DEVELOPMENTAL & PROMOTIONALINTERVENTIONS OF NABARD UNDER FARM SECTOR

NABARD

Promote sustainable and equitable

agriculture and rural prosperity

through effective credit support,

related services, institution development

and other innovative initiatives

NABARD - Mission

Agriculture remains major source of income for nearly 65% of the total population in India. Further,

about 52% of the total work force is dependent on agriculture for the livelihood. Under the sector,

increasing production, enhancing productivity, ensuring marketing, improving income and

providing livelihood to the rural families are the major challenges for all the developmental

agencies including State/Central Govts. In order to address these concerns, NABARD is

implementing a number of participatory flagship developmental and promotional programmes

through channel partners at the grass root level. Some of them are,

a. Watershed Development Programme under Watershed Development Fund (WDF)

b. Tribal Livelihood Development Projects under Tribal Development Fund (TDF)

c. Promotion of Farmers' Producers Organisations under Producers Organisation Development

and Upliftment Corpus (PRODUCE) Fund

d. Farm Sector Promotion Projects/programmes under Farm Sector Promotion Fund

e. Climate Change Initiatives under funding arrangements viz. Adaptation Fund (AF), Green

Climate Fund (GCF), National Adaptation Fund for Climate Change (NAFCC) and NABARD

Climate Change Fund

f. Natural Resource Management under Umbrella Programme for Natural Resource Management

NABARD developmental programmes directly/indirectly addresses the following 9 goals of

Sustainable Development Goals (SDG):

­ Goal No.1- Elimination of Poverty

­ Goal No.2- Achieve Food Security, improved nutrition and promote sustainable agriculture

­ Goal No.5- Achieve Gender Equality and Empower all women and girls

­ Goal No.6- Ensuring access to water and sanitation for all

­ Goal No.7- Affordable and clean energy

­ Goal N0.11- Sustainable cities and communities

­ Goal No.13- Combat Climate Change and its impact

­ Goal No.15- Reverse land degradation & promote conservation biodiversity

­ Goal No.17- Strengthen the means of implementation and revitalize the global partnership for

sustainable development

Developmental and

Promotional Programmes

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ADDRESSING CLIMATE CHANGE IN INDIA-

NABARD'S INITIATIVES

The impacts of climate change are global, but countries like India are more vulnerable to it due to dependence of major population on agriculture, predominance of small and marginal farmers and rainfed farming system. India has set up ambitious emission reduction target and adopted towards low emission development pathways. India's Nationally Determined Contributions aims to reduce emissions intensity of its GDP by 33 to 35 per cent by 2030 from 2005 level. India is running one of the largest renewable capacity expansion programmes in the world and aims for creating capacity of 175 GW of renewable energy by 2022. In order to build the climate change resilience and to follow low emission development, finance is one of the critical challenge.

National Bank for Agriculture and Rural Development (NABARD), has been supporting efforts of Government of India for addressing challenges emerging due to climate change. NABARD is channeling and accelerating agriculture credit growth in India and has taken various policy a n d d e v e l o p m e n t a l initiatives to achieve the e n v i r o n m e n t a l sustainability. Various projects and programmes implemented by NABARD i n c l u d i n g n a t u r a l resources management, infrastructure finance, micro-finance promotion are primarily focusing on resilience building and l o w e m i s s i o n development.

Considering importance of resilience building Government of India created National Adaptation Fund for Climate Change (NAFCC) as a central scheme in year 2015-16 and NABARD is implementing entity of the fund. The overall aim of the Fund is to support concrete adaptation activities so as to reduce the adverse impact of climate change faced by communities, sectors and States/Provinces. As on date, a total of 22 projects with an outlay US$69.25 million has been sanctioned covering the vulnerable sectors of Water, Agriculture and Animal Husbandry, Forestry, Ecosystems, Biodiversity etc.

NABARD has been making substantial efforts for accessing resources from international funding mechanisms for low emission and resilient development. NABARD is accredited as National Implementation Entity (NIE) for Adaptation Fund (AF) and Direct Access Entity (DAE) for Green Climate Fund (GCF). Under Adaptation Fund, 6 projects submitted by NABARD have been approved with an outlay of US$ 9.8 million against an overall country cap of US$ 10 million. As DAE for GCF, NABARD achieved a milestone by getting approval for 1st project of India viz. “Ground water recharge and Solar Micro Irrigation to ensure food security and enhance resilience in vulnerable tribal areas of Odisha” in April 2017 GCF Board meeting. The project has an outlay of US$ 166.29 million including GCF grant support of US$ 34.35 million and co-financing from State Government of Odisha and World Bank.

Climate Finance is critical to build climate change resilience rural and agriculture livelihood sectors and promote low emission development pathway.

Fulfilling of the climate f inance requirement would need blending of p u b l i c a n d p r i v a t e financial resources for effective adaptation and mitigation measures. NABARD has taken up various initiatives for sensitization and capacity bui lding on aspects related to climate finance i n c l u d i n g p r o j e c t development, execution,

monitoring and evaluation under various national and international funding arrangements as well as G r e e n F i n a n c i n g . N A B A R D ' s t r a i n i n g establishments, viz. National Bank Staff College (NBSC) and Bankers' Institute of Rural Development (BIRD) have imparted training to NABARD officials as well as officials from state government departments and civil society organizations. Addressing the specific needs on capacity building of financial institutions various training programmes including training of trainers (ToT) programme aimed at integration of climate finance in curriculum of training institutions of banks are being conducted by NABARD.

1st GCF Project of India

The project “Ground water recharge and Solar Micro

Irrigation to ensure food security and enhance resilience in

vulnerable tribal areas of Odisha.” The project would

facilitate building of water sector resilience in 15

predominantly tribal districts of Odisha through

augmentation of ground water resources, better crop and

water management strategies and promotion of solar

pumping. The project would include installation of ground

water recharge system in 10,000 Ponds & 1000 Solar Pumps

as well as promotion of climate resilient farming system.

WATERSHED DEVELOPMENT

NABARD has been implementing the following

Watershed Development Programmes:

Ÿ Participatory Watershed Development

Programme under Watershed Development

Fund (WDF)

Ÿ Indo-German Watershed Development

Programme

Ÿ Soil Restoration and Rehabilitation of

Degraded Soils for Food Security (Climate

Proofing Soil Project) through KfW and GiZ,

Germany

Participatory Watershed Development

Watershed Development Fund (WDF) was

created in NABARD in 1999-2000 with an initial

corpus of INR 2000 million. The corpus was

augmented over the years by the interest

differential earned under Rural Infrastructure

Development Fund (RIDF) and the interest earned

accrued on the unutilized portion of the Fund.

The financial assistance under the programme

was in the form of grant or grant-cum-loan.

As on 30th September 2017, NABARD has

sanctioned 1935 projects covering an area of 1.90

miliion ha with cumulative sanction of INR

18531.81 million in 19 states.

Objectives

Ÿ Soil and water conservation

Ÿ Climate change adaptation and mitigation

Ÿ Effective & sustainable use of available water

resource

Ÿ Enhancement of farm production, productivity

and income of farmers

Ÿ Improved skill and employment opportunities

in the area

Ÿ Create additional employment potential for

the small / marginal farmers and agricultural

laborers

Ÿ Improve the socio - economic status of the farmers

The major interventions under Watershed

Development Programme being implemented by

NABARD are as under:

Ÿ Human Resource Development (community

development)

Ÿ Soil and land management (conservation and

use)

Ÿ Water management (conservation and use)

Ÿ Afforestation

Ÿ Pasture(Fodder) development

Ÿ Agricultural development

Ÿ Livestock management

Ÿ Rural energy management

NABARD ASSISTED WATERSHED DEVELOPMENT PROJECTS

1450

1853

1902

1275

1935

0 500 1000 1500 2000 2500

AMT RELEASED (RS.CRORE)

AMT SANCTIONED (RS. CRORE)

AREA COVERED ('000 HA)

NO OF PROJECT COMPLETED

NO OF PROJECTSW

ate

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NABARD

NGOs

VWCs (Village

Development Commitees)

SHG/FarmerClubs

CorporatesForest

Department

Govt & Govt Institutions

Panchayati Raj

Institutions

Stakeholders of NABARD assisted Watershed Programmes

Farm Pond constructed under Watershed Development Projects

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Implementation mechanism

NABARDNGO (Project

Facilitating Agency)

Village Watershed Committe

(Implementing Agency)

Capacity Building Phase

1yr

1. Implementation of projectintervention on 100 ha area totest the willingness of families

2. Formation of VWC

3. Community mobilization

4.Preparation of DetailedProject Report for FIP

Full Implementation

Phase 3-4 yrs

Core Components - % Allocationof grant

1. Project Measures (60-70%)

2.Women and landlessDevelopment (7.5%)

3.Sustainable Development Plan(5%)

4.Management Cost (17.5%)

New Initiatives

a. Climate Proofing of WatershedsClimate Change has been impacting agricultural

production, productivity and livelihood of the

farmer, especially in dryland and rainfed areas. In

order to reduce vulnerability of the rural

community due to impact of climate change,

NABARD had taken up climate change

adaptation initiatives under WDF Climate-

proofing projects under WDF being implemented

in four states viz. Himanchal Pradesh, Jharkhand,

Tamil Nadu and Maharashtra. Core components

of the programme are:

Ÿ Soil & Water Conservation

Ÿ Soil health improvement & productivity

enhancement measures

Ÿ Promotion of sustainable NRM, CCA & food

security

Ÿ Measures to mitigate Climate Change risk

Ÿ Capacity building, institutional building &

Knowledge management, etc.

Currently, 42 climate proofing projects under

WDF and 40 projects under IGWDP are being

implemented in 6 States with total financial

outlay of INR 225.04 million.

Rise in water level due to watershed intervention

in Khunta Watershed, Rajasthan

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b . Springshed Development

Programme in NER & other hilly

regions Due to adverse impact of climate change in the

recent passed in the region, the springs which are

the lifeline in the NER are getting dried up,

affecting agriculture and livelihood of rural

community. To address the issue, NABARD is

promoting innovative and integrated concept of

Springshed based participatory watershed

development programme in NER, including

Sikkim on a pilot basis with financial support

under WDF.

The programme was launched in January 2017,

and the entry point activities are being

undertaken in the programme areas. The

approach is expected not only to address

drinking water scarcity in the region but also, help

farmers doing farming during off-season as well,

for the alternate livelihood. It is planned to

sanction and implement 25 projects during the

current financial year with total financial outlay of

around INR 75 million.

c. Sustainable Development PlanTo address the sustainable development in

completed watershed projects, NABARD has

come out with Sustainable Development Policy,

wherein, the critical issues of technology transfer,

agriculture extension, credit intensification,

Integrated Pest Management (IPM), Integrated

Nutrient Management (INM), Promotion of FPOs

etc., are being addressed in the post watershed

development period through capacity building

and leadership development of the watershed

community, convergence of various centrally

sponsored schemes like National Food Security

Mission, National Mission for Sustainable

Agriculture, Mission for Integrated Development

of Horticulture, etc. including social security

schemes like PMJJBY, PMSBY, APY, JDY, etc. The

pilot has been rolled out in 8 States during 2016-

17. In all, 336 SDP projects are being

implemented, with financial commitment of INR

325.90 million.

d. Watershed Development

Projects through Co-funding

arrangement with CorporatesIn order to promote holistic development in

watershed villages with integration of social

infrastructural facilities like health, education,

sanitation, etc., in NABARD assisted watershed

projects, a few corporate bodies have partnered with

NABARD for convergence of their CSR funds on Co-

funding basis. Major corporate bodies include ITC,

TATA TRUST, MCX, Ambuja Cement Foundation,

Dalmia Cement, Jindal Steel, BALCO, Mahindra &

Mahindra. As on 31 March 2017, 126 projects are

being implemented under CSR collaboration with

total financial outlay of INR 893 million, out of which

INR 356.10 million has been contributed by

corporate bodies. In order to have enhanced value

addition, more visibility and better impact of such

collaboration, integration of CSR funds is being

advocated for watershed plus activities like health,

sanitation, drinking water, education, skill

development, popularizing alternate Agri and Allied

livelihood enterprises among watershed

community, etc. to ensure holistic development in

such areas.

Cemented Check Dam under WDF projects in Gujarat

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Externally aided projects

Integrated Watershed

Development for Rehabilitation

of Degraded Soils and Climate

Change AdaptationIn order to address climate change issues along

with restoration and rehabilitation of degraded

soils for ensuring food security, under 'One World

No Hunger' programme, KfW Germany is

implementing Soil Restoration and Rehabilitation

programme in 123 watershed projects completed

by NABARD under Watershed Development

Fund. The programme is being implemented over

a period of 4 years until December 2019 in the

states of Karnataka, Andhra Pradesh, Telangana,

Odisha and Chhattisgarh with total Financial

Component of EUR 10 million. The funds are

routed through NABARD for implementation of

the programme by Project Facilitating Agencies

and Village Watershed Committees (VWCs). An

amount of INR 595.30 million has been

sanctioned for 123 projects out of which as on

10th November 2017, INR 228.23 million has

been disbursed to PFAs and VWCs for

implementation of the projects.

3. Impact of Projects

Major findings of the Impact Evaluation Studies conducted by various agencies are as under:

e. Monitoring of Watershed Projects

using Geospatial Technologies

NABARD has signed MoU with National Remote

Sensing Centre, Hyderabad (NRSC) for

monitoring of all the ongoing watershed projects

in 16 states through Geospatial, satellite and

mobile app. based technologies. The project

provides NABARD the platform on BHUVAN web

portal for digitization, online and real time

tracking of physical and financial progress and

impact evaluation of watershed projects through

use of remote sensing, GIS and GPS technologies.

Tamil NaduŸ Increase in grossed crop area

Ÿ Increase in net irrigated areas

Ÿ Increase in cropping intensity

Ÿ Formation of 14 women SHGs and

strengthening through capacity

building programmes

Ÿ Formation of Women SHG

Federation by linking 19 SHGs in 4

watershed villages

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OdishaŸ 100% of cultivation of arable land

during kharif

Ÿ Increased in productivity of most of

the field crops especially paddy

Ÿ Positive change in the livestock

population due to increased fodder

availability, trainings by veterinary

doctors, balance feeding of animals

and timely vaccination of animals.

Farm Pond- Before and after watershed intervention in Dumarkon watershed, Kaimur District, Bihar

Stone Bund in Summer and Winter – Khunta Watershed, Rajasthan

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KeralaŸ Increase in water level in the open

wells

Ÿ Increase in the income level of

farmers

Ÿ Formation and credit linkage of

JLGs

KarnatakaŸ Increase in crop production and

cropping intensity.

Ÿ Increase in crop diversification

Ÿ Increase in availability of ground

water all through the year

Ÿ Reduction in soil loss

Ÿ Generation of additional

employment

DEVELOPMENT OF TRIBALSNABARD has been laying special emphasis on providing support for holistic development of tribal communities with orchard establishment as the core element. Following successful experience of Tribal development and sustainable livelihoods through orchard based farming systems under Adivasi Development Programmes implemented in Gujarat and Maharashtra, with KfW assistance, NABARD embarked upon an ambitious program of replicating the wadi (small orchard) model of tribal development across the country. In this direction, NABARD created a Tribal Development Fund (TDF) with a corpus of Rs. 50 crore, out of its profits for 2003-04 as an integral component of NABARD's Natural Resource Management (NRM) policy for providing sustainable livelihoods of Tribal families. Projects under TDF are implemented by partnering with State Governments, NGOs and Corporates. Today, 'wadi' model has become an important livelihood interventions for the tribal population.

'WADI' MODEL OF DEVELOPMENT

The “Wadi” model of tribal development is holistic in approach addressing production, processing and marketing of the produce and also other livelihood needs. The core of the programme is “Wadi” and other development interventions are built around “Wadi” a 'small orchard' established in one acre of land. The “Wadi” may be of mango or cashew or any fruit crop suitable to the project area or a combination of fruit crops. Inter-cropping with cash crops like vegetables, flowers, millets, cereals, etc. in the core wadi plantation, along with forestry species on the periphery of the land holdings are promoted to ensure continuous stream of income to farmers during initial period of wadi establishment. Two or more fruit crops are selected in the ''Wadi'' model to minimize the climatic, biological and marketing risks. Intercropping of the cash crops Tribal families having less than 5 acres of land is given 1 acre wadi for raising normally 40-60 fruit plants suitable to local conditions and 400 forestry plants on the boundary (number of plants per wadi changes as per the plant species selected).

This wadi model of tribal development together with suitable soil conservation, water resource development and other measures for improving the quality of tribal life such as community health & sanitation, women development, institutional development, etc. has been recognised worldwide as a sustainable and replicable model for poverty alleviation. The model was presented as a successful replicable model for poverty alleviation in the developing countries at the UNDP Forum of Ministers for Poverty and Environment in New York, USA in 1999 as well as at the Global Dialogue in Hanover, Germany. The model was also exhibited in the “Basic Needs Pavilion” at the Expo-2000, GmbH, Hanover.

NATURE OF SUPPORT

The fund support is need based, location specific and flexible for appropriate utilization. The entire fund requirement of the programme is done by way of grant.

The grant support is extended to the selected families for project interventions and to the Project Implementing Agency (PIA) for project management expenditure. The grant support for activities such as soil conservation, water resource development, women development, health, etc. for other than project assisted families in the project villages is also covered under the programme on a case- to- case basis.

AMOUNT OF GRANT

At present, per family grant assistance is provided to the tune of Rs. 50000 in general areas and Rs. 60000 in North Eastern & hilly regions, for one acre wadi development or off farm sector activities including animal husbandry, bee-keeping, sericulture, fishery etc.

PRESENT STATUS

As on 30th September 2017, NABARD has sanctioned 674 TDF projects with total financial outlay of INR 25170 million benefitting 5,00,000 tribal families.

The impact of the wadi projects is multi-dimensional in

the form of sustainable livelihood, reduction of

migration, adoption of supplementary livelihood

activities, improved quality of life, improved

participation of women in development, improvement

in nutrition, overall increase in awareness about health

and hygiene, sanitation, woman empowerment, etc. It

has also encouraged of entrepreneurship and

Impact of the Tribal Development Programme

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promotion of people's organizations like Village

Planning Committees (VPCs), Farmer Producer

Organization (FPO), Self Help Groups (SHGs), etc. The

tribal communities are able to engage themselves full

time in wadi operations in a more meaningful and

sustainable way. The conservation of ecology and

environment of tribal region and putting these areas to

more productive use are the advantages of this

program. Linkages and exposure to market with better

bargaining power has empowered the tribal families

with holistic developmental efforts of NABARD under

'Wadi Model' of Tribal Development Program. Through

the programme, NABARD has been able to generate a

spark of hope in the lives of marginalized, uplifted them

from poverty and shown them a ray of light for the

future. Above all, as India's Apex level Development

Financial institute, NABARD sees its role as a thought

leader in the field of rural development and the

projects, the initiatives under TDF, are a legacy of its

understanding of the rural eco-system.

Success Stories Under Tribal Development Initiatives

Building Orchards, Strengthening HomesHaving large families with few acres of dry land and meagre income of INR 15,000 per year, many famil ies of Rachava, Ninama Khakharia, Amlimenpur and Pipariya villages of Dahod district of Gujarat, were led to the brink of starvation.

TDF project of NABARD facilitated many families of these villages to opt for mango orchard and trellis system of vegetable cultivation as intercropping which yielded substantial income of upto INR 2,50,000 per year per family. This project transformed these families into progressive farmers.

Village- Pipariya, Dahod district, Gujarat

Found Fortune on Barren LandProductive land in the region of Ringol Khandiva,

Madhya Pradesh became barren due to scanty

rainfall over the years. The life of the farmers in this

region had become miserable as they were solely

dependent on agriculture. Youth of the villages

were migrating to cities in search of livelihood and

working as daily labourers.

With the support of Wadi Project of NABARD, Shri

Him Singh Bhura and other farmers were trained to

nurture the wadi and cultivation of vegetables. The

farmers planted mango, guava and lemon as

horticulture crops and within 4 years period, started

earning INR 40,000 per year from main crops and INR

4,000 per month from intercrops. With the active

participation of tribal families, the barren land has

been brought back as green and productive land.

Vegetables Bloom, Incomes BoomPeople of Chikhli and Khergam villages of Navsari

district in Gujarat engaged in traditional farming

without irrigation facility, were suffering from

poverty due to low and irregular income. They used

to migrate to nearby towns and cities for earning

their livelihood.

With wadi project implemented by Lok Seva Trust,

identified farmers of these villages were trained in

wadi establishment along with intercropping like

turmeric, arvi (colocasia), vegetables using mandva

(two tier pandal), etc. With these interventions

under Wadi Project of NABARD, Smt. Manishaben

and her husband Shri Thokorbhai Babarbhai Patel,

among others started getting good income in the

range of INR 67,000 – INR 85,000 per annum, which

effectively ended the pain of migration for these

poor families.

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FARMERS' PRODUCER ORGANIZATIONS (FPOs)A Means To Enhance Farmers' Income

Background:Indian farmers, particularly small producers, are

unable to realize optimal value from their

produce mainly due to fragmentation of land

holdings and lack of organization. NABARD, over

the last seven years, has successfully

demonstrated that the farmers are able to realize

better income through membership of FPO with

external support in terms of credit, capacity

building, hand holding and market linkages.

NABARD's Support to Producers'

OrganisationsWith a view to promoting produce aggregation,

value addition and collective marketing, NABARD

took the following initiatives:

µ Established Producers' Organisation

Development Fund (PODF) in 2011-12 for

supporting FPOs on three levels i.e Credit

support, capacity building and market access

µ Extended financial support to 221 FPOs under

agribusiness activities & 2592 PACS to

become Multi Service Centres

Ÿ A ggregate Credit disbursed – INR 7280.80 million

Ÿ Aggregate Grant disbursed – INR 109.90 million

PRODUCE FUNDRecognizing the importance of FPOs as a means

of linking farmers to agri value chain and

increasing their net income, the Hon'ble Union

Finance Minister, in his budget speech for 2014-

15, announced setting up of “Producers

Organization Development and Upliftment

Corpus (PRODUCE) Fund” of INR 2000 million in

NABARD to be utilized for the promotion of 2000

Farmer Producer Organizations (FPOs) over a

period of two years. Accordingly, PRODUCE Fund

Scheme for promotion of Farmer Producer

Organizations (FPOs) was operationalized during

February 2015 for implementation over 3 years'

period.

Objectives of “PRODUCE Fund”The broad objective of the Fund is to promote

and nurture Farmer Producer Organizations

(FPOs) by way of extending the required financial

& non-financial support during the nascent/

formative stage. The critical support to FPOs

include awareness creation, capacity building,

institution development and technical/

professional management, market access,

regulatory compliances, etc. and handholding

support across the life cycle. Financial

requirement of the FPOs for undertaking

business is generally met out of their own funds,

share capital contributed by members,

institutional credit, etc., depending upon the

business plan and local needs. Farm

ers

' P

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uce

r O

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s (F

PO

s)

Roles of Farmer Producers' Organisations (FPOs)

Produce Aggregation

Organized Role

Credit Linkages

Market Oriented Production

Agro Services & inputs

Processing /

Value Addition

Market Access

Improved returns

to members

Approch to FPO Promotion

Sharing of Success

Stories, manuals

Rating tools, field

study to access gaps

in nurturing

Corporate linkages –

MoU for CSR

investment

Partnership with

SEBI, Commodity

Exchanges for

market facilitation

Created NABKISAN

for life cycle

based financing

Certificate course for

CEOs by BIRD – through

7 anchor institutions

Training and capacity

building through

Mobilization and

Exposure visits

Formed National

Advisory Committee

& SLCC

Monitoring through

Digitized platform

Farm

ers' P

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uce

r Org

an

izatio

ns (FP

Os)

NABARD's approach to FPO promotion

Outreach of the PRODUCE fund

Ÿ Total FPOs organised – 2154

Ÿ FPOs registered – 1987, of which

1396 are FPCs

Ÿ No. of Producer Organization

Promoting Institutions - 778

Ÿ No. of Resource Support Agency - 19

Ÿ States covered - 29

Ÿ Grant Committed to POPIs - INR

1968.40 million

Key Activities of FPOs Promoted

By NABARD

Key Activities

Fish rearing/

Marketing

Input Supply; Organic Agri.

Fruits and Vegetable

Aggregation/marketing

Agro Processing/ value addition

Procurement & marketing,

seed

Dairy-Poultry/ Goatery

No of CEOs

appointed -1942

FPOs Market

linked -917

Business Plan

prepared - 1381

Share Capital Collected

– INR 474.79 million

Farmers Mobilized-

0.71 million

No of FPOs credit

linked -166

(INR 552 million)

Membership Size

100-500: 1260 FPOs

500-1000:756 FPOs

>1000: 138 FPOsMilestone

Achieved so Far

Major Achievement under PRODUCE Fund:

Farm

ers

' P

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r O

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s (F

PO

s)

Critical Issues & Challenges:Ÿ Skill gaps in CEOs & Board Members of FPOs

on Agribusiness Management, Financial planning and regulatory Compliances

Ÿ Inadequate equity and Start-up funds for business initiation

Ÿ Lack of access to credit for want of collaterals and credit history

Ÿ Inadequate access to infrastructure like cleaning, grading, sorting, storage, etc.

Ÿ Poor market access

Ÿ Limited capacity of Promoting agencies for extending handholding support

NABARD's Vision on FPOs:Ÿ Develop appropriate ecosystem for

organising around 10000 FPOs during next 5 years in a Mission Mode

Ÿ Develop appropriate financial instruments to meet life cycle requirements

Ÿ Create a cadre of rural professionals

Ÿ Collaborate with Corporates, Agri Companies & other Development partners to invest in skill development of FPOs and market linkages

Ÿ Building capacities of Promoting agencies for extending handholding support to FPOs

aggregation, are subjected to primary processing i.e. cleaning, sorting and grading, and the value added produce is thereafter, packaged and transported to distant markets such as Surat, Navsari and Nadiad for retail marketing besides supplying to various Agri-Malls, Farmer's Co-operatives, Kitchen express factory, etc. The FPC could mobilize required financial assistance for business act iv it ies , including produce aggregation, value addition and input supply, by

way of collecting share capital from the members (INR 500 per person) as also availing credit facility from Baroda-Gujarat Gramin Bank.

During 2016-17, the AUFPCL has traded over 250 MTs of Baby corn worth INR 0.15 million. Producer members could realize an incremental price of minimum of INR 500 per quintal and saved significantly on the transportation cost due to FPO membership. Around 65-70 MT of Mango worth INR 0.25-0.30 million was traded by the FPO and the members could realize enhanced price of their produce. Considering the benefits of collectivization, the FPO has expanded its activities to procurement of paddy seeds in bulk, for distribution among the producer members.

Tribal farmers reap increased income

through Farmer Producers' Company Ltd.

Adivasi Utthan Farmer Producers' Company Ltd. (AUFPCL), District- Navsari, State: Gujarat

During February 2016, around 350 Tribal farmers from 15 villages in Vansada block of Navsari district, organized themselves and formed a Farmer Producers' Company (FPC) to aggregate their Mango produce, add value and market collectively to take advantage of the economy of scale for fetching enhanced returns. With financial support from NABARD, Lok Seva Trust, a Producer Organization Promoting Institution (POPI) has been providing capacity building and handholding support to FPC. For facilitating aggregation, the FPC set up four collection centers in 15 villages to minimize the cost of transportation for the producer members. AUFPCL has streamlined collection and marketing of different varieties of mangoes. viz. Kesar, Rajapuri, Totapuri, etc. as also baby corn as per the market demand. The mangoes, after

Umbrella Program for Natural Resource Management

(UPNRM )

Background

NABARD has been implementing Natural

Resource Management projects (Watershed

Development and Wadi Development

Programmes) for the past 25 years under Indo-

German collaboration with support from KfW and

GIZ. The long standing development cooperation

between NABARD and German Development

Corporation (GsDC) has been a key contributor in

NABARD emerging as an innovator in the natural

resource management, influencing policy at

national level and improving lives at grass root

level. In order to further upscale and integrate

NABARD's existing and future Indo-German NRM

efforts into one streamlined approach of

participatory NRM related interventions,

NABARD, KfW and GIZ have launched the

Umbrella Programme on Natural Resources

Management (UPNRM) in the year 2008.

Based on the initial success of the Phase I During

the Indo-German Consultations concluded in

March 2011, both sides explored a project was

designed and agreements for UPNRM II were

signed between NABARD and KfW in December

2012 for €52 million as Loan and €2 million as

Grant. Subsequently GIZ signed a Phase II

agreement with NABARD for Technical

Cooperation in 2015 for €0.50 million. With

NABARD's contribution close to €7.143 million

funding for UPNRM Phase II comes to about

INR.476.72 crore (€61.643 Million. )

The Government of India's National Environment

Policy states that “Environmental degradation is a

major causal factor in enhancing and

perpetuating poverty, particularly among the

rural poor”. “Livelihood First” syndrome is a key

factor for the indiscriminate exploitation of the

Natural Resources. Another challenge which

NABARD is endeavouring to meet is the share of

long-term investment credit in Agriculture

which aids in capital formation, is showing a

declining trend as a proportion of Short term

credit.

To address some of these challenges faced by the

NRM sector and its financing requirement in India

the NABARD, KfW Development Bank and GIZ are

jointly implementing the Umbrella Programme

for Natural Resource Management. The

programme has ushered in a paradigm shift from

the way NRM has along been financed. Empirical

studies reveal that the resources spent through

grant mode do not necessarily bring out the

desired result due to lack of strong individual

interest in the project. Further, assistance by way

of loan to the first time beneficiaries also run the

risk of proper utilization of the loan.

UPNRM addresses both the issues through the

approach of Blended Financing of Loan and

Grant and a unique Credit+ Plus approach which

focus on building the capacity for proper

utilization of the loan offered . The success of

the Group approach has been well entwined in

the guiding principle of the programme by way of

People's participation.

Guiding Principles of UPNRM

The programme follows Five guiding Principles

in selecting projects for assistance, viz.,

1 Pro-poor orientation

2. Sustainability focus

3. Community participation

4. Good governance and

5. Integrated and need based approach

Core Sectors under UPNRM :

Soil & Water Conservation, Plantation &

Horticulture, Forestry activities, Farming systems

management, Climate change adaptation / Clean

development Mechanism. UPNRM support is

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extended to a wide range of sectors

encompassing agriculture and allied sectors,

agro-processing, organic farming, efficient

irrigation, renewable energy, waste

management, eco-tourism, etc. Around 30

different sectors are covered under UPNRM since

inception

Implementing Agencies :

UPNRM projects are implemented through

NGOs, Cooperatives, Producer Companies,

Co rpora tes , mF I s , commun i t y based

organisations, banks, trusts, public sector

agencies such as state boards, Corporations, etc.

Physical and Financial Achievements

Cumulatively 333 UPNRM projects have been

sanctioned across the country covering 10 major

sectors with a financial assistance of Rs.779 crore

including a grant assistance of R.41 crore.

Positive Impact of UPNRM

Impact assessment studies of the projects

assisted under UPNRM are being conducted

through GIZ at regular intervals, with the latest

being in July 2016 . The impact assessment study

of 2015-16, captured insights of 191 sample

projects, which were spread across 17 states and

1 union territory (covering 138 districts and

more than 9,000 villages).

Major highlights of the Study are

as under :-

Ÿ UPNRM loans are mainly Term Loans, which

translate into investments and capital

formation in Agriculture in rural areas

Ÿ In addition to drinking water projects, which

benefit around 1,50,000 beneficiaries, around

1,58,869 beneficiaries are covered under

livelihood based projects

Ÿ 44% of project participants represent Women

Ÿ 78% of project participants represent

SC/ST/OBC categories

Ÿ 57% of the project beneficiaries were from

extremely marginalized / BPL category

Ÿ 90% of the projects were directly related to

conservation of Natural resources

Ÿ 22 projects, out of 135 projects covered under

impact assessment, i.e. 16% of the projects

reported increase in income of beneficiaries

above 50% after UPNRM and 78 projects (58

%) showed increase in income ranging

between 10 – 30 % over pre project annual

income.

Upscaleable Models

UPNRM, has created successful business models

such as System of Rice Intensification in

Karnataka, SSI in sugar cane in Karnataka and

Maharashtra, Bt. Cotton Initiatives with drip

irrigation in Maharashtra , Bio Gas in Sindudurg

Distr ict Maharashtra , Eco Tourism at

Chamrajnagar, Karnataka, vermicomposting,

organic farming, seed production, sustainable

agricultural practices, medicinal plants cultivation

and its primary processing, soil and water

conservation measures in tank based irrigation in

dry land areas, aggregation, value addition and

marketing support for farmer groups, fruit,

vegetable and spices processing, tasar and coir

value chain, community drinking water facilities,

installation of automatic weather stations etc. in

various states and many UPNRM projects have

been mainstreamed for commercial expansion

with assistance from financial institutions.

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Water Conservation and its efficient use- National

level Campaign by NABARD on Water Literacy

Background:Water is one of the most critical resources

necessary for sustenance of life and central to

socio-economic development. India, with 2.4% of

the world's total geographical area and 18% of

the world's population, has only 4% of the world's

total fresh water resources. Major parts of India

are facing acute water shortage on account of

changing weather conditions, unsustainable use

of water, deteriorating water quality and

increasing sectoral water demand. The water

scarc i ty s i tuat ion, ca l ls not only for

transformational initiatives by the public

institutions but also for a massive Water

Conservation Campaign and collective/

community actions for its conservation,

preservation and efficient utilisation to ensure

sustainable future.

NABARD and Water Sector:NABARD has been involved in water resources

development at various levels, viz., supporting

the State Governments in development of

irrigation infrastructure, promoting community-

based watershed management, extending

technical support to banks for financing irrigation

structures, supporting action research for

efficient use of water, etc.

Considering criticality of “Water” for agriculture,

NABARD launched major Water Conservation

Campaign -“Jal Jeevan Hai” on 22 March 2017.

The Campaign was implemented in 1,01,569

villages located in most vulnerable/ water

stressed areas, spread across 250 districts in 21

States including the areas, where the ground

water is over exploited. The main objective of the

campaign was to enlist community participation

and voluntary actions on conservation of water

and its efficient utilization in agriculture and to

galvanise collective action from various

stakeholders. Community awareness has been

created on rainwater harvesting, efficient

irrigation systems, agronomic practice (more

crop per drop of water), revival and rejuvenation

of springs in hilly areas through Springshed

Development, etc.

The active involvement of senior officials of the

State/ Central Govt., banks, agricultural

universities, Panchayati Raj Institutions,

community organizations, etc., in the campaign,

has given adequate impetus to the initiatives and

confidence building among the villagers. The

campaign facilitated large scale community

actions through voluntary labour (Shramdan) for

creation of water conservation and harvesting

structures and through adoption of efficient

irrigation systems, besides building awareness

about various techniques of water conservation.

The water campaign culminated into preparation

of action plans for implementation through

various stakeholders. The day long village

programmes starting with walkathons to

preparation of village water resource maps,

action planning and taking oath with the

involvement of women, rural youths, PRIs,

SHG/Farmers' club members, etc. turned the

programme into “Peoples' Movement”.

Water Conservation Campaign-

ImpactŸ Sensitization of 1,01,569 villages across 21

states on various technologies for water

conservation and support services before

onset of monsoon

Ÿ Revival of Village Water Bodies through

voluntary action

Ÿ Preparation of Area Development Plans

(ADPs) to facilitate Bank Credit

Ÿ Resource Mapping and Village Action Plans

prepared for future action.

Ÿ District level consolidation of Village level

Action plans available for implementation by

all stakeholders

Ÿ Created a Cadre of Village volunteers, Krishi

Jaldoots for facilitating village action and

financial literacy

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Spread of NABARD Promoted Watershed and

Tribal Development Projects

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9869534932

National Bank for Agriculture and Rural DevelopmentPlot No. C-24, ‘G’ Block, Bandra-Kurla Complex,

Bandra (E), Mumbai - 400 051

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