The Union Minister recently proposed integrating the One District One Product (ODOP) initiative with the Open Network for Digital Commerce (ONDC). This integration serves to further expand the ODOP’s reach, uniting buyers and sellers on a democratic platform and potentially bringing prosperity to the nation’s most remote regions.
One District One Product: An Overview
The ODOP approach is part of the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme. It establishes a framework for value chain development alongside the support infrastructure of the PMFME scheme. In one district, there might be more than one cluster of ODOP products. Similarly, a cluster of these products could span across multiple adjacent districts in one state.
States are responsible for identifying food items for districts based on existing clusters and raw material availability. The chosen ODOP could range from perishable produce or cereal-based items to food items widely produced in a particular area. Examples include mango, potato, pickle, millet-based commodities, fisheries, poultry, etc.
The scheme also supports other traditional and innovative products, such as honey, minor forest product in tribal areas, and traditional Indian herbal edible items like turmeric, amla, haldi, etc.
The Significance of the ODOP Approach
When a cluster-based approach is adopted, districts with a comparative advantage can focus on developing specific agriproducts. This promises to facilitate the provision of common facilities and other support services.
Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME)
Part of Atma Nirbhar Abhiyan, the PMFME Scheme’s core aim is to boost the competitiveness of existing individual micro-enterprises in the food processing industry’s unorganized sector. This scheme fosters sector formalization and backs Farmer Producer Organisations, Self Help Groups, and Producers Cooperatives along their entire value chain.
The PMFME scheme employs the ODOP approach to leverage scale benefits in terms of input procurement, common service utilization, and product marketing. It has a five-year implementation timeline from 2020-21 to 2024-25.
The scheme receives central sponsorship and commands a budget of Rs. 10,000 crore. Expenditure allocation under the scheme maintains a 60:40 division between Central and State Governments, a 90:10 split with North Eastern and Himalayan States, and a 60:40 ratio with UTs having legislature. In other UTs, the Centre funds 100% of the expenses.
Way Forward: Boosting ODOP
To enhance international exposure of products, it is recommended that ODOP forms a part of international exhibitions, events, meetings, and conferences. GI tagging processes should be simplified, streamlined, and accelerated for easy implementation. Government flagship programs such as Startup India, Make in India, and district as export hubs should align with the ODOP vision.
Eminent institutions like NIFT, NID, and IIFT could collaborate to devise creative methods to augment ODOP impact. Branding strategies for ODOP products, which are predominantly natural and eco-friendly, should emphasize their sustainability and benefits for the planet. Lastly, a broader list of Geographical Indication (GI) tagged products should be developed, facilitated by simplifying, streamlining, and quickening the GI tagging process.