Presentation of Draft Report on Diagnostic Study to Assess and Enhance functioning of Commodity specific Growers’ Associations To June 25, 2013

– Genesis of Growers’ Associations – Need, Role and Creation of Growers’ Associations – Need, Objective and Scope of the assignment – Methodology and outcome of the assignment – Growers’ Associations – Current scenario – Interaction with Associations and Growers – Initiatives of select Associations and Growers – Progression of Growers’ Associations – Snapshots from team interactions and field visits – Identification of gaps hindering operational progress of Growers’ Associations – Strategy to revive functioning of Growers’ Associations Structure of Presentation

Genesis of Growers’ Associations 1981 Recommendation by Dr. M.S. Swaminathan for creating Primary Horticulture Growers’ Cooperative Societies 1984 Creation of NHB 1986 Formation of SAFAL by NDDB May 8, 2001 SFAC, NHB and NCDC entrusted by Department of Agriculture and Cooperation for formation of Commodity Specific Growers’ Associations 2013

Need, Role and Creation of Growers’ Associations Collectivization of farmers – enrolling/ increasing membership Training and capacity building of growers – technical and managerial Tie-ups with technical and financial institutions, domestic and export markets Promotion of technology for production and post harvest management in clusters Creating common infrastructure for growers Market demand and intelligence Higher revenue realisation for growers due to collectivisation 17 National Associations + 2 Affiliated Associations - Apple, Banana, Orange, Guava, Sapota, Mango, Pomegranate, Grapes, Litchi, Vegetables, Strawberry, Stone Fruits, Aonla, Vanilla, Flowers, Aromatic Plants, Passion Fruit + Orchid, Nurserymen NHB provided Associations with initial seed money of Rs. 0.5 Lakhs + financial support provided till varying from Rs Lakhs to Rs. 1 Lakh + funds to organise seminars/symposiums/ exhibitions and exposure visits for farmers. Growers’ Association Availability of Farm inputs Availability of Credit Post harvest handling Cold chain managemen t Value addition and processing Domestic and export Marketing CREATION & PROMOTIONROLE ENVISAGEDNEED / ACTIVITIES

Need, Objectives, Scope for this assignment 10+ years since formation of Growers’ Associations Associations not ‘functioning’ and performing optimally as per planned objectives, except for a few o Insignificant ground presence o Increase in membership is stagnant o Relationship with existing primary level associations at cluster level and other stakeholders not visibly functional/operational Objective of the assignment To improve the functional effectiveness of the Growers’ Associations Scope of Work Mapping the current status of the Associations o Activities o Membership o Geographical presence o Interaction of members o Structure and functioning o Revenue model o Human resources o Infrastructure o Institutional tie-ups Assessment of Associations with respect to o Fulfillment of objectives o Provision of tangible benefits to members o Achievements like collectivisation, productivity enhancement, technology introduction, market development, etc. Recording key learnings Identification of gaps Measures to plug gaps and recommendations NEED FOR THE ASSIGNMENT OBJECTIVE AND SCOPE OF THE ASSIGNMENT

Methodology and Outcome of Assignment Interaction with office bearers of Growers’ Associations Interaction with Growers and field visits Recommendations for Revival of the Growers Associations through realignment of goals and implementing pragmatic solutions Sample of select Growers’ Associations in North and West India (maximum concentration), covering 33% of total Associations Interacted with office bearers of registered Growers’ Associations in Chandigarh (January 17, 2013) and Pune (January 21, 2013) – organised by NHB Qualitative research approach adopted for this assignment

Growers’ Associations – current scenario... #Name of Association Activities Membership Geographical presence Interaction of members Structure and functioning Revenue model Human resources Infrastructure Institutional tie-ups 1Grapes Organises symposiums for farmers Periodic meetings Individual centric Grant - NHB 1 Working from cooperative office NHB, APEDA (exporting) 2Banana Facilitated Insurance package to farmers in Maharashtra, organises symposium, facilitated in getting subsidy for railway freight Periodic meetings Individual centric Grant - NHB 0NoneNHB 3Flowers 5 Periodic meetings Individual centric Grant - NHB 0NoneNHB 4Strawberry Annual festival in Pune, product diversification, eco tourism 3004Periodic meetings Individual centric Grant - NHB 0Working from cooperative office

...Growers’ Associations – current scenario.. #Name of Association Activities Membership Geographical presence Interaction of members Structure and functioning Revenue model Human resources Infrastructure Institutional tie-ups 5Orange Programmes for technical information dissemination, facilitation of finance by banks increased by 511% Periodic meetings Individual centric Grant - NHB 0None 6Stone Fruits Individually financed Organic certification for 900 growers 20003Not regular Individual centric Grant - NHB 0None Exporting (APEDA) 7Aonla 3002 Individual centric Grant – NHB 8Guava Published souvenir for national symposium (2009), planning to diversify product portfolio to jams and juices 5005Not regularIndividual centric Grant – NHB 0Working from cooperative office

...Growers’ Associations – current scenario.. #Name of Association Activities Membership Geographical presence Interaction of members Structure and functioning Revenue model Human resources Infrastructure Institutional tie-ups 9Sapota Seminars organised by Cooperative, Association helps scheme outreach to farmers Regular Individual centric Grant – NHB 0 Working from cooperative office Exporting (APEDA) 11Pomegranate Exclusive Cooperative managed cold storage, water tankers for irrigation 50006Regular Individual centric Grant – NHB 0 Working from cooperative office Exporting (APEDA) 12Vanilla 2000 (at time of formation). Due to crop failure (virus infection) membership negligible. Contemplating to dissolve Association 3Not regularNoneGrant - NHB 0None

...Growers’ Associations – current scenario.. #Name of Association Activities Membership Geographical presence Interaction of members Structure and functioning Revenue model Human resources Infrastructure Institutional tie-ups 13Litchi Grant - NHB 14Vegetable Implementing NVIUC in select clusters in Maharashtra, started direct sales of vegetables in Pune housing societies 9Regular Individual centric Grant – NHB 2 Have independent office for implementing NVIUC initiative SFAC 15Apple 10003Not regular Individual centric Grant - NHB 0None 16Aromatic Plants Grant - NHB 17Passion Fruit Grant - NHB

...Growers’ Associations – current scenario #Name of Association Activities Membership Geographical presence Interaction of members Structure and functioning Revenue model Human resources Infrastructure Institutional tie-ups 18Nurserymen Organise seminars on technical know- how, publish quarterly magazine (Nursery Today) 1428 (1800 life members across 26 states) 26Not regular Individual centric Grant - NHB 0None 19Orchid Capacity built for farmers (pre- harvest) 7007Not regularIndividual centric Grant - NHB 0Have independent office

Interaction with Associations and Growers Motivation Lack of growers’ willingness to aggregate Growers do not perceive value in Association Credibility of Association to deliver not well established Associations alive but not active Growers selling individually or through cooperatives – no role of Association envisaged Resources No Revenue model for sustenance Lack of infrastructure like office premises, furniture and fixtures Lack of professional and skilled manpower for day to day operations – management of Associations neither strong nor foresighted Age old marketing set up difficult to break in by Association – traders providing input services to farmers + social bonding with farmers Lack of knowledge sharing Senile orchards/farms – no revival plan Promotion and Communication One size fits all – no customisation as per need of Association. No bottoms-up planning approach - growers not aware about Association activities Associations hardly connected with – Universities, Labs, extension programmes, other institutions, service providers and vendors Communication gaps - Missing inter-linkages between Associations No aid received from Govt. for promotional activities Other issues Associations are individual centric Objective of Association not perceived by farmers – relate Association with Cooperative Select Associations not recognised by Govt.- Pomegranate, Lime (asked to join Mosambi Association) Associations are Toothless – no clear objective, no resources, no revenue model, not recognised by Govt. authorities High joining fee + annual fee

Initiatives of select Associations & Growers Strawberry Growers’ Association Organise annual Strawberry festival in Pune – popularises product, minimises product losses Diversified product portfolio – syrup, lassi, cake, jelly toffee, chikki, jam, ice cream Farm tourism – tourists stay in cottages, visit farms, pluck fruits as per choice, purchase products at farm gate Mango Growers Independent pack house installed inside orchard – capacity 8MT Sell individually, no involvement of Association or cooperative Not received any help from Association Guava Growers and Association Contemplating to diversify product portfolio – jams and juices in tetrapak (contract packaging). Published souvenir for symposium in 2009 Vegetable Growers and Association Implementing VIUC in Maharashtra Initiated direct selling of vegetables in housing societies of Pune – daily trucks of 2MT capacity each In process of registering 4 producer companies (FPOs) Revenue model for Association – 1% of all revenue transactions in these FPOs for activities of Growers’ Association Some other initiatives Banana Growers Association have introduced insurance package for farmers against extreme heat and cold + railway freight from farm to market being subsidised by NHB Lime Growers Association organised a 4-5 days annual seminar with Agriculture University as partner + provision of research journal Orange Growers Association helped in 511% increase in finance by banks Organic certification done for 9500 Stonefruit Growers, cost borne by growers

Progression of Growers’ Associations Forming Norming Storming Performing Progressive Associations Stable Associations Defunct Associations Progression over the years Stages of formation of Growers’ Associations Formation of Associations Capacity building and handholding of Associations Evolution and Independent functioning of Associations Fully functional Associations + independent of external support + self sustaining Most Associations are here Select Associations –Grapes, Strawberry, Pomegranate Vegetable Growers Association is implementing NVIUC

Snapshots from interactions and field visits Direct marketing by Vegetable Growers Strawberry festival Pomegranate and Guava Growers Meeting with Association office bearers and Mango Growers

Identification of gaps hindering functioning / progress of Growers’ Associations Strategy for revival of Growers’ Associations Insignificant presence Individual centric Financial sustainability At ground level Lacks direct connect with growers Not entirely representing growers’ groups No revenue model

Suggested Strategy to revive Growers’ Associations… Activities - Branding, Promotion, Product development and diversification Management of Associations Role clarity and objectivity of Associations Jumpstart progression of Growers' Associations

…Suggested Strategy to revive Growers’ Associations Jumpstart of Growers’ Associations Appointed secretariat can jump start activities with seed funding Arranging initial seed fund - Route implementation of SFAC projects like VIUC to Vegetable Growers Association Role clarity and objectivity of Growers’ Associations Defined annual goals and deliverables Policy advocacy Revenue model for Association – 1% of all business generated through Secretariat and revenue transacted by cooperatives/FPO to be transferred to Association Defined Annual goals and deliverables to growers Facilitation of linkages with Universities, labs, markets, service providers, etc to growers Knowledge sharing and dissemination to growers Penetration in existing and development of new markets – like vegetables selling in Pune housing societies Management of Associations Engage professionals/ agencies under aegis of CIH to manage the day to day operations of Associations. Two tier structure Elected members namely Chairman, VP Secretariat (common for all Associations) comprising appointed professionals for general management, accounts, marketing, etc. This will help achieve Economies of scale Exchange of ideas for expansion of activities and revenues Optimal resource utilisation Activity: Branding and promotion Through joint publication by all Associations Organise festivals (Phal- aahar) like Strawberry and Mango in major metropolitan cities Initiate farm visits and tourism for additional income – like Strawberry Activity:Product development and diversification Introduce product diversification to increase shelf life of produce and higher value realisation for growers – like strawberries (syrup, lassi, cake, jelly toffee, chikki, jam, ice cream) Tie up with Universities and technology providers to improve productivity and reduce storage/ process losses Initiate value addition + processing of products to increase higher value realisation for growers Introduce new techniques of post harvest facility management to minimise losses for growers

Thank You 19