Scope of work - MAHAFED FPC

The role of the State Level Association (SLA) of FPC’s (MAHAFED FPC) would be mainly focused on business development and exploiting the collective strength of FPCs with market players to leverage the efforts of member FPCs and create sustained value for FPCs and farmers associated with them. A State Level Association (SLA) of FPC’s (MAHAFED FPC) would negotiate with manufacturers, suppliers of goods and services, financial institutions, traders, processers with market players for better realization of price for the farmers produce through the FPCs. A representing FPCs with a business mandate will be in a better position to scan the market to identify the needs of various categories of consumers, give inputs to the value addition efforts of member FPCs and systematically engage with the business community. Opportunities open up in the areas of input supply, processing, contract farming, export of commodities/processed products, retailing etc.

Access to improved and affordable technologies for farming which is major concern in the current context would become a reality. Extension services would become accessible and effective through this proposed arrangement. Sources of knowledge and opportunities for small and marginal farmers would open up leading to their empowerment and also strengthening their livelihood.

A new class of organized intermediaries has appeared on the agriculture marketing horizon in the form of collateral management service providers, offering finance against warehoused produce. FPC produce could be leveraged with these agents to raise working and investment capital. Similar to this, new avenues would be explored for FPO financing beyond the traditional FIs.

The SLA (MAHAFED FPC) will help the FPCs have network across the state and the country to be able to facilitate and explore these opportunities, enter into agreements with large market players and deliver the value to the member FPCs and the end farmer associated with these FPCs.

Those FPCs which are already into marketing of products can benefit from SLA (MAHAFED FPC) with the possibilities of developing longer value chains or exploring untapped markets for their products. SLA (MAHAFED FPC) will be in a better position to attract finance from various sources, which otherwise is difficult with smaller and emerging FPCs alone. These smaller and emerging FPCs will gain from the presence of this apex company to generate a market for its products and also gain necessary knowhow which will help them compete with other market players.

FPCs face issues and challenges on several fronts such as input quality and timely availability, access to appropriate and affordable technology for farming, value addition, marketing to unlock the price potential of their produce and access to finance. The present issues plaguing the survival and growth of FPCs can be very well addressed by organizing them through business. Business and developmental objectives can be very well achieved by augmenting the resources, strength and skills of all FPCs.

A large group of farmers joined through a consortium of FPCs would negotiate with manufacturers, suppliers of goods and services, financial institutions, traders, processers and addresses market forces leading to better realization of price for their produce. A network of FPCs joined through a common goal would be in a better position to systematically engage with the business community. Opportunities open up in the areas of input supply, seed processing, food processing, contract farming, export of commodities/processed products, retailing etc. It is becoming increasingly apparent that many of the risks in agriculture can be significantly mitigated when producers (especially small and marginal producers) aggregate production and marketing efforts. The rapidly growing organized retail sector (while small at present, but doubling its market share every three years) seeks direct buying and selling opportunities with primary producers. Contract farming models are emerging across a wide range of commodities, ranging from fresh produce, spices to staples. Dealing with FPCs reduces both costs and transaction time for these market players.

A consortium of FPCs would be in better position to defend and promote the interests of its members with the government through active advocacy, liaising with related departments of the state and central government, highlighting the issues and constraints faced by FPCs to realize their maximum potential targeting at bringing about a policy change and change in the mindset and approach of important stakeholder groups like the banks, financial institutions and the government. Increase the representation of FPCs in various committees/panels of central and state governments.

Access to information and knowledge about demand supply situation of different crops, markets for value added crops and products manufactured by FPCs would help FPCs in opportunity mapping and take informed decisions regarding taking up business activities, scaling up and strategy formulation. The consortium would do market research and value chain studies for specific crops/products and regions and disseminate the information to its members. The consortium would also do need specific training of its members in organizational and business development areas.