Kerala Government Launches World Bank-Supported Agri-Business Alliance Initiative
The Kerala government, with substantial backing from the World Bank under the Kerala Climate Resilient Agri-Value Chain Modernisation (KERA) project, is rolling out a significant initiative aimed at forging robust partnerships between Farmer Producer Companies (FPCs) and prominent agri-business enterprises. This strategic move seeks to transform the agricultural landscape by creating sustainable market linkages.
Building Sustainable Market Connections
Suresh C Thampi, deputy director of the Kerala agriculture department and procurement officer for the KERA project, addressed reporters on Thursday, outlining the ambitious plan. He revealed that the initiative extends invitations to a diverse range of companies, including:
- Farm-based and non-farm-based enterprises
- Major supermarket chains
- Export-oriented companies
- E-commerce platforms
The core objective is to establish sustainable linkages that effectively connect Kerala's premium agricultural products to local, national, and international markets. This approach is designed to ensure that farmers receive improved prices and enjoy secure, reliable market access for their produce.
Phased Implementation Across Kerala
The programme is structured to develop 150 Productive Alliances (PAs) across Kerala's three distinct regions, implemented in three comprehensive phases. The initial phase will focus on establishing 50 alliances specifically in the northern districts of:
- Kasaragod
- Kannur
- Wayanad
- Kozhikode
- Malappuram
World Bank Funding and Project Goals
The KERA project represents a major investment in Kerala's agricultural future, with the World Bank providing funding of Rs 2,365 crore. This substantial budget supports the project's multifaceted goals:
- Modernising Kerala's agricultural sector
- Building climate resilience across farming communities
- Promoting sustainable agricultural practices
- Improving market access for farmers and agricultural MSMEs
Financial Support and Eligibility Criteria
Eligible companies participating in this initiative will receive substantial financial incentives, including grants covering up to 60% of the total alliance cost, with a maximum cap of Rs 2 crore. These funds are allocated for production investment and business development activities. Additionally, participants will benefit from three years of expert technical assistance to ensure successful implementation.
The programme has established specific eligibility requirements for participation:
For Companies:
- Minimum annual turnover of Rs 10 crore
- Demonstrated commitment to working with Kerala's farmer communities
For Farmer Producer Companies:
- At least two years of operational experience
- Minimum of 200 members
- Annual turnover of at least Rs 10 lakh
Market Opportunities and Application Process
Thampi highlighted the significant business opportunities this initiative presents, particularly for traceable and geo-tagged products from Kerala. The programme opens doors for various agricultural products, including:
- Traditional fruits like banana, jackfruit, and pineapple
- Exotic fruits such as mangosteen and rambutan
- Value-added by-products including nutmeg apple, banana flour, tender jackfruit, honey, herbal drinks, and spices
Interested companies must submit their applications through the official portal designated for this initiative. This structured approach ensures transparency and efficient processing of proposals, paving the way for transformative partnerships in Kerala's agricultural sector.
