REPORT ON AGRICULTURAL INPUTS & PRODUCE MARKET STUDY FOR THE TRIBAL COMMUNITY OF JHABUA & MEGHNAGAR BLOCK OF JHABUA DISTRICT

SUBMITTED BY:AKRAMUL HOQUE KIIT SCHOOL OF RURAL MANAGEMENT BHUBANESWAR, JANUARY, 2012 MANAGEMENT TRAINEESHIP SEGMENT-I1|Page

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EXECUTIVE SUMMERY

This study discusses the agricultural inputs and implications of the identify their marketing constraints and opportunities. A survey of 150 farmer was conducted in five different village maghnager block of jhabua districts in MP .The major input marketing constraints that were identified in the study is that, lack of breeder and foundation seeds, lack of agricultural

cultivation information, new technology, information asymmetry between traders and producers, lack of formal contracting among informal, and formal producers and traders, lack of cultivation ,financial services and

standardization and product quality, high costs of

transportation costs. The major opportunities for increasing the efficiency of the marketing are the potentially to improved agricultural inputs like: HYV seed, fertilizer, labour , more use of bio fertilizer ,etc its multiplication and distribution, This paper also show that the exting pattern of cultivation and cost involved the agricultural mechanism to reduce the same . There is the no proper marketing channel & to reduce the cost of cultivation we can form a producer company

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ACKNOWLEDGEMENT

At the outset, I feel great pleasure to pronounce my gratitude to Prof. L. K. Vaswani, Director, KSRM, KIIT University, for giving us the opportunity to participate in the MTS II Program by adding it to our course curriculum. I am thankful to Prof. Prasun Kr.Das, our MTS Coordinator KSRM, KIIT University, for his guidance and constant observation throughout the program. I am particularly thankful to Prof. Nandini Sen , Faculty Guide for their sincere guidance, constructive criticism and valuable suggestions in every step of this work. Special thanks to Mr. S.S.Rana, Zonal Program Manager for giving the opportunity to complete my final MTS II training in their Organization. And my immense gratitude to Mr. Deepak Sharma, Regional Program Manager for his able guidance during the study. This report could not have been prepared without the committed support of GVT staff. In particularly, I gratefully acknowledge time and effort invested by the farmers those who have participated in the survey for sharing their views and provided the valuable feedback on the program through the preparation of this report.

Thank You Akramul Hoque

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Table of Contents1 2 3 Executive summery ..............................................................................................................1 Acknowledgement ...............................................................................................................3 Introduction .........................................................................................................................6 3.1 3.2 4 4.1 4.2 4.3 4.4 4.5 4.6 5 5.1 5.2 5.3 6 6.1 6.2 6.3 6.4 6.5 6.7 6.8 7 7.1 7.2 7.3 7.4 7.5 7.6 8 8.1 Global Agri-Input Scenario: ..........................................................................................7 Agri Input Scenario In India: .........................................................................................8 Mission .........................................................................................................................9 Vision ...........................................................................................................................9 Objectives of GVT: ..................................................................................................... 10 Approach of GVT ....................................................................................................... 10 ORGANIZATIONAL STRUCTURE .......................................................................... 11 KEY STRENGTHS: ................................................................................................... 11 Objective .................................................................................................................... 13 Scope .......................................................................................................................... 14 Limitations .................................................................................................................. 14 Designated Project Area: ............................................................................................. 16 Sample Design and Sampling Method: ........................................................................ 16 Survey Design:............................................................................................................ 16 Data Collection ........................................................................................................... 17 Product data collection ................................................................................................ 17 Data Analysis .............................................................................................................. 17 Rationale of the study: ................................................................................................ 17 House type .................................................................................................................. 19 Source of livelihood .................................................................................................... 19 Seed variety ................................................................................................................ 20 Maize seed .................................................................................................................. 20 Wheat seed.................................................................................................................. 21 Soyabean seed ............................................................................................................. 21 Seed purchase ............................................................................................................. 22 4|Page

About the organization .........................................................................................................9

Background my study ........................................................................................................ 13

Methodology...................................................................................................................... 15

Analysis and finding .......................................................................................................... 19

Market Analysis ................................................................................................................. 22

8.2 8.3 8.4 8.5 9 10

Selling the produce ..................................................................................................... 22 Production Three different crop last three year:- .......................................................... 23 Comparison of three different crops ............................................................................ 23 Mode of transport:- ..................................................................................................... 24

Area, Production and Productivity of major crops cultivated in the target area ....................... 24 Demand estimation of Agriculture inputs in the target village ........................................... 25 Market Linkage .............................................................................................................. 26 10.1 Rural Marketing Pattern .............................................................................................. 28 10.2 Supply Chain and Rural Marketing Network of Tribal Division .................................. 29 10.3 Present Supply Chain of Rural Market ........................................................................ 29 10.4 Some existing models of movement of farm produce from farm to market- ................. 30 10.5 Value addition and marketing support ......................................................................... 33 10.6 Constraints in Rural Market ........................................................................................ 34 10.7 Reasons for Improvement of Rural market of the tribal region .................................... 35 10.8 Future Plans ................................................................................................................ 35 11 UNDERSTANDING PRODUCER COMPANY ............................................................ 36 11.1 PRIMARY PRODUCE ............................................................................................... 36 11.2 PRODUCER ............................................................................................................... 36 11.3 PRODUCER INSTITUTION ...................................................................................... 36 11.4 PRODUCER COMPANY ........................................................................................... 37 11.5 WHO CAN FORM PRODUCER COMPANY? .......................................................... 37 11.6 CHARACTERISTICS OF PRODUCER COMPANY ................................................. 37 12 13 Objects and Activities of Producer Company .................................................................. 38 Stages of Project Development for producer company .................................................... 38 13.1 Village study and preliminary identification ................................................................ 38 13.2 Feasibility study .......................................................................................................... 38 13.3 Report and action plan ................................................................................................ 39 13.4 Organizing .................................................................................................................. 39 13.5 Formalizing ................................................................................................................. 40 13.7 Business planning ....................................................................................................... 41 13.8 Linkages with other organizations ............................................................................... 41 13.9 Monitoring and review ................................................................................................ 41 14 Key Activities, Timeline, Deliverable and Measures of Verification ............................... 42

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INTRODUCTION

The agriculture has potential to create economic growth in rural areas. It generates jobs opportunities in adding value (as in food processing industry), in bringing agriculture products to the customers (market linkage), and in providing support (infrastructure, information, quality control and training). Agriculture is still the mainstay of the State's economy, as about 71 percent of the population is still dependent on agriculture. Agriculture in the state is still traditional and mostly rain fed. There is high proportion of low value crops with low productivity. Agricultural holdings are fragmented. Madhya Pradesh has unique topography, soil and weather, which is one of the major reasons that the impact of green revolution had been negligible on the agriculture sector of the state About 74% population of M.P. resides in rural areas. Around 65 percentage of the total land holdings belong to small and marginal farmers occupying only 26 percent of the cultivable land. The net sown area is about 147.90 lakh hectares. The gross cropped area is 202.16 lakh hectares. The ratio of Kharif to Rabi crops is 1: 0.79 during 2006-07. The total irrigated area of the State is 43.3 % and remaining area is rain fed. The cropping intensity of the State is 136%. The State is divided in the following 11 Agro Climatic Zones: (1) Chhatisgarh plains (Balaghat district falls in this zone) (2) Northern hill region of Chhatisgarh (Districts of Shahdol, Mandla, Dindori, Anuppur, Umaria and part of Sidhi fall in zone) (3) Kymore plateau and Satpura hills (4) Central Narmada Valley (5) Vindhya Plateau (6) Gird region (7) Bundel Khand (8) Satpura Plateau (9) Malwa Plateau (10) Nimar Plains (11) Jhabua hills. Agro ecologically the state falls in three zones namely, Zone VII (Eastern Plateau and hills Zone), Zone VIII (Central plateau and hills Zone) and Zone IX (Western Plateau and hills Zone) The major Kharif crops are: Maize, soyabean, Tur, Urad, Moong, Groundnut and Cotton etc. The major Rabi crops are: Wheat, Gram, etc. As part of the Management Traineeship Segment-II, the major persona was feasibility study of distribution of agriculture inputs and farm equipments on lease through GVT. A study of business analysis in both financial and operational aspect of different opportunities was carried out to understand the various perspectives for the initiatives undertaken by GVT. In order to identify challenges for the organization in current and future context different concepts that were learnt in the classroom were utilized.

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3.1 Global Agri-Input Scenario:World fertilizer consumption increased from 1995/96 to 1999/2000, declined in 2000/01 by about 3 percent and then increased by 1 percent. Fertilizer consumption remained stable in Developing countries and but increased in developed countries by 4 percent. World nutrient consumption in 2001/02 showed an overall rise for all three nutrients (nitrogen, phosphate and potash). Compared with 2000/01, nitrogen consumption increased by 1.3 percent, while phosphate and potash consumption fell by 1.7 and 4.3 percent respectively. World fertilizer consumption started to increase again in 2001/02. The trend in the developed countries showed an annual decrease of 3.3 percent for the period 19902000. In the economies in transition, the annual rate of decline was 12 percent for the same period. Total world nutrient production increased by 2.7 percent in 2001/02 in response to increased demand. In the developing countries, production increased 1.7 percent (about 0.8 million tonnes) for all three nutrients. Africa increased its production by 4 percent and production in Asia rose by 1.8 percent. In developed countries it increased by 0.3 percent. Australia increased its production by 13.6 percent, Belarus by 7.3 percent, the Russian federation by 5.8 percent and the Unites States by 6.2 percent. China is the largest producer and accounted for 20.4 percent of the worlds production in 2001/02.

Total world nutrient trade in 2001/02 rose by 4 million tonnes (6.6 percent). International fertilizer trade occurs almost equally in developed and developing countries. Exports of nitrogen and potash decreased by 1.5 and 1.9 percent respectively, while those of phosphate increased by 2.1 percent

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3.2 Agri Input Scenario In India:India, Pakistan and Bangladesh are the major fertilizer consuming countries in Southeast Asia. The sub-region faces considerable demographic pressure, with very limited reserves of good agricultural land. Fertilizer consumption rose 3 percent to 2.2 million tonnes. Preliminary forecasts indicate an average growth of 2.4 percent. Growth should be faster on the phosphate (3.1 percent) than nitrogen (2.1 percent) and potash (2.7 percent). In India, the largest consumer of fertilizers and producer of the subregion, nitrogen, phosphate and potash consumption increased by 3.6, 6.4 and 4 percent respectively. Imports of nitrogen, phosphate and potash also increased by 12.3, 16.9 and 6.5 percent respectively. Higher increase in the consumption of phosphate and potash compared to nitrogen is a positive trend towards a balanced use of nutrients. The production of nitrogen fertilizers in India fell by 2.3 percent while the production of phosphate fertilizers increased by 2.7 percent. Politics of India New rates for urea intends to gradually move towards parity with international prices and will be implemented in stages. The new system is expected to promote production efficiency through measures to reduce costs and effectiveness of business practices at par with international standards by domestic producers of urea. Subsidy on phosphorus and potassium fertilizers released is given under the concession regime, which varies by state. The government has linked their import price parity from April 2002. Therefore, natural gas prices put significant increase. The growth in demand for urea has been stagnant. The reasons for this change are the development of large grain surpluses, despite a growing population, and the need for crop diversification using compounds rather than urea.

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ABOUT THE ORGANIZATION

Gramin Vikas Trust (GVT), committed for development of the rural livelihoods was established by Krishak Bharti Co-operative Limited, with the support from Govt. of India and Department for International Development (DFID), U.K. The mission of GVT is to act as a catalyst involving and enabling the rural communities to improve their livelihoods in the resource poor areas. Gramin Vikas Trust has been registered, under Indian Trust Act 1882, at New Delhi, vide Registration No. 1501/4 dated 4th May 1999 (Book No. IV, page no. 145-163). Its Registered Office is: 49-50 Red Rose House, Nehru Place, New Delhi 110 019 and its corporate office is KRIBHCO Bhawan in Noida, U.P. GVT is exempted under section 35 AC and 80G of Income Tax Act.1961, besides it also has exemption under section 197 (1) of the Income Tax Act 1961. GVT is registered under Foreign Contribution Regulation Act (FCRA), 1976, with registration no. 231660318. Organizational Setup GVT is headed by a Board of Trustees, consisting of 7 (seven) Ex-Officio Members comprising of Chairman, Vice Chairman, Managing Director, Finance Director and Marketing Director of KRIBHCO and two nominees from the Department of Fertilizers, Govt. of India. Four nominated members are also on the board having expertise in the field of Agriculture and Agricultural Research, Rural Development, Non Government/ Voluntary Sector and Social Sciences.

4.1 MissionTo act as catalyst to enable the rural poor to improve their livelihoods by supporting productivity improvement programmes in agriculture and rural and rural non-farming sectors which : Are planned, implemented and evaluated jointly with beneficiaries Discriminate positively in favour of women and other disadvantaged groups Link effectively with the programmes of other governmental and non-governmental organizations and Are sustainable in the long run without the intervention of any outside agency

4.2 Vision To design and implement rural livelihood programmes in different parts of the country To develop appropriate participatory gender focused agricultural technologies for rain fed areas

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To offer research and consultancy services to government and NGOs and community based organizations in the field of participatory technology development, project management and participatory rural appraisals

4.3 Objectives of GVT: Improvement of livelihood of tribal and farming community. Gender and poverty focused participatory approaches and its implementation. Establishment of village based institutions. Capacity building of community by setting up training centers. Consultancy on Rural Development to different organizations/institutions and other organizations Research and other related activities on sustainable agriculture Sustainable links with government, non-government, Educational and Research Institution

4.4

Approach of GVT Community Participatory Approach Team Work Innovation and Creativity Dedication & Passion Professionalism

They work with

.

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4.5 ORGANIZATIONAL STRUCTUREBoard of Trustee

Chief Executive Officer DGM (HR) Sr. Manager (M& E) Manager (Accounts) KVK, Godda Crop Consultant Zonal Program Manager (EAST) NLRI, Ratlam Crop Consultant, BDM Zonal Program Manager (WEST)

RPM (Jharkhan d) SPO (4)

RPM (Bihar)

RPM (Odisha )

RPM (W. Bengal)

RPM (M.P)

RPM (Gujarat) SPO (4)

RPM (Rajasthan)

RPM (C.G)

PO (4) APO (8) Jankar

PO (4) APO (8)

Jankar

4.6 KEY STRENGTHS: A well developed and tested Project Planning, Monitoring and Review system based on Log frame with emphasis on quantity, quality and time in practice. A high percentage of community contribution in all project activities ensuring the sustainability of the development interventions. 11 | P a g e

Transparent and flexible system of working based on a demand led environment. GVT is being connected closely with a team of experienced and highly skilled International and National Consultants, as well as Research based and Academic Institutes. Strong back ups from the Corporate parent bodies like KRIBHCO, Government of India, and International Funding Agencies. Long and consistent experience of working with the rural communities with bottom up approaches emphasizing on gender and poverty. GVT has developed Innovations in the areas of FAMPAR (Farmer Managed Participatory Research), PTG (Participatory Technology Generation) PVS (Participatory Varietal Selection) MLSP (Migrant Labour Support Programmes) Challenge Fund (Small Grant Programme with GOs & NGOs) Development of improvised agronomic equipments for drudgery reduction. GVT over the years has developed fast tracking means of poverty reduction and field strategies such as dissemination (Prasar), empowerment and capacity building processes, village institutions and hand-holding mechanisms, withdrawal strategy, and post- project management

.

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5

BACKGROUND MY STUDY

As a part of our two year postgraduate Programme in Rural Management at SRM, I have to undergo a two month field level project termed Management Traineeship Segment-II (MTS-II) wherein I got the opportunity to work with the Gramin Vikas Trust (GVT) as NGO which is working as enhancing Sustainable Livelihood development and poverty reduction and empowering communities to manage resources in rural and tribal areas, initially under direct control of KRIBHCO. My project titled Agricultural inputs & produce market study for the tribal community of Jhabua & Meghnagar Block of Jhabua District. The reasons as to why I took this particular project will be attributed to my keen interest to know about the agriculture practices of tribal area, to know the role of community institution in the rural market management and to know the what marketing strategies they apply to market of their product in this region. Government of India along with the State Government, in making the economic growth processes more inclusive by reaching out to millions of poor households in the rural tribal area, through the implementation of special and unique programmes and projects for sustainable development, rural employment generation, agri-business, natural resources regeneration and management, rural infrastructure, minor irrigation, soil fertility, undulated topography etc through a gender responsive approach. Indias commendable job in promoting self-help groups of man & women and empowering them through member- based organization, like Producer Company and enterprise-based activities together with strengthening of the decentralized governance system makes the Indian experience a model worth emulating.

5.1 ObjectiveThe Objectives of the study are: To acquaint ourselves with present agricultural scenario viz. agricultural inputs, agricultural services used at target villages and average expenditure of the farmer on the same. To estimate the demand for agricultural inputs and other related services in the target villages. To assess the market condition of the agriculture inputs and services. To prepare a producer company model in the target villages. 13 | P a g e

5.2 ScopeThe scope of my study was limited to analyzing the agricultural input & market study in tribal area in the maghnager and Jhabua block of Jhabua Districts..As far as understanding of the production system is considered it is developed through various methods of agricultural practices. And study the role of community institutions in development of the rural market and to know the structure, functioning and training modules of seed society. The geographical area of Jhabua Districts will be very much different from the other pert of MP. The scope of my field visits in this project was confined to Meghnager and Jhabua Block of Jhabua Districts of MP.

5.3 LimitationsWhile conducting this study I face the some limitations which could be enumerated below The total coverage areas of the project area will very vast and it will not possible to covered total area. Visiting the area were completely unfamiliar for me, my visit was confined. The time period was not sufficient enough for studying the different dimensions and details which could be more beneficial.. Poor and delayed transportation facility also delayed the data collection. The major limitations were faced during my field visit, as the facts of ground reality of agri-input concept not properly understand by the farmer.

More specifically, this study deals with understanding the rural marketing mechanism in the tribal area.

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6

METHODOLOGY

I carried out a field investigation regarding the involvement of seed society in the seed produce business and its associated links in supply chain networks. The data collected was both qualitative and quantitative in nature. The data was collected from farmers through direct interviews from the study area. The study consisted of field visits which provide me the practical knowledge of the field. For preparing the summary of the plans a basic framework was devised for evaluate all the units on common parameters.

PhasesPhase 1 Phase 2

(Backgroun d Study)

(Field Work)Questionnaire Development Data Collection

Discussion With RPM Jabua

Sample Design

Data Analysis

Report Writing

Phase 1: The phase 1 of the project consisted of the background study on agricultural inputs used in Madhya Pradesh, the demographic features and agricultural pattern .It include detailed discussion with the staff of GVT, based on the discussion and background study the

questionnaires were developed.

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Phase 2: The phase 2 of the project consisted of the field work for the collection of data from the respondents. Various statistical tools were applied to analyze the data. The final report was prepared on the analyzed data.

6.1 Designated Project Area:The area of this study is limited to five villages of Jhabua and Meghnaer Block and the markets of both these block . The respondents for the questionnaire based survey were all in Garwada, Manpura, guindipara, Khari and Jhaira.

6.2 Sample Design and Sampling Method:In a stratified sample the sampling frame is divided into three different criteria. These are Marginal land holding farmer(less than 5 bigha) Small land holding farmer (5 to 15 bigha), and large land holding farmer(More than 15 bigha). Then the respondents are randomly selected based on their availability and willingness to participate in the survey. The Farmers Households of the 5 villages of Jahbua and Magenager Block were the universe for the study with one farmer as unit of the study.

6.3 Survey Design:In order to conduct a comprehensive and meaningful study the basic requirement is of accurate and reliable data. In my study I have collected both primary and secondary data in order to meet the true purpose of my study. For primary data collection one set of questionnaires were designed in order to get information from the different categories of the farmer. Questionnaire was designed for the farmers who uses any kind of agricultural inputs and services like fertilizers both organic and inorganic, tractors, cropping pattern, different type of variety of seed uses, storage facility, thrashers etc., the second collected the information from the retailers to analyze the market .The questionnaire was framed with notable demographic and psychological variable. A psychological instrument of their interest in agricultural inputs attributes and opinion statements were used to understand the respondents interest and opinion regarding further improvement in sector of agricultural inputs.

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6.4 Data CollectionSince the research involved analysis on both the product and the process, the data was collected for both.

6.5 Product data collectionThe data on product was collected from potential customers. The data was collected through both questionnaire and discussion based methodology. The data here was collected to know about the preference and usage of farmers/consumer towards agri-input products and their perceived demand.

6.6 Process data collectionThis data was mainly collected on what the ongoing process is and how it can be improved. This data was firstly collected from the local markets, how agri-inputs are availed from district level distributor and how do they sell it to farmers, what is the potential demand and what is the seasonality.

6.7 Data AnalysisThe data collected was processed or analyzed using various statistical tools after tabular and graphical summarization of the raw data. After the data analysis the final conclusion were drawn and these conclusion formed the basis for developing the marketing strategy.

6.8 Rationale of the study:Though the primary contribution of the which includes Madhya pradesh - Sectoral contribution to GDP sector,

agriculture, to the total Net State Domestic Product is gradually

coming down, agriculture is still the mainstay of the state economy, as about 71 percent of the population is still dependent on the agriculture The work participation rate in state is 42.74, out of the total worker 42.79% are cultivator 28.69 are agriculture Source review of Madhya Pradesh Economy, CMIE, August 2004 17 | P a g eSource review of Madhya Pradesh Economy, CMIE, August 2004 24% 41% 35% Aricultural Industries Services

labourer, 4.01 are engaged in house hold industry and the rest are in other services. Agriculture in the state is still traditional and rain fed. There is high proportion of low value crops with low productivity, agriculture holdings are fragmented. Thus it clearly state that agriculture is the major livelihood activity in the region but still it contribute least in the GSDP and NSDP of the Madhya Pradesh. The jhabua district my area of study is also representing the same picture. The major constraints in the low agriculture productivity in the region are as follows Fragmented and small land holdings. Rain fed agriculture. Traditional agricultural practices (lesser utilization of fertilizers, pesticides, herbicides, traditional agricultural tools and techniques). Limited availability of agriculture input and services. Other challenge lays in the heterogeneity of demand and spread of the rural villages which results in poor connectivity with agriculture market. Low soil depth. Soil fertility. Undulated topography. Thus there is need of understanding the demand of agricultural inputs and related services of the people in the region and based upon this develop a producer company model to fulfil their needs at their own villages that too at fair prices. That can help them to increase the productivity in near future.

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ANALYSIS AND FINDING

7.1 House typeJhabua & Meghnager block of jhabua district more then 80% population are tribals. They dont prefer to stay in joint families. Their way of leading life is far different from the other communities. They live on their own plots of land. As my survey out of 150 sample size 67% houses is thatched, its show that economic condition is very poor. But although life is hard in these remote villages, they are by no means of unhappy. Pleaser is taken in simple thing and problem is shared. 17% houses are concrete and 16% houses are mixed.67% 16% 17%

House typeconcerate Thatched Mixed

7.2 Source of livelihood

Primary occupationservice business 1% 4%

secondary occupationother 9% agricultu ral 5% business live 2% stock 1%

Agricultu re 95%wage labour 83%

Primary occupation on this are mainly agricultural. About 95% of people there primary occupation are agricultural. Secondary occupation in this area mainly is wage labour. 19 | P a g e

7.3 Seed varietyAccording to farmer responded 39% farmer are use of certified seed. Because, reasonable, high productivity, resistance to adverse climatic conditions and suitability for agriculture for the machines stand out as reasons behind the preferences of improved varieties thats why most farmers use breeder &foundation seed. The use of certified seeds itFoundat ion 37%

seed variety

Breader seed 12% T.L 19%

affects productivity and therefore it is the easiest factor to be changed in the process of culture. It is also to help stop the

Certifie d 32%

spread of the disease and different types of viruses. 33% of farmers use seeds TL because it is readily available on the market.

7.4 Maize seedJVM-421 is most preferred by farmers very in five villages. JVM-421 genotype is good,which entered

into competition rain fed return adapted41%

with reactive and conditions is potential of to

hybrid under have

Maize varietyJVM-421 HYV

a higher

30%, and

intercropping and loved by the farmer. JVM421 with an average maturity (80-100 d), lodging tolerance, ears completely covered by balls, and flint grain white fat

59%

with good food quality and taste, 100-seed weight 24 g; high in protein by 14%. Fairly tolerant to adverse conditions and low fertility meet fertilizer suitable for cultivation in the rainy seasons and post-rainy. KVK and GVT have also promoted the JVM 421 in the tribal area of Jhabua district and JVM 421 is only available for this region.

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7.5 Wheat seedThe farmer in this region mainly prefar HI1418 variety of wheat seed. Due to the use of seeds are more HI1418, it was recorded maximum grain yield and high dry matter, statistically similar to GW173. HI-1418 efficiency of water compared to varieties. The efficiency water This use is low other of

Wheat varietywh147 17% HI-1418 45% lok-1 28%

use is 13.08k/ha.mm. region is rain-fed area mostly

so farmers are preferred HI-1418 seed varieties.

sujata 10%

7.6 Soyabean seedI used to grow traditional (JS 335) variety of soyabean, which Yielded about 5 quintals per acre. With the improved variety (JS 9305), the yields have gone up to about 8 quintals / acre. Crop loss has also been reduced and the new variety matures 15 days earlier, giving me sufficient time for Rabi sowing, reveals a beaming punjiya wasma.js335 32% Js9305 64% JS-9560 4%

Soya bean seed variety

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8

MARKET ANALYSIS

The Key market segment for agriculture inputs and related services are the farmer of the 5 study villages which include farmers from meghnager & jhabua block of jhabua district. Most of the villages are remotely located and approximately 10-12 Km away from the nearest market/weekly Haats. Major Market Centers for the study villages are meghnager, Thanla & Jhabua.

8.1 Seed purchaseIn this region of the respondent 56% are buying seeds there is the local market. GVT & KVK also play vital role in this region. According to the defendant 34% are collected for the same.34% 56% 9%

Purches seed from diffrent marketLocal Market Co-operative Dealear KVK&GVT

1%

8.2 Selling the produceMostly farmers prefer local market & weekly haat to sale their produce as they have low transaction to cost in Agricultural produce sold at different marketsWhole sale market, 39, 11% weakly Haat, 150, 43% local market, 150, 44%

comparison

Wholesale

market/mandi & cooperative.

co-operative, 6, 2%

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8.3 Production Three different crop last three year:-

production140000 120000 100000 80000 60000 40000 20000 0 2010-112008-09 2009-10 2008-09 2009-10 2010-11 2008-09 2009-10 2010-11

production

Wheat

Maize

Gram

Wheat production is mostly depended on availability of sufficient water. Due to good rainfall last year, there has been a 12% increase in production in comparison to 2009-10. In comparison to the maize production of 2009-10, the maize yield by 12% due to the heavy rain fall.

8.4 Comparison of three different crops

250000 200000 150000 100000 50000 0

sold own use

2008-09

2009-10

2008-09

2009-10

2010-11

2009-10

2010-11

2008-09

Wheat

Maize

Gram

Maize followed by wheat are the primary crop of this area. From the last 3 yrs data, it was seen that more than 60% of the maize production, 47% of the wheat produced & 33% of Gram was kept for household consumption while the rest were sold at different markets. 23 | P a g e

2010-11

production

8.5 Mode of transport:-

Mode of transportTampu 18% Bullock cart 14%

Tracktor 68%

Tractor is the most commonly used transport for taking the produce to the market. It was found 68% of the farmers preferred tractor, while 18% used Tempo for the same. Rest 14% used bullock cart to take the produce to the market as it was comparatively lesser cost than the others.

Area, Production and Productivity of major crops cultivated in the target area Sl.No. 1 2 3 4 Crop Maize Wheat Soyabean Gram Area(acc) 234.75 136.58 242.9 66.48 Production(q) 1074 770 1229 129.4

Per Accare Maize production is-4.5q, Wheat production-5.63q, Soyabean Production-5.05q and 1.94q.

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9

DEMAND ESTIMATION OF AGRICULTURE INPUTS IN THE TARGET VILLAGE

As the agriculture in the region is mainly rain fed, land fertility is low and most of the farmers still rely on the traditional agricultural practices the demand of the agriculture input is not satisfactory and less then the expectation of the organization. Although the demand of the agriculture input is low still the study villages show the potential for the agriculture inputs and related services. The study show that among all the agriculture input Urea, DAP and pesticide are mainly used by the farmers in the villages. Total demand of the Urea in the sample village is approximately 128.9 Quintals and that of DAP is about 195.87 Quintals. The Framers buy Urea and DAP mostly from the local market. The major constrains for the use of the Urea and DAP by the farmers are Low fertility and poor soil quality of the Land. Insufficient irrigation facilities due geographical location, poor infrastructure and unavailability of irrigation inputs Low purchasing power of the farmers Other than Urea, DAP the demand of other agriculture inputs are nominal. Pesticides and Vermicompost are used by only 4 percent of the farmer each inputs only that too at some villages only. Vermicompost is used in the villages where GVT is at operation and Vermicompost pits are built 70% off the cost. The use of other fertilizers like MOP, SSP, and Bio-fertilizers is negligible in this region as only one farmer of the sample use MOP and one farmer Bio fertilizers. Recommendation dose in the tar get villages. Crop Soyabean Maize Gram Wheat Total Urea(q) 17.64 50.97 8.7 42.25 119.56 DAP(q) 67.4 60.3 28.55 48.95 3031.65 Seed(q) 76.55 16.53 14.66 65.9 173.64

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10 MARKET LINKAGEThe status of agricultural market development in the different tribal region of Jhabua does not present a very good. Soybean produce in the Jhabua division will be developed by using the cluster approach and contract farming. These plants should be grown organically. People should be trained and get employment in sorting and packing activities. Besides setting up market infrastructure, non-profit agencies are also needed for an intermediary role between the backward and forward links. A brand name needs to be created for each product before it is sold; this will help producers get good returns. Some examples are soya milk which is a very nutritious and high-value crop; there are many other such crops--amaranth, jhangara (millet) and ragithat are in huge demand by the health-conscious urban population. Correct estimates of market requirements along with its strategic implementation can link producers to these consumers and create better incomes. The government is creating small-scale local processing units and cooperatives of communities, thereby reducing the role of middlemen. The farm level demonstration interventions, a creation of parallel marketing options will be analyzed at project level. These market linkages will be made for following different types of farm productions of the project area: Local produce which are existing such as soyabean, Maize, Gram, wheat High value cash crops promoted during the like cotton. Value addition in different products such as Onion, Garlic, Ginger, and other various produces.

Marketing will be based on the basis of profits that the availability of the market by product. At the same time the project team will focus on long-term buyers and institutional buyers. For a sustainable intervention project, emphasis will be on the sale of small quantities in local markets, paying higher prices with a low cost of operation. The local and regional markets have limited capacity to absorb large amounts of perishable products. Therefore, the state of capital markets and large will be contacted for bulk sales of these products. With a common concern, groups and associations will be encouraged to develop synergies with other development programs, departments and local systems of the extension service delivery. GVT will help farmers' associations in the development of links with research institutions and technology, relevant government departments, development agencies, business transformation, business centers and 26 | P a g e

institutions involved in similar interventions and market sources. District level and local (cluster) points and dissemination meetings / seminars will be organized to achieve the objective. Periodic coordination meetings with the online agencies, research institutes, sources of business and association representatives will be organized to maximize the synergy and technology transfer between the different actors of development. More attention will be given to develop and strengthen business ties with merchants, Mandi / markets and community institutions home business. The focus will be on sharing business experiences, sale and purchase of local products of mutual interest.

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10.1 Rural Marketing PatternFacilitator (FIG) helps the farmer in producing the different vegetable

Create the local marketing link b/w agricultural produce

Proper communication channel b/w farmer & market.

Create the big marketing linkage for surplus product (Retail marketing) at the state level Promote the networking of regulate marketing

Role of the farmer Association in farm produce

Proper information of supply through the Managers of Improve tech. & post harvest

Direct marketing of the farm produce by the farmer itself

Promotion of different varieties of farmer farm in vegetable production reproduces

Facilitate the transportation, supply chain processes

Storing collection center

Facilitator helps the farmer in retail shopping of soyabean in the local market through retail out

Sell through Farmer association

Grading packing, sorting & distribution

Supply to big retail such as Ruchi soya,ITC soya etc.

Transportation of various farm produce from farmer field

Consume r

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10.2 Supply Chain and Rural Marketing Network of Tribal DivisionSupply chain management (SCM) is the term used to describe the management of the flow of materials, information, and funds across the entire supply chain, from suppliers to component producers to final assemblers to distribution (warehouses and retailers), and ultimately to the consumer. In fact, it often includes after-sales service and returns or recycling. It is a schematic of a supply chain. SCM typically involves coordination of information and materials among multiple forms. Supply chain management has generated much interest in recent years for a number of reasons. Managers now realize that actions taken by one member of the chain can influence the profitability of all others in the chain. Firms are increasingly thinking in terms of competing as part of a supply chain against other supply chains, rather than as a single firm against other individual firms. Also, as firms successfully streamline their own operations, the next opportunity for improvement is through better coordination with their suppliers and customers. Present rural system having activities include analysis of current agri-business activities, existing market chain, marketing and infrastructure availability and future needs, farm input requirement, value addition potential and requirements, and local market assessment and demand-supply scenario. Agri-business needs for Farmer Associations are being assessed and orientation training for the informal Association has been given to the producer company for the association formation.

10.3 Present Supply Chain of Rural MarketIt has been observed that the supply and demand equilibrium for the soyabean &wheat produce in the state is unequal. The production of traditional other cash crops like cotton are more produce than the soyabean , which pulls up the price of soyabean market. The market of these cereals crops is also hike due to inadequate storage and transport facilities available in the state. Such bottlenecks are also attributed to the distress sales of soyabean & wheat produce in the post harvest season. The farmers find it most profitable to arrange transporting their soyebean produce across the states in order to fetch better price. In all, the trade across the state is more channelized than the domestic/local markets. There are few point which being important in supply of various commodity of soyabean products

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The categories define are:- Location Transportation and logistics Inventory and forecasting Marketing and channel restructuring Sourcing and supplier management Information and electronic mediated environments Product design and new product introduction Service and after sales support Reverse logistics and green issues Outsourcing and strategic alliances

10.4 Some existing models of movement of farm produce from farm to marketTraditionally the farmers use to carry their crops to village market and weakly haat to sell them. The farmer sells their produces (food grains, pulses, soyabean, cotton etc.) in these village market or weakly haat and gets money. The traditional flow of produce (agricultural and

horticultural crops) follows the pattern of farmer to market and from their either to wholesaler or consumer.

Farmer

Vill.mark./ weakly haat

wholesaler

consumers

However, the flow of the produces in the current years follows the different pattern with involvement of the lots of intermediary, commission agents etc.

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Present Marketing Scenario

Farmers

Regulated marketed (principal)/ collection center

Rural Primary Market

Direct market (Saturday market, spot market)

Wholesale, Processor, traders

Retail vendor

Consumer

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Model of Supply Chain of Produce Required Production at farm

Collection center

Sorting /grading/Packaging

Market information & communication center

Local market

Regulated wholesale market

District mandies

Sunday market

Whole seller

National mandies

Local vendor

Distributor

Retailer

Consumer

These new supply chains not only consider the farmer as a part of the chain but also try to provide the real worth of their produce. These organized supply chain as more efficient in terms 32 | P a g e

of serving the nee of both farmers and consumers. These not only provide the real worth of the produce to the farmer, but also increase the efficiency of the system. It serves the customer with quality produce at the affordable price by reducing the margins consumed by the intermediary. These new supply chain and movement of produce from farm to fork has provided the farmers the new motivation to serve the country in more efficient and effective manner. In addition, the new policies of trade have provided the farmer with linkage opportunity to global world through efficient market mechanisms.

10.5 Value addition and marketing supportValue addition and marketing support these two project component are aimed towards the achieving income generation of the rural people through the agri-business. Focus will be laid on increasing environmentally sustainable income generating activities of targeted clientele. Increased income opportunities at individual farmers level will create a greater need for community members to work together to sell their commodities and to procure inputs including training and improved technologies. Thus the problem of isolation, staggered and small production can be solved through collective marketing. GVT will be encouraged to procure produce from its members and supply to the market sources offering better price via PC.

Assessment of marketing needs for Producer Company will be identified through regular interactive meetings, focus group discussions and need assessment workshops/meetings. The marketing and procurement committees with representatives of the farmer would be made responsible to create links with suppliers, update list of suppliers and buyers, and collect information on types of products available and costs. The marketing and procurement committee will negotiate price and share this information with members. GVT will support Producer Company in production and marketing planning and business operations. Need assessment will include commodities (marketable surplus), current method of selling, terms of payment, price variation with the market chain, inventory of traders, means and costs of transport, marketing structure availability, future requirements and seasonality. The results will be used for business planning. Similarly farm input and infrastructure needs will be identified and shared with group/ association leaders. The information will also help in determining market choice, cost of procurement and transportation etc. 33 | P a g e

To build capacity of potential members in procurement and marketing, specific trainings will be organized for target clientele, which will be followed by refresher trainings. Capacity building of marketing and procurement committees would be done through exposure visits to similar business organizations and market places/ mandis/ agri-business companies. GVT will also help to develop a market information system (MIS) for the groups and provide training to the committee/ leadership to manage and use this MIS.

Value addition and quality control programs will be encouraged in the group and association level. Trainings, exposures to successful interventions and demonstrations will be provided to the target group to build capacity on technical and business aspects. Local produce other than promoted by the project will be used for possible value addition. Options for value addition will be analyzed for economic viability and results will be shared with the focus groups. Based on information gathered, GVT will collaborate with SFAC (small farmers Agribusiness

consortium ) management for further implementation. The value addition will be based on the market demand. This will include sorting/grading, processing or semi-processing and packaging. Promotion and advertising will be encouraged to capture niche markets. Results of needs assessment will also be helpful to decide choice of value addition.

10.6 Constraints in Rural Market Fragmented and scattered land holding Sub-standard farming system Natural catastrophe Middleman hold Lack of market information Scattered production do not allows economies of scale Remoteness and undulating terrain Issue of timely availability of farm inputs Damage by wild animals 34 | P a g e

Transportation Handling & Value added services

10.7 Reasons for Improvement of Rural market of the tribal region Socio-economic changes (lifestyle, habits and tastes, economic status) Literacy level (25% before independence more than 44.45% in 2011) Infrastructure facilities (roads & information system) Increase in income Increase in expectations Rejuvenation of old orchards and establishment of fruits processing units. Setting up of post harvest infrastructure and distribution outlets. Establishment of ploy house and green house for production. Contract farming to improve supply chain. Processing of medicinal and aromatic plants. Preservation and storage facilities and quality control laboratories. Market identification and infrastructure auction center & sales outlets. Establishment of poly houses, micro irrigation projects, floriculture park and oil extraction processing units. Production of organic spices. Establishment of small & medium size Agro and Food Parks. Organic tea production and establishment of processing and packaging units

10.8 Future Plans Increased the number of farmer. Provide trainings/demonstrations on capacity building & strengthening the FG Trainings on quality control and grading and packaging of various consumers product Trainings on post harvest management practices, storage and transport Exposure visits of farmers to other agribusiness initiatives Trainings each in group management and leadership development Trainings each in record keeping and conflict resolution Set up at least collection centers for collection of produce from farmers 35 | P a g e

Be appropriate value addition programme such as quality control, grading and packaging Promote agribusiness associated income generation activities Study and implement production scheduling according to market supply/window. Strengthening the farmer association and provide the basic functioning infrastructure. Pre-formation meetings for new associations Trainings for orientation of Farmer group. Trainings / Workshops on market and infrastructure for the new association and previously formed Farmer group. Formation of Agric extension service centers Association policies and byelaws, book keeping and record maintenance of Farmer group. should be properly maintain Training on marketing and Procurement of various perishable product should be provided. Trainings on business plan development Provide the training of use of MIS to the member of FA.

11 UNDERSTANDING PRODUCER COMPANY 11.1 PRIMARY PRODUCEProduce of farmers from agriculture and allied activities or produce of persons engaged in handloom, handicraft and other cottage industries, including any by-product and product resulting from ancillary activities thereof. Also, any activity intended to increase the production or quality of aforementioned products or activities.

11.2 PRODUCERAny person engaged in any activity connected with or relatable to any primary produce.

11.3 PRODUCER INSTITUTIONProducer Company or Institution having only producer(s) or Producer Company(ies) as its members (may or may not be incorporated) having specified objects and agreeing to make use of the services of the Producer Company(ies)3.

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11.4 PRODUCER COMPANYA body corporate registered under the Companies Act, 1956; and having specified objects and activities (referbox). Ownership and membership of such companies is held only by Primary Producers or Producer Institution, and member equity shall not be publicly traded. However it may be transferred, only with the approval of the board of directors of the Producer Company.

11.5 WHO CAN FORM PRODUCER COMPANY?Any one of the following can get a producer company incorporated under the Act: Any ten or more persons engaged in any activity connected with primary produce, or Any two or more producer institutions or companies, or A combination of ten or more individuals and producer institutions.

11.6 CHARACTERISTICS OF PRODUCER COMPANY The registered producer company should be treated as a private limited company with the significant difference that a minimum of two people cannot get them registered. These companies are with limited liabilities and limited only by share capital. The liability of the members is limited to the unpaid amount of the shares held by them. As per the new circular, minimum paid-up authorized capital is of Rs. 5 lakh. The maximum number of members can exceed 50. It shall never become a public (or deemed public) limited company. Members' equity cannot be publicly traded but be only transferred. As such, "producer companies would not be vulnerable to takeover by other companies or by Multi-national Companies (MNCs).''

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12 OBJECTS AND ACTIVITIES OF PRODUCER COMPANY(As per the Companies (Amendment) Act, 2002, Section No. 581B) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the members or import of goods or services for their benefit, processing the produce of members, manufacture, sale or supply of machinery, consumables, etc to members, providing education and other welfare activities for members, generation, transmission and distribution and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce, insurance of produce, and other allied or ancillary activities including financing thereof.

13 STAGES

OF

PROJECT

DEVELOPMENT

FOR

PRODUCER

COMPANY 13.1 Village study and preliminary identification The village study/profile may have been conducted by the team in the prescribed format. The findings of the profiling may indicate one or more livelihood activities that are predominant in the area and involve a sizeable number of the poor/women, in which there is a potential for increasing returns through aggregation. Aggregation can be done for supply of inputs (seeds, fertilizers, cattle feed, raw materials, credit etc.), management of resources (water, common land etc.), processing/ value addition, marketing of output. Identify the activity/s and what can be done through aggregation. Prepare a brief note on the feasibility analysis

13.2 Feasibility studyConduct a detailed feasibility study for the particular and the proposed activity. This would include the following. Prepare formats/questionnaires/interview schedules as required for each of these. Community Background Study in which the farmer group will be established. Identify, : The living conditions of different socio-economic groups in the community The needs of the community, especially of the poor

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The way the community solves its problems (e.g does it use traditional methods and/ or involvement or assistance of outside organizations?) Social patterns in the community including who talks to whom and why Informal and formal organization of men and women ( both mixed and separate) Links between the community and supply of services and who controls them Preliminary assessment of availability of the commodity/service around which producers will have to be organized volume, value, market access Centrality analysis: Whether the commodity/activity is central/significant in the minds of the community. Whether it contributes (or has potential to contribute) significantly to their livelihood portfolio? Data collection: Collect relevant secondary and primary data on the commodity in question and the related factors affecting its procurement /inputs/ production/ storage/ marketing. Cost-benefit and break-even analysis for the proposed activity/activities of the organization.

13.3 Report and action plan Prepare a consolidated report, including proposed action plan.

13.4 Organizing Identification of opinion leaders: Identify opinion leaders from among the producers and form a representative group of proactive people. Orientation of leaders: Share the findings of the feasibility study and discuss the need for formation of an organization to utilize the potential of the particular livelihood activity. Discussion with village community - Involve the leaders group to organize a series of meetings of the village community (Gram Sabhas) to discuss the following: Necessity for collective action Values in collective action Findings of feasibility study Proposed activities, product- value addition, linkages etc Proposed action plan This communication with the people needs to be repetitive and cannot be done in one meeting.

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Training and exposure of producers: Organize trainings for producers on concepts and roles of the other producer company and their own roles as members. If possible, also organize exposure visits to similar community organizations in the nearby area.

13.5 FormalizingVisioning: Facilitate formulation of vision and mission of the collective with the promoters. Develop with them the values on which organization should be based. Objectives and plans - Identify specific and realistic goals/objectives to inform the development of work plans and budgets. Some basic questions addressed through focus group discussions can help to identify objectives Design an appropriate organization - objectives, activities, structure, rules, legal form and basic operating system (work flow) - in consultation with the leaders. Provide them complete information on each aspect and facilitate decision-making. Identify rules including obligations of group members to ensure the smooth running of the group and avoid conflict within the group Identify responsibility for leadership, coordination of logistics, record keeping, networking, team building, communication and other roles. Facilitate the election of the Governing Board/ Management Committee and office bearers, as required depending on the legal form of the organization. Facilitate framing of Vision, Mission, and Goals and draft the byelaws and other applicable resolutions with the board. Also facilitate the formation of subcommittees, as required, and clarify their roles and responsibilities. Opening of bank account: Facilitate opening of a bank account, with signatories as per the byelaws of the organization. Collect share capital and other necessary fees: Collect the share capital, membership fees as applicable from members and deposit in the bank account. Registration: Complete the documentation required for registration and follow-up the process of registration. The Board/office bearers should take responsibility of these activities; we should have a facilitation role. Obtain the following from the Registrar office

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13.6 Registration certificatePlease note that registration is not an essential part of formalizing at this stage. The organization may initiate its operations and register in the appropriate legal form later, when the membership and operations are sizeable. Informed member choice is paramount. If the organization decides to function as an informal group, registration may not be required at all. Systems development Operating system: Facilitate detailing of the Operating system, including the accounting system and document in the form of a manual in the vernacular. The Operating system of such organizations would include different elements, indications. Information system: A manual/semi automated MIS will have to be developed for the organization, as customized software may not be available for different activities. HR system: In case the organization has hired significant number of staff, the HR system will have to be developed as well. Otherwise the system for roles and responsibilities, authority, compensation/remuneration etc. of the Executive board/operational subcommittee members who run the day-to-day operations should be developed. Planning and review: Formulate a process and template for Business planning. Also develop a system of reviewing the performance against the plan. Document the above into a manual. Prepare the manual in vernacular and circulate to Management Committee/board.

13.7 Business planning Facilitate development of a broad Business plan. Obtain feedback on the plan

13.8 Linkages with other organizations Facilitate long term collaborations with institutions/individuals such as input suppliers, service providers like designers/veterinary doctors/research institutions as applicable, buyers, funders etc.

13.9 Monitoring and review Monitor the operations and governance of the institution closely through reports and visits. Review the performance jointly provide guidance for overcoming problems.

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14 KEY ACTIVITIES, TIMELINE, DELIVERABLE AND MEASURES OF VERIFICATIONTime line 1. month Key Activities Stage One : Pre-project Implementation (one month) (i) Baseline on volume, value & market access, centrality analysis, (ii) Identification of Product specific clusters (iii)Feasibility Analysis -break-even estimates (iii) Project Implementation Plan procurement, inputs, storage and marketing, Stage Two : Enhancing Capacity for Surplus Farm Production (i) Village meetings identify potential farmers, identify opinion leaders (ii) Identification of potential farmers for producer company(PC), LRP/BF/LF Identification (iii) Exposure Visit of Farmers/opinion leaders (iv) Forming Farmers Organisations (v) Identification of Training Needs of FOs (vi) Imparting training to farmers of PCs Stage Three : Implementation for Surplus Farm Production Plan (i)Hand holding support on Productivity Increase, IPM/ INM/ IPwm (ii)IdentifyingValue-proposition for setting PC (logic of collectivization) Deliverables Detailed Project Report (Checklist Provided) (i) List of Product specific clusters identified (ii) Database of farmers prepared, Means of verification (i) Submitted DPR (ii) Meeting minutes and photographs of meetings

8. month

Farmers Organised in PC, LRP identified and Training completed (i)Farmer Origination and FG formed (ii)Trained LRP/BF ready for deployment (iii)Extension Model including Monitoring Systems in Place

(i) List of FO (ii) List of LRP/BF/LF trained and ready for deployment (iii) Training curriculum, training report & participant list.

16. Month

(i)Farmers Participate in Improved vegetable/pulse based farming system (ii)Disgaggregation/Aggregati on Systems put in place (iii)Business Case of FPO/Collective prepared (checklist provided)

(i)List of farmers adopting package of practices (ii)No. of farmers supported, areas of demonstration (iii) Business Case of PC/ex-ante

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24. month

Stage Four : Pre-formation Stage of FPO/Collective and Stabilize New Surplus Production System & (i)Farmers in 2nd Crop Cycle (ii)Market Linkages for Produce (iii) Systems of single commodity market : portfolio-cropped household farming system Interface detailed (iii)Exposure Visit, consultation for PC scoping, vision & structure Stage Five : Formation of FPO/Collective Aggregation for market access (i) Finalising list of PC Constitutions of Internal Systems (ii)Membership & Governance and framing of Bye-laws (iii)CB need assessment & inputs (iv) Strengthening PC providing services for system development (Operating System, MIS, HR), (v)Business Planning Exercise (vi)Interface with buyers/marketers

(i) Demonstration of Farmer Patronage to Project Concept (70% repeat farmers) (ii)Collectivization arrangements (PC) Instituted

(i) Repeat Farmer List (ii) Minutes of FG and associative tier meetings, photographs.

36 month

(i) Institutional Arrangements for Market Access Placed (ii) PC/Collective/Aggregation Structure Placed

48. month

Stage Six : Business Plan (i) Statutory Phase-out Systems for post-project Clearance obtained (ii) sustainability Operating System grounded (iii)Agreement for long-term support with LPO

(i) Minutes of meeting FG subscription to PC/collective (ii) Registration & Compliances (iii) Business Plan with key business processes (iv) List of buyers consulted, meeting report & outcome (MoU on price, volume and grading) (v) List of needs, training design, training reports. (i) Business Plan including financing plan (ii) Regulatory approvals for PC activities

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14.1 Project OutcomesEconomic Impact Per hectare production improved by 10% by end of project period Increase in net return to farmer (Inflation +10%) Increase in sub-sector development for agriculture Reduce gap in availability of inputs by 20-25% Increased food & nutritional security Market linkage for the backward and forward integration will be ensured with competitive market Additional employment generated due to increased intensity of farming Benchmark minimum wage rate for labor Reduction in Migration Social Impact Social capital built in the form of PC Improve gender relation & decision making of women farmers in FO & FPOs given board member positions Institutional viability Increased bargaining power for input purchase and output marketing Reduce social conflicts and risks and enhance welfare at household level Improved food and nutritional value Leadership role of producers in technology absorption Positive health and nutrition impact on consumers Environment- carbon credit

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Conclusion Agricultural practices are the major component of the livelihood for the people of Jhabua district. It constitutes the backbone of rural livelihood security system of this area people through which local employment and income generation, and to enhance the quality of life of people living in villages. If given support by the government and non-government organization in terms of better supply chain management system it can certainly provide the producer companey concept has change the mind set of rural framers.

Community institution has developed the cultural based with economy a substantial growth. Preliminary market for business for agricultural products has been developing. The tribal region districts are less developed in terms of infrastructure, i.e., electricity, roads and irrigation. The inter-district inequality in infrastructure leads to increasing disparity in terms of income and livelihood between the hills and the plains. The rural market of this area has a huge demand base and offers great opportunities to marketers. Rural markets of this region face the critical issues of Distribution, Understanding the rural consumer, Communication and Poor infrastructure. The marketer has to strengthen the distribution, communication and information system. The rural consumer expects value for money and owing to has unsteady and measly status of weekly income; increasing the household income and improving distribution are the viable strategies that have to be adapted to tap the immense potential of the market. Facilitate the rural people and the organizations to influence institutions (including rules, laws, regulations) and policies of relevance to rural poverty reduction requires strengthening the capacity of the rural people and their organizations. Concretely this implies institutional transformation, developing and strengthening the organizations of the farmer to confront the issues they define as critical increasing access to knowledge so that poor people can grasp opportunities and overcome obstacles; expanding the influence that the poor exert over public policy and institutions, including local and national governments; and enhancing their bargaining power in the marketplace.

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The producer company required helps at different stages of maturity in their functioning with the support from GVT. Recognizing the importance of putting these institutions on the path to sustainability, GVT is repositioning itself as a service provider to the producer company. It will take time it is not be a simple process. Producer company concept & formation of sustainable supply chain for their product with the help of cooperative still new for the tribal region. This producer will primarily focus on marketing agricultural products throughout local area & District Mandi at a reasonable price. Producer company as a part of any economy has untapped potential; marketers have realized the opportunity recently. Improvement in infrastructure and reach, promise a bright future for those intending to go rural. Rural consumers are keen on branded goods nowadays, so the market size for products and services seems to have flourished.

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Annexure-1 Project Objective: 1 Mobilising farmers in groups and build their associations (FPOs) to plan and implement product specific cluster/ commercial crop cycles Outputs Outcomes 3000-4000 farmers from 8-10 villages in close geographic custer organized into FGs prepared for intensive vegetable/pulse based livelihoods interventions. FGs organized into FPOs/Informal associations supporting productivity, efficient access to input and output markets, linkages with agriculture programs. 75% meet or exceed quality benchmarks on group functioning Farmers in 80% FGs confident and keen to positively change their current condition and have developed plans to synergise planning and market access on the cluster-identified cproducts

Activities Organize farmer into informal group(FG) Train members and leaders in matters relating to group functioning, group norms and systems. Form associations/FPOs of FGs. Train members and leaders of FPOs to nurture FGs and mediate vis--vis external resource institutions such as government, financial institutions and markets.

Project Objective: 2 Activities Conduct exposure for selected men and women from project villages to villages/ farms practicing modern farming methods, such as different crop mixes, modern techniques and intensive farming. Discuss alternate farming systems with groups of farmers suitable to their specific situations and generate household farming plans/ portfolios. Identify training and extension needs and potential LRPs to function as community based extension

Strengthen farmer capacity through agricultural best practices for enhanced productivity Outputs Outcomes 60% of all families interested to take up improved crops have access to quality inputs. 40 % of participant land brought into intensive farming 80% families cultivate a diversified basket of locally suitable crops. LRP training modules being implemented in large number. Trained LRPs supporting implementation of the household and cluster level farm plans Participating families have assured supply of quality inputs and services, Network of input and services delivery mechanisms developed in the local area. Participating families feel confident to intensify their agriculture.

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agents. Train LRPs to provide extension support to farmers adopting new farming systems. Project Objective: 3 Ensuring access to and usage of quality inputs and services for intensive agriculture enhancing cluster competitiveness Activities Outputs Outcomes Helping families access working capital from SHG/MFI, banking sector and other sources. Link / develop supply channels for inputs and services: On-field handholding support by LRPs to ensure appropriate usage of quality inputs Demonstration of usage and effectiveness of relevant farm mechanisation practice 70 % of participating families using quality inputs PCs/Producer Aggregations promoted, families covered by these collectives Gross Crop Output per hectare increase by 100 % in rupee value terms Participating families have assured supply of quality inputs and services, Network of input and services delivery mechanisms developed in the local area. Participating families feel confident to intensify their agriculture.

Project Objective: 4

Facilitate access to fair & remunerative markets including linking producer groups to marketing opportunities by market aggregators Outputs Intensive, market oriented production clusters developed. Surplus produce marketed at remunerative prices. participant families engaged in coordinated market-oriented production Producers collectives aggregate and market Outcomes Sustainable and competitive linkages for marketing exist for their produce, families in production clusters have multiple options to sell farm produce, 48 | P a g e

Activities Developing production clusters for producing significant volume of marketable surplus Identifying and building aggregation / desegregation centers in production cluster wherever required Linking these clusters with market players (e.g. vegetable traders, commission agents, retailers, etc.)

Producer collectives taking output marketing Formation of PC

produce from members. Market aggregators/ retail chains buy produce from producer collectives

The prevailing rates in the cluster are fair vis--vis large markets in the region.

Annexure-2 Energising Farm Production Systems: Institutional Arrangements for Transition to Coordinated Surplus Frame:-

Farmer Producers Organization1000 Farmers Gross Intervened Area : 30-50 ha 25 Villages Productivity : 75 % of benchmark 50-70 Primary Group Price : 50 % of Retail 20-25 Kisan Sahyogi Incremental Income : Rs.15000 per farmer Board of Directors Farmer+Expert+Bank CEO Gram Kisan Mandal/Farmers Group 15-20 farmers in 1 villages serviced by a Kisan Sahyogi and accessing farm business services - inputs, equipment hire, output pooling & storage from a single node

FarmersKisan Sahyogi Village Based Extension Cadre/LRP assists in on-field agronomic practices & input-output transactions 30-40 farmers (2 FG) in 1-2 villages in 3-5 km. radius

Agriculture Specialist Supports 10-15 Sahyogi in field implementation. Expected to create a best fit adaptation of RSP (Recommended Scientific Practices) in field conditions. 1000 Farmers in 25 villages

Business Manager Chief Executive Officer of the Producer Company. Expand Farm- Business Efficiency Frontiers. Builds Linkage with Resource & Research Institutions & Market.

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