a.

From previous cases such as ITC and Samriddhi, we have learned that for an integrated value
chain farmer should not be forced into making decisions. They should be provided with all the
necessary tools, products, and guidance and then allowed to make their choices based on what
is best for them.
In Frito-lays case, we see that PCI enters into a contract agreement with the farmers, but these
are mostly 1-year contracts and its aims to reduce uncertainty for the farmers. The farmers are
free to make their choices and are forced or bounded into long term contracts. This
independence allows for the true empowerment of the farmers in making decisions for
themselves and in developing the value chain for long term sustainable basis.

b. We have learned about the various constraints such as Capability, Context, Concept, and Cash
constraints that hinder the development of an integrated value chain. It is critical to address
these constraints to increase the value available for all the players in the value chain to capture.
PCI Pakistan developed the basic infrastructure for crisp potato value chain, and initiated
negotiations with the Pakistani government to enforce the plant variety protection laws so that
it could import its own variety to Pakistan. Further, it also developed the capabilities of the
farmers to adopt the modern agricultural practices. It also managed the cash flow for the
farmers so that they solely focus on the quality and the yield of the produce.