Professional Documents
Culture Documents
EXECUTIVE SUMMARY
This study discusses the agricultural inputs and implications of the identify their marketing constraints and opportunities. A survey of 150 farmer was conducted in five different village maghnager block of Jhabua districts in MP .The major input marketing constraints that were identified in the study is that, lack of agricultural cultivation information, undulated topography, low soil depth, soil fertility, the absence of new technologies, information asymmetry between traders and producers, lack of formal contracting among informal, and formal producers and traders, lack of standardization and product quality, high costs of cultivation ,financial services and transportation costs. The major opportunities for increasing the efficiency of the marketing are the potentially to improved agricultural inputs like: HYV seed, fertilizer, labour , more use of bio fertilizer ,etc its multiplication and distribution, This paper also show that the exiting pattern of cultivation and cost involved the agricultural mechanism to reduce the same . There is the no proper marketing channel & to reduce the cost of cultivation we can form a producer company.
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ACKNOWLEDGEMENT
At the outset, I feel great pleasure to pronounce my gratitude to Prof. L. K. Vaswani, Director, KSRM, KIIT University, for giving us the opportunity to participate in the MTS II Program by adding it to our course curriculum. I am thankful to Prof. Prasun Kr.Das, our MTS Coordinator KSRM, KIIT University, for his guidance and constant observation throughout the program. I am particularly thankful to Prof. Nandini Sen , Faculty Guide for their sincere guidance, constructive criticism and valuable suggestions in every step of this work. Special thanks to Mr. S.S.Rana, Zonal Program Manager for giving the opportunity to complete my final MTS II training in their Organization. And my immense gratitude to Mr. Deepak Sharma, Regional Program Manager for his able guidance during the study. This report could not have been prepared without the committed support of GVT staff. In particularly, I gratefully acknowledge time and effort invested by the farmers those who have participated in the survey for sharing their views and provided the valuable feedback on the program through the preparation of this report.
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Table of Contents
9 10 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 11 11.1 11.2 11.3 11.4 11.5 11.6 12 13 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 14 14.1 15 16 Demand estimation of Agriculture inputs in the target village ........................................... 23 Market Linkage .............................................................................................................. 24 Rural Marketing Pattern .......................................................................................... 26 Supply Chain and Rural Marketing Network of Tribal Division............................... 27 Present Supply Chain of Rural Market ..................................................................... 27 Some existing models of movement of farm produce from farm to market- ............. 28 Value addition and marketing support...................................................................... 31 Constraints in Rural Market ..................................................................................... 32 Reasons for Improvement of Rural market of the tribal region ................................. 33 Future Plans............................................................................................................. 33 UNDERSTANDING PRODUCER COMPANY ............................................................ 34 PRIMARY PRODUCE ........................................................................................... 34 PRODUCER ........................................................................................................... 34 PRODUCER INSTITUTION .................................................................................. 34 PRODUCER COMPANY ....................................................................................... 34 WHO CAN FORM PRODUCER COMPANY? ...................................................... 35 CHARACTERISTICS OF PRODUCER COMPANY ............................................. 35 Objects and Activities of Producer Company .................................................................. 35 Stages of Project Development for producer company .................................................... 36 Village study and preliminary identification ............................................................ 36 Feasibility study ...................................................................................................... 36 Report and action plan ............................................................................................. 37 Organizing............................................................................................................... 37 Formalizing ............................................................................................................. 37 Registration certificate ............................................................................................. 38 Business planning .................................................................................................... 39 Linkages with other organizations ........................................................................... 39 Monitoring and review ............................................................................................ 39 Key Activities, Timeline, Deliverable and Measures of Verification ............................... 39 Project Outcomes .................................................................................................... 41 Conclusion ..................................................................................................................... 42 Annexure- ...................................................................................................................... 44
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INTRODUCTION
The agriculture has potential to create economic growth in rural areas. It generates jobs opportunities in adding value (as in food processing industry), in bringing agriculture products to the customers (market linkage), and in providing support (infrastructure, information, quality control and training). Agriculture is still the mainstay of the State's economy, as about 71 percent of the population is still dependent on agriculture. Agriculture in the state is still traditional and mostly rain fed. There is high proportion of low value crops with low productivity. Agricultural holdings are fragmented. Madhya Pradesh has unique topography, soil and weather, which is one of the major reasons that the impact of green revolution had been negligible on the agriculture sector of the state About 74% population of M.P. resides in rural areas. Around 65 percentage of the total land holdings belong to small and marginal farmers occupying only 26 percent of the cultivable land. The net sown area is about 147.90 lakh hectares. The gross cropped area is 202.16 lakh hectares. The ratio of Kharif to Rabi crops is 1: 0.79 during 2006-07. The total irrigated area of the State is 43.3 % and remaining area is rain fed. The cropping intensity of the State is 136%. The State is divided in the following 11 Agro Climatic Zones: (1) Chhatisgarh plains (Balaghat district falls in this zone) (2) Northern hill region of Chhatisgarh (Districts of Shahdol, Mandla, Dindori, Anuppur, Umaria and part of Sidhi fall in zone) (3) Kymore plateau and Satpura hills (4) Central Narmada Valley (5) Vindhya Plateau (6) Gird region (7) Bundel Khand (8) Satpura Plateau (9) Malwa Plateau (10) Nimar Plains (11) Jhabua hills. Agro ecologically the state falls in three zones namely, Zone VII (Eastern Plateau and hills Zone), Zone VIII (Central plateau and hills Zone) and Zone IX (Western Plateau and hills Zone) The major Kharif crops are: Maize, soyabean, Tur, Urad, Moong, Groundnut and Cotton etc. The major Rabi crops are: Wheat, Gram, etc. As part of the Management Traineeship Segment-II, the major persona was feasibility study of distribution of agriculture inputs and farm equipments on lease through GVT. A study of business analysis in both financial and operational aspect of different opportunities was carried out to understand the various perspectives for the initiatives undertaken by GVT. In order to identify challenges for the organization in current and future context different concepts that were learnt in the classroom were utilized.
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Total world nutrient trade in 2001/02 rose by 4 million tones (6.6 percent). International fertilizer trade occurs almost equally in developed and developing countries. Exports of nitrogen and potash decreased by 1.5 and 1.9 percent respectively, while those of phosphate increased by 2.1 percent
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Gramin Vikas Trust (GVT), committed for development of the rural livelihoods was established by Krishak Bharti Co-operative Limited, with the support from Govt. of India and Department for International Development (DFID), U.K. The mission of GVT is to act as a catalyst involving and enabling the rural communities to improve their livelihoods in the resource poor areas. Gramin Vikas Trust has been registered, under Indian Trust Act 1882, at New Delhi, vide Registration No. 1501/4 dated 4th May 1999 (Book No. IV, page no. 145-163). Its Registered Office is: 49-50 Red Rose House, Nehru Place, New Delhi 110 019 and its corporate office is KRIBHCO Bhawan in Noida, U.P. GVT is exempted under section 35 AC and 80G of Income Tax Act.1961, besides it also has exemption under section 197 (1) of the Income Tax Act 1961. GVT is registered under Foreign Contribution Regulation Act (FCRA), 1976, with registration no. 231660318. Organizational Setup GVT is headed by a Board of Trustees, consisting of 7 (seven) Ex-Officio Members comprising of Chairman, Vice Chairman, Managing Director, Finance Director and Marketing Director of KRIBHCO and two nominees from the Department of Fertilizers, Govt. of India. Four nominated members are also on the board having expertise in the field of Agriculture and Agricultural Research, Rural Development, Non Government/ Voluntary Sector and Social Sciences.
4.1 Mission
To act as catalyst to enable the rural poor to improve their livelihoods by supporting productivity improvement programmes in agriculture and rural and rural non-farming sectors which : Are planned, implemented and evaluated jointly with beneficiaries Discriminate positively in favour of women and other disadvantaged groups Link effectively with the programmes of other governmental and non-governmental organizations and Are sustainable in the long run without the intervention of any outside agency
4.2 Vision
To design and implement rural livelihood programmes in different parts of the country To develop appropriate participatory gender focused agricultural technologies for rain fed areas To offer research and consultancy services to government and NGOs and community based Page | 7
organizations in the field of participatory technology development, project management and participatory rural appraisals
4.4
Approach of GVT
Community Participatory Approach Team Work Innovation and Creativity Dedication & Passion Professionalism
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Chief Executive Officer DGM (HR) Sr. Manager (M& E) Manager (Accounts) KVK, Godda Crop Consultant Zonal Program Manager (EAST) NLRI, Ratlam Crop Consultant, BDM Zonal Program Manager (WEST)
RPM (Bihar)
RPM (Odisha )
RPM (M.P)
RPM (Rajasthan)
RPM (C.G)
Jankar
Transparent and flexible system of working based on a demand led environment. GVT is being connected closely with a team of experienced and highly skilled International and National Consultants, as well as Research based and Academic Institutes. Strong back ups from the Corporate parent bodies like KRIBHCO, Government of India, and International Funding Agencies. Long and consistent experience of working with the rural communities with bottom up approaches emphasizing on gender and poverty. GVT has developed Innovations in the areas of FAMPAR (Farmer Managed Participatory Research), PTG (Participatory Technology Generation) PVS (Participatory Varietal Selection) MLSP (Migrant Labour Support Programmes) Challenge Fund (Small Grant Programme with GOs & NGOs) Development of improvised agronomic equipments for drudgery reduction. GVT over the years has developed fast tracking means of poverty reduction and field strategies such as dissemination (Prasar), empowerment and capacity building processes, village institutions and hand-holding mechanisms, withdrawal strategy, and post- project management
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BACKGROUND MY STUDY
As a part of our two year postgraduate Programme in Rural Management at KSRM, I have to undergo a two month field level project termed Management Traineeship Segment-II (MTS-II) wherein I got the opportunity to work with the Gramin Vikas Trust (GVT) as NGO which is working as enhancing Sustainable Livelihood development and poverty reduction and empowering communities to manage resources in rural and tribal areas, initially under direct control of KRIBHCO. My project titled Agricultural inputs & produce market study for the tribal community of Jhabua & Meghnagar Block of Jhabua District. The reasons as to why I took this particular project will be attributed to my keen interest to know about the agriculture practices of tribal area, to know the role of community institution in the rural market management and to know the what marketing strategies they apply to market of their product in this region. Government of India along with the State Government, in making the economic growth processes more inclusive by reaching out to millions of poor households in the rural tribal area, through the implementation of special and unique programmes and projects for sustainable development, rural employment generation, agri-business, natural resources regeneration and management, rural infrastructure, minor irrigation, soil fertility, undulated topography etc through a gender responsive approach. Indias commendable job in promoting self-help groups of man & women and empowering them through member- based organization, like Producer Company and enterprise-based activities together with strengthening of the decentralized governance system makes the Indian experience a model worth emulating.
5.1 Objective
The Objectives of the study are: To acquaint ourselves with present agricultural scenario viz. agricultural inputs, agricultural services used at target villages and average expenditure of the farmer on the same. To estimate the demand for agricultural inputs and other related services in the target villages. To assess the market condition of the agriculture inputs and services. To prepare a producer company model in the target villages.
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5.2 Scope
The scope of my study was limited to analyzing the agricultural input & market study in tribal area in the maghnager and Jhabua block of Jhabua Districts.As far as understanding of the production system is considered it is developed through various methods of agricultural practices. And study the role of community institutions in development of the rural market and to know the structure, functioning and training modules of seed society. The geographical area of Jhabua Districts will be very much different from the other pert of MP. The scope of my field visits in this project was confined to Meghnager and Jhabua Block of Jhabua Districts of MP.
5.3 Limitations
While conducting this study I face the some limitations which could be enumerated below The total coverage areas of the project area will very vast and it will not possible to covered total area. Visiting the area were completely unfamiliar for me, my visit was confined. The time period was not sufficient enough for studying the different dimensions and details which could be more beneficial.. Poor and delayed transportation facility also delayed the data collection. The major limitations were faced during my field visit, as the facts of ground reality of agri-input concept not properly understand by the farmer.
More specifically, this study deals with understanding the rural marketing mechanism in the tribal area.
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METHODOLOGY
I carried out a field investigation regarding the involvement of seed society in the seed produce business and its associated links in supply chain networks. The data collected was both qualitative and quantitative in nature. The data was collected from farmers through direct interviews from the study area. The study consisted of field visits which provide me the practical knowledge of the field. For preparing the summary of the plans a basic framework was devised for evaluate all the units on common parameters.
Phases
Phase 1
(Backgroun d Study) Phase 2
(Field Work)
Questionnaire Development
Data Collection
Sample Design
Data Analysis
Report Writing
Phase 1: The phase 1 of the project consisted of the background study on agricultural inputs used in Madhya Pradesh, the demographic features and agricultural pattern .It include detailed discussion with the staff of GVT, based on the discussion and background study the
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Phase 2: The phase 2 of the project consisted of the field work for the collection of data from the respondents. Various statistical tools were applied to analyze the data. The final report was prepared on the analyzed data.
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coming down, agriculture is still the mainstay of the state economy, as about 71 percent of the population is still dependent on the agriculture The work participation rate in state is 42.74, out of the total worker 42.79% are cultivator 28.69 are agriculture labourer, 4.01 are engaged in house hold industry and the rest are in other
Source review of Madhya Pradesh Economy, CMIE, August 2004 Page | 15 24%
41%
35%
Figure 1
services. Agriculture in the state is still traditional and rain fed. There is high proportion of low value crops with low productivity, agriculture holdings are fragmented. Thus it clearly state that agriculture is the major livelihood activity in the region but still it contribute least in the GSDP and NSDP of the Madhya Pradesh. The jhabua district my area of study is also representing the same picture. The major constraints in the low agriculture productivity in the region are as follows Fragmented and small land holdings. Rain fed agriculture. Traditional agricultural practices (lesser utilization of fertilizers, pesticides, herbicides, traditional agricultural tools and techniques). Limited availability of agriculture input and services. Other challenge lays in the heterogeneity of demand and spread of the rural villages which results in poor connectivity with agriculture market. Low soil depth. Soil fertility. Undulated topography. Thus there is need of understanding the demand of agricultural inputs and related services of the people in the region and based upon this develop a producer company model to fulfil their needs at their own villages that too at fair prices. That can help them to increase the productivity in near future.
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House type
concerate Thatched Mixed
Primary occupation
service business 1% 4%
secondary occupation
other 9%
agricultu ral 5%
Source: Questionnaire
Source: Questionnaire
Primary occupation on this are mainly agricultural. About 95% of people there primary occupation are agricultural. Secondary occupation in this area mainly is wage labour.
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seed variety
affects productivity and therefore it is the easiest factor to be changed in the process of culture. It is also to help stop the
Source: Questionnaire
Certifie d 32%
spread of the disease and different types of viruses. 33% of farmers use seeds TL because it is readily available on the market.
Maize variety
JVM-421 HYV
a higher
30%, and
intercropping and loved by the farmer. JVM421 with an average maturity (80-100 d), lodging tolerance, ears completely covered by balls, and flint grain white fat
59%
Source: Questionnaire
with good food quality and taste, 100-seed weight 24 g; high in protein by 14%. Fairly tolerant to adverse conditions and low fertility meet fertilizer suitable for cultivation in the rainy seasons and post-rainy. KVK and GVT have also promoted the JVM 421 in the tribal area of Jhabua district and JVM 421 is only available for this region.
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Wheat variety
wh147 17% HI-1418 45% lok-1 28%
Source: Questionnaire
sujata 10%
34%
56%
9%
1%
Source: Questionnaire
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MARKET ANALYSIS
The Key market segment for agriculture inputs and related services are the farmer of the 5 study villages which include farmers from meghnager & jhabua block of jhabua district. Most of the villages are remotely located and approximately 10-12 Km away from the nearest market/weekly Haats. Major Market Centers for the study villages are meghnager, Thanla & Jhabua.
9%
1%
Source: Questionnaire
the
Mostly farmers prefer local market & weekly haat to sale their produce as they have low transaction to cost in
Mode of transport
Tampu 18% Bullock cart 14%
comparison
Wholesale
Tracktor 68%
production
140000 120000 100000 80000 60000 40000 20000 0
production
2010-11
2008-09
2009-10
2008-09
2009-10
2010-11
2008-09
2009-10 Gram
Wheat
Maize
Wheat production is mostly depended on availability of sufficient water. Due to good rainfall last year, there has been a 12% increase in production in comparison to 2009-10. In comparison to the maize production of 2009-10, the maize yield by 12% due to the heavy rain fall.
2008-09
2009-10
2008-09
2009-10
2010-11
2009-10
2010-11
2008-09
Wheat
Maize
Gram
2010-11
production
Source: Questionnaire
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Maize followed by wheat is the primary crop of this area. From the last 3 yrs data, it was seen that more than 60% of the maize production, 47% of the wheat produced & 33% of Gram was kept for household consumption while the rest were sold at different markets.
Mode of transport
Tampu 18% Bullock cart 14%
Tracktor 68%
Source: Questionnaire Tractor is the most commonly used transport for taking the produce to the market. It was found 68% of the farmers preferred tractor, while 18% used Tempo for the same. Rest 14% used bullock cart to take the produce to the market as it was comparatively lesser cost than the others.
Area, Production and Productivity of major crops cultivated in the target area Sl.No. 1 2 3 4 Crop Maize Wheat Soyabean Gram Area(acc) 234.75 136.58 242.9 66.48 Production(q) 1074 770 1229 129.4
Per Accare Maize production is-4.5q, Wheat production-5.63q, Soyabean Production-5.05q and Gram-1.94q.
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As the agriculture in the region is mainly rain fed, land fertility is low and most of the farmers still rely on the traditional agricultural practices the demand of the agriculture input is not satisfactory and less then the expectation of the organization. Although the demand of the agriculture input is low still the study villages show the potential for the agriculture inputs and related services. The study show that among all the agriculture input Urea, DAP and pesticide are mainly used by the farmers in the villages. Total demand of the Urea in the sample village is approximately 128.9 Quintals and that of DAP is about 195.87 Quintals. The Framers buy Urea and DAP mostly from the local market. The major constrains for the use of the Urea and DAP by the farmers are Low fertility and poor soil quality of the Land. Insufficient irrigation facilities due geographical location, poor infrastructure and unavailability of irrigation inputs Low purchasing power of the farmers Other than Urea, DAP the demand of other agriculture inputs are nominal. Pesticides and Vermicompost are used by only 4 percent of the farmer each inputs only that too at some villages only. Vermicompost is used in the villages where GVT is at operation and Vermicompost pits are built 70% off the cost. The use of other fertilizers like MOP, SSP, and Bio-fertilizers is negligible in this region as only one farmer of the sample use MOP and one farmer Bio fertilizers. Recommendation dose in the tar get villages. Crop Soyabean Maize Gram Wheat Total Urea(q) 17.64 50.97 8.7 42.25 119.56 DAP(q) 67.4 60.3 28.55 48.95 3031.65 Seed(q) 76.55 16.53 14.66 65.9 173.64
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10 MARKET LINKAGE
The status of agricultural market development in the different tribal region of Jhabua does not present a very good. Soybean produce in the Jhabua division will be developed by using the cluster approach and contract farming. These plants should be grown organically. People should be trained and get employment in sorting and packing activities. Besides setting up market infrastructure, non-profit agencies are also needed for an intermediary role between the backward and forward links. A brand name needs to be created for each product before it is sold; this will help producers get good returns. Some examples are soya milk which is a very nutritious and high-value crop; there are many other such crops--amaranth, jhangara (millet) and ragithat are in huge demand by the health-conscious urban population. Correct estimates of market requirements along with its strategic implementation can link producers to these consumers and create better incomes. The government is creating small-scale local processing units and cooperatives of communities, thereby reducing the role of middlemen. The farm level demonstration interventions, a creation of parallel marketing options will be analyzed at project level. These market linkages will be made for following different types of farm productions of the project area: Local produce which are existing such as soyabean, Maize, Gram, wheat High value cash crops promoted during the like cotton. Value addition in different products such as Onion, Garlic, Ginger, and other various produces.
Marketing will be based on the basis of profits that the availability of the market by product. At the same time the project team will focus on long-term buyers and institutional buyers. For a sustainable intervention project, emphasis will be on the sale of small quantities in local markets, paying higher prices with a low cost of operation. The local and regional markets have limited capacity to absorb large amounts of perishable products. Therefore, the state of capital markets and large will be contacted for bulk sales of these products. With a common concern, groups and associations will be encouraged to develop synergies with other development programs, departments and local systems of the extension service delivery. GVT will help farmers' associations in the development of links with research institutions and technology, relevant government departments, development agencies, business transformation, business centers and institutions involved in similar interventions and market sources. District level and local (cluster) Page | 24
points and dissemination meetings / seminars will be organized to achieve the objective. Periodic coordination meetings with the online agencies, research institutes, sources of business and association representatives will be organized to maximize the synergy and technology transfer between the different actors of development. More attention will be given to develop and strengthen business ties with merchants, Mandi / markets and community institutions home business. The focus will be on sharing business experiences, sale and purchase of local products of mutual interest.
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Create the big marketing linkage for surplus product (Retail marketing) at the state level Promote the networking of regulate marketing
Proper information of supply through the Managers of Improve tech. & post harvest
Facilitator helps the farmer in retail shopping of soyabean in the local market through retail out
Consume r
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The categories define are:- Location Transportation and logistics Inventory and forecasting Marketing and channel restructuring Sourcing and supplier management Information and electronic mediated environments Product design and new product introduction Service and after sales support Reverse logistics and green issues Outsourcing and strategic alliances
10.4 Some existing models of movement of farm produce from farm to marketTraditionally the farmers use to carry their crops to village market and weakly haat to sell them. The farmer sells their produces (food grains, pulses, soyabean, cotton etc.) in these village market or weakly haat and gets
money. The traditional flow of produce (agricultural and horticultural crops) follows the pattern of farmer to market and from their either to wholesaler or consumer. However, the flow of the produces in the current years follows the different pattern with involvement of the lots of
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Farmers
Retail vendor
Consumer
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Collection center
Sorting /grading/Packaging
Local market
District mandies
Sunday market
Whole seller
National mandies
Local vendor
Distributor
Retailer
Consumer
These new supply chains not only consider the farmer as a part of the chain but also try to provide the real worth of their produce. These organized supply chain as more efficient in terms of serving the nee of both farmers and consumers. These not only provide the real worth of the produce to the farmer, but also increase the efficiency of the system. It serves the customer with Page | 30
quality produce at the affordable price by reducing the margins consumed by the intermediary. These new supply chain and movement of produce from farm to fork has provided the farmers the new motivation to serve the country in more efficient and effective manner. In addition, the new policies of trade have provided the farmer with linkage opportunity to global world through efficient market mechanisms.
Assessment of marketing needs for Producer Company will be identified through regular interactive meetings, focus group discussions and need assessment workshops/meetings. The marketing and procurement committees with representatives of the farmer would be made responsible to create links with suppliers, update list of suppliers and buyers, and collect information on types of products available and costs. The marketing and procurement committee will negotiate price and share this information with members. GVT will support Producer Company in production and marketing planning and business operations. Need assessment will include commodities (marketable surplus), current method of selling, terms of payment, price variation with the market chain, inventory of traders, means and costs of transport, marketing structure availability, future requirements and seasonality. The results will be used for business planning. Similarly farm input and infrastructure needs will be identified and shared with group/ association leaders. The information will also help in determining market choice, cost of procurement and transportation etc.
To build capacity of potential members in procurement and marketing, specific trainings will be organized for target clientele, which will be followed by refresher trainings. Capacity building of Page | 31
marketing and procurement committees would be done through exposure visits to similar business organizations and market places/ mandis/ agri-business companies. GVT will also help to develop a market information system (MIS) for the groups and provide training to the committee/ leadership to manage and use this MIS.
Value addition and quality control programs will be encouraged in the group and association level. Trainings, exposures to successful interventions and demonstrations will be provided to the target group to build capacity on technical and business aspects. Local produce other than promoted by the project will be used for possible value addition. Options for value addition will be analyzed for economic viability and results will be shared with the focus groups. Based on information gathered, GVT will collaborate with SFAC (small farmers Agribusiness
consortium ) management for further implementation. The value addition will be based on the market demand. This will include sorting/grading, processing or semi-processing and packaging. Promotion and advertising will be encouraged to capture niche markets. Results of needs assessment will also be helpful to decide choice of value addition.
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Pre-formation meetings for new associations Trainings for orientation of Farmer group. Trainings / Workshops on market and infrastructure for the new association and previously formed Farmer group. Formation of Agric extension service centers Association policies and byelaws, book keeping and record maintenance of Farmer group. should be properly maintain Training on marketing and Procurement of various perishable product should be provided. Trainings on business plan development Provide the training of use of MIS to the member of FA.
11.2 PRODUCER
Any person engaged in any activity connected with or relatable to any primary produce.
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13 STAGES
OF
PROJECT
DEVELOPMENT
FOR
PRODUCER
Cost-benefit and break-even analysis for the proposed activity/activities of the organization.
13.4 Organizing
Identification of opinion leaders: Identify opinion leaders from among the producers and form a representative group of proactive people. Orientation of leaders: Share the findings of the feasibility study and discuss the need for formation of an organization to utilize the potential of the particular livelihood activity. Discussion with village community - Involve the leaders group to organize a series of meetings of the village community (Gram Sabhas) to discuss the following: Necessity for collective action Values in collective action Findings of feasibility study Proposed activities, product- value addition, linkages etc Proposed action plan This communication with the people needs to be repetitive and cannot be done in one meeting. Training and exposure of producers: Organize trainings for producers on concepts and roles of the other producer company and their own roles as members. If possible, also organize exposure visits to similar community organizations in the nearby area.
13.5 Formalizing
Visioning: Facilitate formulation of vision and mission of the collective with the promoters. Develop with them the values on which organization should be based. Objectives and plans - Identify specific and realistic goals/objectives to inform the development of work plans and budgets. Some basic questions addressed through focus group discussions can help to identify objectives Design an appropriate organization - objectives, activities, structure, rules, legal form and basic operating system (work flow) - in consultation with the leaders. Provide them complete information on each aspect and facilitate decision-making. Identify rules including obligations of group members to ensure the smooth running of the group and avoid conflict within the group Page | 37
Identify responsibility for leadership, coordination of logistics, record keeping, networking, team building, communication and other roles. Facilitate the election of the Governing Board/ Management Committee and office bearers, as required depending on the legal form of the organization. Facilitate framing of Vision, Mission, and Goals and draft the byelaws and other applicable resolutions with the board. Also facilitate the formation of subcommittees, as required, and clarify their roles and responsibilities. Opening of bank account: Facilitate opening of a bank account, with signatories as per the byelaws of the organization. Collect share capital and other necessary fees: Collect the share capital, membership fees as applicable from members and deposit in the bank account. Registration: Complete the documentation required for registration and follow-up the process of registration. The Board/office bearers should take responsibility of these activities; we should have a facilitation role. Obtain the following from the Registrar office
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Planning and review: Formulate a process and template for Business planning. Also develop a system of reviewing the performance against the plan. Document the above into a manual. Prepare the manual in vernacular and circulate to Management Committee/board.
8. month
Farmers Organised in PC, LRP identified and Training completed (i)Farmer Origination and FG formed (ii)Trained LRP/BF ready for deployment (iii)Extension Model including Monitoring Systems in Place
(i) List of FO (ii) List of LRP/BF/LF trained and ready for deployment (iii) Training curriculum, training report & participant list.
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16. Month
Forming Farmers Organisations (v) Identification of Training Needs of FOs (vi) Imparting training to farmers of PCs Stage Three : Implementation for Surplus Farm Production Plan (i)Hand holding support on Productivity Increase, IPM/ INM/ IPwm (ii)IdentifyingValue-proposition for setting PC (logic of collectivization) Stage Four : Pre-formation Stage of FPO/Collective and Stabilize New Surplus Production System & (i)Farmers in 2nd Crop Cycle (ii)Market Linkages for Produce (iii) Systems of single commodity market : portfolio-cropped household farming system Interface detailed (iii)Exposure Visit, consultation for PC scoping, vision & structure Stage Five : Formation of FPO/Collective Aggregation for market access (i) Finalising list of PC Constitutions of Internal Systems (ii)Membership & Governance and framing of Bye-laws (iii)CB need assessment & inputs (iv) Strengthening PC providing services for system development (Operating System, MIS, HR), (v)Business Planning Exercise (vi)Interface with buyers/marketers
(i)Farmers Participate in Improved vegetable/pulse based farming system (ii)Disgaggregation/Aggregati on Systems put in place (iii)Business Case of FPO/Collective prepared (checklist provided) (i) Demonstration of Farmer Patronage to Project Concept (70% repeat farmers) (ii)Collectivization arrangements (PC) Instituted
(i)List of farmers adopting package of practices (ii)No. of farmers supported, areas of demonstration (iii) Business Case of PC/ex-ante (i) Repeat Farmer List (ii) Minutes of FG and associative tier meetings, photographs.
24. month
36 month
(i) Institutional Arrangements for Market Access Placed (ii) PC/Collective/Aggregation Structure Placed
48. month
Stage Six : Business Plan (i) Statutory Phase-out Systems for post-project Clearance obtained (ii) sustainability Operating System grounded (iii)Agreement for long-term support with LPO
(i) Minutes of meeting FG subscription to PC/collective (ii) Registration & Compliances (iii) Business Plan with key business processes (iv) List of buyers consulted, meeting report & outcome (MoU on price, volume and grading) (v) List of needs, training design, training reports. (i) Business Plan including financing plan (ii) Regulatory approvals for PC activities
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15 CONCLUSION
Agricultural practices are the major component of the livelihood for the people of Jhabua district. It constitutes the backbone of rural livelihood security system of this area people through which local employment and income generation, and to enhance the quality of life of people living in villages. If given support by the government and non-government organization in terms of better supply chain management system it can certainly provide the producer company concept has change the mind set of rural framers.
Community institution has developed the cultural based with economy a substantial growth. Preliminary market for business for agricultural products has been developing. The tribal region districts are less developed in terms of infrastructure, i.e., electricity, roads and irrigation. The inter-district inequality in infrastructure leads to increasing disparity in terms of income and livelihood between the hills and the plains. The rural market of this area has a huge demand base and offers great opportunities to marketers. Rural markets of this region face the critical issues of Distribution, Understanding the rural consumer, Communication and Poor infrastructure. The marketer has to strengthen the distribution, communication and information system. The rural consumer expects value for money and owing to has unsteady and measly status of weekly income; increasing the household income and improving distribution are the viable strategies that have to be adapted to tap the immense potential of the market. Facilitate the rural people and the organizations to influence institutions (including rules, laws, regulations) and policies of relevance to rural poverty reduction requires strengthening the capacity of the rural people and their organizations. Concretely this implies institutional transformation, developing and strengthening the organizations of the farmer to confront the issues they define as critical increasing access to knowledge so that poor people can grasp opportunities and overcome obstacles; expanding the influence that the poor exert over public policy and institutions, including local and national governments; and enhancing their bargaining power in the marketplace.
The producer company required helps at different stages of maturity in their functioning with the support from GVT. Recognizing the importance of putting these institutions on the path to Page | 42
sustainability, GVT is repositioning itself as a service provider to the producer company. It will take time it is not be a simple process. Producer company concept & formation of sustainable supply chain for their product with the help of cooperative still new for the tribal region. This producer will primarily focus on marketing agricultural products throughout local area & District Mandi at a reasonable price. Producer company as a part of any economy has untapped potential; marketers have realized the opportunity recently. Improvement in infrastructure and reach, promise a bright future for those intending to go rural. Rural consumers are keen on branded goods nowadays, so the market size for products and services seems to have flourished.
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16 ANNEXURE-1
Project Objective: 1 Mobilising farmers in groups and build their associations (FPOs) to plan and implement product specific cluster/ commercial crop cycles Outputs Outcomes 3000-4000 farmers from 8-10 villages in close geographic custer organized into FGs prepared for intensive vegetable/pulse based livelihoods interventions. FGs organized into FPOs/Informal associations supporting productivity, efficient access to input and output markets, linkages with agriculture programs. 75% meet or exceed quality benchmarks on group functioning Farmers in 80% FGs confident and keen to positively change their current condition and have developed plans to synergise planning and market access on the cluster-identified cproducts
Activities Organize farmer into informal group(FG) Train members and leaders in matters relating to group functioning, group norms and systems. Form associations/FPOs of FGs. Train members and leaders of FPOs to nurture FGs and mediate vis--vis external resource institutions such as government, financial institutions and markets.
Project Objective: 2 Activities Conduct exposure for selected men and women from project villages to villages/ farms practicing modern farming methods, such as different crop mixes, modern techniques and intensive farming. Discuss alternate farming systems with groups of farmers suitable to their specific situations and generate household farming plans/ portfolios. Identify training and extension needs and potential
Strengthen farmer capacity through agricultural best practices for enhanced productivity Outputs Outcomes 60% of all families Participating interested to take up families have improved crops have assured supply access to quality inputs. of quality inputs 40 % of participant land and services, brought into intensive Network of farming input and 80% families cultivate a services diversified basket of delivery locally suitable crops. mechanisms LRP training modules developed in the being implemented in local area. large number. Participating Trained LRPs supporting families feel implementation of the confident to household and cluster intensify their Page | 44
LRPs to function as level farm plans agriculture. community based extension agents. Train LRPs to provide extension support to farmers adopting new farming systems. Project Objective: 3 Ensuring access to and usage of quality inputs and services for intensive agriculture enhancing cluster competitiveness Activities Outputs Outcomes 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 mechanisation practice Project Objective: 4 70 % of participating families using quality inputs PCs/Producer Aggregations promoted, families covered by these collectives Gross Crop Output per hectare increase by 100 % in rupee value terms Participating families have assured supply of quality inputs and services, Network of input and services delivery mechanisms developed in the local area.
Facilitate access to fair & remunerative markets including linking producer groups to marketing opportunities by market aggregators Outputs Intensive, market oriented production clusters developed. Surplus produce marketed at remunerative prices. participant families engaged in coordinated market-oriented production Producers collectives aggregate and market produce from members. Market aggregators/ retail chains buy produce from producer collectives Outcomes Sustainable and competitive linkages for marketing exist for their produce, families in production clusters have multiple options to sell farm produce, The prevailing rates in the cluster are fair vis--vis large Page | 45
Activities Developing production clusters for producing significant volume of marketable surplus Identifying and building aggregation / desegregation centers in production cluster wherever required Linking these clusters with market players (e.g. vegetable traders, commission agents, retailers, etc.) Producer collectives taking output marketing Formation of PC
Annexure-2
Energising Farm Production Systems: Institutional Arrangements for Transition to Coordinated Surplus Frame:-
Farmers
Kisan Sahyogi Village Based Extension Cadre/LRP assists in on-field agronomic practices & input-output transactions 30-40 farmers (2 FG) in 1-2 villages in 3-5 km. radius
Agriculture Specialist Supports 10-15 Sahyogi in field implementation. Expected to create a best fit adaptation of RSP (Recommended Scientific Practices) in field conditions. 1000 Farmers in 25 villages
Business Manager Chief Executive Officer of the Producer Company. Expand Farm- Business Efficiency Frontiers. Builds Linkage with Resource & Research Institutions & Market. Page | 46
Annexure-3
GENERAL INFORMATION VOLUNTEER 101. Information Respondents Name Gender Village Name District State 102. Caste Religion Category FC 1 Hindu BC 2 Muslim SC 3 Christian ST 4 Other If other, then specified Education Qualification of the respondent:Annual Income:103. Household: Background Information Category Number of adult males: Number of adult females: Number of Child :Boys: Girls: 104. Capital Assets Number A) Bullock B) Cow C) Buffalo Page | 47 Number Name Male/Female
D) Goat E) Tractor F) Motorcycle/Scooter G) Radio H) TV B/W I) TV C/W J) VCR K) Electric Fan L) Cycle M) Telephone Phone no105. Irrigation Assets A) B) C) D) E) F) G) H) 106. Primary occupation 1. Farming 2. Carpentry 3. Services 4. Business 5. Live stock 6. Other If other, then specified 107. Total Land Holding: 108. Land Type in Acre Cultivated land uncultivated land Irrigated Land Forest Land Source of livelihood Secondary occupation 1. Farming 2. Carpentry 3. Services 4. Business 5. Live stock 6. Other Open Well Bore well Electric pump Set Diesel Pump Set Pond Canal Stream Other
109. Irrigated Land Rain fed Lowland Type of Land Upland Medium Land Other(Specify) Page | 48
INPUTS REQUIRED: 201. What type of fertilizer are you using? (Per acre) Bio Fertilizer Urea How Much(per acre) Price(per acre) Chemical Fertilizer DAP MOP Both Zinc
SEED: 301. What type of seed are you using? A. Breeder B. Foundation C. Certified Yes/No D. T.L E. Own seed
302. Are you involved in Seed Production? If Yes, Which seed do you produce? 303. Are you sell the seed? Yes/ No
If yes, at what price per Quintal & where? 304. Do you get any subsidy from Govt.?
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305. Which type of variety do you use? Crop Soya been Variety Name Gram Wheat Maize
M ARKET 401. Where do you purchase the seed? A. Local B. Dealer market
C. Co-operative
D. KVK
E. Other
402. Where you are selling the produce (Wheat, Soya been, corn, Gram)? A. Local B. CoC. APMC D. Mandi Market operative 403. What is the price at different market? Market Soya been Local Market Co operative APMC Mandi Whole sale Market 404. Mode of Transport 405. Cost incurred in transportation? 406. Do you have any storage Facility? A. Yes B. No If Yes (Where?) 407. Distance of the nearby market from your villages. 501. COST OF CULTIVATION Soya been wheat Crop Gram Gram Price/ Quintal Wheat
Maize
Maize
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Cost of inputs
Cost of labour
Seed Fertilizer Insecticide Pesticide Fungicide Cultural Crop Production Broadcasting Hand weeding Fertilizer application Plant protection Irrigation Harvesting Post harvesting
Cost of machinery
601. PRODUCTION Crop Area(in acre) 200809 Soya been Wheat Gram Maize 200910 201011 Amt. of seed Sown 2008-09 200910 Quantity of produce 2010-11 200809 200910 2010-11
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Gram Maize
602. IMPACTS OF AN INCREASE IN COST OF WHEAT CULTIVATION A. What have been the impacts of the increase in cost of Soya bean cultivation? a. b. c. d. Reduction of investment in wheat cultivation whilst area constant or increased Diversification of crops in other seasons Adopting other monsoon crops Other please (specify) Migration Hamlet Nos. Reasons for migration Duration of migration 5 years ago 2011 Places of migration
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