Transcript Slide 1

Farmer Producer Organisations
Pathway to integrate producers in the
value chain
Performance and prospects in
Eastern India
Overview of FPO network structure
SFAC
Marketing linkage/inputs/credit
State level
State Level Producer Company
(Policy advocacy, explore
wider markets, strategic
partnerships)
(10000+ farmers)
Cluster level
KPC
(10-12 villages)
(1000 farmers/
(Credit, inputs, technology,
capacity building,
marketing linkages)
50 FIGs in each)
Village level
FIG
(Crop planning, seed
production,
demonstration, knowledge
sharing, aggregation)
(15-20 farmers in
each group)
Kisan
Producer
Co/Coop
FIG
FIG
Collective
Marketing
HRD
Credit
Equity
Ecosystem for
sustainable
FPO
Services
(Technical)
Networking
Infrastructure
development
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
29
State
Andhra Pradesh
Arunachal 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
Telangana
Tripura
Uttarakhand
Uttar Pradesh
West Bengal
Total
STATE WISE PROGRESS OF FPO PROMOTION as on 31.03.2015
No. of Farmers
No. of FPOs
Under
Under the process
Mobilized
Total
Registered
Mobilization
of registration
0
7000
7000
0
7
1750
0
1750
2
0
13295
4705
18000
8
11
13293
12707
26000
5
20
3535
0
3500
4
0
1810
0
1750
0
2
19047
953
20000
10
11
8408
0
11750
16
9
3733
1117
48F50
0
4
3060
921
3981
1
2
3120
960
4080
1
3
10009
0
10000
8
0
25377
59123
84500
14
68
83277
61723
145000
48
96
62278
29222
91500
40
49
1750
1200
2950
2
1
1970
1780
3750
2
2
1000
1700
2700
0
3
1750
0
1750
1
1
23263
15637
38900
6
35
6288
0
6000
7
0
40277
6223
46500
26
12
1876
0
1750
2
0
11116
0
11000
1
10
23492
506
23998
10
10
2850
0
2750
3
1
6004
0
6000
7
0
27453
5547
33000
20
14
58599
10901
69500
16
51
459680
224529
684209
260
422
Total
7
2
19
25
4
2
21
25
4
3
4
8
82
144
89
3
4
3
2
41
7
38
2
11
20
4
7
34
67
682
Promotion of Farmer Producer Organizations in Eastern States
Target
S.No
Achievement
Name of State
No. of Farmers
No. of FPOs
No. of Farmers
FPO Registered
FPOs/ regn.
1
Bihar
18000
19
13295
8
11
2
Chhattisgarh
26000
25
13293
5
20
3
Jharkhand
10000
10
10009
8
-
4
Odisha
38900
41
23263
6
35
5
West Bengal
69500
67
58599
16
51
27453
33000
20
34
28
28
Uttar Pradesh
WHY ER lags behind
• Addressing the 3 deficits critical:
1. Institutions
2. Investments
3. Incentives
Institutional deficits
• Land titles, land records and tenancy situation
is messy
• Rural credit institutions are weak or nonexistent
• Technology delivery system is not working well
• Marketing institutions are absent or in poor
shape
Investment deficits
• Underinvestment due to weak credit linkages
• Poor access to institutional finance: high cost
of informal credit
• Lack of post-harvest infrastructure: high losses
• Poor value chain integration: low returns
Incentive deficits
• Poor market infrastructure deters competition
• Monopoly/monopsony conditions in mandis
• Weak performance and poor targeting of govt.
schemes
• Poor coverage of MSP regime (except CG)
• Disincentives for land consolidation
• Generally uninviting stance towards private
players in agriculture; security issues in parts
Leveraging agriculture
in Eastern India
for sustainable livelihoods
Some ideas on the way forward
Towards sustainable agri livelihoods
• Closing institutional deficit:
1. Digitization of land records in 5 yrs on mission mode
2. Liberalizing tenancy policy for SMF – more land
availability for food and HVA
3. Seed capital grant to promote new small finance
banks for agri credit
4. PPP for agri extension in specific value chains
(maize, sugarcane, potato, medicinal plants, fruits,
spices): focus on on-the-shelf technologies;
mechanization
5. Liberal marketing policies to attract private
investment in market infrastructure; e-marketing;
contract farming
Towards sustainable agri livelihoods
• Closing investment deficit:
1. Large scale promotion of FPOs in every state of ER and NER:
leverage power of collective, reduce costs, deploy mobile
technology
2. Promote selected value chains with private partners (begin
with commercial crops)- backward linkage with FPOs
3. Incentivize new financial institutions to enter, promote
savings, develop new financial products: IS CROP CREDIT
MODEL WORKING?
4. Govt. schemes to be prioritised for FPOs wherever formed
for better targeting and impact
5. Set up risk fund for region for select crops to incentivize new
insurance products
6. Select agri processing zones with lead public investment in
infrastructure to attract value addition: land, security etc.
Towards sustainable agri livelihoods
• Closing incentive deficit:
1. MSP purchases for major cereals in ER must
2. Adopt liberal investment policies in agri to
attract private investment: create land banks
3. Develop internal market in conservation
credits for select ER states (CG, JH)
4. Open up border trade with neighbours: look
beyond to ASEAN for markets for niche
produce
Next steps
• Niti Aayog and DAC help each ER state to
create Strategic Plan for Agriculture (SPA)3/5/7 year deliverables identified
• Prepare minimum policy reform suite which
would trigger enhanced financial support
• Jointly monitor outputs and outcomes and
modify as necessary