FPO PROMOTION
The fundamental basis for the expansion of Farmers Producer Organizations (FPOs) is the emblematic of uneven and small size of land holdings of farmers in India. With typical holdingsof less than 1 hectare, farmers cannot individually enjoy economies of scale and afford to invest in farm mechanization/technology for enhancing farm productivity, nor optimally procure inputs nor directly access buyers. Aggregation through FPOs is the only feasible option left for farmers to enhance their bargaining power and farm-related value accruals. The primary objective is to provide effective capacity building to the promoted FPOs to develop agricultureentrepreneurship skills to become economically viable and self-sustainable. Generally, promotion of FPOs are thru for agribusiness by - structuring rural entrepreneurship; linking small and marginal farmers to cohesive agri value chains; promoting agri initiatives and enablingforward and backward linkages through credit linkages, produce aggregation, value addition and marketing linkage. Training for FPOs is essential which will include training on pre- eminence, economic literateness and administration, business development and promotion aspects as well as methodological exercise on various aspects of farm and allied sector activities. This empowers FPOs to lever diversified business activities and also to knock growthoriented prospects for accomplishing marketable feasibility and structural sustainability. This further reassures rustic private enterprise for contributing facility linkages to commodity bulk buyers and input sellers, thus ultimately generating a more cohesive value chain. Social Education Economical Development Society (SEEDS) has been empanelled as a Resource Institution (RI) by Small Farmer Agri Business Consortium (SFAC), as well as by NABARD as Producer Organization Promoting Institute (PoPI) for promotion of Farmer Producer Organizations (FPOs) in Tamil Nadu. SEEDS have also been empanelled by SFAC, TNSFAC, NABARDand NCDC as Cluster Based Business Organization (CBBO) for promotion of FPOs under CentralSector Scheme for promotion of 10000 FPOs in Tamil Nadu, Kerala and Karnataka. SEEDS has been promoting FPOs with support from Small Farmer Agribusiness Consortium (SFAC), Central& State Government, NABARD NCDC and JSW a CSR partner in Karnataka.
SFAC, New Delhi had empanelled SEEDS as a Cluster Based Business Organization (CBBO) on 18th
January 2021 for promoting 5 FPOs in Tamil Nadu during the 1st phase. On successful accomplishment
of the registration, under the II phase in 2022, 6 more FPOs were sanctioned to SEEDS. 2 in
Tiruvannamalai District, 3 in Sivagangai District and 1 in Thoothukudi District for promotion and
handholding. All the 6 FPOs have been successfully registered and mobilizationof shareholders and
share capital isin progress. Totally 2300 shareholders have been mobilizedthrough these 11 FPOs with
a share capital of Rs. 46,00,000/-. Rs. 11,40,000/- has been receivedas equity grant by FPO in Namakkal
region.
NABARD had empanelled SEEDS as POPI for promotion of FPOs in Virudhunagar District duringthe 1st phase. These FPOs are effectively functioning with 10,714 shareholders and Rs. 1,07,14,000/- has been mobilized as share capital. They have acknowledged Rs. 30,00,000/- asequity grant, Rs. 15,00,000/-as start-up grant and Rs. 30,00,000 as Mezzanine capital. During the 2nd phase NABARD had sanctioned SEEDS to promote and handhold 4 more FPOs in Virudhunagar and Namakkal Districts of Tamil Nadu. These 4 FPOs were registered and functional with 3500 shareholders and are holding Rs. 35,00,000/- as share capital. They haven’treceived the equity grant yet but were propped up with a start-up grant of 20, 00,000/- and Rs.35,00,000/- as Mezannine capital. NABARD had empanelled SEEDS as CBBO to promote and handhold 5 FPOs in2021 in Namakkal and Thoothukudi Districts of Tamil Nadu in March 2021. All the 5 FPOs were registered and shareholders mobilization is comprehensive. NABARD has also recognized and empanelled SEEDS in march 2021 to promote 3 FPOs in Kerala and all the three have been registered and shareholders mobilization is in progress. These 7 FPOS in Namakkal District promoted under the 10K scheme have mobilized 2301 shareholders totally with Rs. 46,02,000/- as share capital. Rs. 22,40,000/- has been received as equity grant by the 3FPOs promoted in the district.
TNSFAC had empanelled SEEDS to promote 2 FPOs in Tamil Nadu during the 1st phase. Registration has been completed for the above FPOs. These FPOs have mobilized 8700 shareholders and Rs. 87,00,000/- as share capital. These FPOs have received Rs. 40,00,000/- asequity grant and were supported with 25,00,000/- as start-up grant. Based on the excellent performance with FPOs allotted earlier, TNSFAC sanctioned SEEDS to promote and handhold 15Collective Farming FPOs during the 2nd phase. These FPOs were registered fruitfully with 9855 shareholders totally and with a share capital of Rs. 98,55,000/-. Equity grant has not been received by these FPOs. but they were supported with Rs. 5,00,00/- as start-up and Rs.10,00,000/- as Mezzanine capital. TNSFAC again had empanelled SEEDS as CBBO in May 2021 to promote 6 FPOs under the 10K CSS scheme. 3 FPOs in Tiruvannamalai District, 2 in Perambalur District and 1 in Pudukottai District of Tamil Nadu. All the six FPOs have been registered and shareholders mobilization is in progress. 3500 shareholders with Rs. 35,00,000/-as share capital have been mobilized till date. Equity grant of 6.0 Lakhs each has been receivedby all the 6 FPOs
The role of SEEDS was to complete the mission of FPO registration and to train them on acquaintance and services relating to areas such as governance, financial management, business plan preparation, forward and backward linkages with market and service providers. Promotion of value addition and processing units based on the commodity and capacities of the FPOs will also be a part of emphasis by SEEDS, for the wellbeing of the FPOs. But SEEDS do not enforce direct control over these FPOs as they are mostly under the direction of department of Agribusiness and Marketing.
NCDC had empanelled SEEDS in March 2021 to promote 4 FPOs in Kanyakumari District of Tamil nadu and 3 FPOs in Chikmagalur District of Karnataka and to be registered under SocietiesAct. In Tamil Nadu 3 have been registered and 1 is under process. Totally 486 shareholders have been mobilized with a share capital of Rs. 9,72,000/-. While in Karnataka 2 have been registered and 1 under process. The Chikmagalur Farmers Producer Cooperative Society Ltd. had mobilized 314 shareholders with 6,28,000/- as share capital and proposal has been submitted to NCDC Regional office, Bangalore for the equity grant.
Out of the 81 FPOs promoted by SEEDS, 74 FPOs are in Tamil Nadu. 13 FPOs promoted primarilyare the mellowed FPOs that have traversed 3 years and more and are efficient with an annual gross revenue of more than 1.0 Crore. 25 FPOs promoted within the past two years span are in the range of 25 –
50.0 Lakhs annual turnover and the rest are in the initial stages and are
scheduled with mobilization of shareholders and share capital. One FPO in Virudhunagar District has been promoted specifically for Goat and one FPO in Thoothukudi District has been promoted for Fish and the one FPO promoted in Odisha is for Dairy. In 2022 NCDC has sanctioned SEEDS to promote 3 AQUA FPOs (1 in Thoothukudi, 1 in Ramanathapuram and 1 in Pudukottai Districts of Tamil Nadu). These FPOs are in progress with shareholders and shares mobilization and is expected to get activated in the near future.
2 FPOS (1 in Tiruvannamalai region and 1 in Kanyakumari region) are operational with all women shareholders.
Out of the 81 FPOs promoted by SEEDS, 42 FPOs were sanctioned and promoted in 2021-22.
79 FPOs are functioning successfully. 75 FPOs have been successfully incorporated. 2 FPOs promoted by SEEDS are of large category with above 2500 shareholders.
75 FPOs promoted by SEEDS are Agriculture based FPOs.
Training for the BODs and CEOs has been accomplished for 77 FPOs till date. 16 FPOs have beencredit linked through banks and other financial institutions. 13 FPOs have availed the Mezzanine assistance. 75 FPOs have been market linked out of which 8 FPOs are with a business turnover of above 25.0 Lakhs and 67 FPOs are with a business turnover of above 25.0Lakhs. 4 FPOs have been supported with Agriculture infrastructure Fund.
SFAC, New Delhi had empanelled SEEDS as a Cluster Based Business Organization (CBBO) on 18th January 2021 for promoting 5 FPOs in Tamil Nadu during the 1st phase. On successful accomplishment of the registration, under the II phase in 2022, 6 more FPOs were sanctioned to SEEDS. 2 in Tiruvannamalai District, 3 in Sivagangai District and 1 in Thoothukudi District for promotion and handholding. All the 6 FPOs have been successfully registered and mobilizationof shareholders and share capital isin progress. Totally 2300 shareholders have been mobilizedthrough these 11 FPOs with a share capital of Rs. 46,00,000/-. Rs. 11,40,000/- has been receivedas equity grant by FPO in Namakkal region.
Status of FPOs Promoted in 2022-2023
Two of the successful FPOs promoted by SEEDS 1 in Virudhunagar District and another in
Ramanathapuram District have been empanelled as Cluster Based Business Organization (CBBO) for
promoting FPOs.
SEEDS has been empanelled 14 times by all the important Implementing agencies in India for
promoting and strengthening of FPOs.
FPOs sanctioned in 2021-23 by the IAs have been incorporated (except 5 FPOs sanctioned by NCDC 1
in Karnataka, 1 in Kanyakumari, 1 in Thoothukudi, 1 in Ramanathapuram and 1 in Pudukottai Districts
of Tamil Nadu) all nominated States and districts with an overall membership of 46269members. Share
Capital to the tune of 5.46 Crores has been raised acrossthe FPOs with the annual membership
consistently increasing across all FPOs in the States.
The successful strategy SEEDS progressively emphases on arming the FPOs with acquaintance and
services; and deliberates these communes as a calculated device to realize the Government’s vision
of doubling the farmers’ income. With an aim to change agriculture into alucrative professional
endeavour for every farmer in an accountable and eco cognizant means, thus contributing to
environment friendly services for the farmers as well as the consumers.
The Region wise focal crops the FPOs are in accretion are as follows:
1. Virudhunagar District – 10 FPOs – Maize, Cotton, Red Chilly, Groundnut, Paddy, Pulses
(Red gram, Black gram & Green gram), Vegetables and Millets.One FPO promoted in this region is explicitly for
Goat.
2. Namakkal District – 7 FPOs – Groundnut, Tapioca, Maize, Sorghum, Black gram,
Coconut.
One FPO in Kolli hill is dealing with Coffee and Jack fruit.
3. Madurai District – 1 FPO – Coconut, Vegetables, Paddy.
4. Tenkasi District - 1 FPO – Vegetables.
5. Tiruvannamalai District -6 FPOs – Tomato, Lady’s finger, Tube Rose, Flowers, Paddy,
Groundnut.
6. Perambalur District – 2 FPOs – Maize.
7. Thanjavur District – 12 FPOs – Paddy, Banana, Black gram.
8. Thoothukudi District - 3 FPOs – Paddy, Groundnut, Chilli.
9. Sivagangai District – 3 FPOs – Groundnut, Chilli, Vegetables, Millets
45 newly promoted FPOs in Tamilnadu have identified the focal crops they are going to dealwith for
their business promotion.
Mobilization
SEEDS were closely work with 55,000+ farmers who are mostly (70%) small and Marginal Farmers. This mobilization process were taken care by the Central Executive Officer of the Company. CEO were given the strong knowledge on the field and FPO process through the Capacity Building Trainings.
Trainings
As a Resource Institution SEEDS conduct Capacity Building Trainings, Training on Marketing, Business Plan Meet and Exposure Visits for BODs, CEOs and Shareholders of SEEDS promoted FPOs as well RI conduct trainings for members of other FPOs. We used to equip the members in ROC filling, Auditing, Book of Records, Preparing Business Plan and Field Knowledge. For Business plan preparation we have a special tool called PALM (Participatory Learning Meet). In the last financial Year 34 capacity Building Trainings for the BODs and CEOs. 64 training program for the shareholders and 101 Business plan meet were conducted.
Linkages
SEEDS support its shareholders through the Credit Linkage and Marketing Linkages. SEEDS with the support of Samunnati, Avanti and Annanya (Non-Banking Financial Companies), NABKISSAN, Syndicate Bank, IOB and Union Bank they support the shareholders in Credit. For marketing they have a tie up with Safe Harvest and some of their FPOs have their own shop where they market the produces of their shareholders.
Social Security
In all our FPOs we are ensuring the Social Security for our shareholder by taking Insurance especially Life and Crop insurance for all and providing the additional livelihoods support for them by establishing the Input centers, Value Addition Centers etc.
Success Stories of FPOs
Success story 1: THULIRVIRUTCHAM FARMERSPRODUCERCOMPANY LIMITED.
Thulir Virutcham Farmers Producer Company Limited was promoted by SEEDS as CBBO; and NABARD as Implementing agency. This FPO is functional with an objective to ensure sustainable income for shareholders through enhancement of credit facilities and market access opportunities.
Background
The farmers in this region are predominantly involved in rainfed agriculture and are accompanying with poor infrastructure facilities, middlemen involvement, low price for the produce and poor access to the market. To mitigate these inadequacies, Thulir Virutcham FPC was promoted in the year 2021 and majorly deals with Maize, Cotton and Chillies.
Strategic Interventions undertaken
The FPCL is intended to realize its objectives through collectivization procedures and in participation with the farming community and panchayat.
- FPCL conveys the assistance of direct procurement of maize and cotton from the farm gate.
- Transparent weighing in the vicinity of the farmers.
- Custom hiring facility of farm machineries.
- Established input shops for the farmer’s inputs like Fertilizers, High yielding seed varieties.
Success Mantra
- With the continual assignation with the farmers, the FPO could achieve the Business Turnover close to Rs.1.0 Crore within the year of establishment benefiting 324 member farmers and 250 non-member farmers.
- The appropriate handholding support given by CBBO (SEEDS) has accelerated the farmers income by 20%.
Recognition
FPC has shared the success story in the Regional Conference of FPOs/ and CBBOs held at Bengaluru to showcase the progress of FPC.
Benefits of the scheme
FPC has been sanctioned equity grant assistance of Rs. 6.04 Lakhs under the Central Sector Scheme for the Formation and Promotion of 10,000 FPOs.
Convergence with other Central and State Govt. Schemes
FPO has facilitated their members for the convergence of State Government Kalaignar Integrated Agriculture Scheme.
Experiences cultured
- Direct procurement and marketing had curtailed the needless involvement of the middlemen in the process and the farmers are getting virtuous recompense for their produces.
- Value added products can reward a healthier profit for FPO and their shareholders.
- Piloted drone spray of pesticides in 30 ha of land, could be virtualized to additional expanses.
Way forward
In the succeeding phase the FPO has planned to expand the value- added products by setting up a Maize processing plant under AIF (Agriculture Infrastructure Fund) and support from NABKISAN (a subsidiary of NABARD).
Inputs supply to
Farmers
Spraying through
Drone
Transforming follow land into Productive Land
Produce Organized for marketing
Success Stories of FPOs
Success story 2: Beemeshwarar Farmers Producer Company Limited.
Background
- The farmers in this region are mostly involved in rainfed agriculture and are associated with poor infrastructure facilities middlemen engrossment, low price for the produce, poor access to the market and less entrée to timely availability of inputs. So, most of the farmers left the land fallow and migrated sourcing for other occupation. To alleviate these meagerness, Beemeswarar FPC was promoted in the year 2021 and deals with procurement and marketing of Coconut, Groundnut and Sesame oil.
Focus Areas
Direct procurement from the farm gate and marketing of produce and on spot recompense a reasonable price for the farmers.
Marketing through established buyers
Farmers have resumed back to cultivation with confidence that there is an assured market for their produce through the FPO. The company procures Coconut, Groundnut directly from the farm gate remunerating a reasonable price for the farmers. The FPO also procures Sesame oil from one of the shareholders who owns a crusher on his own and markets it through the company’s brand name. The total turnover of the FPO till August 2022 is 11.60 Lakhs.
Way Forward
The FPO had applied for Fertilizer and pesticide licenses which is expected shortly and is intended to initiate input business and also cattle feed sales in future which will augment the turnover. The FPO has planned to increase the number of shareholders and focus on enhancing the livelihood status of the shareholders.
Organic Fertilizer distribution to Farmers
Convergence with Government schemes
Cattle feed
procurement
Cattle feed
stocking for sales
Success story 3: Munneru Farmers Producer Company Limited.
Background
The farmers in this region are involved in agriculture and are with deprived amenities, intrusion of middlemen, meager price for their produce, poor access to the market and non- availability of inputs on time. So, most of the farmers migrated sourcing for other occupation. To curtail this meagerness, Munneru FPC was promoted in the year 2021 and deals with procurement and marketing of Coconut, Watermelon and cattle feed sales.
Focus Areas
Direct procurement from the farm gate and marketing of produce and on spot recompense a reasonable price for the farmers.
Marketing through established buyers
Farmers have resumed back to cultivation with confidence that there is an assured market for their produce through the FPO. The company procures Coconut and watermelon directly from the farm gate remunerating a reasonable price for the farmers. The FPO also procures cattle feed from the market and sells it to the shareholders at a minimized cost. The total turnover of the FPC from May 2022 to August 2022 was Rs.3.34 Lakhs.
Way Forward
The FPO had applied for Fertilizer and pesticide licenses which is expected shortly and is intended to initiate input business and also cattle feed sales in future which will augment the turnover. The FPO has planned to increase the number of shareholders and focus on enhancing the livelihood status of the shareholders.
Farm Implements Distribution to Farmers
Organic Inputs sales to shareholders
Cattle feed
procurement
Cattle feed
stocking for sales
Success story 4: Uyirppu 10k Farmers Producer Company Limited.
Focus Areas
The farmers in this region are involved in agriculture and are with underprivileged storage and market conveniences, invasion of middlemen, paltry price for their produce, poor access to the market and non- availability of inputs on time. To restrain these inadequacies, Uyirppu FPC was promoted in the year 2021 and deals with procurement and marketing of Traditional Rice varieties like Karuppukaavani, Mappilai samba, Poongar rice and Thooyamalli.
- Grocery items are being procured from seeds FPCL and peddled in the local market for the wholesalers and retailers.
- The ICICI foundation had supported the FPO in purchasing groundnut decorticator and oilextractor, which were provided to two of the shareholders of the FPO in Mr. P. Elumalai, of Avoor and Mr. Anbarasan of Rajanthangal villages and the oil extracted is procured from the beneficiary shareholders is being procured by the FPO and marketed.
- Gingelly oil and coconut oil produced by few of the shareholders are also being procured and are being marketed in the local market and also marketed online.
- The FPO had initiated an Organic inputs shop at Vettavalam on 14th January 2022 and successfully running the business.
- The FPO had experienced a turn over of Rs. 13,14,375 from August 2021 to August 2022 through the above activities.
Way Forward
The FPO had planned to support the shareholders to purchase milch animals through
bank loan and initiate a cattle feed production unit and initiate cattle feed sales in future which will augment the turnover. The FPO had also intentional to purchase Agri. machineries and implements which will be hired to the shareholders at a reasonable cost. The FPO has planned to increase the number of shareholders and focus on enhancing the livelihood status of the shareholders.
Oil extraction and
sales unit shop
Inauguration of
Organic Input
Inauguration of
FPO office
Distribution of
Share Certificate
Area of Operations INDIA
Area of Operations Tamil Nadu
