Linking Fpo To Market

LINKING FPOs to market
JOEJOE YUMNAM
DIRECTOR OF EDUCATION AND SKILL MANAGEMENT,
IISM, MANIPUR.
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INTRODUCTION
Linking small holder farmers to the market chain can be achieved

with great efficiency by linking the farmers through FPOs which
will ultimately increase the negotiation prowess of farmers through
developing a juditious economy of scale at the farm gate. This infers
that farmers will collaborate on the supply chain of the market.
Farmers will be involved in both farming activities and business
activities.
Seven-point Strategy
• 1. Increase in production
It is important to improve irrigation efficiency to
increase production. Therefore, our government has
increased the irrigation budget. ‘Per Drop More
Crop’ is our motto. Pradhan Mantri Krishi Sinchai
Yojana has been launched to mitigate the drought
effect and to ensure ‘water to every farm’. Hence,
pending medium and large projects have also been
expedited. Watershed development and water
harvesting & management projects have been put on
the fast track. 3
2. Effective use of input cost
For the first time, our government has introduced Soil

Health Card Scheme to inform farmers about nutrients status
of the soils. This is reducing the cultivation cost as farmers
are following the recommendations and going for balanced
use of fertilisers. In addition, the Government has curbed
illegal use of urea and ensured adequate supply through Neem
Coated Urea scheme. The government is also encouraging
organic farming. The adoption of new technologies in
agriculture such as space technology is helping in better
planning through forecasting of crop production, agricultural
land-use mapping, drought prediction, and utilisation of
fallow paddy fields for Rabi crops. Apart from this, farmers
are getting timely information and advisory services through
online and telecom mediums such as Kisan Call Centre and
Kisan Suvidha App. 4
3. Reduction of post-harvest losses
One of the biggest problems of the farmers is storage

after harvesting as a result they are forced to sell
their products at a lower cost. Therefore, the
government is encouraging farmers to use
warehouses and avoid distressed sales. Loans against
negotiable warehouse receipts are being provided
with interest subvention benefits. To protect farmers
from losses, the government is focusing on storage
facilities and integrated cold chains in rural areas.
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4. Value Addition
The government is also promoting quality through

food processing. Pradhan Mantri Kisan Sampada
Yojana has been started and Rs.6, 000 crore has been
allocated for this project. Under this scheme, food-
processing capabilities will be developed by working
on the forward and backward linkage of agro
processing cluster, which will benefit 20 lakh
farmers and create employment opportunities for
about 5, 00,000.
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5. Reforms in Agriculture Marketing
The Central Government is emphasizing on the need

of reforms in agriculture marketing. e-NAM was
launched with three reforms and so far, 455 mandis
have been linked to this platform. Online trading has
begun on various mandis. In addition, the
government has circulated model Agricultural
Produce Market Committee (APMC) Act, which
includes private market yards and direct marketing.
In addition, the Government is also working on a
Model Act to promote contract farming.
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6. Risk, Security and Assistance
The Government has initiated Pradhan Mantri Fasal Bima

Yojana (PMFBY) to reduce the possible risks. The scheme
creates a security shield. The lowest rate has been fixed for
Kharif and Rabi crops. Maximum rate is 2% and 1.5%
respectively. The scheme covers standing crops as well as
pre-sowing to post-harvesting losses. Not only that, 25% of
the claim is settled immediately online. New technologies like
Smartphones, satellite imagery and drones facilities are being
utilised to carry out faster assessments of crop loss under
PMFBY.
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7. Allied Activities
I. Horticulture
II. Integrated Farming
III. White Revolution
IV. Blue Revolution
V. Sub-Mission on Agroforestry
VI. Beekeeping
VII. Rural Backyard Poultry Development
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Principal Fronts of FPOS
1. Raw Inputs (Eg. Assured volume of fertilizer and
planting materials for incremental reduction in input
costs .
2. Farm mechanisation.
3. Post harvest infrastructure.
4. Market access and connectivity. (eg. Control of value
chain system shifts into the hand of FPOs once
meaningful scale is achieved for transaction on both
supply and inputs.)
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INCLUSIVE AGRICULTURAL VALUE CHAIN
 It is a type of value chain which emphasizes on including small

farmers so as to give them control of the entire value chain.
 Through FPOs small holder farmers can increase their

bargaining power by helping them enter into high value supply
chains and provide support for acquiring information on market
prices and requirements.
 Small holder farmers with a strong social network can draw upon
their social capital to strengthen their position within a value
chain.
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Linking farmers to high value market
 Smallholder farmers are often excluded from the most valuable

chains, supermarkets usually source their products from large
farms, leaving them in poverty.
 FPOs can lift smallholder farmers from poverty by connecting
them and their families to business opportunities and markets
which will also make the food value chains more efficient and
effective.
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WING BEAN-TENAWANGBI
Based on the given models, pig and black rice followed by sesame “thoiding” will
get best in terms of productivity and profitability.
Along with pig and black rice followed by sesame, planting of banana/Kachai
lemon/indigenous mango/magnolia-leihao in the borders, Kundo Jasmine
THANK YOU
flowers, Sanarei, as fences and trap crops and intercropping with
mustard/ colocasia/ elephant foot yam will increase the productivity.
Out of different species of fish, silver carb and rohu are the fast grower and can
give maximum fish yield.
The cultivation of wing bean, bitter gourd, sponge gourd, rice beans above the
pond using bamboo trellis and should be promoted to utilize the space
and to get additional income.
The weeds/grasses, crop residues of rice bean, chuchurangmei sesbania and

waste materials from vegetable and animal components were used for
vermicompost preparation.

Linking Fpo To Market

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LINKING FPOs to market

Linking small holder farmers to the market chain can be achieved

For the first time, our government has introduced Soil

One of the biggest problems of the farmers is storage

The government is also promoting quality through

The Central Government is emphasizing on the need

The Government has initiated Pradhan Mantri Fasal Bima

 It is a type of value chain which emphasizes on including small

 Through FPOs small holder farmers can increase their

 Smallholder farmers are often excluded from the most valuable

The weeds/grasses, crop residues of rice bean, chuchurangmei sesbania and

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