Agents of prosperity

Farmerproducers’organisationshavebecomeenginesof agri-innovationinup

THE GOVERNMENT HAS sought to fulfil its vision of enhancing farmers' income by adopting a multi-pronged strategy — enhancing productivity, reducing costs, improving marketability, crop diversification, riskmitigationandadoptingclimateresilient technologies. Fragmented holdings are one of the major challenges faced by this sector. They prevent economies of scale and discourageinvestmentinagriculture. Inrecent years, Farmer Producers' Organisations (or Companies) have countered this challenge. An FPO is a collective of farmers who have holdingsorworkinageographicalcluster. It can be registered under the Companies Act or as a cooperative under the Societies Registration Act. FPOS have demonstrated theirpotentialtotriggercluster-basedfarming, bringing in economies of scale in input managementfacilitatingagri-extension, enablingtechnologyadoption, providingquality assurance and helping farmers market their produce.

Thecentre'sschemetoformandpromote 10,000Fposenvisagescollaborationamongst farmersinactivitieslikeinputmanagement. Suchcooperationcanenhancethecapacities of agriculturists, help in value addition and facilitate the creation of links with markets.

The Uttar Pradesh government has constitutedadedicatedfpocelltohandholdthese outfits. Theobjectiveistoensureconvergence of schemes, address compliance issues and provide continuous support to FPOS so that theybecomeagentsofprosperityintherural economy. The state government also has a schemeofitsowntoformfpos. Withthesynergisticimplementationofcentralandstatesponsored schemes, one FPO will be formed in each of the 826 blocks in UP every year for fiveyears, startingfrom2022-23.

Thefposhaktiportalhasbeenlaunched toprovideaplatformtoallactivefposinup. Itisaone-stopsolutionforgrievanceredressal, forging business partnerships and fostering convergence. As of July 15, close to 1,600 FPOS, with a total turnover of Rs 229 crore have registered on the portal. More than six lakh farmers are associated with these organisations.

Thecentrehasconstitutedtheagriculture Infrastructure Fund to provide interest subvention of 3 per cent for credit extended to developpost-harvestinfrastructure. Thisincentive is available to FPOS. The UP government provides an additional 3 per cent subvention to FPOS and agriculture entrepreneurs, thus reducing the overall interestonsuchloanstoaround3percent. This is in addition to the capital subsidies under various Central and state-sponsored schemes. Such incentives could encourage thesefarmercollectivestodeveloppost-harvest facilities like warehouses, cold storage, coldchainsandripeningchambers. Thegovernmentisfosteringtheconvergenceof variousschemesincludingthoserelatedtofarm mechanisation, seedproductionandprocessing, agri-marketing, Msp-based procurement, nutritionmission, servicesforthesupply of inputs like seed, fertiliser, pesticides, technological interventions like agri-drones and organic farming.

The efforts have already started yielding significantoutcomes. Fposareplayingapivotalroleincropdiversificationandvalueaddition. UP'S FPO portal shows 1,316 of these outfits are involved in cereals, 378 are in the businessofhorticultureproducts, 338areinvolved with pulses, 231 with oilseeds, 48 workonmilletproducts, 101focusonmedicinalandaromaticcropsand170insugarcanebased products. Hundred FPOS have establishedseedprocessingunitsinup. Severalof these units sell their seeds in the open market; othershavesignedmouswithstateand National Seed Corporations for buy-back arrangements. More than 480 of these collectives have established Farm Machinery Banks which provide farm mechanisation servicesatreasonablerents. Theycontribute tomanagingpaddystubble. Climateresilient strategieslikedirectseedingofricearebeing channelised through FPOS.

FPOS are becoming engines for innovations When the UP government introduced itsflagshipscheme, Onedistrictoneproduct, Siddharthnagar district was tasked with farming Kalanamak rice. An FPO has spearheadedthisinitiative. Severaloftheseoutfits are working to improve nutrition by developing the value chain of high-nutrient agriproducts like millets, mushrooms, moringa andfortifiedcereals. Inrampur, thefpocollaboratedwiththedistrictadministrationfor the“aahaarseupchartak” campaigntosupply nutrition-rich products to anganwadi kendras. Theireffortsledtoanimprovement in nutritive outcomes in the area.

Close to 200 Mous have been signed between68fposand37companiesinareasof commoditymarketing, inputsupply, technicaldealershipandfinanciallinkage. Thegovernment is facilitating this collaboration. Morethanfposhaveenteredintodealership agreementsforseeds, fertilisersandagritech. These outfits have succeeded in registering localproductsundergi— theseincludeadam Chinirice, Banarasilangda, jaggery, Ramnagar (Varanasi) Bhanta(brinjal) andbanarasipan.

In the past two years, Eastern UP has emerged as a hub of vegetable and fruit exports. Progressive farmers have associated with FPOS of the region and become agents of change.

Thewriterisadditionalchief secretary, agriculture, UP