Farmers’ Producer Organisations: Innovative solution for smallholders’ inclusivity

Collectivization of producers, especially small and marginal farmers, into producer organizations has emerged as one of the most effective pathways to address their many challenges of agriculture but most importantly, improved access to investments, technology, farm inputs, and markets.

To build a prosperous and sustainable agriculture sector by promoting and supporting member-owned producer organizations/companies, that enable smallholders to enhance productivity through efficient and sustainable utilization of locally available resources and realize higher returns for their produce. While having such opportunities, smallholder also accesses a healthy and fruitful partnership with academia, research agencies, civil society and other private sectors on various platforms to share their challenges and exchange their learnings mutually.

Caritas India over the years working with smallholders in Jharkhand has promoted five farmer producer organizations covering more than nine hundred smallholders registered under the special provisions of the companies as the most appropriate institutional form around which to mobilize smallholders and build their capacity to collectively control their production and marketing strength.

The need for Farmer Producer Organizations (FPO) was felt to overcome the problems of unorganized smallholder farmers who lack access to resources and services. FPOs emerged as an interface between smallholders and the external world by providing forward and backward linkages, giving them a required voice, market access, bargaining power, better prices moreover providing an authority to take decisions at their level for their betterment.

Keeping in view of this, Mr Ravi Shankar recently took the charge as District Development Manager, NABARD Gumla in place of Mr Nisheet Kumar has visited Farmers Producer Organisation (FPO) on June 23, 2021. During his field monitoring visit, he interacted with the members and office bearers of three farmers’ producer organizations (i.e., Jaldega, Pithartoli, and Dahupani Famers Producer Company Ltd). While interacting with smallholders, he appreciated the smallholders’ contributions towards collectivizing their surplus farm produces and market linkage, management practices, and equity mobilized.

A total of Rs. 2,22,500 (rupees two lakh twenty-two thousand and five hundred) has been mobilized as part of equity savings from these three FPCs covering 414 shareholders in the first attempts. All these three FPCs are undertaking small-scale business with Paddy, Jackfruit, Lac, Mahua, and Vegetables.

He also reviewed all the documents and discussed the draft business plan of actions prepared by each FPOs/FPCs and provide necessary technical suggestions for further improvements which were mutually agreed to ensure within the stipulated time frame along with few challenges encountered by the smallholders to obtain seed and fertilizer license and proper storage facilities at the local level to ensure better quality their produces.

On asking during the visit, Mr Balkrishna Gope CEO of Jaldega FPC has shared, Smallholders came together to form this FPC in support of Caritas India through the Agrarian Prosperity Program (APP) in coordination with Naya Savera Vikas Kendra (NSVK) which had helped us in every step of our progress. After forming the FPO and got registration of FPC, we got rounds of intensive training and orientations from NABARD and Caritas India on the management aspect of the FPC.