Monthly Newsletter - Agriculture Financing, Agricultural ...sfacindia.com/PDFs/VIUC Newsletters/VIUC Newsletter... · Name of Farmer-Mr. Dev Raj Verma, Village- Trewa, block-Arnia,

DeskE d i t o r ' sFrom the

The months of June and July 2013 saw the continuation of activities that were started across the 20 states of Andhra Pradesh, Arunachal Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jammu, Srinagar, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura and Uttarakhand under the various components of the Initiative. While Mizoram, Andhra Pradesh, Kerala, Maharashtra and Chhattisgarh led the group in terms of utilisation of funds, Andhra Pradesh and Mizoram recorded a 100% utilisation of the total funds approved under the action plan of 2012-13. However, Punjab, Jammu and Nagaland (less than 50% utilisation) will have to gear-up to accelerate their performance to fully utilise approved fund as quickly as possible.

Updates and case studies alike indicate the successes and improved profitability that farmers are enjoying, thanks to joint efforts in both procurement of inputs and marketing of produce. Cross- pollination of ideas and best practices too are reported to have borne results. All the constituent states of the Northern Region reported joint transportation and marketing of produce. While farmers in Punjab received training in disease and pest management, farmers in Haryana, Uttarakhand and Jammu saw their yields increase with the use of improved pre-harvest infrastructure and package of practices. In the Western Region, all the four states of Maharashtra, Goa, Gujarat and Rajasthan had success stories resulting from joint procurement of inputs, selling directly to-end consumers, alternative methods of market outreach, training farmers in organic farming and adoption of other modern package of practices. In the Central Region, in Chhattisgarh newly registered FPOs were being imparted training and were jointly procuring farm inputs; in Madhya Pradesh registration of FPO, institutional linkages, joint procurement and joint transportation and selling of produce were being actively pursued.

In the Eastern Region, Bihar continued with following collectivised activities, imparting training to farmers and the joint and direct selling of produce, while in Odisha too, FPOs were actively engaged in undertaking exposure visits and in the joint cultivation and selling of produce. In all eight states comprising the North East Region the approved funds released were reported to be actively utilised towards the creation of new FPOs, capacity-building of these organisations, imparting training, creation of infrastructure, improving market outreach and collective selling of produce. The states of the Southern Region witnessed the very same thrust towards the creation of better infrastructure and training on improved cultivation practices for farmers, to enhance productivity and marketability of their produce.

Our first feature article in this edition of the newsletter focuses on “market linkage” as the overarching theme and looks at the different models adopted in the states for linking farmers to market players, both for procurement of inputs as well as for marketing of produce. As always, we aim to evaluate the sustainability, scalability and replicability of these models. While FPOs in discharging their envisaged duties have, as evidenced, brought numerous advantages to member-farmers, in our second feature article this month we explore additional responsibilities that FPOs could potentially shoulder in order to augment their earnings while benefitting their rural societies at large.

Vegetable InItIatIVe for Urban ClUsters

Monthly NewsletterVolume 07 June-July 2013

2 Monthly Newsletter | VIUC | June-July 2013 | Issue-07

At the end of the financial year 2012-13, funds approved under the Action Plan for the financial year were utilised in 20 states. Approximately 63% of the approved funds were utilised across the 20 states, which included Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Jammu, Srinagar, Jharkhand, Kerala, Maharashtra, Manipur, Mizoram, Nagaland, Punjab,

Summary of Financial Achievements

Rajasthan, Sikkim, Tripura and Uttarakhand. Among the twenty states, Andhra Pradesh, Mizoram, Kerala, Maharashtra and Chhattisgarh are leading in terms of percentage utilisation of approved funds under the Action Plan for the financial year 2012-13. Andhra Pradesh and Mizoram have utilised 100% of the total approved funds for Action Plan 2012-13.

Fig 1: State-wise utilisation of funds of the total approved plan (in percentage)

Fig 2: Component-wise utilisation of funds (in percentage)

Northern Region comprises the states of Delhi, Punjab, J&K, Haryana, Himachal Pradesh, Uttar Pradesh and Uttarakhand. Updates received from these states are as stated below:

Delhi- Collective Production and Marketing

Farmers of two FPOs in NW Delhi are carrying out joint procurement of Urea and DAP. Around 570 farmers are carrying out joint production of spinach, okra and brinjal on approximately 870 ha area. They are also jointly collecting and transporting more than 200 MT of produce like spinach, pumpkin, and brinjal to Azadpur and Okhla Mandi. Farmers of Palla village have been using Biomix-I and IV on their crops and the results have proved to be excellent. Application of Biomix has also prevented the attack of diseases and therefore other farmers are also demanding the Biomix. The SPV Organic Agro Producers Private Limited, Palla, Delhi has purchased 48 kg spinach seed, 60 litre chloropyrophos, 270 bags of urea, MOP, 570 bags of gypsum and DAP phosphate collectively, at the cost of `3,85,600/-, making a saving of `38,800.00. RI ITSL has facilitated the market linkage of these farmers with Reliance Fresh and Mother Dairy and 88.00 quintals of vegetables have

Note: As data is captured directly from sources on the field, it may differ from officially stated figures. Data has not been received from two states namely Madhya Pradesh and West Bengal.

Northern Region

Joint procurement of fertilisers

been supplied to them at a total cost of `90,201/- thereby earning them a profit of `7481/- which is higher than what they would have earned at the Azadpur Mandi. The total turnover of company at the end of the first half of the year stood at `4.75 lakhs.

PuNjAb- Training and Farmers Exposures

FIG members of Fatehgarh Sahib Vegetable Production Association visited Sirhind and Marwa for learning protected cultivation methods. In Ludhiana, training cum exposure visits have been organised to learn about pest and disease management in vegetable crops at KVK Samrala. Farmers also visited Punjab

Agriculture University to learn about protected cultivation methods. Under the infrastructure creation component, protected cultivation and marketing structures have been constructed at Amloh in the Fatehgarh Sahib Cluster.

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20%40%60%80%

100%120%

Seed Production of Vegetables 0.26%

Vegetable Seedling Production 2.69%

Seed Infrastructure 1.08%

Vegetable Cultivation 45.54%

Protected Cultivation

13.88%Promotion of INM/IPM0.72%

Organic Farming 2.88%

Post-HarvestManagement

5.38%

Markets 2.90%

Base Line Survey 0.14%

HRD - Training ofFarmers 1.89%

Administrative Costs0.51%

Others13.80%

Promotion ofFarmers group

8.33%

Cultivation in polyhouse

Seedling production in tunnels

TAKiNg The FiRST STeP TowARDS PRoSPeRiTy

Name of Farmer- Mr. Dev Raj Verma, Village- Trewa, block- Arnia, District- Jammu

Mr. Dev Raj Verma is group leader of the FIG Trewa and is a very progressive-farmer. This group has 20 farmer members and all of them are very inspired by Mr. Dev raj. Farmer members have benefitted greatly from the VIUC scheme as well as through convergence of other schemes. Farmers are availing of inputs like poly sheets, seeds, seedlings, insect-traps and vermi-compost etc. provided by the Department under the scheme. Since the implementation of the scheme, Mr. Verma has been using hybrid seeds. This has helped in preventing the infestation of seed and soil-borne diseases in cabbage, cauliflower, radish etc. He has benefitted from the training programmes conducted by the Resource Institution and availability of Agricultural Scientists for on-farm solution of problems. This has helped the farmers to obtain good quality and early produce which has consequently fetched a higher price in the market.

uTTARAKhAND – Joint Production and Marketing

Farmers of three FPOs in Dehradun are carrying out joint production of potato, gourds and cucumber on more than 90 ha. of land. Other farmers at Pauri, Kotdwar and Haridwar are carrying out joint production of more than 6 MT of potato, okra and tomato. They are also carrying out joint collection, assembling, transportation and direct marketing of these vegetables to Amol Agro International. These farmers have been provided subsidy by way of pea, bean and okra seeds, spraying machines, fertilisers and insecticides. The chairperson of the Cooperative Society has started selling her produce through a motorised vending cart provided by the Department. In Pauri, irrigation is a challenge but after getting training on waste-water management, the farmers have solved this problem and they have constructed a low cost pit at the end of the drainage. In this pit approximately 150-200 l of water is collected which is being used for irrigation purposes.

Approximately, 96% of the funds have been utilised under the Action Plan of 2011-12 and 63% under the Action Plan of 2012-13.

3Monthly Newsletter | VIUC | June-July 2013 | Issue-07

A subsidy of approximately `42 Lakhs has been provided to FIG members from the Department of Horticulture in Fatehgarh Sahib cluster in terms of urea, DAP and seeds etc.

Till date, approximately, 50% of the funds have been utilised under the Action Plan of 2011-12 and 44% under the Action Plan of 2012-13.

j&K (SRiNAgAR) – Joint Marketing of Produce

In Srinagar, FPO-level meetings have also been organised in the presence of Department of Agriculture Officials, in which as many as 10-15 FIG members have participated. These famers have started joint collection, assembling and transportation of more than 70 MT of knolkhol and green onion to Army Base Camps at Jammu and Srinagar. Formation of FIGs and FPOs is in process. Till date around 1800 farmers have become members of 95 FIGs.

Approximately 91 percent of the funds have been utilised under the Action Plan of 2011-12, and 63% under the Action Plan of 2012-13.

j&K (jAMMu) – Training and Joint Transportation of Produces

In Jammu, harvesting of hybrid and open-pollinated vegetables like tomato, cucumber and radish is in progress. Technical training has been provided to FIG members with support from KVK on crop production and disease and pest management. FIG members of Oriental Fresh Farmers Produce are carrying out joint transportation of approximately 28 MT of tomato and cucumber to the mandi. Under the infrastructure creation component, testing and trial at two Collection Centres at Udhampur has been carried out. In addition to this, 10 more locations have been identified and selected, where construction of simple infrastructure is underway. For polyhouse construction, more than 500 farmers have received inputs like poly-sheets and shade-net sheets from the Agriculture Department. For subsidy disbursement, recruitment details for arranging hybrid seeds has been collected from FIG members and submitted to the Agriculture Department for the next season. In addition to this, organic fungicide Trichoderma virideae and pheromone traps have been distributed to vegetable growers.

Approximately 59% of the funds have been utilised under the Action Plan of 2011-12 and 44% under the Action Plan of 2012-13.

Demonstration of insect traps

Field preparation for sowing

Harvesting of radish

Distribution of insect traps

Joint seedling production on FIG nursery

Low cost pit for water harvesting

4

Western Region comprised of the states of Maharashtra, Goa, Rajasthan and Gujarat has reported some successful initiatives. Updates from these States are as stated below:

MAhARAShTRA – Training and Joint Procurement

In Maharashtra, technical training was organised by ISAP at Gulani village in Khed Taluka for potato growing farmers of Satwajibaba Agro Producer Company. Scientists and CCA from CPRI, Jalandhar also participated and imparted comprehensive technical training on potato production to around 160 farmers during the programme. Other training programmes were organised by VGAI on organic farming for FIG members of Junnar Taluka Farmer Producer Company and on the importance of direct marketing for members of the Khalapur Vegetable Producer Company Ltd. Farmers of Satwaji baba, Narayangarh and Darana Agro Producer Company are carrying out joint procurement of more than 80 MT of inputs like urea and other mixed fertilisers. Farmers of FPOs in Pune, Thane and Raigad are carrying out collective purchasing of seeds, fertilisers, stakes, mulching paper, drip irrigation equipment etc., leading to 25-30% net cost savings on joint purchasing. Of the nine FPOs in Maharashtra, seven FPOs have been registered and two are in the process of being registered in Nashik.


goA - Training the Farmers for Additional Income

In North and South Goa, FPO-level meetings have been organised to discuss market linkages with the Goa State Horticulture

Corporation. More than 60 farmers of both the North and South Goa Clusters were taken on an exposure visit to the Sanguem Block and Don Bosco Institute, Goa, for observing and learning about modern farming practices, vermi-composting and bee- keeping. Farmers have been linked with the Directorate of Agriculture for the purchase of improved and subsidised seeds for the kharif season crops. At present, part of the farmers’ production is sold in the local market and the rest is procured by the Goa State Horticultural Corporation Limited, through their assembling/collection centres. Around 10 FIGs of North Goa Fresh Producers Company Limited have been provided hybrid seeds, free of cost, by the Directorate of Agriculture. In North and South Goa, regular FIG-level meetings have been organised for improving market linkages and planning for the kharif season production. More than 170 farmers of North and South Goa are carrying out joint production and marketing of green chilli, cluster bean and bottle gourd. They are also engaged in direct marketing to the Goa State Horticulture Corporation Limited for some selected vegetables.

Approximately 24% of the funds have been utilised under the Action Plan of 2011-12.

exPloRiNg oPPoRTuNiTieS AND ReAPiNg beNeFiTS

Ms. Beena Negi is a member of Krishna Farmer Interest Group in village Mawakot. She is also the Chairperson of Sumati Farmers Agriculture Swayat Cooperative Society at Kotdwara. She owns 2 bighas of land of which 1 bigha is upland, and on the rest of the land she grows wheat and paddy. However, the returns from farming using the cultivation practices which she had been following earlier were inadequate and insufficient to meet the basic requirements of her family. After a number of meetings, she agreed to start a Farmer Interest Group supported by Sumati Foundation. Then a group was mobilised in which there were 10 members. Sumati Foundation is providing training to the member farmers on good agricultural practices for horticultural and other allied collective activities. Now, each member is saving `1200/- per month in the Uttarakhand Gramin Bank, Kotdwara. The Bank has provided Cash Credit Limit (CCL) of `0.5 to 2 lakhs. Through CCL, Ms Beena Negi and other members of FIGs have started a nursery for seedling production. As the land-holding size was too small for carrying out individual production, they have collectively started production in the nursery. Sumati Foundation also provides training and has helped them build linkages for market accessibility for selling the plants. At present, Krishna Farmer Interest Group is jointly cultivating vegetables. All members of FIG are receiving benefits of `30000 per season/per member through improved vegetable cultivation and nursery management.

Joint production of vegetables by FIG Joint seedling production in nursery

Joint marketing of vegetables

Rating list at procurement centre of GSHCL

western Region

Joint marketing of vegetables

Exposure visit at Sanguem block Exposure visit for bee-keeping

Monthly Newsletter | VIUC | June-July 2013 | Issue-07

5

gujARAT – Technical Exposure, Training

In Gujarat, cross-pollination of ideas and innovative techniques in production are taking place through exposure visits to farms of progressive farmers. For knowledge enhancement, farmers have been linked with the Government Sponsored ATMA project, where Senior Scientists and Agriculture Experts provide technical knowledge about vegetable cultivation. For direct marketing, discussions are in progress with various market aggregators and Reliance Fresh normal. Input kits have been distributed by the Department of Horticulture to FIG and FPO members. Suraj Shree, a company engaged in preparing organic pesticides has approached the FPOs and has agreed to provide demonstrations of its products.


MARKeT liNKAge SPRoViDiNg ReMuNeRATiVe PRiCeS iMPRoVeS FARMeRS’ SoCio-eCoNoMiC STATuS

Village- Barcem, block- Quepem, District- South Goa

Fig- Subi Sahayta Samooh and Brahmadev Suteri Sahayta Samuh, President- Mr. Khushali Rama Gaonkar and Mrs. Anjali Arjun Velip

The main difficulty for small farmers today is to be able to link to mainstream markets in a sustainable fashion, so as to be able to earn remunerative prices and profits for their produce. The VIUC scheme has been able to address this challenge, and tangible benefits of the scheme are accruing to farmers in Goa.

The Presidents of the two FIGs in Goa are very appreciative of the benefits they and their fellow members have earned through the scheme. The FIG Brahmadev Suteri Sahayta Samuh consists of 16 female members. The major vegetable grown in this area is Konkani Chilli. Earlier these FIG members were able to grow only for their own consumption, However, after the implementation of the VIUC scheme, they have been able to keep aside some quantity for their own consumption and sell the surplus in the market. Prior to the implementation of the VIUC scheme, they used to sell their produce sitting by the roadside. Being an all-female member group, they were facing several problems in selling the vegetables in this way. These problems often left them frustrated and disinterested in carrying out vegetable cultivation. With the initiative taken by the Goa State Horticulture Corporation Limited (GSHCL- with support of VIUC scheme) in opening the assembling and collection centre has solved this problem of market linkage to a large extent. Members are now able to sell large volumes of vegetables to the state-owned and operated collection centre. This has encouraged them to restart commercial cultivation of vegetables. The GSHCL centre also sends its vehicle to the farm gate for collection of produce and their organisation is providing highly remunerative prices for the produce it collects. Additionally, this initiative by GSHCL has also opened employment opportunities at the local collection centre and kiosks for many local residents. The FIG members of both the groups are happy with the VIUC scheme and its contribution in improving their socio-economic status.

Procurement centreKonkani Chilli cultivation Open cultivation of vegetables

Bitter gourd at harvesting stage

Solar water pumps

RAjASThAN – Training and Exposure Visits

In Jaipur, Alwar and Sikar, regular FIG-and FPO-level meetings are being organised to discuss ‘Share Capital’ collection and mobilisation. More vegetable-growing farmers are being contacted to become members of the FIGs. In Sikar, 963 farmers have so far been mobilised into 49 groups, and in Alwar, around 1455 farmers have been mobilised into 76 groups. Around 20 FIG members of Jaipur Vegagro Producer Company Limited were taken to KVK Takerda Chomu, for an exposure visit, to learn about value-additions in vegetables. A Farmer Facility Centre (FFC) has been opened for supplying cattle feed to FIG members. Crop-wise business centres have been identified in Jaipur for starting and supporting the business through FPOs. Around 50 farmers of Boraj Kisan Agro Producer Company Limited have been provided 25 kg


6

water melon seeds of the Riya variety. In addition to this, subsidy has been provided to farmers on mini-sprinklers, drip irrigation and solar pumps.

Approximately, 93% of the funds have been utilised in the state under the Action Plan of 2011-12 and 61% under the Action Plan of 2012-13.

The Central Region while comprises the states of Chhattisgarh and Madhya Pradesh, reported the formation of new FPOs and successful initiatives. Updates from these states are as stated below:

ChhATTiSgARh – Joint Procurement and Marketing and Other Allied Linkages

Two FPOs namely Krishi Vikash Bahuuddeshiya Swayatta Sahkarita Samitee and Shree Rajeev Lochan Krishak Bahuuddeshiya Sahkari Samitee have undertaken joint procurement of more than 25 MT of paddy seeds of 2355 Plus and Arise 6444 Gold varieties, and have earned profits ranging from ` 8000/- to `16000/. These producer

Central Region companies are also trying to establish links with pesticide-supplying companies. Mini-kits for brinjal, bottle gourd, tomato, okra and bitter gourd have been distributed to around 25 FIG members of the Kishan Mitra Marketing Cooperative Society. In addition to this, around 15 FIG members of the Pragatishil Marketing Cooperative Society have been provided inputs such as Indo plus, Bhumi Rakshak, Syeodomone, Nemod and Gulab by the Department of Horticulture.

Approximately, 79% of the funds have been utilised in the state under the Action Plan of 2012-13 and under the Action Plan of 2011-12, 100% of the funds have been utilised.

ColleCTiVe ACTioNS beAR FRuiT

The RI have linked the FIGs with paddy seed and pesticide suppliers for this kharif season. A few villages falling under each of the three proposed FPOs were selected and the seasonal demand was computed and compiled. Access to good quality seed is fundamental to farmers’ successful crop production. A preliminary market research exercise was conducted at Dhamtari, where the rates of several ‘ Dealers and Retailers’ were compared with those of associated Companies and their distributors. Thereafter, the two FPOs namely Shri Rajeev Lochan Krishak Bahuddeshiya Sahkari Samitee and Krishi Vikash Bahuddeshiya Swayatta Sahkari Sanstha at Dhamatri jointly decided to commence business with paddy seeds of two varieties namely 2355 Plus (VNR Pvt. Ltd.) and 6444 Gold (BAYER ).

These details collective procurement are provided below:

Name of Society Krishi Vikash Bahuuddeshiya Swayatta Sahkari Samittee

Shree Rajeev Lochan Krishak Bahuuddeshiya

Sahkari SamitteeVarieties 2355 Plus 6444 Gold 6444 Gold

Seed Requirement 5000 kg 300 kg 1500 kgCompany Name VNR Seeds Pvt. Ltd. BAYER BAYERActual Seed Purchased 1200 kg 300 kg 1500 kgRate at which Society Purchased (`)

210 238 244

Rate in the market 250 250 250Rate at which Society Members Purchased

215 and 220 245 245 to 248

Total Purchase 323400 366000Total Selling 333900 368816Transportation Cost 1600 800Cash Discount NIL 14985Profit due to collectivization 8900 2016Total Profit 8900 17001

Although, the requirement of paddy seed in this cluster is around 10 MT, a trial order has been initiated for 1.5 MT. This initiative has helped the BoD members to start business and has built their confidence in managing and operating their FPO, pooling resources and in collective decision-making, thereby increasing and enhancing access to markets. These FPOs are also applying for the relevant licences for further sale of these inputs to farmers. This Paddy seed business was initiated completely on the basis of the advance amounts collected from the members of the FPOs.


Block Agriculture Officer in two villages. Pesticides company Agro-vita organised demonstration of pesticide use in the villages of Nalanda, Patna and Vaishali districts. As part of the subsidy disbursement endeavour, more than 500 farmers of Nalanda, Patna and Vaishali have received paddy, Toor seeds, Mung seeds, inorganic and organic fertilisers. In Patna and Nalanda, FPCs have applied for licences for the collective procurement of plant protection and production enhancement inputs. The process of establishing linkages with IFFCO for procuring fertilisers has been initiated. Of the total targeted seven FPOs in Bihar, four FPOs have been registered; one in Nalanda, one in Vaishali and two in Patna and three are under the process of being registered.

Till date, 100% of the funds have been utilised for Action Plan of 2011-12 and 58% fo the funds for Action Plan of 2012-13.

Comprising the states of Bihar, Jharkhand, West Bengal and Odisha, the Eastern Region reported noticeable successful initiatives under the VIUC scheme. Updates reported from these states are as stated below:

bihAR - Continuing Collective Actions, Imparting Training, Joint Direct Marketing of Produce

In Bihar, a two-day exposure visit was organised for the BoD members of the FPOs of Barh, Bakhtiarpur, Harnaut and Ekangarsarai clusters to Soya Mahila Farmer Producer Company in Boondi, Rajasthan. More than 100 farmers of different production clusters of Patna and Vaishali have been

given okra, pumpkin and bitter gourd seeds, vermi- compost, vermi-beds and organic pesticides.

In Nalanda, a training programme was organised on SRI awareness by the

7

MADhyA PRADeSh – Institutional Development

Awareness meetings have been organised on FPO working structure, seed production, agri-input supply and aggregation, marketing and FPO interaction with BoD members. FIG members of Madukhedi and Juniya Khedi clusters have been provided tomato, brinjal, radish, and coriander and green chilli seeds. A detailed list of farmers has been submitted to the District Horticulture Department in Bhopal and Sehore for minikit distribution to farmer- members. Based on the requisition, materials worth about `32000 will be distributed by the Department to farmers. A linkage has been established with Dhanuka for the joint

ColleCTiVe bARgAiNiNg SAVeS CoSTS

In Sehore district of Madhya Pradesh, the designated Resource Institution, the Indian Grameen Services (IGS), has registered an FPO named Kisan Ekta Samruddhi Producer Company Limited. With the active support of the Local Source Person of IGS, Shri Shanti Lal Parmar, the FPO has aggregated a demand for 340 bags of Single Super Phosphate (SSP) and 60 bags of DAP from the farmers. After due persuasion, the local fertiliser dealer has agreed to fulfil this demand and supply the material the village.

Fertiliser Demand Rate (` /Bag ) of KESPCL

Rate (` /Bag) of Co-operative

Society

Rate (` /Bag) in Open Market

(Retail)

Savings Comparison from Society

Comparison from Market

Per Bag Total Savings

Per Bag

Total Savings

SSP 740 303 330 310 27 19980 7 5180DAP 80 1180 1200 1190 20 1600 10 800Urea 0 280 287 284 7 0 4 0

Collective purchasing by the farmers has saved each of them approximately ` 27/- per bag with a total savings of ` 19980 on the SSP. The Society is selling these fertilisers on credit to poor farmers and they will forgo collection of interest for six months. Earlier the farmers had to bear an extra cost of transportation i.e. (` 500/100 Bag). After the successful completion of this supply of fertilisers, farmers of other villages like Berkhedi, Bijlone, Titora, Alampura and Ramakhedi have also put in their demand for an additional 400 bags of Single Super Phosphate.

procurement of Chlorpyriphos, which has been purchased at 18% discount. Kisan Ekta Samruddhi Producer Company Limited in Sehore has obtained a licence for joint purchasing of seeds, fertilisers, pesticides etc. In Bhopal and Sehore, FIG- and FPO-level meetings have been organised to disseminate information on an improved package of practices. All five FPOs targeted for registration in Madhya Pradesh, have been registered.

Till date, more than 56% of the funds have been utilised for the Action Plan of 2011-12. Although the fund utilisation for action plan 2012-13 has started, but the relevant information has not been furnished.

SRI awareness camp

eastern Region

Exposure visit at Soya Mahila FPC


8

jhARKhAND- Institutional Support Encourages Farmers

Since July 2011, about 5000 farmers have been contacted and mobilised in the 3 Blocks of Ranchi District under the SFAC supported FPO promotion project. During this period the concerned RI has approached various institutions for linkages to address the various needs of farmers’ organisations formed under the aegis of this project. It has approached NFL which in turn had initially agreed to conduct free soil testing. Altogether 525 soil samples collected from the fields of various farmers in the three Blocks have already been sent for testing to NFL’s Barabanki-based lab and the results are expected in the last week of July 2013. NFL has also expressed its interest in working with 5 farmers for demonstrating the effects of balanced use of fertilisers and pesticides on productivity. NFL has calculated the dose applicable for half an acre of farm land. The NFL representatives have met farmers in Okhargarha and Dahutoli villages of Kanke Block where they shared details of this scheme with them. Four farmers from okhargara Phal evam Sabji utpadak Swablami Sahkari Samiti and one farmer from Dahutoli Phal evam Sabji utpadak Swablami Sahkari Samiti have received inputs in terms of fertilisers and bio-pesticides worth `2060 each. These selected farmers have adopted vegetable cultivation in half an acre of their farms using this balanced dose of fertilisers and pesticides while they are practising vegetable cultivation in the rest of the farm using existing practices. The results will be discussed with other farmers in subsequent meetings, thus encouraging them to adopt the use of balanced dose of fertilisers and pesticides as well.

Approximately, 82% of the funds have been utilised for Action Plan of 2011-12 and more than 60% for the Action Plan of 2012-13.

Quantity of inputs Provided to Farmers for half Acre

Sl. No.

Name of the Input

Quantity of Input

Value of Input in INR

1. Urea 50kg `380/-

2. DAP 25kg `750/-

3. MOP 15kg `300/-

4. Znso4 5kg `300/-

5. Beastin 200gms `200/-

6. Buotachlor ½ lt `130/-

oDiShA - Joint Procurement

Maa Charchika FPC Limited, with support from its RI, has commenced business activities right after registration. They had procured around 220 l of Tergasuper, Wheepsuper and Hunter at comparatively reduced rates. BoD members of all the three FPOs have undertaken exposure visits to the Samartha Kisan FPC Limited at Agar, Madhya Pradesh to learn about the governance and sustainability of FPOs. Market linkages have been established with Udyan Fresh for all the three FPOs in Cuttack and Jajpur district. Around 60 members of Rasulpur Green Vegetable FPC have been provided with polythene vermi-beds. Around 200 farmers of

oRgANiC FARMiNg - The wAy FoR heAlThy gRowTh

Although, organic farming has proved to be very useful for the cultivation of healthy and nutritious vegetables and addressing environmental degradation concerns, it is not commonly practised as farmers are unsure of its impact on their yields and sceptical about the commercial viability of such methods. It has been observed that after the implementation of the VIUC scheme in Bihar, the mind-set of the farmers towards organic farming has changed and most of them have been motivated to carry out organic farming, thereby completely totally eliminating the use of chemicals in their vegetable production. One of the farmers, Mr. Surendra Kumar stated that after receiving the training from the Resource Institution on organic farming methods and associated benefits, he has adopted organic farming for commercial production as well. This is not only providing him good quality, healthy and nutritious produce, it has helped in improving the soil fertility too. The cost incurred in application of cultivation inputs has reduced as he has commenced preparing inputs like vermi-compost himself, thanks to the support provided by the State Department. Observing the accruing benefits, other farmers of the group have been motivated to campaign for the adoption of organic practices. Based on the condition of deteriorating soil quality and environmental concerns, the farmers perceive that in the future, organic farming would be the only option available to fulfil the nations demand for food.

Organic vegetable production


Distribution of weedicides to FPO members

9

Approximately, 100% of the funds have been utilised under the Action Plan of 2011-12 and 50% under the Action Plan of 2012-13.

ASSAM - Capacity Building

Farmers have been provided with training on improved vegetable cultivation practices. Market linkages with the metro cities have also been arranged. For knowledge acquisition, farmers have been linked with the Horticulture Research Station at Kahikuchi and KVK at Kahikuchi in Kamrup District. Under the infrastructure creation component, Collection Centre/Pack Houses have been established and other protected cultivation structures are in the process of being constructed. In Nalbari District, harvesting of vegetables like okra, ridge gourd, and cucumber is in progress and the produce is being sold in the Guwahati market.


MANiPuR

In Manipur, harvesting of cucumber, green chilli, okra and watermelon is underway. Under the infrastructure creation component, construction of Aggregation Centre /Pack Houses are being carried out. As part of the subsidy disbursement, two members of Kwaksiphai FIGs have been provided a subsidy of `10,000 each for the purchase of water lifting pump-set for irrigation purposes. HDPE vermi-beds have been distributed to FIGs by the Department of Horticulture. Some of the

Comprising the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, the North Eastern Region saw the establishment of FPOs and collective activities by the vegetable growing farmers. Updates from these states are as stated below:

ARuNAChAl PRADeSh - Group Activities, Institutional and Logistics Support

Since the implementation of the VIUC scheme in Lower Subansiri and Papumpare clusters, farmers have learnt to carry out joint activities in groups of 10-15. Earlier, there was no such concept in these clusters and all the farmers were carrying out farming and marketing activities, individually. Farmers are satisfied with the inputs like seedlings and inputs for vegetable cultivation provided to them by the Department. Seedlings provided by the Department have helped them to obtain early and good quality produce. The Department has also provided subsidy for the construction of Zero Energy Cool Chambers (ZECC) and other infrastructures components under

the scheme. The scheme is helping the farmers in obtaining good quality and high levels of production throughout the year, thanks to timely training and other interventions being provided by the Resource Institution around a complete package of improved cultivation practices and other group activities. Since the poor farmers were facing problems of marketing of vegetables to Guwahati and other nearby markets mainly in terms of transportation, the Department of Horticulture in Lower Subansiri has provided a vehicle to the FIG members for joint marketing of their produces to Gandhi

Market at Dapoli. All the FIG members have benefitted from the scheme and recently Papumpare Vegetable Cooperative Society has been registered under an Act of the Government of Arunachal Pradesh, and the registration of a society in Lower Subansiri is in progress.

Patitapaban Farmers Producers Co-operative Society Limited are carrying out joint production on 120 acres of farmland. They are also carrying out joint collection of more than 700 MT of seasonal vegetables like pointed gourd, bitter gourd, brinjal,

okra and runner beans, and are directly marketing around 120 MT of vegetables to Surendra Agrotech.

Till date, more than 30% of the funds have been utilised for for Action Plan of 2011-12.

Collection of produce for joint marketing

Construction of ZECCShed for vermi-compost production

Pump-set purchased using subsidy provided under VIUC

Distribution of lime to FIG members

Protected cultivation structure Vegetable cultivation

North east Region


10

FIGs had established 3 stalls in the State organised Watermelon Festival.

Around 16 bags of lime have been distributed to FIG members of Thoubal and Khoijuman FIG. FIG and FPO-level meetings have been organised for the selection of Board of Directors, opening of bank accounts, record-keeping and the creation of other necessary documentation.


NAgAlAND

Technical training has been provided to farmers on hi-tech, open field vegetable cultivation and vermi-compost production by the Department of Horticulture. Training on Apiculture was imparted by the Central Institute of Horticulture. Under the infrastructure creation component, 12 greenhouses have been installed in Medziphema and Dhansiripar Blocks. In the area of input distribution, vegetable inputs, portable vermi-beds, water cans, knapsack sprayers and plastic crates have been distributed to the FIGs under the

scheme. Around 5 FIGs in Dhansiripar and Medziphema are in the process of adopting organic farming practices. Around 54 FIGs have been provided HDPE vermi-beds.


SiKKiM - Capacity Building, Training, Collective Assembling and Marketing of Produce and, Infrastructure

District officials in East and South Sikkim make frequent visits for on-field inspections and for building awareness amongst farmers. A "Four Day Training Programme” was organised on the technical knowledge of market linkages and entrepreneurship development at the State Institute of Capacity-Building (SICB). More than 1800 FPO members of East and South Sikkim participated in this programme. FPOs have been provided with spraying machines by the Department of Horticulture & Cash Crop Development (DHCCD). These farmers are carrying out joint cultivation of bitter gourd and bottle gourd on a 3 ha area. More than 5 qtls of seasonal vegetables have been jointly transported and marketed. FPO members in East Sikkim have also been provided with other agri-inputs by DHCCD. Under the infrastructure creation component, construction of collection centres is in progress.

Approximately 99% of the funds have been utilised under the Action Plan of 2011-12 and 51% under Action Plan of 2012-13.

TRiPuRA

Awareness-cum-capacity- building activities have been organised at Durgabari Community Hall at Mohanpura and the Agriculture office at Teliamura Division. The training was organised to discuss the bye-laws, share capital structure, business activities, production enhancement, book- keeping, etc. The Deputy Director of Horticulture and the Superintendent of Agriculture discussed the future plans of the FPOs and objectives of the VIUC program. FIG members of Krishanpur village of Krishi Unnayan Vegetables Cooperative Society have done joint collection and marketing of about 9 MT of vegetables like ridged gourd and pointed gourd. The target for the promotion of three new FPOs has been achieved in the state with coverage of 1750 farmers under Tripura Cooperative Society Act 1974. Based on the success of this programme, the Resource Institution has requested for coverage of 3000 more farmers in the coming months.


FIG meeting

SMAll STePS ReSulT iN big beNeFiTS

Farmers’ name: Ms. Pramodini Devi, Fig: Vegetable Farmer’s Group Kameng, District: Imphal

Ms. Prampoini Devi is a small farmer from Kameng village and is involved in vegetable seedling production. Under the VIUC scheme in Manipur, she was selected by the District Horticulture Department as one of the scheme beneficiaries. Under the scheme, she was provided with subsidy for polyhouse construction for growing vegetable seedlings. Estimating the high demand for vegetable seedlings in the area, she was also provided with hybrid seeds, bio-fertilisers, pesticides, chemical fertilisers and seedling trays etc. for seedling production. She carried out the vegetable seedling production as per the instructions of the Department and training provided by Resource Institution. By the end of the 6th month, she has been able to sell the seedlings worth `50, 000/- to FIG members at a cost of `1.50/seedling. The income generated through this activity has helped her to purchase a water pump-set and other equipment.

Awareness meeting at Community hall

Construction of poly-house


11

Comprising the four southern states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu, the Southern Region reported some of the highest utilisations of

allocated funds in the country, and many successes under the Initiative. Updates from these states are as stated below:

ANDhRA PRADeSh

Adopting improved Package of Cultivation Practices

Farmers name – Mr. Hanuman, Fig/FPo - Laxmi Narsimha Group, Total members 20, Village - Gunthapally, block - Kondapur, Medak (Sangareddy)

All the farmers of this vegetable production cluster are very progressive and are primarily vegetable growing farmers. The main crops grown in this cluster are tomato, bottle gourd and chilli. The Department of Horticulture has provided inputs to all the farmers under the VIUC scheme. They have also been taken for exposure visits organised by the Department. One of the farmers, Mr. Hanuman, is growing bottle gourd by making pandals and is obtaining very high yields. Earlier he was growing these without pandals which was resulting in low yields. He got the idea about creating these pandals during an exposure visit organized by the Department to Kolar in

Karnataka, where the farmers were growing most of their cucurbitaceous vegetables in pandals. He has obtained almost three times more production by this method and the vegetable quality has also improved. This has helped him realise higher prices for his produce in the market. The socio-economic condition of Mr. Hanuman has improved thanks to the VIUC schemes under which he has both learnt new techniques and also availed of inputs from the Department.

In Andhra Pradesh, till date, 100% of the funds have been utilised for the Action Plans of both 2011-12 and 2012-13.

KARNATAKA

New Techniques to improve yield and Quality

Cluster- Sri Chaureshwari Tarkari Belegara Sangh, Total members- 35-40, village- Harati, Taluka- Kolar, District- Kolar

Farmers in this vegetable production cluster are extremely progressive. Some of the farmers are using a bio-digester unit for fertiliser preparation. This unit has been provided by the Horticulture Department on subsidy basis. Farmers of this cluster are mainly growing tomato, okra and capsicum. One of the farmers of this cluster, Mr. Gopalappa is growing a tomato hybrid called super Abhinav in 1 acre of area using poles and stakes. Tomato yield from this area is approximately 40 MT in one season. Mr. Gopallappa stated that he has seen great change in this yield as compared to the yield obtained from growing tomato on the ground. Prior to adopting this practice, he was harvesting only 15-20 MT of tomato. Fruit quality has also improved considerably. This change in the practice of vegetable production using such techniques has happened because of the training and exposure visits organized by Department of Horticulture under VIUC scheme.

In Karnataka, till date, approximately 80% of the funds have been utilised for the Action Plan of 2011-12.

Southern Region


12

KeRAlA

New Techniques for Cultivation and Market outreach

Village: Kuvakkad, P.o: Erinchayam, Parayankaru, District: Trivandrum, Farmers’ name: Sunil Kumar

There are around 20 vegetable growing farmers in this cluster. The average holding size of all the members is 0.70 acre in this area. In this season, the major crop grown by the farmers is cowpea and cucumber. During interactions farmers observed that prior to the VIUC scheme, they were growing these vegetables on the ground, but after becoming member of the groups and through the training and proper inputs provided by the Department, they have adopted the practice of growing these vegetables on sticks and poles. This initiative has increased the production manifold. The training and various inputs provided by the Department have helped in augmenting their vegetable production with lower crop loss. Presently they are also getting lucrative prices by marketing their produce in VFPCK Market. Farmers have been benefitted by the scheme and are greatly appreciative of this.

In Kerala, 100 percent of the funds have been utilised for the Action Plan of 2011-12 and more than 80% for the Action Plan of 2012-13.

Quality produce

ADoPTiNg MoDeRN PACKAge oF PRACTiCeS ReSulTS iN DoubliNg PRoDuCTioN AND MiNiMiziNg CRoP loSS, iNCReASiNg iNCoMe oF FARMeRS

Taluka- Uttukotai, block- Ellapuram, District- Thiruvallur

Fig- Thiruvalluvaruzhavar Mandalam, President- R. Velu, Fig members- 19

This FIG is newly formed and major crops cultivated by the farmers are bitter gourd and cowpea. The average holding size of the farmers is around one acre. These farmers have received subsidy under land preparation (open field cultivation) and drip irrigation components of the scheme. Earlier these farmers were growing bitter gourd on ground through which production was only 3 ton/acre but after joining FIG under the VIUC scheme; they have learnt the use of stakes and poles for bitter gourd cultivation in the training provided under the scheme. Now they have double the production and minimised crop loss substantially. With the increase in production and subsidy provided under different components, the total cost of production has reduced and the farmers income has increased. All the farmers are highly satisfied with the scheme.

Bitter gourd at harvesting stage Cowpea cultivation using stakes


13

TAMil NADu

Formation of FIG/FPOs is in progress and 276 clusters have been formed. Subsidy is being distributed after physical verification. The Department of Horticulture has provided drip irrigation facilities to the farmers and installation of the

same is in progress. Arrangements have been made to procure the vegetables through the market aggregators and FPO (CHPCL).

Approximately 32% of the funds have been utilised under the Action Plan of 2011-12.

Market Access for Farmers and their organisations

According to the National Advisory Council (Enhancing Farm Income for Small Holders through Market Integration, 2013), 83% of Indian farmers are small and marginal (2005-06), cover nearly 50% of operational holdings and an estimated 65% of all farmers are marginal. More than 90% of the Small and Marginal Farmers (SMF) are dependent on rain for their crops and in absolute numbers there are about 9-10 crores SMF in India who depend on agriculture for income and employment and due to continued phenomenon of land fragmentation there are about 15-20 lakh new small and marginal farms being added every year.

These small farmers face a multitude of problems including economically enviable scale of operations, outdated technologies, lack of financial support, poor levels of awareness and communication linkages with the market and the consequent exploitation by the middlemen. Small farmers are heavily exploited by series of intermediate traders while linking to markets whether it is for procuring inputs or for marketing their produce. The NAC’s working committee also noted that only a minority of India’s farmers is served by the formal agriculture extension system due to various limitations including the structural problems. Only 9% farmers receive extension services from government extension staff, while 19% of farmers depend on private input dealers for advice (NSSO, 2005).

The NAC recognises the importance of small land holders in the value chain and the urgency in moving small holders further up the value chain to increase their returns on investment and their economic security. The reality on the ground is that value chains in agriculture marketing are fragmented and few opportunities for value addition exist at the bottom of the chain. When dealing with markets small holders have weak bargaining power and poor terms of trade with market agents thus perpetuating low returns and high risks on their investment.

Small farmers face immense difficulties in accessing critical inputs like credit, water, power as well as quality seeds, fertilisers, pesticides and appropriate and timely technical assistance. Since the agricultural inputs required are small in volume terms, the small farmers tend to procure them from local traders at prices which are invariably about 20-30% higher than the price paid by large farmers, who procure

larger quantities. They also further suffer due to the inferior quality of the inputs and delays in procurement. High cost of borrowing may further increase the cost of these inputs. Although the share of cooperatives in fertiliser distribution is 36%, yet there are huge uncertainties in input supplies mainly due to malpractices in distribution systems leaving small farmers heavily dependent on black market sales. In several states FPOs, aided by resource agencies on the ground, are now offering the level of aggregation that is strengthening the bargaining power of small holders and converting disparate voices/requirements into formal contracts with input suppliers for pre-decided quantities and assured quality of inputs.

Post-harvest management has an equal number of problems which seriously affect the profitability of small farmers. Perhaps, not even one third of Indian farmers, especially the SMF, have access to the formal agriculture marketing system, leaving the rest dependent on the informal service providers who are both exploitative and non-remunerative. Small farmers in general, produce a small quantity of agricultural produce and it is not viable to individually transport this produce to distant markets. Thus, they end up selling their produce to local traders at a substantially lower price. Many even enter into informal agreements to sell to their local money lenders to settle their loans. In the absence of storage facilities and the capacity to hold the produce, small farmers are compelled to sell their produce immediately after the harvest, when the prices fall due to an excessive supply in the market. This is particularly true for perishable commodities like fruits, vegetable and dairy products, where about 25-30% of the produce is wasted due to poor post-harvest management. As small farmers are compelled to sell their produce in distress, their net incomes are far lower than those of large holders. When marketing fruits and vegetables, small farmers are heavily exploited by local traders. Many traders offer money up front for the standing crop at the stage of flowering and fruit formation of high value crops like mango, cashew, orange, sapota, etc. With low local demand and poor facilities for transportation and storage, farmers are happy with these guaranteed returns with smaller profits rather than taking many risks.

The APMC to some extent has provided a much needed safeguard to the farmers against exploitation. However, it has restricted competitiveness in the market and has been unable to expand its reach to the remote areas. There is

Feature Article


14

one regulated market per 450 sq. km. The Model APMC Act, which advocates open trade between buyers and sellers outside the market yard, has not been adopted by many state governments. And where adopted it has been either adopted partially or the rules make the changes in effective. The role of the organised private sector in the primary agriculture market is thus very limited. Corporate and other bulk buyers of agriculture commodities find the transaction costs of dealing with a large number of small producers prohibitively high and prefer dealing with bigger farmers and mandi aggregators. The middle men fill the gap by making huge margins.

Small growers in several states have come to realise that coming together, grading and supplying their produce to retail marketers in bulk quantity is in their interest and perhaps the best insulation against the unpredictable fluctuations in the market. To improve the profitability of small holders, it is necessary to strengthen their value chain, which can reduce the cost of production and realise better value for the produce. With the help of public and private agencies, many effective value chain models have been developed and deployed successfully in various states. We look at a few of these models to assess their effectiveness.

KeRAlA

In Kerala, the Vegetable and Fruits Promotion Council Keralam (VFPCK), a section of 25 companies (s) promoted by the Government of Kerala and DFID, own and operate cluster level mini mandis. Farmers bring their produce to these mandis, where they are auctioned by farmers directly to wholesale buyers/retailers. The auction takes place at least twice a week. Each of these mandis is equipped with weighing scales, software to keep track of quantities sold along with a buyer/seller database. VFPCK retains 5% from each transaction as their administrative costs for operating these mandis.

TAMil NADu

The state, had instituted the concept of farmers mandis where the farmer would be able to sell their produce directly to end-consumers. Unfortunately, the infrastructure at these market places is now lying idle and traders are setting up shop inside these market places.

ANDhRA PRADeSh

In Andhra Pradesh, the Government instituted the concept of Rythu Bazar in urban areas where farmers are able to sell their produce directly to end-consumers. It also acts as a one-stop-shop for all household food products like oils, rice and other products, including those from the PDS, are sold at reasonable prices. The farmers are issued ID cards, so that traders are not able to set up shop in these bazaars. Prices of products are mentioned on the notice board and all farmers sell their produce at the specified rate. As on date, the Rythu bazaars are active in urban areas and are able to attract both farmers and end- consumers alike.


15

The other model for output selling which is gaining popularity in the state is the retail selling using mobile vans. The FIGs in the state are being registered as legal entities under the amended Cooperatives Act. Under VIUC, the state government is providing these cooperatives with fabricated mobile vans for selling vegetables in the cities. These vans are equipped with weighing scales, branded plastic pouches for retail selling and sealing machines as well.

Recent USDA data shows that about 47% of the income of India’s 160 million middle class consumers is spent on food. With fruits and vegetables making up a sizeable share of this spend, mobilising small farmers to address this demand directly through innovative and scalable models like the ones mentoneds above becomes imperative.

Management Skills to

Operate FPOs

Current Challenges faced by FPOs Potential Additional Revenue Sources

FPos

Seed Capital for Forming

FPOs

Product Portfolio

Expansion and Diversification

Service Portfolio

Retail outlets-agri inputs dealership + sale of primary produce

Farm equipment dealership + leasing to farmers

Warehousing-dry + wet (cold store) Value addition - packaging + processing of primary produce Eco tourism – farm/village/rural tourism Management and generation of resources– water and power

(solar, nonconventional)

Management of CSCs Act as Banking correspondents Act as Insurance agencies Implementation of Govt. projects

Potential income Sources for FPos

As evidenced in the previous article and case studies included in this edition, the role that Farmer Producer Organisations (FPOs), including Farmer Producer Companies (FPCs), have started playing as aggregators of farm produce and linking farmers directly to markets is now well recognised. Also well-established are the benefits this mobilisation of farmers into Farmer Interest Groups FPOs/FPCs have been a success in terms of giving farmers better bargaining power in the procurement of inputs. With both sides of the coin, revenues and costs, being positively impacted, the FPO movement has ensured increased profitability to the small and marginal farmer in his traditional area of operation.

With such evident success in collectivisation and institutionalisation, the next logical questions would be:

How much more can FPOs potentially do for the ��farmer?

Are there other sources of income and equity ��that an FPO could potentially tap into, which would ensure a triple bottom line impact for not only individual members and their collectives but also for the rural community they represent?

This article aims to provide a high level view of some of the more probable “inclusion” activities (social, financial and economic) that an FPO could undertake and the associated benefits that could be derived.

Challenges faced by FPos: While the complexity of operating a company and the absence of such skills in the primary producers leaves FPOs unviable as commercial entities, this may not be a difficult problem to address. It has been suggested that while the ownership of these producer companies should remain with the primary producers, they could be staffed by professionals in order to fill the gaps and to meet all the needs of their members. Such a plan does hold the promise of FPOs being able to diversify into several other allied sectors. Another challenge facing the FPOs of marginal producers is the equity (seed capital) required for formation of a producer company. Stakeholders have felt that the provisions for grant and seed capital available for producer companies should be made more liberal. Producer companies should be allowed to avail of the various schemes and Departmental Programmes of the government that individual farmers are eligible for and there after aggregate the same as the promoters’ contribution. Another option worth considering would be the formation of a federation of FPOs and registering that as an organisation where other pertinent stakeholders, public and private, could hold equity.


SMAll FARMeRS’ AgRibuSiNeSS CoNSoRTiuM(Society sponsored by Dept. of Agriculture & Cooperation, Govt. of India)NCUI Auditorium Building, 5th Floor, 3, Siri Institutional Area, August Kranti Marg Hauz Khas, New Delhi - 110016Tel: +91-11-26862365, 26966017, 26966037 | Fax: +91-11- 26862367 email: [email protected] | web: www.sfacindia.com

Potential Additional Revenue Sources: With the required infusion of funds and establishment of professional management, FPOs could look at several additional sources of income. Several FPOs, as evidenced in the cases presented, have already started directly retailing to end-consumers. This theme could be further expanded to have FPOs set up either their own mobile or static retail outlets to sell farm inputs as well as their own produce including ‘complementary’ items in the peri-urban and urban localities in while they operate. In terms of marketing and selling, becoming commission- based agencies for selling farm equipment and other agri- inputs could be a possible and lucrative source of income for FPOs. They could create the ideal dealer network that farm equipment manufacturers could bank on to sell or lease out equipment. As legal commercial entities, FPOs could spawn socio-commercial enterprises in their villages. Enterprises for packaging or processing the farm produce could create livelihood opportunities for the community members and their families, while enhancing the returns for the FPOs. Even newer and more unconventional avenues like eco-tourism could be successfully promoted by the FPOs and their subsidi aries.

expansion and Diversification: In several states, water bodies especially water sources for irrigation are maintained and managed by community organisations. FPOs could actively support such activities, charging community members for distribution/availability of such resources thus benefitting themselves and the community as a whole. A similar approach could be adopted vis-a-vis power generation from nonconventional sources such as bio waste, solar energy and wind energy. In several pockets in the country, entrepreneurs are using such inputs and generating power that is then sold to the national/state power grid. The supply of bio-based raw materials, the generation of power from these materials and the overall management of the energy balance sheet for both

agriculture and household consumption could all be highly remunerative for FPOs.

Service Portfolio: FPOs could also play a significant role in supporting improvements in social inclusion in their respective areas. Operational management of Common Service Centres for capture of rural data, dissemination of information and training could serve to enhance the outreach to rural communities, especially the vulnerable sections. FPOs could be effectively empowered as nodal agencies by the government for this and other areas of social impact such as water, sanitation and waste management. FPOs being community-based organisations could bring great value to both the deployment and awareness-building around such endeavours while earning commissions and other revenues from the associated government schemes.

Financial Services: In the area of financial inclusion too, like in the areas of economic and social inclusion, FPOs could be recognised and enlisted as banking correspondents by various public and private banks desirous of marketing and selling banking and insurance products and services to rural communities. FPOs would not only earn commissions from the said activities but the liaison would also augur well for extension of loan and other credit facilities by the banks to the concerned FPOs.

While farmers becoming bankers and power generators is not readily reckonable, and with issues of band width and expertise casting doubts on such possibilities, one would ask if such an expanded role for FPOs can indeed be created and if so what this would entail. Our endeavour in our forthcoming editions of the newsletter would be to delve deeper into each one of these individual areas to explore the related viability and substantiate the same with pertinent case studies and models where they may exist.

Documents

Monthly Newsletter - Agriculture Financing, Agricultural ...sfacindia.com/PDFs/VIUC Newsletters/VIUC Newsletter... · Name of Farmer-Mr. Dev Raj Verma, Village- Trewa, block-Arnia,