FPO Business Accelerator Centre- Indore
Course content for Agripreneurs Program in Agri-Business Management
The course is primarily targeted to any graduates who have basic knowledge of agriculture, though this may not be a pre-requisite. The course aims at equipping them with theoretical and practical knowledge on different aspects of agri-business including policy framework, laws, rules and regulations, business potential for an array of agri-businesses, banking interface, and a range of agri-business operations. All students would also acquire basic knowledge of important aspects of corporate and other laws, basic accounting, good communication skills, and elementary aspects of HR management as compulsory subjects. Practical training with EFASAL team at HQ and field level for all modules in every week, in which two days classes and three days practical training
2. Formation and Promotion of 10,000
Farmer Producer Organizations (FPOs)
To provide handholding and support to new FPOs up to 5 years from the year
of creation in all aspects of management of FPO, inputs, production,
processing and value addition, market linkages, credit linkages and use of
technology etc.
To provide effective capacity building to FPOs to develop agriculture-
entrepreneurship skills to become economically viable and self-sustaining
beyond the period of support from government.
farmer- producers’ organization incorporated/ registered either under Part
IXA of Companies Act or under Co-operative Societies Act of the concerned
States and formed for the purpose of leveraging collectives through
economies of scale in production and marketing of agricultural and allied
sector.
3. Broad Services and Activities to be
undertaken by FPOs
Supply quality production inputs like seed, fertilizer, pesticides and such other inputs at
reasonably lower wholesale rates.
(ii) Make available need based production and post-production machinery and equipment like
cultivator, tiller, sprinkler set, combine harvester and such other machinery and equipment
on custom hiring basis for members to reduce the per unit production cost.
(iii) Make available value addition like cleaning, assaying, sorting, grading, packing and also
farm level processing facilities at user charge basis on reasonably cheaper rate. Storage and
transportation facilities may also be made available.
(iv) Undertake higher income generating activities like seed production, bee keeping,
mushroom cultivation etc.
(v) Undertake aggregation of smaller lots of farmer-members’ produce; add value to make
them more marketable.
(vi) Facilitate market information about the produce for judicious decision in production and
marketing.
(vii) Facilitate logistics services such as storage, transportation, loading/un-loading etc. on
shared cost basis.
(viii) Market the aggregated produce with better negotiation strength to the buyers and in
the marketing channels offering better and remunerative prices.
4. Implementation mechanism
National Project Management Agency (NPMA) by SFAC
State Level Consultative Committee (SLCC) by Agriculture Department
District level Monitoring Committee (D-MC)
Implementing Agencies - SFAC, NCDC and NABARD, State Agency
Cluster Based Business Organizations (CBBOs)
SFAC will form and promote those FPOs to be incorporated under Part IX A of
Companies Act.
NCDC will form and promote those FPOs to be registered under any Co-
operative Societies Act of the States.
NABARD will form and promote those FPOs which are registered either under
Part IX A of Companies Act or registered under any Co-operative Societies Act
of States.
5. Cluster- Based Business Organizations
(CBBOs)
Implementing Agencies will set up Cluster- Based Business Organizations (CBBOs)
at the State/Cluster level to form and promote FPOs as per their requirements;
however, targets for produce clusters, full or part of the State or region will be
allocated by Project Management Advisory and Fund Sanctioning Committee (N-
PMAFSC).
In a State, based on geography, produce clusters, cropping pattern, etc., there
may be one or more than one CBBO.
The CBBOs should be supported with five categories of specialists from the domain
of (i) Crop husbandry; (ii) Agri. marketing / Value addition and processing; (iii)
Social mobilization; (iv) Law & Accounts; and (v) IT/MIS in agriculture &
agriculture marketing.
The Formation and Incubation cost of CBBO, limited to maximum of Rs. 25 lakh /
FPO of support or actual which is lesser, is to be provided for five years from the
year of formation.
6. FPO Management Cost
Under the scheme, financial support to Farmer Producer Organization (FPO) @ up to
maximum of Rs. 18 lakh / FPO or actual, whichever is lesser is to be provided during
three years from the year of formation. The indicative financial support broadly
covers-
(i) The support for salary of its CEO/Manager (maximum up to Rs.25000/month)
(ii) Accountant (maximum up to Rs. 10000/month);
(iii) one time registration cost(one time up to maximum Rs. 40000 or actual
whichever is lower);
(iv) Office rent (maximum up to Rs. 48,000/year);
(v) utility charges (electricity and telephone charges of office of FPO maximum up to
Rs. 12000/year);
(vi) One-time cost for minor equipment (including furniture and fixture maximum up
to Rs. 20,000);
(vii) Travel and meeting cost (maximum up to Rs.18,000/year); and (vii) misc.
(cleaning, stationery etc. maximum up to Rs. 12,000/year).
(viii) Any expenditure of operations, management, working capital requirement and
infrastructure development etc.,
7. Provision for Equity Grant
Equity Grant shall be in the form of matching grant upto Rs. 2,000 per farmer member of FPO
subject to maximum limit of Rs. 15.00 lakh fixed per FPO
(i) It shall be a legal entity as per para 2 of this guidelines.
(ii) It has raised equity from its Members as laid down in its Articles of Association/ Bye laws, as
the case may be.
(iii) The number of its Individual Shareholders is in accordance with the terms hereto read
together with the Scheme.
(iv) Minimum 50% of its shareholders are small, marginal and landless tenant farmers as defined
by the Agriculture Census carried out periodically by the Ministry of Agriculture, GoI. Women
farmers’ participation as its shareholders is to be preferred.
(v) Maximum shareholding by any one member shall not be more than 10% of total equity of the
FPO.
(vi) A farmer can be member in more than one FPO with different produce clusters but he/she
will be eligible only once(for any one FPO that he/she is a member) for the matching equity grant
up to his/her share.
(vii) In the Board of Directors (BoD) and Governing Body (GB), as the case may be, there shall be
adequate representation of women farmer member(s) and there should be minimum one woman
member.
(viii) It has a duly constituted Management Committee responsible for the business of the FPO.
(ix) It has a business plan and budget for next 18 months that is based on a sustainable, revenue
model as may be determined by the Implementing Agency.
8. Credit Guarantee Facility
In order to ensure access of FPOs to credit from mainstream Banks and Financial
Institutions, there is a need to create a dedicated fund. The dedicated Credit
Guarantee Fund (CGF) will provide suitable credit guarantee cover to accelerate
flow of institutional credit to FPOs by minimizing the risk of financial institutions
for granting loan to FPOs so as to improve their financial ability to execute better
business plans leading increased profits
with NABARD and NCDC respectively under the Scheme with matching grant from
DAC&FW for the purpose of extending guarantee to the eligible lending
institution(s) against their collateral free lending to eligible FPOs;
Eligible Lending Institution (ELI) means a Scheduled Commercial Bank for the
time being included in the second Schedule to the Reserve Bank of India Act, 1934,
Regional Rural Banks, Co-operative Banks, Cooperative Credit Society, NEDFI, or
any other institution, NBFC as may be decided by the NABARD and/or NCDC, as the
case may be
The credit guarantee cover per FPO will be limited to the project loan of Rs. 2
crore, credit guarantee cover will be 75% of bankable project.
9. STEPS FOR PROMOTING FARMERS
PRODUCER ORGANISATION
SELECTION OF AREA- Contiguous Villages Cluster Area
HOMOGENOUS CROPS – Select crops in Ravi and Kharif
SELECTION OF PROMOTORS- Minimum 11 like minded
Farmers whom socio-economic status is same
SELECTION OF BOD- Minimum 5 BOD 1 woman member
TAKING DIN NUMBER
TAKING PAN NUMBER
TAKING DIGITAL SIGNATURE
Minimum Members – 300 to 500 50% Small & Marginal
10. FARMERS PRODUCER ORGANISATION
VISION – GROW FOR GROWTH
MISSION – PROMOT SUSTANABLE AGRI-BUSINESS
REDUCE SUPPLY CHAIN IN BOTH ENDS
GROW HUGE QUNATITY WITH SAME QUALITY USING SAME
PACKAGE OF PRACTICE
DEVELOP CROPWISE CLUSTER
START MARKET WORKING FOR FARMERS
LINKS MISSING DOTS FOR DEVELOPING FACTORY TO FARM
AND FARM TO FACTORY SUPPLY CHAIN
11. STEPS FOR PROMOTING FARMERS
PRODUCER ORGANISATION
TAKING FPO NAME
TAKING FPO LOGO
PREPARE MOA AND AOA
APPLICATION TO ROC
BUILDING FOR OFFICE
TAKING PAN FOR FPO
TAKING GST
12. STEPS FOR PROMOTING FARMERS
PRODUCER ORGANISATION
TAKING NOC FROM LABOUR DEPARTMENT
OPENING BANK ACCOUNT
PREPARE A BUSINESS PLAN
APPLICATION TO DDA FOR FERTILISER, SEEDS &
PESTICIDE
BUILDING FOR GOWDON
RAGISTRATION WITH EFASAL
TAKING O FORM & PC
13. EFFECTS OF INCORPORATION
SHARE CAPITAL
CAPITAL
SHARE CAPITAL OF PRODUCER COMPANY
PRODUCER FOR ALTERATION OF CAPITAL
INCREASE OF CAPITAL
CONSOLIDATION/DIVISION OF SHARE INTO SHARES
DIMINUTION OF CAPITAL
CANCELLING THE SHARE WHICH is NOT TAKEN UP
REDUCTION OF CAPITAL
ISSUE OF BONUS
SHARE CERTIFICATE
14. EFFECTS OF INCORPORATION
BOARD OF DIRECTORS
BOARD OF DIRECTORS OF A PRODUCER COMPANY
QUALIFICATIONS OF DIRECTORS
NUMBER OF DIRECTORS
APPOINTMENT OF DIRECTORS
FIRST DIRECTORS: APPOINTMENT BY SUBSCRIBERS TO MEMORANDUM
APPOINTMENT OF DIRECTORS IN GENERAL MEETING
APPOINTMENT OF DIRECTOR BY BOARD
POWER TO PREVENT CHANGE IN BOARD OF DIRECTORS
REMOVAL OF A DIRECTOR AND CESSATION OF DIRECTORSHIP
4.6.1 REMOVAL BY SHAREHOLDERS
4.6.2 REMOVAL OF DIRECTORS BY THE CENTRAL GOVERNMENT
4.6.3 REMOVAL BY TRIBUNAL
4.6.4 RETIREMENT OF A DIRECTOR
4.6.5 RESIGNATION OF DIRECTORS
VACATION OF OFFICE OF DIRECTORS
PENALTY FOR WITHHOLDING OF COMPANY’S PROPERTY
15. MANAGEMENT OF PRODUCER COMPANY
MEETING OF THE BOARD OF DIRECTORS
NOTICE CALLING A MEETING OF THE BOARD
QUORUM
SITTING FEE
POWERS AND FUNCTIONS OF THE BOARD
RESOLUTION BY CIRCULATION NOT ALLOWED
RESTRICTIONS ON THE POWER OF THE BOARD
PROHIBITIONS AND RESTRICTIONS REGARDING POLITICAL CONTRIBUTIONS
16. MANAGEMENT OF PRODUCER COMPANY
POWER OF THE BOARD TO MAKE CONTRIBUTIONS
DOANTIONS OR SUBSCRIPTION BY A PRODUCER COMPANY
CONTRIBUTIONS TO THE NATIONAL DEFENCE FUNDS, etc.
DIRECTORS’ LIABILITIES
LIABILITIES TO OUTSIDERS
LIABILITIES TO THE COMPANY
LIBLITIES TO THE SHAREHOLDERS
LIABLITIES FOR STATURY DEFAULTS AND VIOLATIONS
DIRECTOR’S LIBLITIES FOR ACTS OF CO-DIRECTORS
LIABILITIES AS AN OFFICER IN DEFAULT
THE COURT’S POWER TO GRANT RELIFE IN CERTAIN CASES
17. MANAGEMENT OF PRODUCER COMPANY
COMPONDING OF CERTAIN OFFENCES
SPECIAL PROVISIONS REGARDING LIABLITY OF DIRECTORS OF THE PRODUCER
COMPANY
LEGAL POSITION OF DIRECTORS
5-10DUTIES OF DIRECTORS
COMMITTEE OF DIRECTORS
BOARD’S SANCTION FOR CONTRACTS
DISCLOSERE OF INTERESTES BY DIRECTORS
POSITION OF AN INTERESTED DIRECTOR
REGISTER OF DIRECTORS, MANAGING DIRECTORS, MANAGERS AND SECRETARY
18. MANAGEMENT OF PRODUCER COMPANY
REGISTER OF CONTRACTS, COMPANIES AND FIRMS IN WHICH DIRECTORS ARE
INTERESTED
REGISTOR OF DIRECTOR’S SHAREHOLDERS
CHIEF EXECUTIVE AND HIS FUNCTIONS
SECRETARY OF PRODUCER COMPANY & SECRETARIAL COMPLANCE
REMUNERATION TO DIRECTORS
CHIEF EXECUTIVES AND WHOLE TIME DIRECTORS
DIRECTORS AND OFFICE OR PLACE OF PROFIT
19. MEMBERSHIP
MEMBER OF A COMPANY-DEFINATION
MODES OF ACQUIRING MEMBERSHIP
SUBSCIBERS TO THE MEMORANDUM
AGREEMENT IN WRITING
ESTOPPEL
JOINT MEMBERSHIP
MEMBERS OF A PRODUCER COMPANY
20. MEMBERSHIP
CESSATION OF MEMBERSHIP
RIGHTS OF MEMBERS
LIABLITIES OF MEMBERS
VOTING RIGHTS OF MEMBERS
MEMBERS’ BENEFITS
SPECIAL USER RIGHTS
TRANSFERABLITY OF SHARES NOMINATION AND ATTENDANT RIGHTS
SURRENDER OF MEMBERSHIP
21. GENERAL MEETINGS
MEETINGS: NEED AND IMPORTANCE
KINDS OF COMPANY MEETING
ANNUAL GERENAL MEETING
IMPORTANCE OF ANNUAL GERENAL MEETING
STATUTORY REQUIREMENT
BUSINESS TO BE TRANSACTED AT ANNUAL GENERAL MEETING
TIME AND PALCE OF ANNUAL GENERAL MEETING
7.4 EXTRAORDINARY GENERAL MEETING
7.4.1 EXTRA-ORDINARY GENERAL MEETING CONVENED BY BOARD
7.4.2 EXTRA-ORDINARY GENERAL MEETING ON REQUISITION
7.4.3 POWER OF NATIONAL COMPANY LAW TRIBUNAL TO ORDER
22. GENERAL MEETINGS
CALLING OF EXTRAORDINATRY GENERAL MEETING
CLASS MEETINGS
PROCEDURE FOR CLASS MEETING
MEETING OF CREDITORS
NOTICE OF GENERAL MEETING
LENGTH OF NOTICE
TO WHOM IT MUST BE GIVEN
CONTENTS OF THE NOTICE
DOCUMENTS ACCOMPANYING THE NOTICE OF GENERAL MEETING
NOTICE AND PROXY
ORDINARY BUSINESS AND SPECIAL BUSINESS
QUROM
CHAIRMAN OF GENERAL MEETING
PROXIES
23. GENERAL MEETINGS
RESOLUTIONS
ORDINARY RESOLUTION
SPECIAL RESOLUATION
RESOLUATIONS REQUIRING SPECIAL NOTICE
CIRCULATION OF MEMBER’S RESOLUATION
RESOLUATION PASSED AT ADJOURNED MEETING
SPECIAL PROVISIONS FOR ANNUAL GENERAL MEETING
FIRST ANNUAL GENERAL MEETING
FILING OF PROCEEDING WITH THE REGISTERAR
REPRESENTATINS OF PRODUCER INSTITUTIONS IN A GENERAL MEETING
VOTING RIGHTS
24. GENERAL MEETINGS
REGISTRATION OF RESOLUTIONS AND AGREEMENTS
ADJOURNMENT
MEENING OF ADJOURMENT
OCCASION FOR ADJOURNMENT
WHETHER FRESH NOTICE IS REQUIRED
POSTPONEMENT
DISSOLUTION
MINUTES OF PROCEEDINGS OF MEETINGS
25. RAISING FUNDS-DEVELOPING BUSINESS PLAN
EXECUTIVE SUMMERY
STATEMENT OF PURPOSE
BUSINESS DISCRIPTION
MARKETING PLAN
PRODUCTION PLAN
OPERATION AND MANAGEMENT PLAN
FINANCIAL MANAGEMENT AND ANALYSIS
26. RAISING FUNDS-DEVELOPING BUSINESS PLAN
RISKS
RELATIONSHIP WITH PROMOTING AND SPOSORING AGENCIES
SUSTANABILITY
KEY POLICY- QUALITY POLICY, PROCURMENT POLICY
LEGAL REQURERMENTS
LICENCES
TEXATION
27. ORGANISATIONAL MANAGEMENT
ORGANOGRAM
SERVICE PROVIDERS
ROLES OF DIFFERENT PERSONAL
TRAINING POLICY- STAFF AND MEMBERS
PRODUCTION PLAN
PREQUREMENT PLAN
28. FINANCIAL MANAGEMENT
BANKING
13,2 INSURANCES
BUDGET
CASHFLOW FORCASTING
ACCOUNTING SYSTEM
VOUCHER SYSTEM
CASH TRANSACTION
PURCHASE PROCEDURE
INVENTORY OF FIXED ASSET
DISCLOSER OF FIXED ASSETS
PHYSICAL VARIFICATIO OF ASSTES
DELEGATION OF POWER
29. MARKETINGPLAN
INPUT PURCHAGING WHOLESALE DEALERSHIP
14.1 OUTPUT MARKETING DIERECT SALLING TO PROCESSERS
COSTING, PRICING AND ESTIMATING
30. LOANS AND ANVESTMENTS
LOANS TO MEMBERS AND DIRECTORS
LOANS TO OTHERS
INTER CORPORATE INVESTMENTS
INVESTMENT IN OTHER COMPANIES, FORMATION OF SUBSIDIARIES
31. BOOKS AND ACCOUNTS
NEED FOR ACCOUNTS
BOOKS OF ACCOUNT TO BE KEPT BY A PRODUCER COMPANY
PERSONS RESPOSIBLE FOR KEEPING OF BOOKS OF ACCOUTS
BALANCESHEET
PREPARATION OF BALANVE SHEET AND PROFIT AND LOOS ACCOUNT
ADOPTION OF BABALCE SHEET AND PROFIT AND LOOS ACCOUNT
AUTHENTICATION OF BABALCE SHEET AND PROFIT AND LOOS ACCOUNT
CIRCULATION OF BABALCE SHEET AND PROFIT AND LOOS ACCOUNT AND AUDITOR’S
REPORT
32. BOOKS AND ACCOUNTS
FILLING OF ANNUAL ACCOUNTS WITH REGISTRAR
DIRECTOR’S REPORT
INSPECTION OF BOOKS OF ACCOUNT, etc.
ACCOUNTS OF HOLDING AND SUBSIDIARY COMPNIES
INTERNAL AUDIT
DONATIONS OR SUBSIDIARY COMPANY
GENERAL AND OTHER RESERVES
ISSUE OF BONUS SHARES
33. AUDIT OF ACCOUNTS
NEED FOR AUDIT
APPLICATION OF PROVISIONS OF SECTIONS 224, etc.
QUALIFICATION OF AUDITORS
DISQUALIFICATION OF AUDITORS
APPOINTMENT OF AUDITORS
APPOINTMENT OF FIRST AUDITORS
SUBSEQUENT APPOINTMENT OF AUDITORS
AUTOMATIC RE-APPOINTMENT OF AUDITORS
APPOINTMENT OF AUDITORS OTHER THEN RETIRING AUDITOR
FILLING CASUAL VACANCY
POWER OF THE CENTARL GOVERNMENT TO APPOINT AUDITORS
34. AUDIT OF ACCOUNTS
REMUNERATION OF AUDITOR
REMOVAL OF AUDITORS
LIABLITIES OF AN AUDITOR
CIVIL LIABLITLTY
CRIMNAL LIABILITY
LEGAL POSITION OF AUDITORS
OWERA AND DUTIES OF AUDITORS
SPECIAL DUTIES OF AUDITORS OF PRODUCER COMPANY
35. AMALGAMATION, MERGER OR DIVISION
COMPROMISES AND ARRANGMENTS, etc.
AMALGAMATION, MERGER OR DIVISION
RESOLUTION OF DISPUTES
SETTEMENT OF DISPUTES BY ARBITRATION
NATURE OF DISPUTES
REFERENCE OF QUESTION TO ARBITRATOR
PRINCIPLES FOOLOWED IN THESE PROVISIONS
36.
37. CONTECT US
DR. RAVINDRA PASTOR
Phone Number +919425166766
Email ID- info@efasal.com
Website- www.efasal.com
THANKS