Making a Path for Smallholder’s Prosperity… Shristi Farmers Producer Company

Agriculture is a mainstay of the Indian economy and plays an important role in its growth and development. Over two-thirds of the Indian population is directly or indirectly dependent upon agriculture and its allied activities. Small and marginal farmers constitute the large group of cultivators (85%) in Indian agriculture. They have low accessibility to technology, agriculture extension, information, credit, and markets.

On the other hand, the food industry finds it difficult to procure agricultural produce directly from the farmers because of the high transaction costs. This makes the supply chains inefficient and creates concerns about food safety, lack of transparency and traceability. While indebtedness is often cited as the immediate reason for their distress, deeper issues are involved in this phenomenon such as a low scale of operations, lack of information, poor communication linkages with the wider market etc. Alongside, these associated factors, the farmers also experience extreme exploitation by the intermediaries in procuring inputs and marketing their produce.

The size of a farmer’s land holdings in India has decreased from 2.3 hectares in 1970 to 1.08 hectares by 2015-16, and the area under cultivation has become much smaller in the last 40 years. According to the Agriculture Census of India, the number of small acreage farmers and landless farmers has reached around 86%, i.e. the number of marginal farmers has increased by more than 16% in the last 40 years. Having almost crossed over 55% of agricultural labour, the number of landless agricultural labourers is now around 16 crores in the country. And numbering around 12 crores, tenant farmer comprises about 45%. (outlookindia.com)

With a vision to reduce the sufferings of the small and marginal farmers and landless agricultural labours, the Govt of India has launched the Farmers’ Producer Organisation (FPO) scheme across India. In line with the Govt of India’s initiative to promote smallholders toward a collective approach, Caritas India took efforts in initiating 5 FPOs in the Gumla district of Jharkhand state. The primary focus was to enable the smallholders to be organized where the small farm agri-foods can be marketed in an organised and make the service delivery system more promising towards availing agriculture inputs and knowledge.

Shristi Farmer Producer Organisation is currently having 325 smallholders as members with equity mobilized Rs. 2,34,000.00 and Rs. 6,95,000.00 as monthly turnover by selling their small farm produces at the local market collectively. The FPC has established a system of collectivization for all farm produces for sustainable income generation. The initiative has not only boosted their income but also helped to build their capacity in negotiating with market actors, and institutions to manage their own affairs effectively, and network with other agencies for selling their own farm harvest.

Recently, looking at the enthusiastic works in mobilizing smallholders for collectivization, aggregation, and marketing, Shristi FPO was invited by the District Agriculture Technology and Management Agency, Gumla to discuss and prepare an action plan to explore the future scope of millet (Madua) marketing in a collective way at the district level. Agencies like District Agriculture Department, Jharkhand State Livelihood Promotion Society (JSLPS) and National Bank for Agriculture and Rural Development (NABARD) were also part of the meeting to nominate Shristi FPO for millet marketing. There will be a field monitoring visit scheduled on the 20th of April by the district agriculture authority to assess the requirement of post-harvest management for quality storage and marketing.

This initiative will definitely encourage a structural reform with a major transformation not only smallholder level but at the FPO level, where smallholders will be oriented on the various aspect of the small-scale business management skills by the local government departments.

Since 2018, The aim of Caritas India was to make our smallholders more competent enough to have their strength and acknowledge the strength to potential agencies for future collaboration so that smallholders can stand on their feet by themselves has come true today. We are nominated by the district collector (DC) gumla for millet marketing. Probably from the coming season, we shall be able to initiate the same. Thank you, Caritas India and NABARD, for the continued support in building our future. Said Mr Prabal Kerketta, CEO, Shristi FPO, Palkot Gumla