The One District One Product (ODOP) is an initiative to boost economic growth at the district level. Read here to know about the latest developments in the initiative.
The government announced its objective to work toward One District One Product (ODOP) giving impetus to the handicraft sector and artisans.
- Recently, the Ministry of Textile inaugurated the ‘Lota Shop’ at National Crafts Museum, New Delhi.
- The shop was opened by Central Cottage Industries Corporation of India Limited (CCIC), popularly known as the Central Cottage Industries Emporium.
One District One Product (ODOP)
It was launched in January 2018, by the Uttar Pradesh Government, and due to its success, was later adopted by the Central Government.
The ‘One District, One Product (ODOP) was later launched by the Ministry of Food Processing Industries in 2018, to help districts reach their full potential, foster economic and socio-cultural growth, and create employment opportunities, especially in rural areas.
The initiative is carried out with the ‘Districts as Exports Hub’ initiative by the Directorate General of Foreign Trade (DGFT), Department of Commerce.
It is a centrally sponsored scheme to be shared by the central government and states in 60:40 contributions.
The ODOP initiative is aimed at manifesting the vision of the Hon’ble Prime Minister 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 an ecosystem for Innovation/ use of Technology at the District level to make them competitive with domestic as well as international market
It envisions accomplishing this by scaling manufacturing, supporting local businesses, finding potential foreign customers, and so on, thus helping to achieve the ‘Atmanirbhar Bharat’ vision.
How will One District One Product (ODOP) achieve this?
The scheme adopts the One District One Product (ODOP) approach 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.
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.
ODOP for the food processing sector:
- The States would identify the food product for a district, keeping in perspective the focus of the scheme on perishables.
- A baseline study would be carried out by the State Government. The ODOP product could be a perishable Agri produce, cereal-based product, or a food product widely produced in a district and its allied sectors.
- An illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, meat as well as animal feed among others.
- Besides, certain other traditional and innovative products including waste-to-wealth products could be supported under the Scheme.
- For example, honey, minor forest products in tribal areas, traditional Indian herbal edible items like turmeric, amla, Haldi, etc.
The Department of Commerce is focusing on agriculture crops on a cluster approach for support for exports under the Agriculture Export Policy, and the Ministry of Agriculture is also focusing on a cluster approach for the development of specific agriproducts in districts having a comparative advantage.
The ODOP approach of the scheme would lead to easing in providing common facilities and other support services.
ODOP for the handicraft sector:
India is one of the largest handicraft exporting countries.
- In March 2022, the total handicraft export excluding handmade carpets from India was USD 174.26 million which was an 8% increase from February 2022.
- During 2021-22, the total exports of Indian handicrafts were valued at USD 4.35 billion; a 25.7% increase from the previous year.
Center is working towards ‘One District One Product’ which will give impetus to the handicraft sector as well as the artisans.
The Ministry of Textile inaugurated the ‘Lota Shop’ at National Crafts Museum, New Delhi.
The shop was opened by Central Cottage Industries Corporation of India Limited (CCIC), popularly known as the Central Cottage Industries Emporium.
It showcases fine handcrafted curios, souvenirs, handicrafts, and textiles based on the traditional craft forms of India.
The UP Government’s One District One Product (ODOP) Programme aimed to encourage indigenous and specialized products and crafts in UP that are found nowhere else like-
- The ancient and nutritious ‘Kala Namak’ rice, the rare and intriguing wheat-stalk craft
- The world-famous chikankari and zari-zardozi work on clothes
- The intricate and stunning horn-bone work that uses the remains of dead animals rather than live ones, a nature-friendly replacement for ivory
Advantages of the One District One Product (ODOP) initiative
- Numerous micro-enterprises will benefit through access to information, better exposure to the market, and formalization.
- It will enable them to formalize, grow and become competitive in national and global space.
- The project is likely to generate valuable skilled and semi-skilled jobs.
- The scheme envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs, and entrepreneurs in the Aspirational Districts.
- There will be better integration with organized markets, boosting the artisans and local vendors.
- Increased access to common services like sorting, grading, processing, packaging, storage, etc. will be added advantage.
The Indian crafts, agriculture, and food product have the potential to dominate the global market if provided with the opportunity for systemic growth and recognition. The ODOP aims to do that by providing the right support and business environment.
E-commerce opens more avenues for better outreach and impetus to product design and manufacturing by providing access to new markets.
With the current state of globalization, handicraft and other local sectors will benefit greatly from such initiatives.
These sectors face several challenges including the inability to access credit, high cost of institutional credit, lack of access to modern technology, inability to integrate with the supply chain, and compliance with the safety standards.
Strengthening these aspects through One District One Product (ODOP) will lead to a reduction in wastage, creation of job opportunities, and aid in achieving the Government’s objective of doubling farmers’ and local artisans’ income.