Localising Global Production Networks (GPNs): Role of Local Entrepreneurs in Fresh Produce Export GPNs in India

Abstract

Linking small primary producers with high value global markets has been identified as one of the major issues in policy and practice in improving livelihoods for millions of poor/small farmers in the developing world. But, there is still dearth of viable smallholder inclusive business models. This paper examines the Global Production Networks (GPNs) of export grapes and baby corn in India in terms of the role of local entrepreneurs in creating and sustaining the GPN. It examines in detail, based on value chain mapping and personal interviews with local entrepreneurs and other stakeholders in the grape and baby corn belt of western India, the insertion of local entrepreneurs and their pre-eminent role in these GPNs and how they tackle various challenges while meeting various standards and small farmer concerns. The paper examines the profile and upgrading achieved by local entrepreneurs while being part of such GPNs. It is found that the local facilitators/entrepreneurs and the nature of the crop facilitated the inclusion and positive impact on smallholders. Infact, it was the local entrepreneurs which localised the GPN and managed costs and interface effectively with local communities of farmers and workers. The local entrepreneurs have leveraged local systems of labour mobilization and management from existing networks i.e. harvesting workers and their groups. The local entrepreneurs are the real drivers of local systems for GPNs of grape and baby corn as they belong to local areas and leverage their networks for production and labour supply. The buyers and exporters only do minimum interface with farmers as required due to certification systems i.e. smallholder group certification and traceability requirements, and none with labour. The paper underlines the significance of local entrepreneurs and their strengths to achieve localisation of GPNs and making them inclusive, effective and sustainable.