Project Approach/Modality
Project mainly focuses on one dominant intervention – the development of pro-poor value chains (Component 1) – with the other project initiatives directly in support of this intervention: development and strengthening value chain producers groups, initiatives to promote gender and social inclusion, support for high value commodity production and post-harvest activities, establishment of a grant-based value chain development fund, and support for district operations and inclusion of remote communities, which make up Component 2, and arrangements for project management as Component 3. In support of this structure, the project approach adheres to the following guiding principles:
- A) Drive the value chain process from the demand/agribusiness side and by so doing establish the value chains and the participating producers on the basis of a demonstrated, concrete market for the high value commodities
- B) Ensure that the producers become partners in the value chain with the agri-businesses by developing them into cost effective producers that are able to deliver the qualities and quantities required to make the value chain profitable, thereby strengthening their position and improving their bargaining power
- C) Create an environment and build in robust processes and structures (groups) that enable women, poor and vulnerable households, and groups such as the Dalits, and Janajatis to actively participate in the project
- D) Promote sustainability both in terms of institutions (value chain groups and cooperatives) and processes (value chains that are profitable to both the agribusinesses/traders and the producers)
- E) Facilitate spatial as well as social inclusion and promote equity in project support among the ten participating districts
- F) Implement the project primarily through local NGOs and local service providers with government/MOAC having overall responsibility and oversight and SNV taking the lead technically in guiding project implementation.
- G) Facilitate value chain group financing through a combination of sources: agribusiness financing linked to agreed contracts, self-generated savings from group savings and credit schemes, loans from local MFIs, a project value chain fund for infrastructure/equipment investment, and a project production inputs fund to establish group revolving funds