Strengthening the value chain of local products can play a key role in improving market access for artisans, farmers and micro, small and medium enterprises (MSMEs) in Uttar Pradesh by providing shared infrastructure for processing, testing, packaging, storage and logistics under the state’s One District One Product (ODOP) Common Facility Centre (CFC) Promotion Scheme.
WHAT IS A VALUE CHAIN?
A value chain refers to the different activities involved in taking a product from production to the end consumer.
Depending on the product, this can include:
- Raw materials
- Production
- Processing
- Testing
- Packaging
- Storage
- Logistics
- Marketing
- Consumer
THE ROLE OF COMMON INFRASTRUCTURE
Small businesses may not always have the resources to establish specialised facilities such as testing laboratories, processing units or modern packaging infrastructure individually.
This is where Common Facility Centres (CFCs) can be relevant. Under Uttar Pradesh’s ODOP Common Facility Centre Promotion Scheme, common infrastructure can include testing laboratories, design and development centres, common production and processing centres, raw-material banks, common logistics centres, and packaging, labelling and barcoding facilities. Strengthening the value chain is specifically listed among the objectives of the scheme.
PROCESSING AND VALUE ADDITION
Processing is one of the stages through which a product can gain additional value. For agricultural and food products, this can involve activities such as cleaning, grading, processing and packaging. For handicrafts and manufactured products, value addition can include finishing, design development and other production processes.
QUALITY AND TESTING
Quality testing is another part of the value chain, particularly when products are intended for organised retail or wider distribution.
Testing facilities can help producers assess whether products meet applicable quality and safety requirements. Testing laboratories are among the facilities that can be established under the ODOP CFC framework.
PACKAGING AND LOGISTICS
Packaging has both practical and commercial functions. It can protect a product during transportation, provide information to consumers and support product branding.
The CFC scheme specifically includes packaging, labelling and barcoding facilities, along with common logistics centres.
For smaller producers, shared infrastructure can provide access to specialised facilities without requiring each enterprise to independently establish the same infrastructure.
CONNECTING PRODUCERS TO MARKETS
A value chain ultimately has to connect production with consumers. Market access can involve local and organised retail, exhibitions, institutional buyers, digital commerce and other distribution channels.
Government interventions can provide infrastructure or facilitate market linkages, but they do not guarantee commercial success. Factors such as product quality, pricing, consumer demand, production capacity and distribution continue to determine whether a product can expand into new markets.
STRENGTHENING THE ENTIRE CHAIN
For Uttar Pradesh’s local producers and MSMEs, value-chain support involves looking beyond production itself. Processing, testing, packaging, storage, logistics, branding and market access are interconnected stages that can influence how a product reaches consumers.
Schemes such as the ODOP Common Facility Centre programme address some of these requirements through shared infrastructure, while sector-specific policies address other parts of the production and distribution ecosystem. The impact of such interventions ultimately depends on implementation, access to facilities, participation by producers and demand for individual products.
– Ends
Published By:
Ritaban Misra
Published On:
Aug 14, 2026 17:00 IST
