“Now people in Italy and Dubai are savouring the sweet taste of mangoes from a remote village in Odisha!” exclaims Biswajit Behera, Associate Director of Palladium India.

According to Behera, the state's premium mangoes and fresh vegetables are now making their way to international markets thanks to a collaboration between the Agricultural and Processed Food Products Export Development Authority and the Directorate of Horticulture, with support from Palladium as Technical Support Unit of the Promotion and Stabilization of Farmer Producer Organizations (PSFPO) project.

Odisha, which boasts an annual production of 850,000 metric tonnes of mangoes every year, has struggled to access international markets and inadequate infrastructure for packaging, storage and transportation.

Despite these challenges, Odisha's mangoes, which contribute over US$252 million to the Indian economy and account for 60% of the state's fruit cultivation, are poised to make a significant impact globally.

“The PSFPO team started this journey by identifying FPOs (Farmer Producer Organisations), engaging in detailed discussions with FPOs and buyers, and crafting an action plan that ensured quality standards are met,” explains Behera. “The team also addressed storage, handling, packaging, transportation, and other logistics requirements.”

FPOs are vital as they empower small farmers by pooling resources, improving bargaining power, and providing access to better markets and technology. Despite their efforts and quality production, FPOs still face export challenges.

Regulatory hurdles, lack of knowledge about global markets, and insufficient financial resources further complicate the export process. So, while FPOs significantly enhance local agricultural productivity, overcoming these barriers is crucial for their successful integration into international markets.

The first commercial shipment of fresh produce in May of 2024, including 750kg of mangoes and vegetables, was exported to Dubai from Odisha, resulting in substantial economic benefits for the farmers, with an incremental price increase of 20-30%.

In addition, 1.22 metric tons of mangoes were exported to Italy, yielding a remarkable 40% increase in prices for the farmers. This intervention has empowered Odisha’s FPOs to supply high-quality fresh produce to global markets, beyond their local markets, increasing farmers’ incomes and boosting their confidence.

Tailored Support for Farmers

The PSFPO project, launched by the Directorate of Horticulture, Department of Agriculture and Farmer’s Empowerment, Government of Odisha, and funded by the Bill & Melinda Gates Foundation aims to transform FPOs into single-window service centres for farmers. The goal is to provide end-to-end support to the farmers, from production to the final marketing of their products. This comprehensive support ensures that FPOs help farmers tap into larger markets and get better prices for their produce.

The initiative focuses on elevating the economic status of small and marginal farmers by enabling them to access profitable global markets.
“While this is just a beginning for the export of fresh produce to the markets in Dubai and Italy, the collaboration has created a sustainable association between the FPOs of Odisha and global markets,” adds Behara. “These markets have high demand for fresh produce such as Mangoes, Okra, Bitter Gourd, and other vegetables, all of which are grown in Odisha.”

For Amit Patjoshi, CEO of Palladium India, there’s an enormous potential for the state to supply fresh produce to additional global markets. “We use a Market System Development approach to increase the income of smallholder farmers.”

The Market System Development approach improves market systems to benefit the poor. It involves understanding market dynamics, identifying constraints, and leveraging opportunities to facilitate sustainable changes. MSD focuses on acting as a facilitator rather than a direct participant, keeping farmers and other market actors in the driver’s seat.

“Such global market connections not only boost the confidence of FPOs from remote parts of the state, but also offer opportunities to scale up their supply positions with cost efficient quality control systems in place,” says Patjoshi.

“We are looking forward to connecting more FPOs in Odisha to profitable global markets by active participation from the private sector and transform the agribusiness ecosystem across the state.”

For more information, contact info@thepalladiumgroup.com.