Rural Business Hubs in India

In 2008, USAID called on IFPRI to examine how the private-sector can catalyze rural competitiveness and foster inclusiveness through rural business hubs in India. IFPRI’s evaluation of these hubs in three Indian states  helped  private-sector  partners  cut  down  the cost and improve the quality of inputs and services provided to farmers, such as weather information, crop management advice, and access to markets and finance.  In the state of Uttar Pradesh, IFPRI’s work helped identify opportunities and constraints in the dairy sector, leading to an investment of over US$1 million in the state’s dairy sector. Hariyali Kisaan Bazaar (HKB), a private Indian company, invested US$359,000 in contract farming for the production of certified wheat seed. In Madya Pradesh, ITC Ltd. made an additional investment of US$856,000 to develop markets for herbicides and pesticides, in part due to IFPRI’s evidence of high demand for these  products.