A Step towards Transformation of Agriculture into Sustainable Enterprises
Hon’ble Prime Minister Shri Narendra Modi has announced the ‘Atmanirbhar Bharat Abhiyan’ (Self-reliant India Movement) on May 12, 2020 with a special economic & comprehensive package of Rs 20 lakh crores which was aimed towards achieving the mission. The Mission focuses on the importance of promoting local products. The mission is also expected to complement “Make in India” initiative which intends to encourage manufacturing in India including agriculture sector which have a great potential. Agriculture plays a very crucial role in Aatmanirbhar Bharat.
Agriculture continues to be the source of livelihood for majority of the population. In a nutshell, agricultural has a vast impact on every citizen of the country, either directly or indirectly.
With a motive to transform the Agriculture into a Sustainable Enterprise, Government of India, Ministry of Agriculture & Farmers’ Welfare has recently taken a host of historical pro-agriculture landmark initiatives towards the development of Aatmanirbhar Krishi in India by implementing 03 landmark reforms on 5th of June 2020, for the benefit of farming community, details of which are given below:
A. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020
Allowing liberal trade, increased competition amongst buyers, remove barriers in interstate trade and offering more options to sell and buy. All these activities will culminate into the enhancement of farmers’ income.
B. The Farmers’ (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
Facilitates Visibility and Assurance of price to farmers at the time of sowing, cropping decisions based on forward contracts, minimize market risks and solve issues of erratic food pricing and encourage contract farming.
C. The Essential Commodities (Amendment) Ordinance 2020
Boosting private investments in Agri supply chains, food processing industries, export infrastructure.
These landmark ordinances in its pursuit to agriculture market reforms, provide farmers with greater freedom and regarded as another giant leap towards liberalization and free market regime. These reforms call for resonance from the states and other stakeholders in terms of gearing up to deliver the purpose of these reforms right up to the farm gate level. The Ordinance will further motivate APMCs to be more effective and efficient in providing cost effective services to farmers for efficient marketing of their produce towards improving their income
As another move towards Atmanirbharta in Krishi the flagship scheme of Government of India i.e National Agriculture Market (e-NAM), is an innovative initiative in agricultural marketing which enhance farmers accessibility digitally to multiple number of markets & buyers and bring transparency in price discovery mechanism and price realization based on quality of produce.
With the aim to reach the last mile farmer & transform the way they sell their agri. produce, e-NAM had expanded to 1000 mandis of 18 States & 03 UTs. Under the new FPO trade Module, FPOs are doing trade from their collection centers through e-NAM platform. This online market aims at reducing transaction costs, bridge information asymmetries, and help in expanding market access for farmers.
Aiming towards “One Nation One Market” for agricultural commodities in India, e-NAM has made revolutionary change to the traditional agri-business in the country emerged as a ready solution to farmers & other stakeholders to conduct their business. With its value-added services, e-NAM has emerged as much more advanced and robust platform.
Government has announced a new scheme for Formation & promotion of 10,000 FPO’s. Collectivization of small and marginal farmer to form their organization as Farmer Produce Organization has been another major initiative by Ministry of Agriculture and Farmer Welfare for making Krishi Atmanibhar. This will prove to be the most effective and appropriate institutional mechanisms to reduce the cost of production, increase productivity and facilitate better marketing linkages to enhance their net income. This will not only help to augment the income of farmers but will bring a paradigm shift at grass-root level towards Atmanibhar Bharat.
Recently, Operational guidelines of the scheme have been launched. The Salient feature of the scheme are as follows:
- Minimum number of members to be 300 in plain area, while 100 in North- East and Hilly areas
- FPOs will be registered either under Companies Act or any State Cooperative Societies Act as decided by Members of FPO
- 15 % of the targeted FPOs are to be formed in Aspirational Districts & formation of FPOs is to be prioritized in notified Tribal areas.
- Scheme will be focussed on the concept of “One District One Product” to promote formation of value chain, processing and export.
- SFAC, NCDC & NABARD have been chosen as the implementing agencies.
- Agriculture Value Chain Organization forming FPOs and facilitating 60 % of market linkages for members’ produce , then FPO management cost can be reimbursed
- Implementing Agency (IAs) will engage professionally managed Cluster Based Business Organization (CBBOs) to form, register and promote FPOs
An example where the Integrated Efforts have already started bringing fruits is as below:
FPO/ Farmer Groups: Formation of formal farmer groups of Farmer Produce Organizations (FPOs) will help connect market in better way and reach consumers without hassles resulting in increased value realization of their produce. One success story of FPO is Surya Farmers Producers Company Limited (SFPCL) incorporated in the year 2015 with membership of 538 small and marginal farmers’. The SFPCL Member’s are involved in the farming of Turmeric, Pulses and Vegetables and Milk products in Basmat Tehsil of Hingoli District. SFPCL got associated with e-NAM during the year 2018 when their officials attended training and handholding programs organized by MSAMB at Basmat APMC and subsequently in Pune for FPOs. SFPCL is very consistent in selling their produce on eNAM, has sold about 3100 quintal of produce worth more than Rs. 2.18 crores. The volume itself indicates the quantum of benefit FPO has received by selling their produce on eNAM. After the launch of new FPO trading module, SFPCL has embraced the new module and registered themselves on the new module with the help of eNAM team.
Devagiri Kisan Agro Products Producer Company Ltd (DKAPPCO), Paralakhemundi, Odisha
DKAPPCO incorporated on September 11, 2017. DKAPPCO aggregated 100 MT cashews from members and non-members, by provided logistics & other handling support. DKAPPCO attended the training program organised by OSAMB later started selling raw cashew nut using eNAM platform for sale of its produce. As on date 1073 quintals of raw cashew nut and Maize worth more than 70 lakh rupees have been traded through e-NAM platform. Upon better price realization, DKAPPCO kept on selling their produce through e-NAM. The CEO of DKAPPCO has expressed his happiness over the transparent practices followed on eNAM and informed how it helped DKAPPCO in disbursal of payment to it member farmers and up keeping of his books of accounts.
Mahakaushal Progressive Farmers Self Reliant Producer Company Ltd (MPFSRPCL), Seoni, Madhya Pradesh
Company is registered at Chikla village of Seoni district in Madhya Pradesh. It serves 3000 farmers from 29 villages in Seoni. During January 2019 FPO has sold 5069 quintals of maize valued at Rs 71.30 lakhs through eNAM mandi at Seoni. Company is a recipient of “Appreciation Letter” by Seoni District Magistrate on 26th January 2019.