Development of Agribusiness Enterprises - Asian Productivity ...

industrialization through diversification and commercialization of agriculture”. To meet that
objective the government has adopted the strategy of:
C formulating an appropriate policy and service, and initiating a support program to link
cash crop development with agro-based industry;
C encouraging the private, non-government and government sectors to supply
agricultural inputs by making the market mechanism effective;
C providing direct agricultural information and extension services, especially with regard
to comparatively beneficial production, agribusiness promotion and market potential;
C undertaking regular monitoring and interaction to solve agribusiness problems and
extending support through proper initiatives; and
C developing agro-industry as a major market outlet for agricultural products.
Recognizing that the commercialization and diversification of the agriculture sector
are possible only through the promotion of agro-based industry, the Ninth Plan has
formulated a separate agribusiness promotion program with the strategy of:
C implementing overall economic policy adjustment and service-oriented programs for
the promotion of agriculture and forestry-based industry;
C providing and expanding markets for agricultural products by analyzing the potential
of domestic and export markets;
C developing market infrastructures in the potential pocket areas with close participation
by private, cooperative and farmers’ groups;
C launching an education and training program through the cooperative mechanism in
order to promote cooperative-based agro-industry; and
C enhancing women’s participation to improve activities such as harvesting, grading,
packing and storage in order to produce quality products.
AGRIBUSINESS DEVELOPMENT PROGRAM
The government has initiated changes in the composition of agricultural production and
the development of agribusiness to provide value-added through different programs. These
changes are detailed below.
A market-led production strategy has been adopted as a new approach to agricultural
development. This is a fundamental step in the new direction with institutionalization of
“backward and forward linkages” under the aegis of the private sector, but complemented and
supported by government policies and programs. Such efforts will make agribusiness much
more competitive in the present-day context of the liberalized and globalized market
environment. The government is slowly changing its agricultural strategy by confining itself
to the implementation of the appropriate policy measures and the establishment of a
partnership with the private sector in its production and marketing programs.
The extension system, training, marketing and promotion programs and other services
are being mobilized to include the needs of commercial farmers and their groups.
Programs are being implemented that increase the involvement of the private sector,
cooperatives, farmers’ groups and NGOs in agro-processing, marketing and input distribution
at the local level. In addition, their involvement in commercial production of identified
potential products is supported through the provision of an integrated package.
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