The Kerala government, with support from the World Bank under the Kerala Climate Resilient Agri-Value Chain Modernization (KERA) project, has invited agribusinesses across India to partner with Farmer Producer Companies (FPCs) in the state.
The project seeks to transform Kerala’s agricultural landscape by strengthening climate resilience, enhancing agri-value chains, and improving farmer livelihoods through sustainable, inclusive, and technology-driven interventions. The initiative brings together FPCs and agribusiness players to establish Project Alliances (PAs) that offer shared value.
As part of the programme, participants will receive expert technical support for three years. Eligible companies must have an annual turnover of at least ₹10 crore and prior experience engaging with Kerala’s farmer communities. The state has also earmarked nearly 70 acres of land in multiple locations for setting up food parks.
This gives an opportunity to get traceable and geo-tagged products of Kerala. There is business opportunity for traditional fruits like banana, jackfruit, pineapple, avocado, and exotic fruits such as mangosteen and rambutan, and by-products from nutmeg apple, banana flour, tender jackfruit, honey, herbal drinks, spices, and so on.
Qualified alliances are eligible for grant support of up to 60% of total costs, with a maximum funding limit of ₹2 crore for production and business development activities. FPCs with at least two years of experience, 200 members, and a turnover of ₹10 lakh can also apply.
The project has been launched with a total outlay of ₹2,365 crore over five years, with 70% of the funding supported by the World Bank and the remaining contribution from the Kerala government. Of this, ₹400 crore has been allocated specifically for the Productive Alliance (PA) initiative.
Strengthening Climate-Resilient Markets
Addressing media persons in Mangaluru, Suresh C Thampi, Kerala’s Deputy Director of Agriculture and Procurement Officer of KERA, said the initiative aims to strengthen climate-resilient agri-value chains by linking Kerala’s premium produce to local, national and international markets, ensuring improved farmer incomes and assured market linkages.
He noted that 150 Productive Alliances (PAs) will be established in phases by 2029, with the first phase covering 50 alliances in the northern districts of Kasaragod, Kannur, Wayanad, Kozhikode and Malappuram.
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Designed in response to growing climate uncertainties and the need for market-oriented agricultural development, the project focuses on building a collaborative ecosystem that brings together farmers, Farmer Producer Companies (FPCs), agribusinesses, research institutions, and public agencies to drive long-term resilience and competitiveness in the sector.
The emphasis on traceability, geo-tagging, and value-added processing aligns well with emerging consumer preferences for transparent, origin-linked food products, both in India and overseas. Kerala’s diverse horticulture basket, ranging from traditional fruits to niche exotics and processed by-products, positions the state advantageously in premium and specialised markets.
Scaling Climate-Smart Agri-Value Chain
As part of outreach efforts, a stakeholder meeting was recently held in Coimbatore to engage agribusiness players from the region, followed by a similar interaction now being organised in Mangaluru.
The state’s government’s call for agribusiness partnerships under the World Bank supported KERA project signals a deliberate shift from fragmented farm support to market-linked, climate-resilient agriculture. Rather than focusing solely on production, KERA is attempting to fix one of Indian agriculture’s most persistent gaps, the absence of structured, long-term linkages between farmers and markets.
The financial design also reflects pragmatic policymaking. Grant support capped at 60% ensures risk-sharing while discouraging dependency, and eligibility norms push for credible, experienced partners. Meanwhile, earmarked land for food parks and multi-year technical assistance addresses infrastructure and capability gaps that often derail such initiatives.
By encouraging Productive Alliances between Farmer Producer Companies and established agribusinesses, the programme blends grassroots aggregation with commercial scale, technology, and assured demand. If executed effectively, the project could become a replicable model for climate-resilient, market-oriented agricultural transformation beyond Kerala.
