodities
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9. What are “less-favored areas” (LFAs)?
 Include areas with
• low agricultural potential, due to limited rainfall, poor
soils, steep slopes, etc. (biophysical constraints); or
• limited access to infrastructure (e.g., roads and
irrigation) and markets (socioeconomic constraints)
 Some LFAs are found in:
• semi-arid and arid tropics of Asia and Africa
• mountain areas of Asia, Latin America and Africa
• hillside areas in Central America and Asia
• forest margins of humid and sub-humid tropics of
Africa, Latin America and Asia
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10. CLASSIFICATION OF FAVORED AND
LESS-FAVORED AREAS
Access to infrastructure and markets High Favored
areas
Less-favored
areas
Low a Less-favored Less-favored
areas areas
High Low b
Agricultural potential
a Socioeconomic constraints.
b Biophysical constraints.
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11. Why be concerned about LFAs?
1. Most of the poor live depend on these
areas for their livelihoods:
• Over 1 billion people live in such areas
• Problems of low agricultural productivity,
poverty, and natural resource degradation
severe and worsening in many such areas
• Problems in these areas give rise to conflict,
emigration to other areas, negative
environmental consequences
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12. Drought and famine risks…
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13. Droughts are the deadliest natural
events…
Droughts from 1900-2004
# of Events Killed Affected
Africa 460 1,046,500 315,238,600
Americas 100 100 61,701,400
Asia 200 7,761,400 1,789,441,000
Europe 30 1,200,000 15,262,600
Oceania 25 700 8,233,600
EM-DAT: The OFDA/CRED International Disaster Database, Université
catholique de Louvain
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14. Droughts involve significant
economic costs…
Economic losses due to drought in Eastern India
Averaged over 30 During drought years
years only
Loss of rice production (million tons) 2.6 7.6
Value of rice production loss 250 735
($million)
Value of other crop production loss 125 370
($million)
Employment loss (million person- 160 480
days)
Value of employment loss ($ million) 160 480
Total economic losses ($million) 535 1,585
Source:www.agric.uwa.edu.au/ARE/AARES/Conf2003/ClimateWorkshop/PandeyPresent.ppt
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15. Why be concerned about LFAs?
2. Contrary to general belief, returns
to investments are often higher in
these areas …
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16. Returns to Investments in India – Impacts on
Agricultural Production (Fan and Hazell 1999)
Irrigated High Low
Investment Units areas potential potential
rainfed rainfed
areas areas
HYV’s Rps/ha 63 243 688
Roads Rps/km 100,598 6,451 136,173
Canal Rps/ha 938 3,310 1,434
irrigation
Private Rps/ha 1,000 -2,213 4,559
irrigation
Electrification Rps/ha -546 96 1,274
Education Rps/ha -360 571 902
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17. Returns to Investments in India – Impacts on Poverty
Reduction (Fan and Hazell 1999)
Irrigated High Low
Investment Units areas potential potential
rainfed rainfed
areas areas
HYV’s Persons/ha 0.00 0.02 0.05
Roads Persons/km 1.57 3.50 9.51
Canal Persons/ha 0.01 0.23 0.09
irrigation
Private Persons/ha 0.01 -0.15 0.30
irrigation
Electrification Persons/ha 0.01 0.07 0.10
Education Persons/ha 0.01 0.23 0.01
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18. Returns to Investments in China – Impacts on Rural GDP
(Fan, et al. 2004a) (yuan/yuan inv.)
Investment
Coastal Central Western
R&D 5.54 6.63 10.19
Irrigation 1.62 1.11 2.13
Roads 8.34 6.90 3.39
Education 11.98 8.72 4.76
Electricity 3.78 2.82 1.63
Telephone 4.09 4.60 3.81
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19. Outline
 PPP in agriculture: The main options
and issues
 Less favored/marginal rainfed areas:
risks and opportunities
 Possibility of PPPs in the supply chain
management of high value and processed
commodities
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20. Opportunities for PPPs along the
supply chain…
PRODUCERS
MARKETERS
PROCESSORS
RETAILERS
CONSUMERS
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21. High value production on dry lands
1. Public Private Partnerships in
Research and Development for
varietal adaptation to climatic
extremes
TECHNOLOGY
SHARING + RESOURCE
MOBILIZATION
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22. ICRISAT Experience in India- Sorghum and
Pearl millet Hybrid Parents Research Consortia
 Initiated in 2000
 Impact:
• Increased adoption of improved hybrids:
 More than 4 million ha of rainy season Sorghum
and 1 million ha summer season sorghum are
planted with 50 private-sector (PS) based hybrids,
of which 40 are based on ICRISAT derived parental
lines
 4.5 million ha of pearl millet area is planted with
more than 70 PS based hybrids, of which 60 are
based on ICRISAT derived parental lines
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23. ICRISAT Experience in PPP for R&D in
India (ctd)
• Resource mobilization
 From 2000-2003, members of consortia
included 16 PS Sorghum companies and 18 for
Pearl millet = mobilization of US$ 405,000
 April 2004, an additional 25 PS seed
companies members of consortia = US$ 2
million for ICRISAT funding over a five-year
period
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24. High value production on dry lands
2. Partnership in water management
in rainfed agriculture
• Enhanced water use efficiency
• Increased financing for system
rehabilitation, improvement and
upgrading
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25. Watershed management projects in
rainfed areas- India
 Objectives :
• on-site soil and water conservation
measures that improve the resource base
for rainfed agricultural production.
Increase productivity in rain-fed
agriculture & Provide
opportunities for planting high-
yielding varieties
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26. Watershed management projects in
rainfed areas- India (ctd)
 Methods:
• Emphasis on participatory management &
knowledge sharing
 Collaboration b/w Government, NGOs, village
self-help groups (community-based PPPs)
 Local people = full partners- Participation in
helping plan, implementing and paying for
watershed development programs
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27. High value production on dry lands
3. Infrastructure development- roads
and information and
communication technologies
IMPROVE ACCESS
TO MARKETS AND
INFORMATION
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28. PPPs in infrastructure development
 Public Sector will still be the major
player (e.g. provision of initial capital)
 Partnerships w/ NGOs, CBOs and
private sector necessary in:
 Choosing infrastructure projects that would yield
the highest short run and long run benefits
 Cost- sharing (esp. for maintenance )
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