1. Linking smallholders to the agri value chain Imperatives for inclusive economic growth
Small Farmers’ Agribusiness Consortium
(Dept. of Agriculture and Cooperation)
Govt. of India
लघु कृषक कृषि व्यापार संघ
भारत सरकार, कृषि मंत्रालय

2. What ails smallholder agriculture
Investment deficit: less than 10% access institutional credit; poor capital formation; no avenues to leverage assets
Technology 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. FPOs
Department 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 chains
Climate change coping mechanisms and risk mitigation requires aggregated platforms for efficient delivery
Aggregation will facilitate more effective targeting of subsidies to farmers

9. SFAC FPO network structure
Marketing linkage/inputs/credit S F A C
Village 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 provided
FPO
(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
Target
No. of Farmers to be mobilized
No. of FIGs
(15-20 farmers) to be formed
No. of FPOs to be formed
2.85 lakh
227
No. of Farmers mobilized
No. of FIGs
(15-20 farmers) formed
No. of FPOs registered
No. of FPOs
under process
Registration
2.80 lakh
15000
147 80
Achievement

12. STATE WISE STATUS OF FPO PROMOTION
S.no
Name of State
Achievement
No. of Farmers
No. of FIGs
FPO Registered
FPO registration under process 1
Arunachal Pradesh
1678 94 2
Andhra Pradesh
29395
987 8 3
Assam
6000
300 NA 4
Bihar
6606
408 7 5
Chhattisgarh
6063
412 6
Delhi
3520
196
Goa
1810
116
Gujarat
10461
536 9
Haryana
5073
259 10
Jammu
1500 85 11
Srinagar
600 35 12
Jharkhand
10107
628 13
Karnataka
20001
1094 14
Kerala
3160
158 15
Himachal Pradesh 72 16
Madhya Pradesh
34410
1861 33 17
Maharashtra
36917
2065 29 18
Manipur
1750 84 19
Meghalaya
140 20
Mizoram
700 21
Nagaland
139 22
Odisha
6001
301 23
Punjab
6005
343 24
Rajasthan
32215
1827 25
Sikkim
1876
159 26
Tamil Nadu
5940
298 27
Tripura
127 28
Uttarakhand
6004
359
Uttar Pradesh
23245
1209 30
West Bengal
8322
641
TOTAL
280609
14968
147 80

13. Direct marketing efforts by FPOs
Andhra Pradesh
Retail selling through mobile vans
Maharashtra
Rs. 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)
Jharkhand
Collective marketing of produce including cabbage, cauliflower, tomato, beet root, gourd and coriander etc.

14. organic cultivation and convergence with Government schemes
Bihar
organic cultivation and convergence with Government schemes
Chhattisgarh
Not only promoted women empowerment but also helped attain sustainable livelihood
Delhi
Established linkages with Mother Dairy, Reliance Fresh and Bharti Walmart

15. Collective Marketing of vegetables
Goa
State Horticulture Corporation Ltd. procures the vegetables from the farmers’ groups on fixed rate basis.
Gujarat
Collective Marketing of vegetables
Haryana
Onion field

16. capsicum cultivation in the protected environment
Karnataka
capsicum cultivation in the protected environment
Kerala
Roof Top Gardening
Punjab
Cultivation of Lettuce and Iceberg at Farmers’ Field in Samrala, Ludhiana

17. Madhya Pradesh Odisha Sikkim
Market Linkage by grading & packing
Odisha
Aggregation, distribution, market linkage and retailing for farmers- ICT led model by private company
Sikkim
Established a unit for water harvesting

18. KRISHIDOOT Project by SFAC & RML

19. FPOs in the XII Plan XII Plan document endorses FPO mobilization
Policy framework to promote FPOs under RKVY
2014: Year of Farmer Producer Organisations
2014: 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 Scheme
RBI included financing of FPOs upto Rs crores under priority sector lending norms
GBY: 33% subsidy to FPOs
Venture 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/Processors
MSP
NSPOT/NCDEX
Link to Consultant
Banks
SFI/GVT HR Plan
Ecosystem for sustainable FPO
Marketing
EGCGFS
Infrastructure
Retailing
Services (Technical)
Credit
HRD
PHI/VIUC
GBY
VCA
NMFP
RKVY/PPIAD
CSC
Banks
NBFCs
FPOs as sourcing point for rural products
FPOs as rural retail points for consumer products/services
Inputs
BDS/ERP
WHR
Mechanization
Krishidoot

23. Thank You