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SFO Support to ODOP / VFL / CM

  • One District One Product (ODOP) initiative is aimed at fostering balanced regional development across all districts of the country. The initiative aims to select, brand, and promote at least One Product from each District (One District - One Product) of the country for enabling holistic socioeconomic growth across all regions. The ODOP Initiative has identified a total of 1102 products from 761 districts across the country. List of approved ODOPs of 35 States/ UTs  Download(2.3 mb)
  • Under the ODOP initiative, all products have been selected by States/UTs by taking into consideration the existing ecosystem on the ground, products identified under Districts as Export Hubs (DEH), and GI-tagged products. The finalized list is communicated to DPIIT by the relevant Department of States/UTs. All activities including exhibitions, capacity building, etc. are undertaken at the State/UT and district level, in consultation and coordination with the States/UTs.

The ODOP initiative is aimed at manifesting the vision of India to foster balanced regional development across all districts of the country.

The idea is to select, brand, and promote One Product from each District of the country

  • For enabling holistic socioeconomic growth across all regions
  • To attract investment in the District to boost manufacturing and exports
  • To generate employment in the District
  • To provide ecosystem for Innovation/ use of Technology at District level to make them competitive with domestic as well as International market.
  • To reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
  • ODOP for the scheme will provide the framework for value chain development and alignment of support infrastructure through cooperatives ecosystem.
  • There may be more than one cluster of ODOP products in one district.
  • There may be a cluster of ODOP products consisting of more than one adjacent district in a State.

Benefits to Districts

  • Capital Investment: Existing micro-enterprises would be supported through capital investment. Enterprises producing ODOP products are given preference. New units, on the other hand, would be supported for ODOP products only.
  • Marketing and Branding: Marketing and branding infrastructure support is provided. If marketing and branding are being conducted at the state or regional level, other products would also be supported.
  • Subsidy: Under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme with the ODOP approach, a credit-linked capital subsidy comprising 35% of the eligible project cost, up to Rs. 10 lakh (US$ 13,379.7) may be provided. The beneficiary may need to contribute at least 10% of the amount and the balance as a bank loan.
  • Credit-Linked Grant: A credit-linked grant of 35% would be provided to support groups such as self-help groups (SHGs), Producer Co-operatives, etc. in their operations such as sorting, grading, storage, packaging, processing and so on.
  • Seed Capital: Seed capital is provided at Rs. 40,000 (US$ 535.2) per SHG member involved in food processing. The capital is to be utilised for working capital and buying small tools.
  • Branding and Marketing: Branding and marketing support is provided through grants of up to 50% of total expenditure, for the state or regional level ODOP product, to SHGs, co-operatives, etc. Branding and marketing are crucial for the growth of Micro Small and Medium Enterprises (MSME).
  • Training: Training is provided with a focus on entrepreneurship development, operations, marketing, accounting, FSSAI standards, GST registration, Udyog Aadhaar, Geographical Indication (GI) registration and so on. Furthermore, training specifically designed for ODOP products is provided such as on hygiene, storage, packaging and development of new products. Such training helps the entrepreneurs conduct business operations efficiently as well as improve the quality of products.

Outlook

  • The ODOP initiative has significant potential given its aim to achieve a district’s true potential by utilising economies of scale, product specialisation through identification and promotion through marketing, MSME growth and creation of employment opportunities. Furthermore, ODOP is raising awareness of the importance of GI. The training provided to entrepreneurs are helping them conduct operations efficiently, resulting in several success stories, especially among MSMEs. The broader trend can be seen through the growing share of Gross Value Added (GVA) by MSMEs to Indian GDP. The ODOP initiative is trying to raise awareness of ODOP products as well as their benefits of buying them, in domestic and international markets. Thus, the scheme offers an opportunity to strengthen local products having health, environmental or other benefits. This will help enable India to become a stronger economy and fulfil the  Atmanirbhar Bharat vision.

Be Indian - Buy Indian - Vocal For Local ( VFL )

  • A government of India initiative, the idea is to encourage local industry and consume as locally as possible, and to use the long-term effects of increased demand to develop domestic industry and gradually become self-sufficient.
  • The Vocal for Local campaign urges Indians to support indigenous products, fostering economic growth and self-reliance. The initiative encourages citizens to prioritise and promote locally-made goods, empowering domestic industries.
  • Go local. Trust locally. Go for a self-sufficient and self-reliant India. Make-in-India. Believe in Made-in-India and put your buying power into products and services that are made locally. These statements are the prevailing the most in the current scenario of our nation.

What Are the Benefits of Localizing the Supply Chain?

Localizing the supply chain can offer a wide range of benefits, including:

Cost Savings
  • Moving operations closer to home or bringing them back to U.S. shores from abroad—or “reshoring”—can result in significant cost savings. When you have a supply chain that operates within an accessible area, overall visibility improves, and hidden costs can be eliminated. For example, many businesses source parts and materials from across the globe; these resources must be stored abroad, then shipped many miles to reach their destination, involving several different partners along the way. With a localized chain, this entire process can be streamlined and costs reduced.

Increased Flexibility

  • Local suppliers tend to be more communicative and reactive than suppliers located farther away. This means it’s simpler and faster to identify supply chain issues as they arise, adapt to disruptions, and adjust inventory in real time. For instance, if demand spikes in a certain region, a localized supply chain makes it easier to ramp up production and get products delivered quickly. In the age of COVID-19, flexibility and adaptability are more important than ever.

Better Control

  • When the supply chain is local, it’s also easier to maintain oversight and control over every step. Because it is easier to form personal relationships with local suppliers, you can make changes seamlessly, cutting down on the risk of miscommunications and misunderstandings that can occur when working with multiple suppliers across various locations—whether because of vast time zone differences, or language or cultural barriers.

Reduced Environmental Impact

  • Local sourcing and shorter delivery distances mean fewer emissions, helping to lessen your environmental footprint. Not only is this good for the planet, it’s also good for business. In fact, a study of online adults say they spend more time thinking about the climate than they did before COVID-19. Globally, 85% of consumers say they have shifted purchase behavior to be more sustainable in the past five years.

Reduced Risks

  • By creating more streamlined, localized supply chains, businesses can also reduce risk. For example, rather than having one central distribution hub, having a few distribution centers spread out across the areas of highest demand can help ensure deliveries are made on time, even in times of disruption.

Increased Innovation

  • Sticking to a standard, one-size-fits-all approach for the supply chain can lead to rigidity—making businesses unwilling or unable to experiment, and resulting in a widespread lack of innovation. Rather than forcing supply chain processes into a single mold across all customer segments and locations, localization allows companies to innovate based on different markets and consumer preferences. This can encourage experimentation and ideation across all areas of business, creating a more creative and open company culture.

Boosted Economy

  • Sourcing locally can help your bottom line, but it can also help the local economy as a whole. When you source from nearby manufacturers or work with nearby suppliers, you also support local businesses, helping to move the community forward. Savvy consumers may also appreciate your efforts to work with local companies; highlighting these efforts in your marketing materials can help attract people looking to do business with socially responsible brands.

Cooperative Movement ( CM )

  • To strengthen the cooperative movement in country.
  • Its aims to deepen co-operatives as a true people-based movement reaching up to the grassroots and develop a cooperative based economic model where each member works with a spirit to responsibility.
  • The principal activities  include streamlining processes for ‘Ease of doing business’ for co-operatives and enabling development of Multi-State Co-operative Societies.
  • Emphasis on strengthening, bringing transparency, modernization, computerization, creating competitive cooperatives, working constantly to meet the challenge of accessibility to development for every underprivileged in rural areas and on connecting every village with cooperatives, making every village prosperous with the mantra of “Sahakar se Samriddhi” and through this making the country prosperous.

Types of Cooperatives

Types of Cooperatives Purpose / Objective
Consumer Cooperative Society
  • Protecting the consumer interests,
  • Products are available at reasonable rates
  • There are no middlemen involved
  • Consumer directly purchase from producer
Producer Cooperative Society
  • Protecting the interests of small producers
  • Help producers in maintaining their profit
  • Assist producers in procuring items
Housing Cooperative Society
  • Providing housing facilities to the members of the society
  • Beneficial for the lower income groups
  • Allows them to avail housing benefits at a very affordable price
Credit Cooperative Society
  • Helping people by providing credit facilities
  • Provide loans at a minimal rate of interest
  • Flexible repayment tenure to its members
  • Protect against high rates of interest charged by private lenders
Marketing Cooperative Society
  • Providing small producers a platform to sell their products at affordable prices
  • Ensuring adequate profits by eliminating middlemen
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