Presentation on theme: "Small Farmers’ Agribusiness Consortium"— Presentation transcript:
1 Linking smallholders to the agri value chain Imperatives for inclusive economic growth Small Farmers’ Agribusiness Consortium(Dept. of Agriculture and Cooperation)Govt. of Indiaलघु कृषक कृषि व्यापार संघभारत सरकार, कृषि मंत्रालय
2 What ails smallholder agriculture Investment deficit: less than 10% access institutional credit; poor capital formation; no avenues to leverage assetsTechnology deficit: Irregular and unreliable technical advice (19% depend on private input dealers for advice; only 9% on govt. extension staff: NSSO study 2005)Input deficit: uncertain input supplies; huge dependence on unregulated private markets for water, labour etc.Market deficit: Monopoly and monopsony market conditions; opaque price discovery; poor marketing infrastructure; lack of bargaining power
3 FPOsDepartment of Agriculture and Cooperation (DAC), Ministry of Agriculture, Govt. of India will act as the nodal agency for the development and growth of FPOs.
4 Small Farmers’ Agribusiness Consortium (SFAC), a Society under DAC, is the designated agency of DAC to act as a single-window for technical support, training needs, research and knowledge management and to create linkages to investments, technology and markets. SFAC will provide all- round support to State Governments, FPOs and other entities engaged in promotion and development of FPOs. In particular, SFAC will create sustainable linkages between FPOs and inputs suppliers, technology providers, extension and research agencies and marketing and processing players, both in the public and private sectors.
5 The mandate of National Cooperative Development Corporation (NCDC) will be expanded to include FPOs in the list of eligible institutions which receive support under the various programmes of the Corporation.NAFED will take steps to include FPOs in the list of eligible institutions which act on its behalf to undertake price support purchase operations.
6 DAC will work with Food Corporation of India (FCI) and State Governments to encourage them to include FPOs as procurement agencies under the Minimum Support Price (MSP) procurement operations for various crops.DAC and its designated agencies will work with NABARD and other financial institutions to direct short and medium term credit for working capital and infrastructure investment needs of FPOs. DAC will also work with all relevant stakeholders to achieve 100% financial inclusion for members of FPOs and link them to Kisan Credit Cards.
7 DAC will work with Ministry of Corporate Affairs and other stakeholders to further clarify and strengthen provisions of the law relating to the registration, management and regulation of FPOs with a view to fostering fast paced growth of FPOs.
8 How FPOs benefit small producers Aggregating smallholders into FPOs proven pathway to increase investment, improve bargaining power, move up value chains and improve access to technology, markets.Aggregation only way to enable SMF to exploit emerging opportunities domestic and global by integrating with SMEs; retail chainsClimate change coping mechanisms and risk mitigation requires aggregated platforms for efficient deliveryAggregation will facilitate more effective targeting of subsidies to farmers
9 SFAC FPO network structure Marketing linkage/inputs/credit S F A CVillage level(Crop planning, seed production, demonstration, knowledge sharing, aggregation)Cluster level(10-12 villages)(Credit, inputs, technology, capacity building, marketing linkages)State level(Policy advocacy, explore wider markets, strategic partnerships)Federation of KPCs( farmers)KPC(1000 farmers/50 FIGs in each)FIG(15-20 farmers in each group)Kisan Producer Co/Coop
10 Training and Networking Farmer Producer Organisations (FPOs)Typical range of services providedFPO(Seed, fertilizer, machinery)Input supply(Credit, savings, insurance, extension)Financial & technical(contract farming, procurement under MSP)Marketing linkages(HRD, policy advocacy, documentation)Training and Networking
11 Status of FPO Promotion TargetNo. of Farmers to be mobilizedNo. of FIGs(15-20 farmers) to be formedNo. of FPOs to be formed2.85 lakh227No. of Farmers mobilizedNo. of FIGs(15-20 farmers) formedNo. of FPOs registeredNo. of FPOsunder processRegistration2.80 lakh1500014780Achievement
12 STATE WISE STATUS OF FPO PROMOTION S.noName of StateAchievementNo. of FarmersNo. of FIGsFPO RegisteredFPO registration under process1Arunachal Pradesh1678942Andhra Pradesh2939598783Assam6000300NA4Bihar660640875Chhattisgarh60634126Delhi3520196Goa1810116Gujarat104615369Haryana507325910Jammu15008511Srinagar6003512Jharkhand1010762813Karnataka20001109414Kerala316015815Himachal Pradesh7216Madhya Pradesh3441018613317Maharashtra3691720652918Manipur17508419Meghalaya14020Mizoram70021Nagaland13922Odisha600130123Punjab600534324Rajasthan32215182725Sikkim187615926Tamil Nadu594029827Tripura12728Uttarakhand6004359Uttar Pradesh23245120930West Bengal8322641TOTAL2806091496814780
13 Direct marketing efforts by FPOs Andhra PradeshRetail selling through mobile vansMaharashtraRs. 7-8 lakh worth of vegetables are being directly marketed daily to 30 housing societies in Thane, Mulund and Kalyan, resulting in saving of 1 to 1.25 lakh per day (middle man charges)JharkhandCollective marketing of produce including cabbage, cauliflower, tomato, beet root, gourd and coriander etc.
14 organic cultivation and convergence with Government schemes Biharorganic cultivation and convergence with Government schemesChhattisgarhNot only promoted women empowerment but also helped attain sustainable livelihoodDelhiEstablished linkages with Mother Dairy, Reliance Fresh and Bharti Walmart
15 Collective Marketing of vegetables GoaState Horticulture Corporation Ltd. procures the vegetables from the farmers’ groups on fixed rate basis.GujaratCollective Marketing of vegetablesHaryanaOnion field
16 capsicum cultivation in the protected environment Karnatakacapsicum cultivation in the protected environmentKeralaRoof Top GardeningPunjabCultivation of Lettuce and Iceberg at Farmers’ Field in Samrala, Ludhiana
17 Madhya Pradesh Odisha Sikkim Market Linkage by grading & packingOdishaAggregation, distribution, market linkage and retailing for farmers- ICT led model by private companySikkimEstablished a unit for water harvesting
19 FPOs in the XII Plan XII Plan document endorses FPO mobilization Policy framework to promote FPOs under RKVY2014: Year of Farmer Producer Organisations2014: UN Year of Family Farming
20 FPO focus of XII Plan Component for FPO promotion in all major CSS RKVY window opened for FPO promotion (MP: 100 FPOs; WB: 50 FPOs; Sikkim: 10 FPOs; UP: 50 FPOs; Kerala: 30 FPOs)Equity Grant and Credit Guarantee Fund SchemeRBI included financing of FPOs upto Rs crores under priority sector lending normsGBY: 33% subsidy to FPOsVenture Capital Scheme: minimum project size reduced to Rs lakhs; poultry, dairy included
21 Building an ecosystem for supporting FPOs Challenges ahead
22 Ecosystem for sustainable FPO Retailers/ProcessorsMSPNSPOT/NCDEXLink to ConsultantBanksSFI/GVT HR PlanEcosystem for sustainable FPOMarketingEGCGFSInfrastructureRetailingServices (Technical)CreditHRDPHI/VIUCGBYVCANMFPRKVY/PPIADCSCBanksNBFCsFPOs as sourcing point for rural productsFPOs as rural retail points for consumer products/servicesInputsBDS/ERPWHRMechanizationKrishidoot