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26-04-2023 Prepared By – Chandramani 1
26-04-2023 2
Flow of
Presentation
Project Name: Sustainable Livelihoods
for Smallholder Farmers in Nashik
Start Date: 1st March 2022
End Date: 28th February 2025
Location: Nashik
3
Current Programs
*
*
TNS India Foundation is an Indian non-profit
working across India with diverse strategic
partners
4
PRIF is committed to work in Dindori taluka in Nashik to mitigate the identified
challenges
WATER
FOCUS AREAS
AGRICULTURE LIVELIHOODS WOMEN
6
TNSIF is supporting PRIF in their endeavor to make a sustainable impact in
Dindori block
Goal: To sustainably improve livelihoods of small and marginal farmers in the plant-peripheral area (within 15
km) Dindori Block, Nashik district
1. Establish Sustainable and regenerative value chains for core crops
2. Sustainably enhance water recharge capacity in plant-peripheral areas
3. Improve socio-economic empowerment of women
March 2022 Feb 2025
Outcomes:
7
26-04-2023 8
Through this project TNSIF aims to impact lives of 3000 farmers directly and 4500
beneficiaries indirectly
o1000 Farmers
o500 Women Beneficiaries
First Year 2022
 1000 Farmers
 500 Women Beneficiaries
Third Year 2024
 Existing 1500 Farmers and
1000 Women Beneficiaries
 500 new Women
Beneficiaries
Second Year 2023
 1000 Existing Farmers
 500 Women Beneficiaries
 500 new Farmer
 500 new Women
Beneficiaries
Farmers have enhanced capacity for sustainable, and regenerative
agricultural practices
Activities Outputs (1st Years) Outputs( 3 Years)
Identification of farmers and
selection of villages
• Registration of
1000 farmers The majority of engaged farmers
report improved input costs, crop
yield or quality, and/or disposable
incomes due to regenerative /
sustainable agricultural practices
Total area under regenerative or
sustainable cultivation improves soil
health, water retention, green cover &
land fertility
Training and implementation on
Practices promoted through Field
Schools and demonstration plots
• 34 FFS has to be
established
• 14 Demo plot to
be established
Sustainable and regenerative
practices are incorporated
• Training on PoP
of Grapes to
1000 farmers
Milestone 1
9
50% increase in agricultural
revenue
Activities Outputs
Identifying an existing FPO, or establishing a new
FPO
o At least 1,000 participating farming households
registered as shareholders of the program FPO
o Women inclusive FPO is successfully formed
o Engaged farmers have access to at least two input
providers through the FPO
o Engaged farmers are connected to at least 3
institutional buyers through the FPO
o A five-year business plan developed and
operationalized after working with the FPO
leadership
Ensuring at least 30% female participation in
Board of Directors and Management Committee
Identification, mobilization and registering of
farmers in the program FPO
Training, business plan development and
advisory support for FPO
Successfully form or strengthen an FPO to support farmer engagement &
market linkages
10
Milestone 2
Community-level water resources made more accessible and sustainable
Activities Outputs (1st Years) Outputs (3 Years)
Planning, designing and revitalizing and
renovating defunct / existing water
structures
• 2 Checkdam/Pond
• 4 Dugwells
• 8 Gabion/loose
boulder
List of structures rejuvenated
o 5 Check Dams
o 15 Dug Wells
o 10 Gabion/ Loose boulder structures
o 50 lakh litres of water conserved in
one monsoon season each
o WUCs improve farm productivity and
make farming more sustainable in the
program area
Capacity building and training of 15
Water User Committees (WUCs) to
improve water use efficiency in their
communities
• 14 WUC Formation
11
Milestone 3
Activities Outputs (1st Year) Outputs (3 years)
Providing training to 1,500
women on 2 modules i.e.,
Financial Literacy and
Farming as a Business by
EOP
• To provide training to
500 Women on FL &
FAB
o 1,500 women trained on 2 modules i.e., Financial
Literacy and Farming as a Business
o At least 75% of women trained in Farming as a
Business report increased business knowledge by
EOP
o At least 75% of women trained in Financial
Literacy report ability to identify, access and
effectively use appropriate financial products by
EOP
o At least 50% of the target segment (750 women)
access the help desk over 3 years
o At least 50% of those accessing the help desk
access financial services (e.g., bank accounts)/
civic identities
Providing access to
financial services and
social entitlements (civic
identities, government
schemes, etc.) through a
helpdesk at the PRIF
Community Centre
Socio-economic empowerment of women
12
Milestone 4
26-04-2023 16
What is Farmer
Producer Company
FPO/FPC?
Thinking……………………………………..
26-04-2023 17
26-04-2023 18
FPO ( Farmer Producer Organization ) is an entity formed by primary producers, viz. farmers, milk
producers, fishermen, weavers, rural artisans, craftsmen for sharing of profits/benefits among the
members. (source- Farmer producer organization-FAQ-NABARD 2015)
“It does not matter whether your company is registered as a producer company or as a cooperative or
a private company or a public listed or unlisted company, ultimately it is about the leadership and the
vision and the underlying principles that guide your organisation.”
It shows reciprocal desire to meet its common economic need through jointly owned and
democratically managed enterprises. It also shows its commitment to self-help, mutual aid, self-
reliance and fair play values
What is FPO?
26-04-2023 19
Higher Risk
and Cost of
Production
Lack of
experiences
Smaller
Production
No support with
Compliance
With
Certification
Lack of
access to
Markets
Lack of
Infrastructure
Lack of
access to
technology
Pressure of
Traders
Why FPO?
Individual
Action
26-04-2023 20
Why FPO?
Sharing Risks
And Reducing
Production
Costs
Sharing
Experiences
Improving
Production
Scale
Supporting
Compliance With
Certification
Improving
Access To
Markets
Sharing
Infrastructure
Access to
Technology
Reducing the
Pressure of
Traders
Collective
Action
26-04-2023 21
Why FPO?
• A FPO can share risks and reduce production costs
• By aggregating the demand for inputs, the PO can buy in
bulk, thus procuring at cheaper price compared to
individual purchase. Besides, by transporting in bulk, cost
of transportation is reduced. Thus reducing the overall
cost of production.
• Sharing Experiences
• To strengthen each other’s practices
• Improving Production Scale
• To improve bargaining power
• Supporting Compliance With Certification
• A collective compliance and certification is done for all
farmers in the structure
• Reducing the Pressure of Traders
• As a collective organization, the FPO takes its own
decisions and has better bargaining power
• Access to Technology
• An FPO can access latest technology by sharing the
benefits to all its members
• Sharing Infrastructure
• A common infrastructure for value addition and
processing can be made
• Improving access to markets
• With high volume of produce the FPO can easily access
new markets within and outside the state
Key Features of FPOs
Business enterprice
Formal organization
Autonomous & Independent
Business Enterprise
Formal /Registered Organisation
Autonomous & Independent
• Provide pre-production,
production, post production
services
• Registered, legal entity with staff
and systems
• Farmers own enterprise, Private
in nature Self-governance
Equity from members
Democratic control
Member owned
• Owned, used and controlled by members
• Provide required services to members
• Governed by board of directors
elected by and from members
• Members contribute to capital
• One member, one vote
4/26/2023 27
FPO Governance
Governance - Board Composition
Question: How many members can we have on the Board of our FPO and what are the eligibility criteria to be a Board member?
The Board of a FPO is constituted by representatives elected by the General Body (GB) i.e. members of the FPO. It is required that the
members who come on to the Board meet certain criteria
Criteria for Directors: The bylaws of our FPOs need to specify the required eligibility criteria for contesting for the Board and also
ineligibility criteria to get into the Board. Such criteria are illustrated below.
Box: Attributes of potential Directors
• Leadership
• Represent members (occupation, geographic, community etc)
• Best practitioner in concerned occupation
• Honesty and non-controversial
• Concern for small, marginal & women farmers
Suggestive eligibility criteria:
• Age: 25-65 years
• Minimum education: 7th standard; Reading,
Writing and Arithmetic skills
• Willingness to take required responsibilities and liabilities
• Willingness to give required time
Board members election process
1. FPO operational area should be
divided into 3 constituencies
2. Senior /older member who will not
contentest in future will be
nonminated as election
3. The eligible candidates from each
constituency should sit together &be
given numbers
4. Members will write the number of
persons whom they want to select &
put in the box provided by election
officers
5. Election officers will count
the votes
6. Election Officers announces that
the person who gets more than
50% votes will be the selected
person.
7. Repeat the election process from
step 3 to 6 until the number of
required persons elected
/ vacancies filled.
8. From each area, we should have 4
Directors
9. Selected members will take oath
Business Solutions to Poverty TechnoServe | 30
Regular and frequent meetings provide opportunity to,
• interact with each other in a structured manner,
• inculcate discipline,
• scope for regular transactions, such as collective buying and selling, periodic monitoring and follow-up of
transactions,
• opportunity for the capacity building of the members and for developing their communication skills,
• a forum for identifying, discussing and taking up common action programs.
Governance – Regular Meetings
Types, Frequency and Importance of Meeting
Business Solutions to Poverty TechnoServe | 31
Meeting Frequency Importance
Regular Producer Groups meetings Once every month  Periodic monitoring and follow-up of transactions
 Explore scope for regular transactions, such as collective buying and selling.
 To identify, discuss and take up activities & programs.
 Provides opportunity for the capacity building of the board members and for
developing their communication skills.
Board meetings Once in every 3 months  Review of FPO business activities
 Approval of transaction and resolutions.
Annual general body meeting Gap between 2 AGMs should not
exceed 15 months
 Confirm the proceedings of the previous General Meeting.
 Declare the names of Board of Directors elected as per the election rules.
 Approve the expenditure, budget and reports.
 Appoint auditors and fix their remunerations.
 Take note of admission of new member and removal of members during the
year.
Emergency meetings As and when required  To address the urgent requirement related with business and compliance.
Committee meetings-
Examples:- marketing committee,
procurement committee,
As and when required  Are vital to effective functioning of FPO and its ability to carry out its role. This is
need based. For smooth functioning and sharing of responsibilities committees
can be formed. The decision to form committees is accepted by the board unless
it requires further review.
Business Solutions to Poverty TechnoServe | 35
4/26/2023 40
FPO Compliance
4/26/2023 41
What is Compliance ?
This means that FPOs are regulated by the
law of the land – under the law in which it is
registered and also other laws concerning the
activities of the FPO. Thus, it is of utmost
importance that FPOs are fully legally
compliant organizations and it is the primary
responsibility of the Board to ensure this.
Advantages of being legally compliant
• Be safeguarded for any legal requirement– for example, vigilance raids
on storage, any legal case by a competitor, non-payment by a buyer etc.
•Lead to development of strong institutional systems for FPOs – like
bookkeeping, governance, monitoring etc.
•Raising of finance for FPOs – by fulfilling requirements like financial
statements, legal documents, collateral etc
•Can enter into Agreements and do transactions – like with a buyer for
marketing of produce
•Contributes to transparency and accountability
Business Solutions to Poverty TechnoServe | 46
Various Opportunities
for Linkages by an FPO
Linkages by FPOs
Sources of funds
Business Solutions to Poverty TechnoServe | 47
Refundable source of fund Required document
Loan Registration certificate, PAN card, financial statements (for financial
discipline and turn over), Annual reports. Tax filling documents. Board
resolution.
Non-refundable source of fund
Grants Proposal and reports
Subsidies Registration certificate, PAN card, Proposal, financial statements (for
financial discipline and turn over), Annual reports. Tax filling
documents. Board resolution.
Fines and service charges Receipt for fine & service charge to maintain books of account
Donations Receipt to donor
Grant
Loan
Donation
26-04-2023 50
Examples of Successful FPOs
The Amul India founded in 1946.
Sahyadri Farmer producer company Ltd.
Founded in 2011.
Shree Mahila Grih Udyog, Lizzat Papad
Founded in 1959.
52
Inaugration
Of
SHETISANJIVANI
AGRO FARMER
PRODUCER
COMPANY LTD.
DINDORI, NASHIK
Linking Smallholder farmer…
CIN:

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FPC & Ankur Uday project_Chandramani.pptx

  • 1. 26-04-2023 Prepared By – Chandramani 1
  • 3. Project Name: Sustainable Livelihoods for Smallholder Farmers in Nashik Start Date: 1st March 2022 End Date: 28th February 2025 Location: Nashik 3
  • 4. Current Programs * * TNS India Foundation is an Indian non-profit working across India with diverse strategic partners 4
  • 5. PRIF is committed to work in Dindori taluka in Nashik to mitigate the identified challenges WATER FOCUS AREAS AGRICULTURE LIVELIHOODS WOMEN 6
  • 6. TNSIF is supporting PRIF in their endeavor to make a sustainable impact in Dindori block Goal: To sustainably improve livelihoods of small and marginal farmers in the plant-peripheral area (within 15 km) Dindori Block, Nashik district 1. Establish Sustainable and regenerative value chains for core crops 2. Sustainably enhance water recharge capacity in plant-peripheral areas 3. Improve socio-economic empowerment of women March 2022 Feb 2025 Outcomes: 7
  • 7. 26-04-2023 8 Through this project TNSIF aims to impact lives of 3000 farmers directly and 4500 beneficiaries indirectly o1000 Farmers o500 Women Beneficiaries First Year 2022  1000 Farmers  500 Women Beneficiaries Third Year 2024  Existing 1500 Farmers and 1000 Women Beneficiaries  500 new Women Beneficiaries Second Year 2023  1000 Existing Farmers  500 Women Beneficiaries  500 new Farmer  500 new Women Beneficiaries
  • 8. Farmers have enhanced capacity for sustainable, and regenerative agricultural practices Activities Outputs (1st Years) Outputs( 3 Years) Identification of farmers and selection of villages • Registration of 1000 farmers The majority of engaged farmers report improved input costs, crop yield or quality, and/or disposable incomes due to regenerative / sustainable agricultural practices Total area under regenerative or sustainable cultivation improves soil health, water retention, green cover & land fertility Training and implementation on Practices promoted through Field Schools and demonstration plots • 34 FFS has to be established • 14 Demo plot to be established Sustainable and regenerative practices are incorporated • Training on PoP of Grapes to 1000 farmers Milestone 1 9 50% increase in agricultural revenue
  • 9. Activities Outputs Identifying an existing FPO, or establishing a new FPO o At least 1,000 participating farming households registered as shareholders of the program FPO o Women inclusive FPO is successfully formed o Engaged farmers have access to at least two input providers through the FPO o Engaged farmers are connected to at least 3 institutional buyers through the FPO o A five-year business plan developed and operationalized after working with the FPO leadership Ensuring at least 30% female participation in Board of Directors and Management Committee Identification, mobilization and registering of farmers in the program FPO Training, business plan development and advisory support for FPO Successfully form or strengthen an FPO to support farmer engagement & market linkages 10 Milestone 2
  • 10. Community-level water resources made more accessible and sustainable Activities Outputs (1st Years) Outputs (3 Years) Planning, designing and revitalizing and renovating defunct / existing water structures • 2 Checkdam/Pond • 4 Dugwells • 8 Gabion/loose boulder List of structures rejuvenated o 5 Check Dams o 15 Dug Wells o 10 Gabion/ Loose boulder structures o 50 lakh litres of water conserved in one monsoon season each o WUCs improve farm productivity and make farming more sustainable in the program area Capacity building and training of 15 Water User Committees (WUCs) to improve water use efficiency in their communities • 14 WUC Formation 11 Milestone 3
  • 11. Activities Outputs (1st Year) Outputs (3 years) Providing training to 1,500 women on 2 modules i.e., Financial Literacy and Farming as a Business by EOP • To provide training to 500 Women on FL & FAB o 1,500 women trained on 2 modules i.e., Financial Literacy and Farming as a Business o At least 75% of women trained in Farming as a Business report increased business knowledge by EOP o At least 75% of women trained in Financial Literacy report ability to identify, access and effectively use appropriate financial products by EOP o At least 50% of the target segment (750 women) access the help desk over 3 years o At least 50% of those accessing the help desk access financial services (e.g., bank accounts)/ civic identities Providing access to financial services and social entitlements (civic identities, government schemes, etc.) through a helpdesk at the PRIF Community Centre Socio-economic empowerment of women 12 Milestone 4
  • 13. What is Farmer Producer Company FPO/FPC? Thinking…………………………………….. 26-04-2023 17
  • 14. 26-04-2023 18 FPO ( Farmer Producer Organization ) is an entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen for sharing of profits/benefits among the members. (source- Farmer producer organization-FAQ-NABARD 2015) “It does not matter whether your company is registered as a producer company or as a cooperative or a private company or a public listed or unlisted company, ultimately it is about the leadership and the vision and the underlying principles that guide your organisation.” It shows reciprocal desire to meet its common economic need through jointly owned and democratically managed enterprises. It also shows its commitment to self-help, mutual aid, self- reliance and fair play values What is FPO?
  • 15. 26-04-2023 19 Higher Risk and Cost of Production Lack of experiences Smaller Production No support with Compliance With Certification Lack of access to Markets Lack of Infrastructure Lack of access to technology Pressure of Traders Why FPO? Individual Action
  • 16. 26-04-2023 20 Why FPO? Sharing Risks And Reducing Production Costs Sharing Experiences Improving Production Scale Supporting Compliance With Certification Improving Access To Markets Sharing Infrastructure Access to Technology Reducing the Pressure of Traders Collective Action
  • 17. 26-04-2023 21 Why FPO? • A FPO can share risks and reduce production costs • By aggregating the demand for inputs, the PO can buy in bulk, thus procuring at cheaper price compared to individual purchase. Besides, by transporting in bulk, cost of transportation is reduced. Thus reducing the overall cost of production. • Sharing Experiences • To strengthen each other’s practices • Improving Production Scale • To improve bargaining power • Supporting Compliance With Certification • A collective compliance and certification is done for all farmers in the structure • Reducing the Pressure of Traders • As a collective organization, the FPO takes its own decisions and has better bargaining power • Access to Technology • An FPO can access latest technology by sharing the benefits to all its members • Sharing Infrastructure • A common infrastructure for value addition and processing can be made • Improving access to markets • With high volume of produce the FPO can easily access new markets within and outside the state
  • 18. Key Features of FPOs Business enterprice Formal organization Autonomous & Independent Business Enterprise Formal /Registered Organisation Autonomous & Independent • Provide pre-production, production, post production services • Registered, legal entity with staff and systems • Farmers own enterprise, Private in nature Self-governance Equity from members Democratic control Member owned • Owned, used and controlled by members • Provide required services to members • Governed by board of directors elected by and from members • Members contribute to capital • One member, one vote
  • 20. Governance - Board Composition Question: How many members can we have on the Board of our FPO and what are the eligibility criteria to be a Board member? The Board of a FPO is constituted by representatives elected by the General Body (GB) i.e. members of the FPO. It is required that the members who come on to the Board meet certain criteria Criteria for Directors: The bylaws of our FPOs need to specify the required eligibility criteria for contesting for the Board and also ineligibility criteria to get into the Board. Such criteria are illustrated below. Box: Attributes of potential Directors • Leadership • Represent members (occupation, geographic, community etc) • Best practitioner in concerned occupation • Honesty and non-controversial • Concern for small, marginal & women farmers Suggestive eligibility criteria: • Age: 25-65 years • Minimum education: 7th standard; Reading, Writing and Arithmetic skills • Willingness to take required responsibilities and liabilities • Willingness to give required time
  • 21. Board members election process 1. FPO operational area should be divided into 3 constituencies 2. Senior /older member who will not contentest in future will be nonminated as election 3. The eligible candidates from each constituency should sit together &be given numbers 4. Members will write the number of persons whom they want to select & put in the box provided by election officers 5. Election officers will count the votes 6. Election Officers announces that the person who gets more than 50% votes will be the selected person. 7. Repeat the election process from step 3 to 6 until the number of required persons elected / vacancies filled. 8. From each area, we should have 4 Directors 9. Selected members will take oath
  • 22. Business Solutions to Poverty TechnoServe | 30 Regular and frequent meetings provide opportunity to, • interact with each other in a structured manner, • inculcate discipline, • scope for regular transactions, such as collective buying and selling, periodic monitoring and follow-up of transactions, • opportunity for the capacity building of the members and for developing their communication skills, • a forum for identifying, discussing and taking up common action programs. Governance – Regular Meetings
  • 23. Types, Frequency and Importance of Meeting Business Solutions to Poverty TechnoServe | 31 Meeting Frequency Importance Regular Producer Groups meetings Once every month  Periodic monitoring and follow-up of transactions  Explore scope for regular transactions, such as collective buying and selling.  To identify, discuss and take up activities & programs.  Provides opportunity for the capacity building of the board members and for developing their communication skills. Board meetings Once in every 3 months  Review of FPO business activities  Approval of transaction and resolutions. Annual general body meeting Gap between 2 AGMs should not exceed 15 months  Confirm the proceedings of the previous General Meeting.  Declare the names of Board of Directors elected as per the election rules.  Approve the expenditure, budget and reports.  Appoint auditors and fix their remunerations.  Take note of admission of new member and removal of members during the year. Emergency meetings As and when required  To address the urgent requirement related with business and compliance. Committee meetings- Examples:- marketing committee, procurement committee, As and when required  Are vital to effective functioning of FPO and its ability to carry out its role. This is need based. For smooth functioning and sharing of responsibilities committees can be formed. The decision to form committees is accepted by the board unless it requires further review.
  • 24. Business Solutions to Poverty TechnoServe | 35
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  • 27. 4/26/2023 41 What is Compliance ? This means that FPOs are regulated by the law of the land – under the law in which it is registered and also other laws concerning the activities of the FPO. Thus, it is of utmost importance that FPOs are fully legally compliant organizations and it is the primary responsibility of the Board to ensure this. Advantages of being legally compliant • Be safeguarded for any legal requirement– for example, vigilance raids on storage, any legal case by a competitor, non-payment by a buyer etc. •Lead to development of strong institutional systems for FPOs – like bookkeeping, governance, monitoring etc. •Raising of finance for FPOs – by fulfilling requirements like financial statements, legal documents, collateral etc •Can enter into Agreements and do transactions – like with a buyer for marketing of produce •Contributes to transparency and accountability
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  • 31. Business Solutions to Poverty TechnoServe | 46 Various Opportunities for Linkages by an FPO Linkages by FPOs
  • 32. Sources of funds Business Solutions to Poverty TechnoServe | 47 Refundable source of fund Required document Loan Registration certificate, PAN card, financial statements (for financial discipline and turn over), Annual reports. Tax filling documents. Board resolution. Non-refundable source of fund Grants Proposal and reports Subsidies Registration certificate, PAN card, Proposal, financial statements (for financial discipline and turn over), Annual reports. Tax filling documents. Board resolution. Fines and service charges Receipt for fine & service charge to maintain books of account Donations Receipt to donor Grant Loan Donation
  • 33. 26-04-2023 50 Examples of Successful FPOs The Amul India founded in 1946. Sahyadri Farmer producer company Ltd. Founded in 2011. Shree Mahila Grih Udyog, Lizzat Papad Founded in 1959.
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