Farmer Producer Organizations
and the Future of
Agriculture Marketing
Imperatives for inclusive economic growth
Small Farmers’ Agribusiness Consortium
(Dept. of Agriculture and Cooperation)
Govt. of India
लघु कृषक कृषष व्यापार सघं
भारत सरकार, कृषष मंत्रालय
1
How FPOs benefit small producers
1. Aggregating smallholders into FPOs proven pathway to
increase investment, improve bargaining power, move
up value chains and improve access to technology,
markets.
2. Aggregation only way to enable SMF to exploit
emerging opportunities domestic and global by
integrating with SMEs; retail chains
3. Climate change coping mechanisms and risk mitigation
requires aggregated platforms for efficient delivery
4. Aggregation will facilitate more effective targeting of
subsidies to farmers
2
SFAC FPO network structure
SFAC
Marketing linkage/inputs/credit
State level
(Policy advocacy, explore
wider markets, strategic
partnerships)
Cluster level
(10-12 villages)
(Credit, inputs, technology,
capacity building, marketing
linkages)
Village level
(Crop planning, seed
production, demonstration,
knowledge sharing,
aggregation)
Federation of KPCs
(10000+ farmers)
KPC
(1000 farmers/
50 FIGs in each)
FIG
(15-20 farmers in
each group)
Kisan Producer
Co/Coop
FIG
FIG
Farmer Producer Organizations (FPOs)
Typical range of services provided
Financial & technical
Input supply
(Seed, fertilizer, machinery)
(Credit, savings, insurance,
extension)
FPO
Marketing linkages
(contract farming,
procurement under MSP)
Training and Networking
(HRD, policy advocacy,
documentation)
S.No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Promotion of Farmer Producer Organizations by SFAC
Achievement
Name of State
Farmers mobilized/under
FPO registration
No. of FIGs
FPO Registered
mobilization
under process
Arunachal Pradesh
Andhra Pradesh
Bihar
Chhattisgarh
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu
Srinagar
Jharkhand
Karnataka
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Punjab
Rajasthan
Sikkim
Tamil Nadu
Tripura
Uttarakhand
Uttar Pradesh
West Bengal
TOTAL
1750
34395
28606
26063
3535
1810
30461
7048
3850
3000
3000
10107
36828
118410
72917
4750
3750
700
1750
38523
6005
56215
1876
21000
1750
6004
39697
58322
622122
94
837
526
412
196
116
536
362
226
170
117
628
864
5585
2952
260
258
35
139
1006
343
2061
159
50
127
359
1034
3582
23034
2
10
7
5
4
0
6
9
1
0
8
12
34
33
2
2
0
1
6
7
22
2
1
3
6
10
7
200
0
20
22
21
0
2
25
3
4
0
3
0
23
89
35
3
2
1
1
34
1
27
0
20
0
0
34
50
420
Integrated development of 60,000 Pulses Village in Rainfed
areas – an Overview
Name of State
No. of Farmers
mobilized
No. of FPOs
formed
Andhra Pradesh
14395
10
Gujarat
Karnataka
7350
16828
6
14
229403
29
Maharashtra
27187
23
Rajasthan
Uttar Pradesh
22092
19697
15
10
136952
108
Madhya Pradesh
Total
No. of Demo.
in Kharif
Season
Name of State
No. of FIGs with
Bank Account
Andhra Pradesh
316
350
Gujarat
Karnataka
22
304
150
384
Madhya Pradesh
985
1185
Maharashtra
595
2565
Rajasthan
Uttar Pradesh
227
26
433
500
2475
5567
Total
Major activities carried out so far
4626 Audio /
Visual Shows
organized for
66005
participants
3234Orientation
Trainings
conducted
covering 64074
members
186 Exposure
visits for 9286
farmers
7108 Trainings
conducted to
enhance the
capacity of
110560
members
KVK
demonstration
plots
Red gram
Transplanting
method and
techniques to
be followed
while
transplanting
LRP and BDS
capacity
building
programme on
the pre
monsoon
session on red
gram with INM
and IPM
techniques
INM and IPM
Seed
processing unit
ARS Bidar
Training
programme
has been
conducted on
demonstration
sites
Demonstration
plots
Red gram
cultivation
Krishidoot Mobile base
Advisory
Services
Benefit of
collectivization
Detailing on
package and
practices for
Pulse production
like line sowing,
land preparation,
seed treatment,
seed rate.
7256 Kisan
Sabha/Goshties
held at
village/block
levels with a
total
participation of
116392
members
Pest and
diseases
control, Good
agricultural
practices
followed
Demonstration
on Seed
treatment
Mini Dal mill
Vermicompost
unit and dairy
units of Gudur
village of
Gulbarga Taluk
and Sedam
taluk
Farmers pulse
industries,
Bidar
1240 Workshops
conducted for
imparting
knowledge on
various topics to
3824
participants
Hand holding
support for
FIG, FPO
formation and
legal aspects to
be followed by
Basic Live hood
school at
Gulbarga
FPO Formation
Red gram
cultivation
Soil Testing
Plant
Protection
FPO Formation
Improved
agriculture
practices for
Rabi
Intercrops in
Red gram and
crop diversity
Ideal
demonstration
plot
Details of Pulse Demonstration Plots Conducted in Kharif-2012
S.No
State
No of FIG
Covered
1
Andhra Pradesh
406
2
Gujarat
135
3
Karnataka
395
4
Madhya Pradesh
933
5
Maharashtra
1255
6
Rajasthan
480
7
Uttar Pradesh
Total
534
4138
Crop
Red Gram, Bengal Gram, Green Gram
major crop with Redgram as inter crop,
Blackgram major crop with Redgram as
inter crop
Black Gram, Tur (Pigeon peas ), Mung,
Math, Chana, Urad, Tur
Green Gram, Soyabeen, Red Gram,
Composting, Green manuring, Vermi
Composting, Red gram-Dibbling Method,
Red Gram-Transplanting, Seed Treatment,
Bengal Gram
Urad, Arhar, Moong, Pigeon pea, Black
gram,Pigeon pea + Soybean
Black Gram, Red Gram, Bengal Gram,
Peagion Pea + Green Gram,
Vermicompost, Tur, MoongTur, Udid, Soil
Testing to Harvesting, Compost
Demonstration, Soil
Green Gram, Black Gram, Moong, Moong
(Dinkar), Moong (Green Gram), Urad
(Black Gram)
Arhar,Urad,Moong
Area
(In Acre)
No of Demo's
Conducted
661
406
142
131
442
395
1349
933
1384
1240
479
480
1320
5775
0
3585
National Demonstration Project for promotion of FPOs Duration: 201314 to 2015-16
& Value Chain development of pulses and millets under NFSM
Targeted
No. of
Farmers
10000
Target
No.
of FPOs
10
10000
10
10000
6000
10
6
10000
10000
10
10
Bihar
Maharashtra
10000
10000
10
10
Odisha
Rajasthan
Tamil Nadu
10000
10000
10000
10
10
10
Total
106000
106
Sl.
No.
Name of
State
1
5
6
Andhra
Pradesh
Uttar
Pradesh
Karnataka
Madhya
Pradesh
Gujarat
Chhattisgarh
7
8
9
10
11
2
3
4
SFAC has already issued work order to the Resource Institutions in all States for FPO Promotion
SFAC PROCUREMENT OF PULSES & OILSEEDS AT MINIMUM SUPPORT PRICE RABI 201314
State
Commodity
No. of FPOs
Groundnut
Andhra Pradesh
Tur
Gujarat
Groundnut
Sub Total
Karnataka
Sunflower Seed
164
0.65
590
796
3.42
3
5
0.02
5
704
965
4.09
5
3854
14516
58.07
5
3854
14516
58.07
203
516
1.91
78
281
3
1726
2975
4704
9543
184
700
5
3830
4939
8774
24955
0.57
2.38
0.02
11.87
21.24
33.13
97.67
5
4
Chana
Sub Total
Maharashtra
Sub Total
Grand Total
4
Black Gram
Chana
Tur
Cumulative
Cumulative
purchase
purchase value
(MT)
(Rs. in Crore)
111
Chana
Sub Total
No. of
Farmers
26
26
40
FIG Development & Capacity Building in Gujarat
FIG Meeting at Village level
Cluster level meeting of FIG leaders
Increasing Income Through Value Addition
Name of FPO: (Akola Soy and Cotton producer Company Ltd, West Vidarbha Maharashtra)
Grading of Tur Dal (Double Roller Dal
Mill)
Collective procurement of fertilizer
FPOs make business sense
FPO Input Shop
FPO Name: Kedar Nath Kisan Agro
Producer Co. Ltd, Rajasthan
Inputs Supply Facilitation in Gujarat
Seed Procurement
Fertilizer Demonstration
Value Addition
Activities undertaken for value addition in Mahrashtra FPO:
• Grading of Red Gram in Maharashtra
• Processing of tur (leveraging the existing interventions.)
• Setting up of Mini Dal mill
Setting up Of Mini Dal Mill in Maharashtra and Karnataka
•Capacity - 40 Qtl per day
•Plans to buy low cost gravity
separator for grading
Agribusiness Centre, Halbarga, Karnataka
FPO - Jai Kissan Souharda
MultiPurpose Cooperative
Location- Halbarga, Bhalki, Bidar
Warehouse
Mini Dall Mill
Input Store
FPO Office
- Plan to have similar Agribusiness Centres for all the 5 Locations
Input Licences of “Jai Kissan Souharda
MultiPurpose Cooperative”
Fertilizer & Pesticide License
Seed License
Farm Mechanization Centre
•
•
•
•
•
•
Tractor
Tanker
Trolley
Plough
Cultivator
Hand Weeder
This center is
Likely to get
support
under
“Custom Hiring
Centre”
from
Department
of
Agriculture,
Bidar, Karnataka
FPOs in the XII Plan
• XII Plan document endorses FPO mobilization
• Policy framework to promote FPOs under RKVY
• 2014: Year of Farmer Producer Organizations
• 2014: UN Year of Family Farming
• Equity Grant and Credit Guarantee Fund Scheme
for Farmer Producer Companies
20
Thank You
21