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Farmer producer organizations
- 1. FARMER PRODUCER ORGANIZATIONS • Collectivization of producers, especially small and marginal farmers into producer organizations. • It has emerged as one of the most effective pathways to address the many challenges of agriculture. • Less investments,improved technology and inputs and markets. BACKGROUND • Department of Agriculture and Cooperation (DAC),Ministry of Agriculture, Government of India launched Farmer Producer Organisations (FPOs). • During 2011-12, in partnership with state governments,which was implemented through the Small Farmers Agribusiness Consortium (SFAC). • The organisation involved the mobilisation of approximately 2.50 lakh farmers into 250 FPOs (each with an average membership of 1000 farmers) across the country, under scheme of the Rashtriya Krishi VikasYojana (RKVY). Who can be the Initiator for establishing FPO? • An NGO working with the primary producers group and willing to introduce the concept of ‘Producer Companies’ for the economic enhancement of the producers. • Any person or group of persons.
- 2. • Any Government organization or department can also promote Producer Companies. • coconut is top priority and pomegranate the least. • 40,000 hectares of potatoes in Karnataka are tie-up with ITC (which manufactures Bingo) and Pepsi (Lays) can take care of our entire potato crop. OBJECTIVES • Mobilising farmers into groups of between 15-20 members at the village level. • Strengthening farmer capacity through agricultural best practices for enhanced productivity. • Ensuring usage of quality inputs and services for intensive agriculture. • Facilitating fair and remunerative markets including linking of producer groups to marketing opportunities. Government intervention • Government: 90 lakhs per permanent structures like cold storage. • Small Farmers Agriculture-Business Consortium (SFAC) will give grant of Rs 10 lakh • NABARD is committed to give each FPO Rs 5 lakh. FPO SERVICE MODEL • Financial Services: The FPO will provide loans for crops, purchase of tractors, pump sets, construction of wells,
- 3. laying of pipelines. • Input Supply Services: The FPO will provide low cost and quality inputs to member farmers. It will supply fertilizers, pesticides, seeds, sprayers,pumpsets, accessories,pipelines. • Procurement and Packaging Services: The FPO will procure agriculture produce from its member farmers, will do the storage, value addition and packaging. • Marketing Services: The FPO will do the direct marketing after procurement of agricultural produce.this will enable members to save in terms of time,transaction costs, weighment losses distress sales, price fluctuations,transportation,quality maintenance etc. • Insurance Services: The FPO will provide various insurance like Crop Insurance, Electric Motors Insurance and Life Insurance. • Technical Services: FPO will promote best practices of farming, maintain marketing information system, diversifying and raising levels of knowledge and skills in agricultural production and post-harvest processing that adds value to products. • Networking Services: Making channels of information(e.g. about product specifications, market prices) and other business services accessible to rural producers. • Facilitating linkages with financial institutions, building linkages of producers, processors, traders and consumers, facilitating linkages with government programmes.
- 4. Challenges • Raising share capital is the main challenge. • Difficulty in convincing government. • To mobilize farmers into community organizations is very big task. • It requires very high skills to convince individual producers / growers to form organizations. • Legal and technical knowledge about Acts and Regulations. Output Marketing of Onions by Ramalingeshwara HFPCL, Hosadurga Taluk, Chitradurga District. • 35 farmers involved in this organisation. • Benefits: they got a margin of 15-20% higher than the local market price. • Benefits for FPO:FPO got benefit of Rs.20 /Quintal as service charge. FPO played role of aggregator. • Buyer: Kissan Networks Private Limited. • The impact: FPO acting as a collection centre. they have sold 62 Tons of onion. • CEO: Pradeep, Contact Number-+919743068215
- 5. Output Marketing of Banana by Hemavathi HFPCL, Gubbi, Tumkur District • Market linkages established for Unripe Banana fruits • Farmers benefited/covered out of this linkage is 24 • Benefits: The number of FPO members are getting margins of 3-5%, transportation is saved and commission charges are lesser. • Local buyers buy the produce. • Impact: The FPO is acting as collection aggregator, where they procure bananas from share holder at an average price of 25 Rs from farmers every day. The Local buyers contact the FPO and buys the Banana produce at the price 3-5% more of margin than Local markets. • CEO- Chandrashekar, Contact number – 9740161407