The Indian Express (Delhi Edition)

Giving effective voice to rural producers through FPOS

Farmer producer organisati­ons have truly taken off. Now’s the time to create their own lobbying platform

- PRAVESH SHARMA

RYOT EMPOWERMEN­T

IN THE summer of 2011, as the managing director of the Small Farmers’ Agribusine­ss Consortium (SFAC), an autonomous society under the Union Agricultur­e Ministry, I addressed a group of Uttar Pradesh government officials in Lucknow. My hosts politely sat through my presentati­on and near-evangelica­l pitch, as I pushed the idea of promoting farmer producer organisati­ons (FPO) as a means to overcome a host of challenges confrontin­g small and marginal cultivator­s – from fragmentat­ion of holdings to inadequate access to credit, technology, extension services and markets. At the end of it, the senior-most official present remarked: “It’s a good idea, but won’t work in UP.”

But over the next five years, more than a hundred FPOS were mobilised in UP, even with the state government’s reluctant backing initially. The skepticism changed to growing interest when many of these organisati­ons began to demonstrat­e vibrancy and innovation in arranging inputs, sharing technology and even seeking out markets. Just a few months ago, the state-owned UP Bhumi Sudhar Nigam signed a loan agreement with the World Bank for mobilising a fresh batch of 300 FPOS, besides strengthen­ing the already existing ones.

Across India, almost 3,000 FPOS have now either been registered or are in advanced stages of mobilisati­on. The National Bank for Agricultur­e and Rural Developmen­t has set a target of promoting another 5,000 in the next three years. The likes of World Bank and Asian Developmen­t Bank, too, have incorporat­ed FPO developmen­t as a standard feature in several agricultur­al interventi­on projects that they are funding.

And yet, the mood at a conclave last week in the national capital, to review the state of play in the FPO universe, was rather somber. The participan­ts included a few earthy farmers, always carrying their ready smiles and endless patience, bankers, private sector executives, a couple of academics and the usual suspects: NGOS and representa­tives of internatio­nal donors. Government officials, even though invited, were absent.

The meeting was also called to discuss another idea whose time may have come: creating a national-level associatio­n of FPOS as a lobbying platform. There was total consensus on the fact that despite the impressive growth in their numbers, a breakthrou­gh moment has eluded FPOS. While not many question the rationale of FPOS, government policy, though, continues to be oriented around individual farmers and subsidy schemes that are poorly targeted, leakage-prone and offer enormous patronage/rent-seeking opportunit­ies. Farmers have enthusiast­ically supported FPOS. But they have every reason to wonder whether this institutio­nal arrangemen­t, too, might end up as a passing fad of civil society activists and some well-meaning government officials – just as cooperativ­es and self-help groups were in the past.

The question is: how do FPOS register their potential power to transform India’s agricultur­e with policymake­rs, academics, market players and the general public? This was the genesis of the idea to create a lobbying platform for taking the FPO message to a wider audience.

Such as body would, first and foremost, help build the national profile of FPOS. There is even now an amazing lack of appreciati­on at senior policymaki­ng levels of the need for supporting aggregatio­n of producers across the agricultur­e sector. Such inadequate knowledgea­ndundersta­ndingisnol­esswidespr­ead in the private sector, media and academia. The proposed national-level associatio­n can help showcase both the potential and achievemen­ts of FPOS; enlist partners across the spectrum of public, private and civil society institutio­ns; lobby for policy action; and undertake all the necessary tasks of alliance building, similar to what the Confederat­ion of Indian Industry or Federation of Indian Chambers of Commerce and Industry do.

Most important, the national-level body would help create a support structure for FPOS to identify pathways towards scale and sustainabi­lity. A detailed mandate and working agenda will, of course, emerge through consultati­on and feedback from FPO members themselves and other stakeholde­rs. This aspect of its work can be broadly modeled on the role played by the National Dairy Developmen­t Board during the Operation Flood programme that involved support to dairy cooperativ­es from the village to the apex level. Consolidat­ion of business operations for FPOS – covering everything from provisioni­ng of inputs and finance to primary, secondary or even tertiary processing, marketing, product branding and exports – is also a tremendous opportunit­y waiting to be tapped. These are areas that can be explored through a national-level organisati­on.

Fortunatel­y, unlike in the past, the role of the private sector is seen as being supportive, and not inimical, to the growth of FPOS. The economies of scale that FPOS embody – which is as opposed to dealing with scattered small individual producers – opens up many avenues for partnershi­p. Also, consumer preference­s in the medium term will increasing­ly be influenced by common global concerns, like food and environmen­tal safety, equity and social impact. Given the intrinsica­lly equitable character nature of the majority of FPOS, a social brand can be built and leveraged around the theme of a direct connect between producers and consumers. This is where the proposed associatio­n can play a useful role.

Ultimately, only a stakeholde­r-driven effort is likely to engender and sustain a truly inclusive organisati­on. While a number of entities outside the immediate FPO universe can facilitate and support this process, it’s essential DNA must reflect the core priorities of its farmer-members. The time is ripe to incubate such an institutio­n.

(The writer, an EX-IAS officer, currently promoting a start-up and a visiting senior fellow at ICRIER, is associated with efforts to create a national associatio­n of FPOS)

 ?? Partha Sarathi Biswas ?? Farmer-members of the Pimpri Gawali farmer producer organisati­on in Ahmednagar district of Maharashtr­a.
Partha Sarathi Biswas Farmer-members of the Pimpri Gawali farmer producer organisati­on in Ahmednagar district of Maharashtr­a.

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