Role of Farmer Producer
Organisations in Improving Agriculture
T here is a
worldwide consensus that high rates of economic growth contribute to
economic and social development and poverty reduction. At the same time,
there is a growing recognition that poverty reducing growth depends on
the quality of growth: its technology, finance, institutions and
sustainability. Recent assessments of growth converge on the view that
the rate at which countries grow is substantially determined by:
• Their ability to
integrate with the global economy through trade and investment
• Their capacity to
maintain sustainable finances and sound money
• Their ability to put in
place an institutional environment in which contracts can be enforced.
Keeping this in mind, in 2015, producers were
organised into collectives for means of reducing the risks in
agriculture and improving the access of small and marginal producers to
investments, technology and markets. Development Alternatives (DA) has
been providing support to a variety of Farmer Producer Organisations (FPO
s) in different domains and geographies. The core mission of Development
Alternatives is focused on increasing the productivity of small and
marginal farmers, value addition and efficient linkages between
producers and markets. As part of this mandate, DA supported by NABARD
has been mobilising and strengthening the FPOs and handholding them
for a period of 3 years, through regular inputs of training and capacity
building, linkages to technology, value added services and marketing
opportunities.
Capacity Building and Finance: Development
Alternatives seeks to develop the capacity for sustainable farming by
addressing the need of livelihood security of the small and marginal
farmers. This capacity building programme is also helping to develop
strategies and protocols that will enable farmers to establish linkages
with the formal and non-formal institutions in credit, trade, market,
skill development as well as networking with agri businesses in the
targeted regions. Under the project, more than 1000 farmers have been
associated with vegetables, seeds production, agri-inputs supply and
vermi-compost businesses. These farmers have been able to access timely
credit during sowing seasons. They have also been given training to
increase their scientific and technical knowledge of increasing soil
fertility and improving farm productivity.
It is a challenging task supporting all active FPOs
and their members, addressing their diverse needs and demands, enhancing
their capacity and bargaining power and ultimately helping them to move
up the various agri value chains in which they are engaged. The FPOs
continue to struggle to establish viable and sustainable business models
and achieve significant revenues and returns to their members. More
often than not, they are languishing at the bottom of the value chain,
creating doubts among members and outsiders alike about the rationale of
their formation. FPOs, irrespective of their type, also face common
challenges in terms of organising producers, hiring and retaining staff,
raising capital including working capital, increasing the capacity of
staff and board members, providing effective agriculture extension
services to farmers, developing processes and systems for collecting,
processing, value addition and marketing and understanding value chains
for effective interventions.
Technology: Technical support is also given to
the FPO s by way of identifying capacity and resources available to
improve their business associations and access to better technology and
innovations coupled with appropriate packages.
Various set of services provided by FPOs are covering
almost all aspects of backward and forward linkages which include inputs
and technical services for processing and marketing. Development
Alternatives looks forward to even greater collaboration in the future
for systems that drive large scale change, particularly in terms of how
critically needed investment from pools of capital can be drawn into
disaggregated business models, along with required changes in the policy
environment.
■
Omkar Gupta
ogupta@devalt.org
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