One District One Product (ODOP)

One District One Product (ODOP)

Context: The ODOP scheme was comprehensively covered in the recent edition of Kurukshetra Magazine.

What is ODOP?
• The One District One Product (ODOP) initiative is a transformative step toward balanced regional development across all districts in India. 
• The initiative has been launched under ‘Pradhan Mantri Formalisation of Micro Food 
Processing Enterprises (PMFME) Scheme’.
• Its goal is to enable holistic socioeconomic growth across all regions by leveraging the unique products of each district.

Which products are included under ambit of ODOP scheme?
• They can be perishable agricultural produce, cereal-based product, or a food product widely produced in a district and their allied sectors. For example, Mango, Potato,Litchi, Tomato, Tapioca, Kinnu, Bhujia, Petha, Papad, Pickle, Millet-based products, Fisheries, Poultry, Meat as well as Animal feed.
• Traditional and innovative products could be supported under the Scheme. For example, Honey, Minor forest products, Turmeric, Amla etc.

What are the components of ODOP?
• Community Facility Plan: This component focuses on creating necessary infrastructure and facilities to support the chosen product. It includes developing common facilities such as storage, processing units, and testing labs.
• Scheme for Marketing Development Support: It includes branding, packaging, market research, and distribution channels.
• Development of Clusters: There are provisions of development of multiple clusters for one product or one cluster being extended to multiple districts depending upon the nature of products and perishable goods. 
• Financial Support Program: Financial assistance is provided to individuals, groups, and enterprises involved in producing the ODOP product. It covers capital investment, working capital, and other financial needs.
• Programme for Developing Skills: Skill development plays a vital role in enhancing productivity and quality. This component focuses on training and capacity building for producers, artisans, and workers associated with the ODOP product. 

What are the benefits of the scheme?
• It promotes local and community development by providing opportunities to work, gain skills within the community and banking on local expertise.
• Enables economic self-reliant ecosystem. For example, promoting tribal products through ODOP.
• Upskilling, reskilling and local entrepreneurship 
• It enables local products to be part of global value chain. Vocal4local → Local2Global
• Strengthens MSME’s, domestic goods become competitive, enhances exports. 

What are the challenges of the Scheme?
• Inadequate Access to Credit: Many sectors associated with ODOP face challenges in accessing credit. The high cost of institutional credit and lack of access to modern technology hinder growth.
• Integration with Supply Chains: Some ODOP products struggle to integrate effectively with supply chains. Streamlining logistics, distribution, and market linkages is essential.
• Economic Inequalities and Regional Imbalances: Addressing disparities in economic development across districts is a challenge. Some districts may have more favorable conditions for ODOP products than others
• Lack of adequate storage infrastructure: India lacks adequate and effective post-harvest infrastructures like cold-chain infrastructure for the storage of perishable products under ODOP.

Way Forward
• Modernize existing storage infrastructure to include perishable products such as fruits, milk, fish etc. 
• Try the PPP route to create modern storage systems and facilitate marketability of products. 
• Create awareness and opportunities presented by the scheme.