Athavale Suvarna Shirish(0086/50) Bhupesh Manoharan(0086/49) Karthik Sundar Prabhakaran(150/50) Vijay Prakash(4058/20)

PROJECT DELIVERABLES

Enlisting the type of FPOs; governing regulatory bodies of respective type and recommend the type of FPO for providing finance. Avenues for funding FPOs: A look at various models available with a SWOT and recommendation of the best approach Regulatory update, GOI initiatives and outlook Geographies where different models are being tried out Identification of specific geographies for commencing funding Identify potential partnership areas between banks and NGOs/development institutes Experiences of NBFCs in funding FPOs Experiences of banks in funding FPOs

FARMER PRODUCER ORGANISATIONS

Conceptualized by Department of Agriculture, Govt. Of India Small Farmers Agribusiness Consortium (SFAC): Society promoted by Dept. of Agriculture, Govt. of India: Nodal agency to coordinate with various State governments, civil society partners, private sector, financial institutions, resource persons and other stakeholders AIM: Enhance production, productivity and profitability of small farmers in the country by collectivisation Established to address three main challenges facing small farmers today investments, technology and markets.

OBJECTIVES OF FPOs / BENEFITS OF FARMERS

Mobilize farmers in groups at the village level and build associations (FPOs) to plan and implement product specific cluster/ commercial crop cycles Strengthen farmer capacity through agricultural best practices for enhanced productivity Ensuring access to and usage of quality inputs and services for intensive agriculture enhancing cluster competitiveness Facilitate access to fair & remunerative markets including linking producer groups to marketing opportunities by market aggregators.

METHODOLOGY ADOPTED BY THE GROUP

Studied the different types of FPOs in various geographies

Vrutti(NGO) partnered FIGs in Medak-Andhra Pradesh & Gulbarga-Karnataka (6 FPOs) Velliangiri FPO in Coimbatore-Tamil Nadu (NGO Partner : Isha Foundation) Grape Grower Association- Commodity based FPO in Maharashtra Pani Panchayat FPOs- Odisha

Conducted 4 Interviews with FPO members and 2 NGO partners Studied the GOI regulatory updates on FPOs Studied NABARD funding regulations ( Bank experience in funding FPOs) Conducted research on the West Bengal Agricultural pattern (Rainfall, Types of Crops - District wise, Viability of FPOs, Farmer Associations, Political Influence, Govt. of WB Initiatives)

TYPE OF FPOs

The Grower Associations The User Associations The Farmer Cooperatives Farmer Interest groups The Farmer Clubs The Producer Companies

GROWER ASSOCIATIONS
Grape Grower Association, Maharashtra Commodity oriented agricultural products (fruits, vegetables, sugarcane, banana, etc.,) Help farmer members in getting the latest information and technology. Establish regular contacts with research centres to access information and technologies Organizes educational programmes for its member farmers. Helps to develop integrated plant protection schedule against pest and diseases and implementing measures to reduce pesticide residues to facilitate exports. Conducts seminars and conventions to educate growers and engage in policy advocacy on behalf of growers

USER ASSOCIATIONS

Pani Panchayat Association (FPO), Odisha Helped in participatory irrigation management, watershed management and community forest management. Established farmers organizations in all the irrigation systems, for operation and maintenance. Office bearers are elected through a democratic process. Autonomous management of the irrigation system by producer organizations in their respective areas for both the maintenance of the system and for the distribution of water. Helped farmers to adopt the best water management practices; understand the collective management systems in crop planning, water distribution and conflict resolution and develop an action plan for strengthening learning.

THE FARMER COOPERATIVES

Milk Cooperatives (FPOs established with support from AMUL), Gujarat Farmer cooperatives have organized an effective extension delivery system. FPO helps to create awareness about improved animal husbandry practices. Organises field demonstrations and extension camps to promote better feeding practices, fodder development and clean milk production practices among milk producers.

THE FARMER INTEREST GROUPS (FIGS)

Vrutti (NGO) partnered FIGs: Medak & Gulbarga districts Farmer Interest Group (FIG) is a self managed, independent group of farmers with a shared goal and interest. Commodity oriented Farmer Interest Groups (FIGs) are promoted at block/village level to make the technology generation/dissemination farmer-driven and farmeraccountable. Village level FIGs are ultimately federated at block/district level Strengthen farmer capacity, Ensuring access to and usage of quality inputs and services, Facilitate access to fair & remunerative markets.

THE FARMERS CLUBS

NABARD assisted farmers clubs (FPOs) Clubs are organised by rural branches of banks with the support and financial assistance of NABARD for the mutual benefit of the banks concerned and the village farming community/rural people. Objective is to achieve prosperity for the farmers with overall agricultural development in its area of operation by facilitating credit counselling, technology counselling and market counselling. NABARD provide a financial assistance of Rs. 10,000 to each club per annum for three years. Club members were expected to utilise this amount to meet routine expenses for formation, maintenance, and organising awareness meets.

THE PRODUCER COMPANIES

Body corporate having objects or activities specified in companies Act Developed with financial assistance from NABARD (National Bank for Agricultural and Rural Development) - Producers Organization Development Fund (PODF). Assists farmers to enhance organizational and skill building Organises meetings of the experts, tie-ups with the various agricultural universities, etc. Indian Organic Farmers Producer Company Limited, Vanilla India Producer Company Limited, Rangsutra Craft Duniya Producer Company Limited, Masuta Producer Company Limited, and ESAF Swasraya Producer Company Limited

PRODUCER ASSOCIATIONS SWOT ANALYSIS

Strengths Strong Legal Framework Increased Accountability Reduced Corruption Increased Awareness about usage efficiencies Improved Maintenance Services Provision Improved Collective Action Opportunities Increased Stakeholder Participation Delegation of Responsibility to grassroots Changing Perceptions about Value of Water Increasing availability of information Government Initiatives Weaknesses Possible Collusion amongst rich farmers Lack of knowledge among Users and potential users

Threats Bureaucratic Resilience Increased Pollution of resources such as water Lack of proper monitoring systems

REGULATORY UPDATES &GOI INITIATIVES

Union Budget 2013 Farmer Producer Organizations Matching equity grants to registered Farmer Producer Organization (FPO) up to a maximum of ` 10 lakhs per FPO to enable them to leverage working capital from financial institutions. Credit Guarantee Fund to be created in the Small Farmers Agri-Business Corporation with an initial corpus of ` 100 crore.

REGULATORY UPDATES &GOI INITIATIVES

Department of Agriculture and Cooperation suggests the following steps to be taken by State Governments to support and strengthen FPOs: Declare FPOs at par with cooperatives registered under the relevant State legislation and self-help groups/federations for all benefits and facilities that are extended to member-owned institutions Make provisions for easy issue of licenses to FPOs to trade in inputs (seed, fertilizer, farm machinery, pesticides etc.) Use FPOs as producers of certified seed, saplings and other planting material and extending production and marketing subsidies on par with cooperatives Allow direct sale of farm produce by FPOs at the farmgate, through FPO owned procurement and marketing centres Appoint FPOs as procurement agents for MSP operations for various crops. Use FPOs as implementing agencies for various agricultural development programmes, especially RKVY, NFSM, ATMA etc. Link FPOs to financial institutions like cooperative banks, State Financial Corporations etc.

WB AGRICULTURE SCENARIO

WEST BENGAL : AN OVERVIEW

Geographical Area
Nos. of Agricultural Districts Nos. of Agricultural Blocks Nos. of Gram Panchayets Nos. of Mouza / Village Population (2001 census) Population Density Agro-Climatic Zones Gross Cropped Area Cultivable Area Net Area Sown Irrigated Area Total Nos. of Agricultural holdings Size of average Land Holding Cropping Intensity (Provisional, 2008) Total Food Grains Production (2007-2008) Total Food Grains Production (2008-2009)

88752 sq. Km.

18 335 3354 40782 8,02,21,171 903/ Sq. Km. 6 Nos. 9510423 ha 8686639 ha 5354196 ha 62% of Net Cropped Area 6953922 Nos 0.82 ha / Holding 184% 160.60 Lakh MT 162.97 Lakh MT

AGRO-CLIMATIC ZONES
1

1. Northern Hill (29.1K sq.Km) (Darjeeling and Jalpaiguri)

2

2. Terai Teesta Flood plain (12K sq.Km)

(Coochbehar, Jalpaiguri and Uttar Dianjpur)

3. Gangetic Flood plain (16.3K sq.Km) (Dakhin Dinajpur, Malda, Nadia,Uttar Dinajpur, Burdwan, Murshidabad, North 24 Parganas, South 24 Parganas, Howrah, Hooghly, and Birbhum) 4. Undulating Lateritic (23.8k sq.Km)
3

(Purulia,Burdwan, Birbhum, Bankura and West Midnapur) 5. Vindhyan Old Flood plain (17.9K sq.Km) (Murshidabad, Howrah, Hooghly, Burdwan and Birbhum, West & East Midnapur)

6. Coastal Flood plain (12.8K sq.Km)

(North 24 Parganas, South 24 Parganas, Howrah, East Midnapur)
6

LAND USE STATISTICS (2011-12)

Land use
Geographical Area
(Area in lakh ha)

88.84113

Reporting Area
Net area shown Area under non-agril. Uses Forest Area

86.84
52.94 17.92 11.73

Current fallows
Land under misc. tree crops & groves not included in the net area sown Culturable waste land

2.87
0.55098 0.31605

Barren & unculturable land

Fallow land other than current fallow Permanent pastures and other grazing land Gross cropped area

0.21139
0.21534 0.07198 98.01516

Cropping intensity (in percent)

185.14

FARMING COMMUNITY: COMPOSITION VIS--VIS OPERATED AREA (2010-11 AGRI. CENSUS)

Category of farmers Marginal Small Land ownership(%) 81 14.5 Land under operation(%) 51 29

Semi-medium
Medium Large
80 70

4
0.4 0.01

14
2 4

60
50 40 In lakh 30 20 10 0

Holdings (no.) Area of Holdings (ha)

Marginal (Below 1ha)

Small (1-2 ha)

Semimedium (24 ha)

Medium (410 ha)

Large (10 ha & above)

Tot al

WEST BENGAL : PLACING ISSUES IN PERSPECTIVE

Has 8% of Indias population with 2.7% of the total area,

Population Density (1029 per Sq. Km) puts tremendous pressure on land,
Agriculture contributes nearly Rs 41,000 crore (21%) to the SDP per annum, Marginal and small farmers constitute 95% of the 5.7 mn farmers, (2001 census) [Including Bargadars] Farm workers exceed marginal and small holders (7.3 mn),

Annual growth rate (%) of yield rate of different crops in West Bengal during different years (Base year Tri-ending 2006-07*) Year Rice Wheat Pulses Oilseeds Jute Potato

2006-07

2007-08
2008-09 2009-10 2010-11 2011-12

0.586
1.878 3.935 3.943 3.959

20.407
9.688 4.640 4.479 4.383

5.930
5.189 5.529 5.379 5.309

10.398
5.438 4.378 4.280 4.229

-4.332
-0.284 2.314 2.481 2.590

36.351
12.670 7.487 6.146 5.069

Area, Production and yield rate figures of different crops corresponding to base year 2006-07 are actually the triennium ending average of three years, namely, 2004-05, 2005-06 and 2006-07. Note: Area, production and yield rate figures for the years 2009-10,2010-11 and 2011-12 are year wise targets.

WEST BENGAL AGRICULTURE : SIGNIFICANT MILESTONES

First position in Rice production, First position in Vegetables Production, Second position in Potato Production, Third in Flowers and seventh in Fruits Production, Cropping intensity of 179.83% (2011-12)

Rainfall Analysis (m.m.) for year 2010-11 to 2012-13 Period from June to September Year
2010-11

Region
Sub-Himalayan West Bengal Gangetic West Bengal

Normal Actual Departure (mm) (mm) (%)

1967 1143 1967 1143 1967 1143 2094 763 1885 1305 1862 890 +7 -33 -4 14 -5 -22

2011-12

Sub-Himalayan West Bengal Gangetic West Bengal

2012-13

Sub-Himalayan West Bengal Gangetic West Bengal

Rainfall Analysis (m.m.)for year 2010-11 to 2012-13 Period from October to February Year
2010-11

Region
Sub-Himalayan West Bengal Gangetic West Bengal

Normal Actual Departure (mm) (mm) (%)

174 168 174 168 159 142 126 134 47 77 123 139 -28 -20 -73 -54 -23 -2

2011-12

Sub-Himalayan West Bengal Gangetic West Bengal

2012-13 (Oct to Jan)

Sub-Himalayan West Bengal Gangetic West Bengal

BEST PRACTICES ADOPTED BY THE STATE

Best Practices Adapted
1. Production of Certified Seed through Seed Village Programme 2. Zero Tillage Machine (Rice & Wheat Crop) 3. SRI (System of Rice Intensification)

5. Seed Treatment Campaign for Crop Protection

6. Awareness & Sensitization through Electronic Media 7. Popularization of Farm School concept 8. Organization of Kissan Mela 9. Awareness & promotional campaign on KCC 10. Establishment of Krishak Bazar 11. Thrust on expansion of area & increase in production of Pulses, Oil Seeds, Maize etc. 12. Emphasis on balanced use of organic & inorganic fertilizers

13. Massive Campaign on Soil test based advisory services

FUTURE COURSE OF ACTION

Analysis of the Agriculture pattern of West Bengal and suggest the best FPO model suited for local conditions. Study the various geographies of West Bengal and suggest best geography for commencing FPO in WB Study NBFCs, Cooperative Banks, NGO funded FPO models, VC funded models Perform a SWOT Analysis of the various financing models and zero in on the best financing model

THANK YOU!