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Braving Hardships!

Get Organised Move Forward

F P Oarmers roducer rganisations The Future of Small and Marginal Farmers

Despite possessing just 2.4% of world's land and 4% of its water resources India feeds

17% of world's population and 15% of livestock

Though 85% of our farmers possess marginalised and small land holdings and less than

half of the lands receive assured irrigation, they were instrumental in increasing food grain

production fivefold reaching 273 million tonnes in 2016-17

Overcoming deficient food production at our Independence, our farmers led our nation self-

sufficient and have emerged as exporter of rice, cotton, fruits and vegetables.

Resilient Indian farmers led us Self-reliant in Food Production

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Prepared by: Centre for Development Communication, DHAN Foundation

Inherent robustness of Indian agriculture shows promise for overcoming obstacles. There is a

convergence of state, research institutions, private and farmers' organisations towards the

mission of doubling farmers' income.

There is a growing awareness among farmers towards unity and solidarity. Farmers have started

realizing the fruits of coming together as collectives (FPOs), which help them counter market

forces, claim entitlements from the State and Central Governments.

Through the FPOs, farmers have started proving that farming is profitable with collectivization of

production and marketing, sustainable farming practices, collective bargaining / negotiation with

larger forces.

Coming Together for Collective Impact

Cultivating seeds of hope!

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Unleashing Farmers' Movement!

Collective action of farmers is the need of the hour. Proposed Y.K. Alagh committee in 2003, the

solution of Farmers' Producer Companies has started yielding widespread acceptance among

the farmers.

The farmers, who have been part of collectives such as Cooperative Societies, Federations of

Self Help Groups, Joint Liability Groups, Farmer Clubs and Common Interest Groups started

embracing the concept of FPOs.

FPOs are innovations with the co-operative principles and corporate ethos designed to cater to

the needs of both farmers, consumers as well as the market. With the inherent potential for

furthering the interests of small and marginal farmers it emerges as a nationwide movement.

Moving from Isolation to Interdependence

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Features of FPOs

FPOs can…

l Make farmers self-sufficient in production inputs and marketing l Unify farmers' efforts to work against forces of exploitationl Aggregate produces for better price and reduce cost of marketing l Offer economies of scale facilitating collective purchase of inputs and marketing of produces at

fair pricel Offer space for co-learning to exchange knowledge, skills and best practicesl Represent voices of farmers to influence policies in their favorl Offer space for partnering with local government and private institutions l Share resources and common infrastructure l Resolve conflicts due to institutionalized norms and procedures l Share risks to offset market fluctuations and absorb loss with the accumulated profits

Unlocking Collective Strength

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Guiding Principles of FPOs

FPOs operate on the principles of

l Focusing on small and marginal producers as members

l Allowing no discrimination based on caste, religion and politics

l Laying emphasis on gender equity and contributing to economic empowerment of women

l Propagating democratic practices, member ownership and control

l Following transparency and accountability on all operations

l Promoting environment friendly practices and products.

l Adopting fair trade practices benefiting both farmers as well as consumers

l Embedding cooperation and mutuality in all the activities of FPOs

l Valuing member stake in the form of shares as key for sustainability

l Working in collaboration with all the stakeholders

l Promoting household consumption first to ensure food and nutrition security

Putting Farmers First

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Primacy of FPOs

FPOs Work for…

Ÿ Increasing the production and productivity of member farms

Ÿ Legitimizing the indigenous systems of production and creating knowledge and access

to suitable technologies.

Ÿ Facilitating production round the year to help regulating household cashflow

Ÿ Establishing linkage with the service providers and banks

Ÿ Increasing the income of the farmers by facilitating collective purchase and marketing of

inputs from the formal sources there by creating a win–win situation both for the buyer

and seller.

Making the Farm and Home Self-reliant

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Grounded in Values

FPOs cherish the values of

Ÿ Trust and cooperation

Ÿ Democratic practices and member control

Ÿ Self-regulation

Ÿ Collaboration with other stakeholders

Ÿ Enabling shareholders

Ÿ Care and concern on environmental sustainability

Ÿ Transparency and ethical business

Banking on Values and Ethics in Action

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Components of FPO

Ÿ Establishing appropriate institutional structure and building ownership for sustainability

Ÿ Creating access to financial services for production and marketing

Ÿ Productivity enhancement through creating viable production ecosystem

Ÿ Facilitating collective marketing

Building Blocks of Sustainability

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FPO's Priority

Who can join FPOs

Ÿ Small and marginal farmers engaged in agriculture

Ÿ Landless laborers in tenant farming

Ÿ Who is willing to participate and contribute

Ÿ Women participation is must

Ensuring inclusion of Small and Marginal Farmers

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Ÿ The organic process of FPO promotion involves…

Ÿ Organizing 15 to 20 small and marginal farmers into Farmers Interest Groups (FIG)

Ÿ A FPO will have shareholder membership of over 50-100 farmers initially, which is a

registered company/ cooperative. The membership shall increase to an optimal size of

1,000 - 1,500 farmers over 3-5 years.

Ÿ Enabling farmers to define goals and objectives

Ÿ Handholding the FIGs to evolve their own systems and processes

Ÿ Regularizing the meeting and management systems of FIGs

Ÿ Enabling FIGs to promote network into FPOs

Ÿ Collectively evolving agenda, byelaws, rules and regulations

Ÿ Evolving governance (leaders)

Ÿ Enabling the performance of members and leaders

Promoting FPOs: Structure, Systems and Self-governance

Building FPOs Step-by-Step

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Empowering Eco-system

Ÿ FPOs are built on local production and market opportunities

Ÿ Localized producer organisations - FIGs are at the center

Ÿ FIGs work for localizing production technologies and markets

Ÿ FIGs are independent and interdependent

Ÿ FPOs provide space for partnering with local institutions including panchayats

Ÿ Community governance and professional management

Ÿ Governance of FPOs emerge from the basic structure of FIGs

Structural Innovation Makes FPOs Unique

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Facilitating Farm Finance

FPOs facilitate

Ÿ Access to production credit for members from local banks

Ÿ Access to working capital loan for the FPO with the backup of credit guarantee

Ÿ Collection and judicial deployment of Share capital

Ÿ Creation of revolving fund to ensure continuity of interventions

Ÿ Opportunities for raising equity grants

Ÿ Allocation of profit earned by FPOs

Ÿ Bonus for shareholders

Ÿ Enrolling farmers under crop and asset insurance

FPOs ensure availability, accessibility, adequacy and affordability of finance timely for Production and Marketing

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Enhancing Productivity

FPOs Ÿ Function as agriculture development centres

Ÿ Document the local farming system and build intervention on them

Ÿ Organise farmers workshops and demonstrations for technology transfer

Ÿ Establish model farm both for crop production and integrated farming

Ÿ Conduct farm field schools to provide hands on skills

Ÿ Strengthen communication networks to aid dissemination

Ÿ Facilitate community seed production and establishing a community seed bank

Ÿ Implement soil and water conservation measures

Ÿ Lead to enhanced production and productivity

Ÿ Ensure reduced cost of cultivation and increased profitability

FPOs work for building viable production ecosystem

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Facilitating Collective Marketing

FPOs facilitate

Ÿ Collective purchase and supply of quality inputs at fair price

Ÿ Collective marketing of produces for ensuring price advantage

Ÿ Reaping the benefits of scale advantage in favor of farmers

Ÿ Developing market intelligence to make the farmers well-informed

Ÿ Participating in value chain and entering consumer market

Economy of Scale Brings Bargaining Power

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Realising Impact

A vibrant FPO will Ensure

Ÿ Timely Access to inputs at fair price

Ÿ Fair price for the produces and doubling of income

Ÿ Claim of entitlements from the mainstream institutions meant for small and marginal farmers

Ÿ Reach of relevant technology for production

Ÿ Capacity and skill for production and productivity enhancement

Ÿ Food and Nutrition security at household level

Ÿ Additional employment due to increased intensive farming

Ÿ End of migration in search of livelihood

FPOs Strive for Doubling Farmers' Income

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Making Social Impact!

With an active engagement and ownership of farmers FPOs can help realize

Ÿ Increased participation of women in farming

Ÿ Fair compensation for farm labourers

Ÿ Emergence of local leadership among farmers

Ÿ Increased bargaining power

Ÿ Reduced distress migration

Ÿ Enhanced overall wellbeing of farm households

Ÿ Availability of quality food produces to general consumers

Ÿ Positive improvement in environmental health

'Sustained efforts of FPOs can make lasting impact in socio-economic well-being of the marginalised communities'

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Functions of FPOs

A well-governed FPO will

Ÿ Facilitate timely and adequate financial resources to members for production and marketing

Ÿ Timely arrange quality inputs at low price at members’ doorsteps for enhancing production.

Ÿ Establish collaboration with resource institutions for ensuring the reach of technology and entitlements

Ÿ Build capacity of farmers in relevant technologies of production, processing and marketing

Ÿ Partner with relevant local institutions to build synergy

Ÿ Facilitate resource pooling and sharing common infrastructure

Ÿ Enable collective marketing for better price

Ÿ Participate in value chain maximizing the profit and reaching the consumer market

Ÿ Maintain common infrastructure like farm machineries, storage godowns

Ÿ Diversify farming to ensure income to farmers round the year

Farmers' governance with professional management adds rigour in implementation

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A Solution Within Reach

Decades of unmindful and unsustainable farming led to

FPOs emerge as solution to address challenges in farming

Farmers Producer Organisations (FPOs) can address some of the reversible damages caused to the agro-ecology with the comprehensive intervention strategies manged professionally and governed by the farmers themselve

Ÿ Low-impact traditional crop varieties and farming

systems becoming extinct

Ÿ Indigenous knowledge of farming built on local soils

and climates not valued much

Ÿ Declining system of family farming

Ÿ Increasing costs of production and declining profits

Ÿ Loss of top soil, its fertility, land pollution

Ÿ Declining attention and care of traditional water

resources

Ÿ Depletion and contamination of groundwater

Ÿ High intensive farming consuming high amount of

energy, fertilisers and pesticides

Ÿ Loss of biodiversity

Ÿ Other prominent losses due to resource intensive

agriculture are

a. Shortage of farm labourers due to poor

remuneration and working condition

b. Adverse effects of climate change

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