Kerala’s agricultural landscape is about to experience a significant transformation! The state’s Agriculture Department is gearing up to launch an innovative program, ‘Productive Alliances’ (PA), designed to create powerful partnerships between local farmers and key players in the agri-business sector. This initiative is a core component of the World Bank-funded Kerala Climate Resilient Agri Value Chain Modernisation (KERA) project.
At its heart, ‘Productive Alliances’ is about building bridges. It connects Farmer Producer Companies (FPCs) directly with agri-business partners (ABPs) to establish enduring, mutually beneficial relationships. Think of it as a strategic matchmaking service that links the hands that sow with the businesses that buy, process, and bring produce to market, ensuring a win-win for everyone involved.
Over the next five years, from 2025 to 2029, the department plans to establish an impressive 150 such alliances under the KERA project. A substantial budget of ₹405 crore has been allocated for this crucial sub-component, out of the total project outlay of ₹2,365 crore.
A Focused Pilot Phase Kicks Off in Northern Kerala
The journey begins with a pilot phase in 2025-26, focusing intensely on the northern districts of Kerala: Kasaragod, Kannur, Wayanad, Kozhikode, and Malappuram. During this initial period, the goal is to establish 50 ‘Productive Alliances’, as outlined by Dr. Yamuna S., Assistant Director of Agriculture and Nodal Officer of the Environment and Social Safeguards State Project Management Unit-KERA.
To participate, Farmer Producer Companies in these five districts must meet specific criteria: they need to have been registered under the Companies Act by 2023–24, boast at least 200 shareholders, possess a paid-up capital of ₹5 lakh, and demonstrate a turnover of ₹10 lakh or more in each of the preceding two years.
Dr. Yamuna emphasizes that this initiative is designed to empower small-holder farmer collectives. “Even with limited resources, these collectives hold immense potential to thrive in today’s competitive markets,” she explains. “By collaborating through these alliances, they can gain access to higher-value buyers, leverage shared investments, and collectively build agricultural value chains that are both climate-smart and sustainable.”
Each ‘Productive Alliance’ is eligible for a grant of up to ₹2 crore, covering 60% of their business plan. This also includes three years of crucial technical support and assistance with market linkages. Beneficiaries are expected to contribute the remaining 40%. The allocated funds can be strategically used for a variety of purposes, including developing essential infrastructure, acquiring new machinery and technology, enhancing branding and packaging efforts, promoting exports, and expanding business through modern e-commerce platforms.
A Transparent Review Process
Both Farmer Producer Companies (FPCs) and Agri-Business Players (ABPs) are invited to submit their applications independently through the official KERA website. A dedicated committee will meticulously review these applications in three distinct stages, ensuring suitable partners are shortlisted and matched effectively.
Significantly, Agri-Business Players are not limited by geographical boundaries; they can hail from within Kerala, elsewhere in India, or even internationally. The State Project Management Unit (SPMU) is tasked with overseeing the statewide implementation, guided by a specialized technical support agency appointed for the northern region, ensuring smooth execution and monitoring throughout the process.