1 / 14

Vegetable Initiative for Urban Clusters & Farmers’ Producer Organizations

National Horticulture Conference 17th July 2013. Vegetable Initiative for Urban Clusters & Farmers’ Producer Organizations. By Jyoti Singhal Under Secretary (NHM ). VIUC – Major Objectives. VIUC – Major Components. VIUC – Physical Targets & Achievements. FPO PROMOTION.

abbott
Download Presentation

Vegetable Initiative for Urban Clusters & Farmers’ Producer Organizations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. National Horticulture Conference 17th July 2013 Vegetable Initiative for Urban Clusters&Farmers’ Producer Organizations By Jyoti SinghalUnder Secretary (NHM)

  2. VIUC – Major Objectives

  3. VIUC – Major Components

  4. VIUC – Physical Targets & Achievements

  5. FPO PROMOTION

  6. PROGRESS (2011-2013) • 1,43,657 farmers connected to FPO network • Over 104 FPOs mobilized • 61 FPOs registered • 43 to be registered soon. • FPOs supported in capacity building, training, business development, value added services and marketing • Working towards creation of IT based marketing framework • 8 State level FPO federations promoted

  7. FPO Progress 1 FIG = 15 to 20 farmers; 1 FPO = 1000 farmers

  8. Budget announcement • “Farmer Producer Organisation (FPO) including Farmer Producer companies (FPC), have emerged as aggregators of farm produce to link farmers directly to markets. To signal our support to them, I intend to provide matching equity grants to registered FPOs upto a maximum of Rs. 10 lakh per FPO to enable them to leverage working capital from financial institutions. I propose to provide Rs. 50 crore for this purpose. Besides, a Credit Guarantee Fund will also be created in the Small Farmers’ Agri Business Corporation with an initial corpus of Rs. 100 crore. I urge State Governments to support such FPOs through necessary amendments to the APMC Act and in other ways”.

  9. Assistance through Fund and Scheme • The scheme proposes setting up of two funds, Equity Grant Fund and Credit Guarantee Fund • Major Objectives : • Enhancing viability and sustainability of FPOs by increasing their equity base • Increasing credit worthiness of FPOs • Incentivizing financial institutions to extend working capital and investment loans to FPOs to increase their business operations.

  10. Equity Grant Fund • FPOs can apply to receive a one-time matching grant up to a maximum of Rs. 10 lakh to issue additional shares to members, thus increasing their equity base.

  11. Credit Guarantee Fund • Broad principles to be adopted from a similar fund created for SMEs , which is operated by a Trust set up by SIDBI. The CGF will offer loan guarantee cover to eligible FIs which advance loans to Rs. 1 crore to FPOs without seeking collateral.

  12. Challenges ahead…… • APMC laws not encourage aggregators leading to opaque market arrangements. • Need to strengthen linkages of FPOs with State extension machinery • Access and operational understanding of best practices for PHM components with market links • Unfriendly banks to get credit / finance for procuring PHM infrastructure • Meager exposure to managing modern production technology needing more agri-extension • Need for developing market linked aggregation base • No ready access to efficient quality management and marketing, pan-India logistics

  13. Thank You

More Related