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Integrated Development of 60,000 Pulses Villages in Rainfed Areas Building Farmer Producer Organisations (FPOs) to integrate producers in the value chain. Pilot for FPO. Targeted at 7 states Mobilize 1.35 lakh farmers @ 1000/FPO
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Integrated Development of 60,000 Pulses Villages in Rainfed AreasBuilding Farmer Producer Organisations(FPOs)to integrate producers in the value chain
Pilot for FPO • Targeted at 7 states • Mobilize 1.35 lakh farmers @ 1000/FPO • Provide institution building support, training in GAP, market linkages for better value realization
Findings of baseline survey • While efficient, smallholders cultivating pulses and coarse grains squeezed at the bottom of value chain • Suffer from policy neglect: no targeted intervention • Barely 10% share in institutional credit • Uncertain and poor quality input supply • Poor holding capacity: compulsion to sell close to harvest • Poor access to CMS/WHR • No incentive for aggregation
SFAC FPO network structure Marketing linkage/inputs/credit S F A C
Farmer Producer Organisations (FPOs) Typical range of services provided
Integrated development of 60,000 Pulses Village in Rainfed areas – an Overview Progress as on 23 November 2012
Other significant highlights of FPO work • 1000 quintals of milled pulses sold directly by farmers in KN and Maharashtra • 16 PCs in MP signed MOU with NSC to produce 42000 q of certified soybean seed (value Rs. 30 crores) • Rabi seed production programme proposed with NSC and SFCI: mustard, chana, lentil.
Context of XII Plan: stress on inclusive growth potential of agriculture “Growth of agriculture needs to accelerate not just to achieve an overall GDP target and reduce inflation, but mainly to ensure inclusiveness.” (from Chapter on Agriculture, XII Plan) • Centrality of smallholder agriculture recognized • Importance of building FPOs stressed • Value chain approach to marketing recommended
SFAC Plans for NFSM in XII Plan • Seek 2% outlay for FPO development per year (about Rs. 200 crores overall in XII Plan) • Mobilize 10 lakh pulse and millet farmers in 5 yrs • Build FPOs; training; technology infusion; market linkages • Complete integration in value chain to be undertaken
PRODUCE NCDEX QA/RENT/ Interest subsidy Warehouse S A L E S NSEL S F A C NSPOT P R O D U C E WHR State procure-ment Banks/ CMS Processors Exporters Bulk buyers Training Inputs Finance FPOs PAYMENT PAYMENT