Transcript ISSUES FACED BY FPOs - National Horticulture Mission

National Horticulture Conference
17th July 2013
By Jyoti Singhal
Under Secretary (NHM)
Assisting States in addressing the entire value chain: farm to fork
Enhancing vegetable production and productivity
Improving nutritional security and income support to farmers.
Encouraging establishment of an efficient supply chain
Employment opportunities and incomes for intermediate service providers, and
safe, good quality, fresh vegetables at competitive price for urban consumers.
Promoting, developing and disseminating technologies for enhancing production
and productivity of vegetables in catchment areas of major cities
Base Line Survey
Seed Production of Vegetables
Vegetable Seedling Production
Seed Infrastructure
Open Cultivation
Protected Cultivation
Promotion of INM/IPM
Organic Farming
Training of the Farmers
Post Harvest Management
Outlets for retail marketing
Promotion of Farmer Associations/Groups
Components
Target (Unit)
Base Line Survey
Achieved (Unit)
47
28
610468
603869
99384.13
2043798
88164.47
848312
Promotion on INM/IPM (ha)
28437
20140
Organic Farming (ha/Unit)
10981
4915
60349
34893
4154
1326
152868
73976
11888
8592
Planting Material
• Seed /Seedling Production (ha)
Cultivation
• Vegetable Cultivation (ha)
• Protected Cultivation (Sqm)
Organic Farming
Post Harvest Management
PHM (Unit)
Outlets for Retail Marketing (Unit)
Training of Farmers (Nos)
Promotion of Farmer Associations/Groups





1,43,657 farmers connected to FPO network
Over 104 FPOs mobilized
61 FPOs registered
43 to be registered soon.
FPOs supported in capacity building, training,
business development, value added services
and marketing
 Working towards creation of IT based
marketing framework
 8 State level FPO federations promoted
Target
TOTAL
No. of Farmers to be
mobilized
No. of FIGs
No. of FPOs
150650
7533-10043
104
Achievement
TOTAL
No. of Farmers
mobilized
No. of
FIGs
No. of FPOs
registered
FPOs
under process
Registration
143657
7416
61
43
1 FIG = 15 to 20 farmers; 1 FPO = 1000 farmers
ACHIEVEMENT OF FPOs PROMOTED BY SFAC UNDER VIUC PROGRAMME (2011-12)
Target
S.No
Name of State
1
Andhra Pradesh
2
Arunachal Pradesh
3
Assam
4
Bihar
5
Chhattisgarh
6
Delhi
7
Goa
8
Gujarat
9
Haryana
10
Himachal Pradesh
11 (a) Jammu
(b) Srinagar
12
Jharkhand
13
Karnataka
14
Kerala
15
Madhya Pradesh
16
Maharashtra
17
Manipur
18
Meghalaya
19
Mizoram
20
Nagaland
21
Odisha
22
Punjab
23
Rajasthan
24
Sikkim
25
Tamil Nadu
26
Tripura
27
Uttarakhand
28
Uttar Pradesh
29
West Bengal
TOTAL
No. of
Farmers
15000
1750
6000
6000
6000
3500
1750
3000
5000
6000
1500
600
10000
4600
6000
5000
8500
1750
1750
700
1750
6000
6000
10000
1750
8500
1750
6000
6000
8500
150650
No. of FIGs
750-1000
88-117
300-400
300-400
300-400
175-233
88-116
150-200
250-333
300-600
75-100
30-40
500-667
230-307
300-400
250-333
426-566
88-117
88-117
35-47
88-117
300-400
300-400
500-666
88-117
426-566
88-117
300-400
300-400
426-566
7533-10043
No. of
FPOs
NA
2
NA
7
6
4
2
4
8
NA
1
1
6
NA
6
5
8
2
2
1
2
6
8
6
2
NA
2
6
NA
7
104
No. of
Farmers
15000
1678
6000
6606
6063
3520
1810
3111
5073
6000
1500
600
10107
3173
3160
5007
9730
1750
1750
700
1750
6001
6005
10123
1876
5940
1750
6004
3548
8322
143657
Achievement
No. of
FPO
FIGs
Registered
150
NA
94
2
300
NA
408
4
412
2
196
4
116
0
165
0
259
5
72
NA
85
1
35
0
628
5
230
NA
158
2
277
5
485
4
84
2
140
2
35
0
139
1
301
2
343
5
544
3
159
0
298
NA
127
0
360
6
175
NA
641
6
7416
61
FPO registration
under process
NA
NA
NA
3
4
0
2
4
3
NA
0
1
1
NA
4
0
4
0
0
1
1
4
3
3
2
NA
2
0
NA
1
43
 “Farmer Producer Organisation (FPO) including Farmer
Producer companies (FPC), have emerged as
aggregators of farm produce to link farmers directly to
markets. To signal our support to them, I intend to
provide matching equity grants to registered FPOs
upto a maximum of Rs. 10 lakh per FPO to enable them
to leverage working capital from financial institutions. I
propose to provide Rs. 50 crore for this purpose.
Besides, a Credit Guarantee Fund will also be created in
the Small Farmers’ Agri Business Corporation with an
initial corpus of Rs. 100 crore. I urge State Governments
to support such FPOs through necessary amendments
to the APMC Act and in other ways”.
 The scheme proposes setting up of two funds,
Equity Grant Fund and Credit Guarantee Fund
 Major Objectives :
 Enhancing viability and sustainability of FPOs by
increasing their equity base
 Increasing credit worthiness of FPOs
 Incentivizing financial institutions to extend
working capital and investment loans to FPOs to
increase their business operations.
 FPOs can apply to receive a one-time
matching grant up to a maximum of Rs. 10
lakh to issue additional shares to members,
thus increasing their equity base.
 Broad principles to be adopted from a similar
fund created for SMEs , which is operated by a
Trust set up by SIDBI. The CGF will offer loan
guarantee cover to eligible FIs which advance
loans to Rs. 1 crore to FPOs without seeking
collateral.
 APMC laws not encourage aggregators leading to
opaque market arrangements.
 Need to strengthen linkages of FPOs with State
extension machinery
 Access and operational understanding of best practices
for PHM components with market links
 Unfriendly banks to get credit / finance for procuring
PHM infrastructure
 Meager exposure to managing modern production
technology needing more agri-extension
 Need for developing market linked aggregation base
 No ready access to efficient quality management and
marketing, pan-India logistics