Research & Policy

SECTORAL

FAIDA [Food & Agri Integrated Development Action]: Driving the next wave of growth in Indian Agriculture

CIIproposes re-launch of FAIDAre-launch FAIDA Vol III: “Driving the Next Wave of Growth in Indian Agriculture.

India has the potential to become the world’s largest food factory. It has the right fundamentals in place – second largest land base, large population engaged in farming, availability of natural resources like water etc. However, several real challenges exist, that constraint the value-creation potential. In 1998, FAIDA had brought together the public and private sector to co-create an integrated plan towards unlocking this potential. In 2012, FAIDA will assess progress, identify priorities and incorporate learning from past efforts to create a roadmap for the next decade. FAIDA 2012 will keep sight of three goals – agricultural productivity, profitability and environmental sustainability.

Objectives

FAIDA 2012 builds further on the attempt of FAIDA 1998 to unlock growth in the food and agriculture sector. While the sector has seen significant growth during this period, it has also seen several issues culminating to unsustainable levels: e.g. food price inflation and volatility, supply chain wastage, rising cost of ag inputs, urban migration, fragmented holdings, degrading soil/ water resources.

 

FAIDA 2012 will create a roadmap for action in context of these challenges. It will deliver impact by establishing a common understanding of the baseline, aligning key industry leaders on growth priorities, setting up clear-cut mechanisms to drive progress and highlighting win-win growth opportunities for all stakeholders across the following steps of the value chain:

  • Agricultural input: Seed, chemicals, fertilisers and crop protection, water/irrigation, extension, land development, feed
  • Distribution: Distributors, input retailers
  • Production: Smallholder farmers, contract farming, mechanisation, high-value crops, bio-fuels, dairy/animal protein
  • Trading: Aggregation, sorting/grading, exports, public distribution
  • Packaging/marketing: Processing, value-added foods, food retail, organised retail.

The assessment will also take into account financing and infrastructure that facilitate the above, such as roads, ports, rail, storage, cold chain and logistics. This entire effort will be a joint initiative of CII, McKinsey and the industry.

 

The Steering Committee will consist of six to eight CEOs of top-ranked businesses across the value chain; CII leadership, the Ministry of Food Processing Industries and senior official from Mckinsey. The Advisory Group will include academics, policy-makers, and representatives from the social sector. The working team will consist of business leaders from across the value chain, members from CII, and consultants from McKinsey as required.