Department of Horticulture, Govt. of Odisha and CTRAN Consulting, Bhubaneswar. INTRODUCTION 1.

1 PURPOSE The documents provides a systematic sight in to the process of promoting FIGs and FPOs at the district level of Orissa (four districts namely Cuttack, Khordha, Jajpur, Puri) as part of the National Vegetative Initiative Scheme (NVI) supported by SFAC and 1.2 SCOPE Marketing of Agriculture products in developing economies is mostly informal and in the control of unorganized sector. However, the argument in favour of giving producers real bargaining powers is strongest in situations in which the marketing system is characterized by a myriad of powerful intermediaries. In these circumstances, the price-makers are the middlemen and both producers and consumers are price-takers. This has provided a scope for an intervention which would facilitate better market linkages for farmers and get a higher share in the value chain and protect them from exploitation and also consumers getting a reasonable price. The promotion of FIGs and FPOs has embarked on similar objective by means of establishing aggregation centres which would provide direct linkage for farmers to consumer end. The vegetable kiosks promoted by Department of Horticulture (Udyan Fresh) would provide an interface between the producers and the consumers with minimization of the intermediary chain between them. This is being done with full integration of technology starting from the farmer ID, all the way to subsidy transfer, weighment and payment directly to the farmers bank account in a transparent manner. 1.3 ROLES AND RESPONSIBILITIES There are different players in overall process, where CTRAN has been performing the role of system integrator the overall intervention with the support of Directorate of Horticulture and SFAC. Key tasks of different players are as follows. ENTITY Department of Horticulture, Govt. of Odisha RESPONSIBLITIES Technical and financial support for FIG & FPO promotion, Capacity building of farmers, monitoring and supervision, regulating the overall operation Operation of Udyan Fresh Kiosks in a PPCP framework. Technical and financial support for FIG & FPO promotion. Sensitization of farmers, formation of FIG & FPO,

Surendra Agritech Pvt. Ltd. SFAC CTRAN Consulting, Bhubaneswar

ATMA Basix Livelihood School NABCON Synergy Aggregators Axis Bank Pvt. Ltd.

Capacity building of farmers, strengthening the FIGs and FPOs, requirement assessment and appraisal to Directorate and SFAC, reporting and documentation Technical Support and demonstrations Training of LRP / Staff Periodic Monitoring Business Plan development for FPOs, monitoring Managing the aggregation points and marketing Facilitating individual and group bank accounts, loan, credit and insurance facilities, ATM services to FIG members

2. PROCESS DESCRIPTION 2.1 OVERVIEW Around 8.43% of the national area under vegetable cropping falls within Odisha. Out of 54Lakh ha of gross cropped area in the state (source: economic survey 2011-12, Govt. of Odisha), in kharif season, 3.04 lakh ha is under vegetable cultivation of which 62.17% area is irrigated. During Rabi, total area covered under vegetable is 3.90 lakh ha of which 84% area is irrigated. Vegetable cultivators in India face multiple regulations; hence the growth of the sector is limited. Considering the share of contribution made by agricultural sector in Odisha economy, a spurt in reforms is much awaited. Luck of proper infrastructure and small land holdings have been the main identified bottlenecks in Odisha. To address this issue, the RKVY (Rashtriya Krishi Vikash Yojna) aims at a 4 percent growth in vegetable production in the XI plan period. Successively, Govt. of India has allocated Rs. 300 crore for implementation of vegetative initiatives in different state of India including Odisha. The baseline survey was conducted after the allocation of funds by the Govt. of India in four districts namely Cuttack, Puri, Khorda and Jajpur as these districts mostly cater to the vegetable requirements of the urban areas of Odisha. The research concluded that while Khorda leads in vegetable production in the state followed by Cuttack and Jajpur, Puri has the leas cultivable area for vegetables. The date also revealed major crops of the region and their district wise distribution. The findings of Baseline survey has laid down the frame work of project implementation initiated as part of the National Vegetative Initiative, supported by SFAC and Department of Horticulture, Govt. of Odisha and CTRAN Consulting, Bhubaneswar. 2.2 OBJECTIVE The purpose of the project was to sensitize and mobilize the farmers and unify them into an association (Farmer production organization) that would strengthen their position in the product value chain. Setting up of aggregation points would facilitate better access to consumer end via aggregators and would also ensure better return for the farmers. The objectives in a nutshell:

 Mobilizing farmers at the village level & build their association at an appropriate federating point to plan and implement product specific clusters / commercial crop cycle. Strengthen farmer capacity through best agricultural practices for enhanced productivity. Ensuring access to and usage of quality inputs and services for intensive agriculture enhancing cluster competitiveness. Facilitate access to fair & remunerative markets, including linking producer groups to marketing opportunities by market aggregators.

2.4 PROCESS DETAIL 2.4.1 Identification of Districts A participatory and consultative approach was followed involving the stakeholders at different levels. At the state level, identification strategies were adopted with regular consultation with nodal officers at Directorate of Horticulture and Orissa Horticulture Development Society (OHDS). With due consultation, four districts were identified for the baseline survey, namely cuttack, Khordha, Jajpur and Puri on the basis of the proximity of the districts to the major urban markets in the state. 2.4.2 Baseline Survey Following the district identification, vegetable growing pockets of each district were identified with consultation meetings with district level officials of Horticulture department. For validation, inputs from selected PRI members, seed suppliers, fertilizer & pesticide supplying agents were also considered. The major vegetable growing areas were finalized for the survey. Geographical boundary (revenue circle) was not the parameter for identification of clusters. The identified vegetable pockets (clusters) of the districts were: Districts Cuttack Area Athagarh Clusters Sathilo Samsarpur Mahakalbasta Kushapangi Parthapur Similipur Golaganda Harianta Sainso Khalrda Usma Kaalrda Bhakarsahi Somanasasan

Banki

Baranga

Khordha

Balipatna

Balianta Bolagarh Begunia Jajpur Rasulpur

Jhintisasan Badakumari Siko Haja Barabati Singapur Odiso Kalan Naghuabar Jabara Badakainchi Balapur Balarampurgarh Bidyadharpur Resinga Uchhapur Balanga Teisipur Rupadipur Saraswatipur Chandradeipur Jaleswarpada Bangurigaon Othoka Latahran

Puri

Satyabadi

Nimapada

Pipili

Kakatpur

2.4.3 Survey Tools Data was collected from both the primary and secondary sources through desk research and field survey. The farmers schedule was used to capture information from the individual vegetable growing farmers. The traders schedule was used for information related to local aggregators and traders. The semi-structured checklist was used to collect information from the sample villages through focus group discussion with farmers / vegetable growers. While farmers and traders tools were structured, the FGD checklist was semi-structured in nature. Ten per cent of the total numbers of farmers (6000) in the districts were taken as sample size. The secondary sources of information including data on types of vegetables cultivation, area, production, productivity and available infrastructure etc. were collected from the State Horticulture Mission, District Level Horticulture Department, related web sites and other available reports. The sample population was distributed evenly over all the four districts and

identified clusters to ensure that the selected sample is representative of all the village population. Focus group discussions were conducted in each cluster. Key Conclusions of the Baseline Survey Low or unrewarding selling price was one of the major issues identified. During FGD it was learnt that due to increased production cost and lack of suitable market linkages, the vegetable growers were not getting remunerative price for their produce. Expenditure on Fertilizers and pesticides: Since the cost of production is sometimes higher than the selling price of the vegetables, the margin of profit remains negligible or often losses are incurred. As a result of which the farmers fail to invest on fertilizers or pesticides or they have to borrow from local traders on high cost short term credit. Technical Knowhow & Awareness: Evaluating the awareness and technical knowledge of the participating community is crucial for effective implementation of the project plan. In the present study, attempt was made to measure the awareness of the respondent farmers about the existing schemes for vegetable cultivation and the improved technologies of farming. The research concluded that most of the farmers were unaware of the schemes and programmes and relied on interpersonal communication for information. As far as the capacity building programmes are concerned, very limited no. of farmers (only the progressive ones) attended the exposure visit to Punjab Agriculture University. Few had attended training programme in KVK at Keonjhar district on raising different types of vegetable seedlings. Intensive communication with the farmers showed their interest in IPM and INM inputs, training on disease control and application of fertilizers and pesticides, farm mechanization and growing vegetables under protected cover. Due to lack of awareness on modern cultivation technologies, the age old practices are still persistent. Thus the farmers should be made aware about that the latest technologies and practices to make vegetable production more profitable. Irrigation Facilities: Whether it is in Rabi or Kharif Season, vegetable cultivation requires sufficient irrigation facilities. The baseline study showed that the popular means of irrigation in the villages are the traditional methods like bore well, dug well, LI points and rivers. Modern technologies like drip or sprinkler irrigation system are not in use. For example, Siko Cluster of Begunia Block has more number of LI points mostly managed through panipanchayats. Most of the LI points are run by Kerosene or diesel operated DG sets due to lack of electrification thereby increasing the cost of irrigation for farmers. Investment Problem: Unavailability of timely credit is a major bottleneck for farmers. In most of the cases they either depend on loans from money lenders or fellow farmers for financial assistance. The procedural

delay in loan access adds to the financial burden. Thus the farm investment suffers due to lack of sufficient financial base. The Co-ops and the Commercial banks are the only credit providers for the farmers. Short term loans from PACS are not adequate and the loan size varies between max. Rs. 5,000-10,000. Market Risks The farm products are sold at the farm gate or to the local traders. The farmers are mostly unaware of the market price and are duped by the trader and often paid lesser than the actual selling price. Due to, lack of transportation facility, time and financial constraints, the farmers themselves cannot travel to the local market to sell their produce and have to rely on the middle men and local traders to sell their produce. Storage: The storage facilities for crops are almost non-existent at the cluster level, thus the leafy and the perishable items need to be sold on the day of harvest itself. Sometimes these are sold at throw away price or get wasted, adding to post harvest loss. Packaging and Transportation: After the cleaning and sorting procedure at the farm gate, the vegetables are packed in gunny bags, plastic bags, bamboo baskets or plastic trays. The discarded vegetables account for a huge field loss. Along with the field loss, the transportation cost and items that are perished on the way to the market adds to the net post harvest loss. Access to Market / Mandi / Aggregator: The intermediary (middle man and local traders) are the only links to the markets. But often the local traders or the middle men do no show interest in buying small quantity of produce from individual farmers. Most of the farmers suffer from inadequate dissemination of market intelligence and are often unaware of prevailing market prices till they visit the mandi. Further, to save the transportation costs, they travel only to the closest market instead of exploring prices in other accessible markets. In the worst case, farmers are forced to sell locally at the village level at a much lower price to prevent heavy loss and wastage. Post Harvest Management: Limited number or absence of processing and preservation units in the studied clusters is responsible for the post harvest losses incurred by the farmers of the region. Farmers are mostly not aware of the handling procedures. The horticultural crops, because of their high moisture content are inherently more liable to deteriorate especially under tropical conditions. Moreover, they are biologically active and carry out transpiration, respiration, ripening and other biochemical activities, which deteriorate the quality of the produce. Hence most of the perishable and leafy vegetables rot while transporting from the farm to the cold storage. Processing and preserving units in proximity to the farms would enhance the shelf life of frcops. Lack of facilities in markets: Of the only eight regulated market complex at Birabati, Banki, Athagarh, Nimapada, Pipili, Cuttack, Bhubaneswar and Khurda, three are non-functional. The regulated markets lack infrastructure like auction and drying platforms. The stands in the open field are only provided

to the farmers against a hefty fee of Rs. 70-100 daily. Also the market places reel under acute shortage of water supply, lack of sanitary facilities and grading arrangements. Further, farmers complained about the market arrangements due to unauthorized charges and inadequate infrastructure. While selling vegetable produce in the whole sale market, the farmers have to pay 10% of the sale proceeds and there are no facilities available for free parking of vehicles and cycles. 2.4.4 Formation of FIGs The aim of the project is to strengthen the farmers through creating awareness as well as empowering them through training, technical support and financial aid to ensure solution to the identified problems. The first and foremost task is to mobilize and integrate the farmers together in to FIGs (Farmers Interest Group). The project aims at improving the farmers capacity through regular training, providing access to the key service providers and market and also by facilitating communication which would enable resource and knowledge sharing among the farmers. Vegetable growers of the identified clusters have been organized into FIGs, each consisting of 20 members. They have been exposed to regular sensitization meetings. Through 2-3 rounds of sensitization meetings the farmers are made aware on the aims and objectives of the NVI, the benefits the project, the execution of the project plan and their roles in the project. Local people aware of the farming status of the area were selected as Local Resource Persons (LRPs). They effectively established a coordination link between the farmers, the service providers and facilitators. The LRPs are also responsible to coordinate with the farmers and help them with the formalities as a part of the project (such as registration and opening of an a/c with the bank). Functions of FIG: Organising regular group meetings Agri-inputs (seed, fertilizer, pesticides) planning and collective procurement Crop planning / crop rotation Mobilising farmer groups into FPOs Raising small savings Convergence with other deployment schemes / line departments Promotion of collective marketing and developing linkages with market players

2.5 PROJECT IMPLEMENTATION PLAN Cluster identification is followed by FIG formation that determines the course of the project further. The process focused on capacity building along with supportive activities fro field evaluation and monitoring, strengthening the FIGs into formal registered bodies. Each registered body under the Cooperative or the Company Act would integrate together 1000 farmers forming a Farmer Producer Organisation (FPO). FPOs have better price negotiating ability and stronger capacity to establish market linkages. FPO formation works on the principle of a cohesive rapport among the members to ensure a symbiotic growth and function among the members of the FPO. Each member of the FPO is provided with a

unique ID. Each member has been provided with a bank a/c for credit of the subsidy amount and the selling price of their products through direct online transfer using RTGS. The capacity building phase emphasizes on training the farmers to use advanced technologies for better cultivation and post harvest management. Capacity building phase is aimed at equipping the farmers and fostering their abilities to manage the available resources properly. They are also exposed to field trials for demonstration of improved applications. These helps the farmers acquaint themselves better with the processes. Training Each training session educates the farmers for enhancing their skills on production technology, improved farming techniques etc. Along with technical training, the training also focus on HRD practices including group processed, team building, conflict resolution and enterprise management. Technical training includes production technology, Integrated Nutrient Management (INM), Integrate pest Management (IPM) and Post Harvest Management (PHM) training to the farmers in collaboration with the Agriculture Technology Management Agency (ATMA) and the State Agricultural Universities (SAU). Non Technical HRD: Lack of coordination among the farmers is one of the major issues that the baseline survey identified. The HRD training besides technical advice and knowledge addressed the issue of lack of coordination and sought to integrate individual farmers into groups to ensure better sharing of resources and knowledge among them. The training programmes promoted group dynamism among individual farmers and integrated them into an organized group. The promotion of group dynamism emphasizes on the following aspects: Behaviour Participation Personality Leadership Responsibility of FIG members and office bearers Functions of FIGs and FPO

Technical Production Technology The training sessions aim at educating the farmers about the improved method and technologies of faming such as crop management and cultivation, irrigation management, Production of improved quality of seedlings, nursery management and Hi-tech agriculture like protected cultivation etc to increase productivity. The capacity building exercise through enhancing knowledge of the farmers aims to equip the farmers with strategies for dealing with all common issues faced in agriculture. Also the initiative has introduced a help line for the farmers to seek help from agro specialists for any kind of problems faced including pest attack etc.

Knowledge about improved production technologies such as usage of staking for crops like tomato, pumpkin etc has been disseminated. These technologies have not only helped improving the quality of vegetables but also ensured lesser wastage for the farmers. INM: Integrated Nutrient Management (INM) refers to the maintenance of soil fertility and application of plant nutrient at an optimum lever for sustaining the desired productivity and optimization of benefits from all possible sources of organic, inorganic and biological components in an integrated manner. The training sessions have been oriented to impart knowledge on INM to the farmers and explain the importance of retaining soil fertility for better cultivation and quality of crops. Members of 90 FIGs have attended training on INM and few have successfully applied it in their farms.

Case Study
Name of the farmer: Sridhar Sahoo Age: 50Yrs. Village: Uparpatharpur Village, Parthapur cluster in Banki area, Cuttack:Vermicompost, an organic manure is prepared through the process of composting using various worms, usually red wigglers, white worms, and other earthworms to create a heterogeneous mixture of decomposing vegetable or food waste, bedding materials, and vermicast. Containing water-soluble nutrients, vermicompost is an excellent, nutrient-rich organic fertilizer and soil conditioner. This process of producing vermicompost is called vermicomposting. This process is an effective method of INM. Sridhar Sahoo of Uparpatharpur village has adopted the use of Vermicompost instead of buying commonly used expensive fertilizers such as DAP from the local traders at a cost as high as Rs. 12,000 per tonne excluding local levies. Other than the high cost of consumption these chemical fertilizers also takes a toll on soil health and productivity. The training progammes have introduced among farmers, the use of vermicompost, an organic soil manure which along with fertilizing the soil, preserves the quality for a longer time. This has reduced the cost of production for the farmers. This project intervention has helped Sridhar Sahoo and likes to access the Govt. subsidies to construct a vermin cast in their farms. Sridhar Sahoo says that the cost of production has considerably reduced per hectare as compared to DAP use. Since DAP is unaffordable at times, these farmers had to often rely on the cheap manures like cow dung etc. These fertilizers are unable to yield quality crops which decreases the market prices of the farm produce adding to the farmers loss. Application of vermicompost has yielded better quality vegetable which earns increased market price. The market price of his farm produce has increased by a minimum of Rs. 3-5 per kg. The training programmes have successfully facilitated an easy access to govt. schemes for the farmers, but Sridhar Sahoo complains of the disparity between the cost borne by the Govt. and the effective cost. The Govt. subsidy available for building a vermin cast is Rs. 20,000, whereas the effective cost of building the same estimates around Rs. 55,000. Thus the high initial cost to be borne by the farmers is often a concern for the farmers including Sridhar Sahoo.

IPM:
Integrated pest management (IPM) is a broad based approach that integrates a range of practices for economic control of pests. IPM aims to control pest population below the economic injury level (EIL). As vegetable farming is vulnerable to pest attack, trainings have been oriented on IPM practices too. Members of 90 FIGs have already attended IPM trainings and many have adopted the practice of IPM techniques in their farms.

Case Study
Name of the farmer: Ballabh Behra Age: 25Yrs. Village: Koimundi, Parthapur cluster in Banki area, Cuttack Pest management has been much easier for Ballabh Behra since he has attended the training sessions. He has received subsidized pheromone traps distributed by the Dept. of Horticulture. Each farmer was given four pheromone traps per acre of land. Ballabh Behra agrees that the pheromone traps are much effective alternatives than the pest control chemical available at cost as high as Rs. 1500 per litre. He says More than the harvest the pest management has always been an issue of concern for us. After the training session managing pest attacks have been much easier. He has effectively used the pheromone traps in his farm during Okra cultivation. The traps have shown remarkable results in controlling pest attacks and as a result has minimized the loss. The pests and insects like butterflies would eat up the crops earlier and render them unfit for sale. Also the market values are slashed and the price earned is not remunerative for them. After the usage of pheromone traps for pest control the post-harvest wastage quantity has decreased by around 30 percent. A pheromone trap is a type of insect trap that uses pheromones (A pheromone is a secreted or excreted chemical that triggers a social response in members of the same species) to lure insects. Sex pheromones and aggregating pheromones are the most common types used. A pheromone impregnated lure is encased in a conventional trap such as a Delta trap, water-pan trap or funnel trap. The farmers were trained on the usage and benefits a pheromone traps in the training session by plant pathologist Sujata Patnaik. They were taught about the principle of how pheromone traps work, and also how the device controls egg laying phenomenon thereby controlling the population.

Case Study
Name of the farmer: Subash Chandra Sahoo Age: 30Yrs. Village: Koimundi, Parthapur cluster in Banki area, Cuttack CTRAN consulting and the Directorate of Horticulture, Odisha have laid the platform to educate the farmers on process of farming, farm management and agro marketing strategies. Preparation and usage of Panchgavya is an effective method of pest management.

Subash Chandra Sahoo, aged 30 yrs from Koimundi village from Pathrapur cluster in Banki, Cuttack has been sensitized on the benefits of Panchgavyain the training session. The affordability of Panchgavya is much higher compared to the other pest control chemicals. As compared to the expensive chemical fertilizers he had to purchase from the traders at Rs. 2,000/- per litre, the Panchagavyais a much cheaper substitute made from easily available ingredients. The homemade Panchgavya (or cowpathy) can be easily prepared with use of five budget ingredients derived from cow. Panchgavya is a blend of five products namely milk, curd, ghee, cow urine and dung. The cost of production of Panchgavya is around Rs. 150 per litre compared to the cost of commonly used pesticides at Rs. 2000/- per litre. The decreased cost of pest management has ensured a reduced cost of production enabling higher profit margin. Subhash Ch. Sahoo has already prepared the panchgavya himself and will apply it to his fields shortly. Panchgavya is not only a soil manure but serves other purposes of a pest repellent, enhancing plant immunity and soil fertility booster. All these benefits of the same product have reduced the cost of production and S.C Sahoo expects an average profit of Rs. 4000/- per acre of land. Daily application of Panchgavya would also improve the quality of crops which has higher market price than the crops produced using common pesticides and manures. With improving the soil fertility , Panchgavya helps trees develop a profuse canopy and dense rooting system. Even the taste and shelf life could be improved by the practice. The training session has also provided knowledge on the use of Panchgavya as explained by S.C. Sahoo.

Benefits
Normal Chemical pesticides and manures High cost (Rs. 2000 per litre) Exclusive functions (pesticides for pest repelling, manures for higher yield etc) Depletes soil fertility and hardens the texture of the soil Lesser market value for chemically produced vegetables Ensure instant benefits Panchgavya Much Lesser cost (Rs. 150 per litre) Works as a manure, pest repellent, immunity booster, protects against soil microbes. Betters soil fertility and soften the soil texture. Higher market value for organic products

Ensures long run benefits by improving the rooting system which helps plant to stand protracted drought conditions Has to be applied exclusively for individual Works for almost all kinds of crops including plants fruits, vegetables and plantation crops too. Post Harvest Management: Post harvest handling is the stage of crop production immediately following harvest, including cleaning, sorting and packing. The moment a crop is removed from the ground, or separated from its parent plant, it is likely to rot. Thus to enhance the shelf life of farm produce including vegetables, post-harvest Management techniques play an inevitable role. It largely determines final quality, whether a crop is sold for fresh consumption, or used as an ingredient in a processed food product. Effective handling decreases post harvest losses. Around 75% of farmers in Cuttack and 60.57% in Jajpur suffer heavy post harvest loss while their produce is transported to market. Losses are also incurred during harvest, transportation from field / farm yard to home, due to lack of storage facility, during packaging etc. The

average post harvest wastage ranges from 15 to 30% of the net produce. The major issue identified was lack of cold storage facilities in proximity to the farms. The initiative seeks to address the issue through introduction of aggregators or aggregation centres in the product value chain. The aggregators would collect the vegetables from the farm gate or the farmers may also sell their produce at the aggregation points. The vegetables are weighed with digital weighing scales and the price of vegetables is transferred to the farmers bank account simultaneously via online transfer. Thus the burden of post harvest loss is not borne by the farmer any more. Also individual farmers are provided with plastic craters to provide ease of storage and transportation to the aggregation point. FARM TRIALS For demonstrating the usage of the technologies promoted in the training programmes and to acquaint the farmers with the usage, farm trials are conducted. The farmers actively participate in the simulation process in presence of experts to help them acquaint with the application. For example the FIG members at Banki Cluster were given with Pheromone traps which they tried in their farms in the presence of plant pathologist. If any farmer had faced any problem is using the device, they were guided for proper application. EXPOSURE VISITS The exposure visits introduce the farmers to the results of successful integration of sustainable agricultural practices in the farms. The trained farmers are taken to field visits for exposure to the technologies already applied in the fields. This not only helps them learn the tricks of proper application of the methods but also convince them of the promised benefits. 2.6 FORMATION OF FPO The farmer producer Organization (FPO) is a formal body registered under the Company Act or the Cooperative Act of the Govt. with an organizational hierarchy headed by a board of directors. The producers organization integrates together a no. of FIGs, thereby increasing the number strength of the body. The primary objective of FPOs is to introduce a farmer ownership model and do away with the existing middleman dependence. The farmer ownership model unlike the middle men structure gives maximum power of price negotiation with the producers. The FPOs strengthen the farmers through organizing them into groups. The accumulated production in a group is much higher than an individual which shifts the power to the producer side. Functions of FPO OUTPUT BUSINESS The FPO would be responsible for facilitating market linkage for the farmers thorough aggregation points and direct access to retail outlets or the vegetable kiosks at the urban centres promoted by the Directorate of Horticulture as an integral part of the project. Planned harvesting of crops and control the product flow with preservation of produce according to the market demands and price Minimise the intermediary points in the supply chain thereby helping a two way profitability for both the producers and the consumer. INPUT BUSINESS

Other than strengthening the output linkage for the farmers, the FPOs also provide input services through facilitating access to subsidized schemes, farmer support services, availability of subsidized schemes, farmer support services, availability of subsidized seeds, fertilizers and other farm extension service. PROCESSING Value added services include post harvest processing which increases the market value of primary agricultural commodities. Particular processes like organic produce or regionally branded products increase the consumer appeal and consumer willingness to pay a premium over a similar product. Since the farm value of consumables continue to decrease over time since harvest, the value additional processes which are also made available by the FPOs would help the farmers capture a bigger shae of the market through processed goods. Along with value addition to farm products, the objective also would help in waste management, processing of consumer crops or vegetables, protecting crops from post harvest loss. POST HARVEST TECHNOLGY The post-harvest technology aims at enhancing the shelf life of vegetables after harvest. This ensures lesser post harvest wastage which is common issue faced by all the major clusters identified. Most of the farmers incur a huge loss while transporting the crops from the farms to the markets. This is due to lack of cold storage at proximity. The project aims to speed up the process of reaching the consumers through facilitation of market linkages. The aggregators would collect the vegetables from the farm gate or the farmers can sell the vegetables at the nearest aggregation points according to their convenience. Plastic craters have been provided to all the FIG members of the clusters so that the crops are transported properly after harvest and subsequently reach the retail outlet and then the consumers. MARKET LINKAGE Proposed Marketing Plan Each FIG is a member of the market chain. The FIG members are directly connected to the market through the aggregation points. The aggregators either collect the farm produce from the farm gates or the farmers sell their farm products to the nearest aggregation point. Each aggregation point clearly displays the rate of vegetable for the day on NIC charts derived from the existing rates of the local markets. The vegetables are weighed at the aggregation centers with digital scales and the price is subsequently transferred to the farmers bank account. The UDYAN FRESH refer vans collect the vegetables from the aggregation points and transport it to the nearest retail outlet at the urban centres by the day itself. 2.7 TECHNOLOGY & E-GOVERNANCE The server interface developed by the Department of Horticulture has effectively introduced a transparent system for money transfer and every member would have an access to the information on the portal. Each member would know the existent rates at the different aggregation points. Purchase rates and MIS reports are also available on the portal. The interface provides a common platform for all the stake holders including the aggregation point

in-charge who can keep a tab on the rate of commodities, quantity of commodities etc on any given date. The e-governance technology offers a common platform to let the directorate monitor each beneficiarys subsidy details. The interface between each individual farmers and the directorate would facilitate the district level officials to update the disbursement details of beneficiaries in phase wise manner. This ensures complete transparency in manual driven system and provides link between the coordinating authority and the farmers in the outskirts. 3. PROCESS LOGFRAME Table 1 : table showing the detained log frame of the project SN Components 1 Mobilizing farmers in groups and build their associations (FPOs) to plan and implement product specific cluster / commercial crop cycles Activities Outputs Outcome & Impact Organize farmers into 3000 farmers from Farmers in 80% FIGs informal groups (FISs) 8-10 villages in confident and keen Train members and close geographic to positively change leaders in matters cluster organized their current relating to group into FIGs prepared condition and have functioning, group for intensive developed plans to norms and systems vegetable / pulse synergise planning Form associations / based livelihood and market access FPOs of FIGs interventions. on the cluster Train members and FIGs organized identified products. leaders of FPOs to into nurture FIGs and FPOs/informal mediate vis--vis associations external resource supporting institutions and productivity, markets efficient access to input and output linkages with agriculture programs. 75% met or exceed quality benchmarks on group functioning Conduct exposure for 60% of all families High adoption selected men and interested to take rates of new women from project up improved crops practices villages to villages / have access to promoted under farm practicing quality inputs this project. modern farming 40% of participant 75% project methods, such as land brought into families report different crop mixes, intensive farming. over 50% modern techniques 80% families increase in yields and intensive farming cultivate a in pre existing

Strengthen farmer capacity through agricultural best practices for enhanced productivity

Ensuring access to and usage of quality inputs and services for intensive agriculture enhancing cluster competitiveness

Facilitate access to fair and remunerative markets including linking producer groups to marketing opportunities by market aggregators

Discuss alternate farming systems with groups of farmers suitable to their specific situations and generate household farming plans / portfolio Identity training and extension needs and potential LRPs to function as community based extension agents Train LRPs to provide extension support to farmers adopting new farming systems Helping families access working capital from SHG/MFI, banking sector and other sources Link / develop supply channels for inputs and services On field handholding support by LRPs to ensure appropriate usage of quality inputs Demonstration of usage and effectiveness of relevant farm mechanization practices Developing production clusters for producing significant volume of marketable surplus Identifying and building aggregation / desegregation centres in production cluster wherever

diversified basket crops. of locally suitable 75% project crops families have LRP training diversified their modules being cropping pattern implemented in to cluster large number identified crop Trained LRPs The expertise supporting and services of a implementation of cadre of rained the household and LRPs being cluster level farm utilized by the plans community effectively.

70% of Participating participating families have families using assured supply quality inputs of quality inputs FPOs/Producer and services. Aggregations Network of input promoted and services Families covered delivery by these mechanisms collectives developed in the Gross crop output local area per hectare Participating increase by 100% families feel in rupee value confident to terms intensify their agriculture.

Intensive, market Sustainable and oriented competitive production linkages for clusters developed marketing exist Surplus produce for produce marketed at Families in remunerative production prices participant clusters have families engages multiple options in coordinated to sell farm

required market oriented produce. Linking these clusters production The prevailing with market players Producers rates in the (eg. Vegetable collectives cluster are fair traders, commission aggregate and vis--vis large agents, retailer etc) market produce markets in the Producer collectives from members region taking output Market marketing aggregators / Formation of FPOs retail chains buy produce from produce collectives

4.

INTEGRATION OF TECHNOLOGY AND MEASUREMENT OF IMPACT

The key identifiers of change after the intervention are as follows: Capacity building and better coordination The training programmes conducted as an exclusive capacity building initiative under the project has accumulated collective strengths of farmers and has thus strengthened the price negotiating power for them. The collective produce since contributes a bulk to the market has fortified their position different from the usual deprived and exploited section. The farmers of the villages have come together and have started sharing their resources for individual progress as well as contributing to the progress of the sector which drives the rural economy. Payments schedule: To free the farmers from exploitation by the middleman, the aggregators have been empowered to collect the farm produce either from the farm gate of the farmers can also sell it at the aggregation centre. This ensures better weighing of the products through a digital scale and the best possible price is assured to the famers based on an average of the prices of all the local markets. The farmers are issued a receipt with the detail of the quantity they sold at the aggregation point and the corresponding price is transferred to their accounts hosted by Axis Bank through online transfer on a daily basis. Better Market Linkage The aggregation points have minimized the intermediary chain that the farmers had to travel to reach their products to the consumers. The ease that the aggregation centres have provided the farmers to sell their produce has minimized the rigorous labour for them along with reduction in transport charges. The farmers are free from the risk of wastage as the entire farm products are sold at the aggregation points and there is no chance for post sell wastage or compromise on the price to ensure better sell. Better farm price through aggregation centres: The rate charts available at all the aggregation points offer rate transparency to the farmers. They are even free to choose whether they want to sell their farm products at the aggregation

centre. It they are offered better price elsewhere they are free to sell their products to that particular agent. Thus the initiatives have strengthened the farmers position and have offered a free choice for them. A survey in Harirajpur village in Banki, Cuttack, showed the outcomes related to price realization which affirmed that the farmers share has been increased and the enhancement is highest in case of tomato. 5. CONCLUSION The project intervention in Odisha has shown a remarkable progress and has already oriented total of 1500 farmers in Jajpur and 2000 farmers in Cuttack district. The stakeholders have actively intervened to open group accounts and inter initiate inter lending activities within the groups. The FIG members have chosen their leader representatives among whom a board of directors has been selected for the FPO registration. Both the FPOs at Cuttack and Jajpur would get the DIN numbers shortly. Eleven retail outlets have been opened and running successfully in Bhubaneswar. The Govt. has mooted outlets for Cuttack too. The outlets are being managed through PPP model and have been offering a fair price procuring vegetables directly from farmers and eradicating middlemen. 5.1 IMPACTS OF INTERVENTION Almost all the FIG leaders have acquired skills on updating records and monthly group records are properly maintained. Role clarity among the executive body members on group management. After attending the HRD trainings, the FIG members (30%) have adopted soil testing measures. FIG member have started using potash for cabbage cultivation and Vermicompost were not in use earlier. Extensive use of Pheromone trap as pest control measure among FIG members has been observed. Vegetable growers have adopted use of staking in Tomato and wire in case of creepers for better production. As pest control measure nearly 69% of farmers have adopted deep ploughing, soil firing during soil preparation and seed treatment Eleven FIG group members have started preparing organic fertilizers like Panchgavya and have also used it in their farms. Few farmers have constructed compost pits 71 farmers have applied for poly house structure and Vermin compost units (Bank Dampada Block-60 and Rasulpur-11) Many of the farmers are using crates in order to check post harvest loss and are practicing proper grading, sorting and packaging of vegetables. They are fetching better market price because of these practices. Farmers are showing interest in collective marketing. Unity has increased among FIG members. Inter group interaction is leading to sharing of knowledge and resources on vegetable cultivation, production and marketing. Increased rapport with horticulture department, resource organizations and plant pathologists for advice.

 Increased knowledge among farmers on Horticulture schemes and provisions. 6. Annexure A survey conducted in Harirajpur, Banki, Cuttack with a sample size of 43 members has established few areas of improvement related to market access as recommended by the beneficiaries. Table 3: The suggestive measures and the corresponding number and percentage of respondents. SL No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Suggestions No. of Percentage Farmers of Farmers Receiving messages through SMS related to price of different 41 95.34% vegetables of nearby markets Opening of more aggregation centres 43 100% Willingness to sale total produce to the aggregator 42 97.67% Provision of retail outlet for FPO / FIG in vegetable malls with 39 90.69% govt. support Training for domestic processing 40 93.02% Introduction of new crops 35 81.39% Credit linkage 43 100% Establishment of market yard in clusters 43 100% Protected farming in group mode 38 88.37% Training for quality management storage 42 97.67% Study Tour 40 93.02% Mechanization 39 90.69% Increasing activities of FPO 41 95.34% Continuance of the project 43 100% Delay in release of subsidy 43 100% Supply of crates at subsidized rate 43 100%

During the implementation period, the following challenges were faced and the corresponding solutions have been planned: Table 4: the Key challenges and the corresponding initiatives KEY CHALLENGES INITIATIVES / SOLUTIONS M ore farmers interested to get associated The matter was discussed with the with the process Stakeholders. The block Athagarh in Cuttack district is considered for extension where CTRAN has already mobilized 2500 additional farmers and FIG promotion in nearing completion. Unavailability of Agri-inputs For timely distribution of Agri-inputs, seed requirement of FIG members was assessed and dealers were contacted. The farmers

Lesser Budget for exposure

Operational expenses of FIGs & FPOs

Limited access to agri inputs

Market Linkage support through FPO

have accumulated their share of money and received seeds from the Horticulture department. Also supply of vegetable seedlings has been planned for distribution to FIG members on subsidized rate. The issue was discussed with SFAC and Horticulture Department. Strategies have been designed which are to be facilitated by BASIX livelihood School. With intervention, FIGs have been motivated to raise monthly savings to enable required capital sharing at FPO level. Provision of revolving fund / matching contribution could also address the issues. All the FIG members still do not have access to subsidized agri inputs. Efforts need to be made for enabling access to suitable provisions and supply inputs at lesser price. The FPOs formed do not have formal collaboration with market promoters. Efforts in this regard have been planned for FPOs to provide better market linkages to its members. For the purpose the FPO with the assistance of Horticulture Dept. & SFAC could plan for asset creation and initiating Business activities.