Cluster Based Business Organizations

Cluster Based Business Organizations (CBBO)

Introduction

Maha Farmers Producer Company Limited (MAHAFPC) has been empaneled as Cluster Based Business Organizations (CBBO) by NABARD and NCDC for “Formation and Promotion of 10,000 FPOs” scheme. NABARD and NCDC have approved 5 FPOs & 6 FPOs respectively.

Government of India has declared to promote 10,000 FPOs in the next 5 years so as to ensure economies of scale for farmers in the country and The purpose of the CBBO is to collectivise farmers, especially small and marginal producers, across the cluster, so as to foster technology adoption, improve productivity, facilitate adoption of good agricultural practices, enable improved access to inputs and credit, develop direct marketing capacity and thereby enhance farmer incomes, concomitantly augmenting their sustainable agriculture-based livelihoods. MAHAFPC is working to develop that FPOs as model FPOs.

Partners :-
  • National Bank for Agriculture and Rural Development (NABARD)
  • National Cooperative Development Corporation (NCDC)
Comments :-

Government had announced in union budget formation of 10,000 new FPOs. I hope this dedicated new central sector scheme “Formation and Promotion of 10,000 FPOs” will serve its objective fully and farm economy will get further boost.

Hon.Shri Narendra Singh Tomar
 (Minister of Agriculture & Farmer Welfare Department)
 (Government of India)

 

NCDC plays an important role as an implementing agency in the Central Sector Scheme on Formation and Promotion of 10,000 FPOs. FPOs can be set up as cooperatives under any Cooperatives legislation.

Mr. Sundeep Kumar Nayak
  (Managing Director, National Cooperative Development Corporation)
Strategies:-
a) Formation of FPOs –

1stly MAHAFPC had surveyed according to crop allotted to given cluster and find out the scope villages for allotted commodity. Then arranged farmer mobilization meetings and explained the moto of formation FPO in cluster to farmers. Baseline survey has been completed and then lastly formed FPO legally by company secretory.

b) Engagement of the interns from Agribusiness schools like MANAGE, NIAM & IIMA-

Baseline Survey of Farmers, Identification of Possible FPO Business Models, diagnostic study and business plans reports were necessary to prepare by experts with business attitude. So MAHAFPC had recruited interns from Agribusiness schools like MANAGE, NIAM & IIMA which had business attitude and expertise of business plans. They had prepared good diagnostic study and business plans reports and that will have very important to FPOs for future planning. Baseline survey of farmers collected by Digital Collect Data Collection tool.

c) Mobilization of Farmers-

Mobilization of farmers and awareness of farmers has been completed by Agriculture Graduates/Post-graduates also identification of active promoter farmers for FPO formation also completed by farmer mobilization process. In 10 FPOs,50+ Meetings have been arranged and 1500+ farmers have been mobilized by this programme.

d) Training and Capacity Building of BoDs and CEOs-

MAHAFPC has been prepared a scheduled for BoDs and it will be completed primary training programme in October,2021.

e) Business Plan-

Commodity specific & value chain centric business plans has been prepared by Agribusiness schools like MANAGE, NIAM & IIMA.

f) Equity Grant Scheme-

As per GOI guidelines there is maximum equity grant of Rs. 15,00,000/- per FPO. Accordingly, 750 members has been planned as a shareholder of each FPO and now 3 FPOs application has been submitted to NCDC.