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Opportunities for farmer producers organizations in tamil nadu

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Opportunities for farmer producers organizations in tamil nadu

  1. 1. Opportunities for Farmer Producers Organizations in Tamil Nadu Presented by Dr. J. Diraviam Programme Coordinator Krishi Vigyan Kendra, Karur
  2. 2. “Farmers’ organizations should be promoted to combine the advantages of decentralized production and centralized services, post-harvest management, value addition and marketing” - National Commission on Farmers (NCF), 2004. “Farmers’ Organizations (FOs) are essential institutions for the empowerment, poverty alleviation and advancement of farmers and the rural poor” - (FAO,2006)
  3. 3. Concept of Farmers Producer Organizations (FPOs) • Farmers Producer organizations are groups of rural producers coming together based on the principle of membership, to pursue specific common interests of their members and developing technical and economic activities that benefit their members and maintaining relations with partners operating in their economic and institutional environment (Anonymous.2004).
  4. 4. Farmer Producer Organizations : Features • Common interest • Dynamic and flexible, norms and operating procedures • Both long and short term objectives and plan of action • Enrolment through membership fee • Democracy through regular elections • Clear and transparent transactions • Capacity of the organization should be strong to ensure its long term stability and sustainability • Linkages and network with other Farmer Producer Organizations • Committed leadership
  5. 5. Why Farmers Producers Organizations? • Farmers Producers Organizations influence policies and demand for required services. • Farmers can participate in the decision making process of the developmental activities. • Service system becomes more effective and accountable • They get better access to latest markets and technology • FPOs can involve in Farmer and market led extension activities
  6. 6. Why Farmers Producer organizations ? • Build interactions between research, extension and farming systems • Enable farmers to organize themselves for action or to share resources • Analyze farmers problems with extension support • More services can be made available to farmers through a single point • Provide more effective learning environment
  7. 7. Role of Farmer Producer Organizations • Representational role • Technology role • Service role
  8. 8. Types of Farmer Producer Organizations Community based, resource oriented Farmer Producer Organizations Commodity based, market oriented Farmer Producer Organizations
  9. 9. THE COMPANIES (AMENDMENT) ACT, 2002 • “Producer Company” means a body corporate having objects or activities specified in section 581B and registered as Producer Company under this Act
  10. 10. Objects of Producer Company • Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section.
  11. 11. Objectives of the Producer Company shall relate to all or any of the following matters: (a) production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit: provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution; (b) processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce of its members;
  12. 12. (c) manufacture, sale or supply of machinery, equipment or consumables mainly to its Members; (d) providing education on the mutual assistance principles to its Members and others; (e) rendering technical services, consultancy services, training research and development and all other activities for the promotion of the interests of its Members; Objectives of the Producer Company
  13. 13. Objectives of the Producer Company (f) generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce; (g) insurance of producers or their primary produce; (h) promoting techniques of mutuality and mutual assistance; (i) welfare measures or facilities for the benefit of members as may be decided by the Board.
  14. 14. Objectives of the Producer Company (j) any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner; (k) financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members.
  15. 15. Steps involved in Registration of Producer Company 1.Digital Signature Certificate (DSC) 2.Director Identification Number (DIN) 3.Naming of a Producer Company 4.Memorandum and Articles of Association 5.Documents to be submitted to the ROC 6.Certificate of Incorporation and Power of Attorney 7.Tasks to be completed immediately after incorporation
  16. 16. Input supply (Seed, fertilizer, machinery) Financial & technical (Credit, savings, insurance, extension) Marketing linkages (contract farming, procurement under MSP) Training and Networking (HRD, policy advocacy, documentation) FPO Farmer Producer Organizations (FPOs) Typical range of services provided
  17. 17. How FPOs benefit small producers 1. Aggregating smallholders into FPOs proven pathway to increase investment, improve bargaining power, move up value chains and improve access to technology, markets. 2. Aggregation only way to enable SMF to exploit emerging opportunities domestic and global by integrating with SMEs; retail chains 3. Climate change coping mechanisms and risk mitigation requires aggregated platforms for efficient delivery 4. Aggregation will facilitate more effective targeting of subsidies to farmers 18
  18. 18. Opportunities for FPOs – Nadayanur Agricultural Producers Co. Ltd. • Inputs dealership – Fertilizers and pesticides • Farm implements – custom hiring • Cattle feed and raw materials for feed preparation • Tapioca – starch measuring scale • Copra and shell direct procurement and sale • Milk purchase and retail sale (additional price of Rs 5/lit.)
  19. 19. Opportunities for FPOs – Nadayanur Agricultural Producers Co. Ltd. • Procurement and sale of organic jaggery • JLG formation and credit linkage for milch animals • Training programmes on Azolla cultivation, livestock (ethnovet practices) and Coconut through – VUTRC, KVK, Vivekananda Kendra
  20. 20. Vellingiri Uzhavan Producer Company • Direct harvesting and dehusking of coconut – teams developed and direct sale in Kangeyam • Drying yard for Copra • Inputs dealership – Fertilizers and pesticides – wholesale and retail licences obtained • Farm implements – custom hiring only for members – JCB, tractor
  21. 21. Vellingiri Uzhavan Producer Company • Kisan Credit Card for all members – organized • Farm Advisory services, soil testing, trainings arranged and Market information provided through SMS. • Future plans: Coconut Oil production and sale in domestic market, forward and backward linkages for Arecanut
  22. 22. Theni Banana Producers Company Ltd., • Incorporated a Company named ad 'Farm Fresh Banana Pvt Ltd' and established 600 MT cold infra, ripening chambers and Pack Houses. Income of the farmers have gone up from Rs.1 lakh to 2.5 lakhs / acre. The entire production system has gone Hi-Tech to generate uniform fingers and hands and two container loads per week are exported to European Market.
  23. 23. Erode Precision Farm Producer Company Ltd., • Supply of quality inputs • Technology support in vegetables production with no residual toxicity. • Established an Indian Oil Corporation Fuel outlet under Kisan Seva Kendra Scheme to benefit the farmers by supplying quality fuel to farm machinery. • Vegetables are being grown in 200 acres for exporting to Maldives. The firm is having dealership for 15 major companies including M/s Jain Irrigation.
  24. 24. Dharmapuri Precision Farm Agro Services Ltd., • Establishment of 12 registered vegetable clusters for sharing the experiences and visiting markets like Chennai, Cochin, Azadnagar New Delhi, Pune and Nasik. • Supply of quality inputs. • Now, the company sells farm inputs, arranges buy back tie-ups and conducting market exposure visits to farmers. The firm is having dealership for 7 major companies including M/s. Jain Irrigation.
  25. 25. Cumbam Valley Grape Growers Company Ltd., • Supply of quality inputs. • Capacity building of farmers on Hi-Tech farming. • Establish pack houses at farm end and retail outlets in Highways. • Establish unit for processing and value addition.
  26. 26. Ulavan Producer Company Ltd • Electronic turmeric auction center at Erode for maximum participation of traders and price discovery in a transparent manner • Grading, sorting, packing with total transparency and issue of certificates of stocks against which the farmers can avail bank loan. • All communications and bidding shall be through mobile and on-line. • The future business plan includes establish units for curcumin, oleoresen and curcumin powder.
  27. 27. Tamil Nadu Flower Growers Association (Under conversion to Producers Company) • Daily price for the flowers is fixed by the Association after ascertaining the demand from Mumbai, Chennai, Bangalore, Mysore, Dubai and UK. • There is no commission collected from the farmers and the payment is immediate.
  28. 28. Coimbatore District Vegetable Growers Association • Price for the gourds is fixed by the Association once in fifteen days after ascertaining the market demand. • Direct Marketing through one market outlet within Coimbatore City. • Convergence: Participation in peri-urban vegetable cluster project under National Horticultural Mission for Coimbatore with provision for packhouses, transport vehicles and furnished retail market outlets within the Coimbatore city for direct marketing.
  29. 29. Thiruvalluvar Farmers Producers Company Ltd., • Supply of inputs • The company's future business plan is to produce and supply of quality inputs, build up of the capacity of farmers for Hi-Tech farming practices • We plan for establishing a processing unit for processing and value addition in coconut .
  30. 30. Palaya Ayakkudi Koiyya Sagupadiyalarkal Sangam (Ayakkudi Guava Growers Association • Introduction of Hi-Tech Production system for production of uniform sized fruits, weighing 300 grams each. • Better price realization by sorting and packing for Gulf Market. • Apart from Export, the major fruit retailers of Coimbatore are buying regularly from the farmers.
  31. 31. Tamil Nadu Mango Growers Federation • The capacity building training was given on Organic Farming, GAP certified farm and Grading and Packaging of Mangoes. • There are 3 GAP certified orchards in Tamil Nadu which generates 3 times the profit of the conventional orchards. The production system upgraded 100 % and many Ultra High Density Plantations are established. • Now, the federation is making effort to convert all the association into Krishnagiri Mango Producers Company and promote branded Mangoes as 'KrishMa' meaning Krishnagiri Mango. • Further, effort is on to establish retail market and own pulping unit on the four lane roads of the state.
  32. 32. Nallakeerai NALLA SANDHAI PRODUCER COMPANY LIMITED • Five Information Technology (IT) executives have decided to enter into Agriculture on leased lands exclusively to produce toxin free organic vegetable greens for supply to chennai metropolitan city. • Direct marketing is the target and the consumers preference is positive for the produce, logistics are being worked out to expand the area and make deeper in-roads into city market.
  33. 33. Success of Farmer Producer Organizations… Recognition it gets from various bodies Policies of Government Focus on income generating activities Abilities of members Visible benefits to its members Extension officials attitude and support Participatory approaches Linkages with people and organizations Tie up with other development programmes Inter group linkages Capacity building of farmers
  34. 34. Ecosystem for sustainable FPO Marketing EGCGFS Infrastruc ture RetailingServices (Technical) Credit HRD Link to Consultant Banks PHI/VIUC GBY VCA NMFP RKVY/PPIA D Retailers/Process ors MSP NSPOT/NCDEX SFI/GVT HR Plan FPOs as sourcing point for rural products FPOs as rural retail points for consumer products/services CSC Banks NBFCs Inputs BDS/ERP WHR Mechanizatio n Krishidoot
  35. 35. Evolution of Producer Company in India Producer Company Producer Company Corporates Promoters: NGOs, DDs, Sponsors Advisory service, supply, Procurement, Collective marketing Stage I Retail partnership Stage II Stage III Producer companies with own infrastructure for processing, brand identity and marketing
  36. 36. Summary • The purpose of establishing Farmer Producer Organization (FPOs) is to internalize extension services for its members and provide: – Backward linkage (input, credit and technology) – Forward linkage (production facilities, market and value addition). • The FPOs provide an effective channel for both dissemination of technology to large number of small and marginal farmers and feedback to research and extension.
  37. 37. Summary • Producer companies can help smallholder farmers participate in emerging high-value markets, such as the export market and the unfolding modern retail sector in India. • In this environment of greater instability and competition, organization and collective action can help to enhance farmers' competitiveness and increase their advantage in emerging market opportunities.
  38. 38. Conclusion • Sustainable organizations are must for over all development • Extension strategies should involve FPOs • Public, Private extension agencies and NGOs should involve FPOs • Govt departments should play a supporting role in formation and management of FPOs • Extension functionaries should have skills of facilitation
  39. 39. Thank You Inauguration of Seed Processing Unit of Nachalur FPO by District Collector and NABARD CGM