MTS-II Final Report

8/2/2019 MTS-II Final Report

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1 EXECUTIVE SUMMARYThis 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 agricultural cultivation information, undulated topography,

low soil depth, soil fertility, the absence of new technologies, information asymmetry between

traders and producers, lack of formal contracting among informal, and formal producers and

traders, lack of standardization and product quality, high costs of cultivation ,financial services

and 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 exiting

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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2 ACKNOWLEDGEMENTAt 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 Contents

9 Demand estimation of Agriculture inputs in the target village ........................................... 23

10 Market Linkage .............................................................................................................. 24

10.1 Rural Marketing Pattern .......................................................................................... 26

10.2 Supply Chain and Rural Marketing Network of Tribal Division ............................... 2710.3 Present Supply Chain of Rural Market ..................................................................... 27

10.4 Some existing models of movement of farm produce from farm to market- ............. 28

10.5 Value addition and marketing support................................................................ ...... 31

10.6 Constraints in Rural Market ..................................................................................... 32

10.7 Reasons for Improvement of Rural market of the tribal region ................................. 33

10.8 Future Plans............................................................................................................. 33

11 UNDERSTANDING PRODUCER COMPANY ............................................................ 34

11.1 PRIMARY PRODUCE ........................................................................................... 3411.2 PRODUCER ........................................................................................................... 34

11.3 PRODUCER INSTITUTION .................................................................................. 34

11.4 PRODUCER COMPANY ....................................................................................... 34

11.5 WHO CAN FORM PRODUCER COMPANY? ...................................................... 35

11.6 CHARACTERISTICS OF PRODUCER COMPANY ............................................. 35

12 Objects and Activities of Producer Company .................................................................. 35

13 Stages of Project Development for producer company .................................................... 36

13.1 Village study and preliminary identification ............................................................ 36

13.2 Feasibility study ................................ ...................................................................... 36

13.3 Report and action plan ............................................................................................. 37

13.4 Organizing............................................................................................................... 37

13.5 Formalizing ............................................................................................................. 37

13.6 Registration certificate ............................................................................................. 38

13.7 Business planning ................................ .................................................................... 39

13.8 Linkages with other organizations ........................................................................... 39

13.9 Monitoring and review ............................................................................................ 39

14 Key Activities, Timeline, Deliverable and Measures of Verification ............................... 39

14.1 Project Outcomes .................................................................................................... 41

15 Conclusion ..................................................................................................................... 42

16 Annexure- ...................................................................................................................... 44


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3 INTRODUCTIONThe 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 ecologicallythe 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 tones (6.6 percent). International fertilizer

trade occurs almost equally in developed and developing countries. Exports of nitrogen andpotash 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 agrowing population, and the need for crop diversification using compounds rather than urea.


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4 ABOUT THE ORGANIZATIONGramin 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 agency4.2 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

To offer research and consultancy services to government and NGOs and communitybased


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organizations in the field of participatory technology development, project managementand 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 GVTThey work with

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

.


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4.5 ORGANIZATIONAL STRUCTURE

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 thesustainability of the development interventions.

Board of Trustee

Chief Executive Officer

Zonal Program Manager

(EAST)

Zonal Program Manager (WEST)

DGM (HR)

Sr. Manager (M& E)

Manager (Accounts)

KVK, Godda

Crop

NLRI, Ratlam

Crop Consultant,

RPM(Jharkhan

d)

RPM

(Bihar)

RPM(Odisha

RPM(W. Bengal)

RPM(M.P)

RPM(Gujarat)

RPM(Rajasthan)

RPM(C.G)

PO (4)

SPO (4)

APO (8)

Jankar

SPO (4)

PO (4)

APO (8)

Jankar


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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 upapproaches emphasizing on gender and poverty.

GVT has developed Innovations in the areas of FAMPAR (Farmer ManagedParticipatory 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 fieldstrategies 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 STUDYAs a part of our two year postgraduate Programme in Rural Management at KSRM, 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 decentralizedgovernance 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 targetvillages.

To assess the market condition of the agriculture inputs and services. To prepare a producer company model in the target villages.


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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 tocovered 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 METHODOLOGYI 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.

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.

Phases

Phase 1

(Backgroun

d Study)

DiscussionWith RPM

Jabua

Sample

Design

QuestionnaireDevelopment

Phase 2

(FieldWork)

Data

Collection

Data

Analysis

Report

Writing


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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 theirinterest 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 contribution of the

primary sector, which includes

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

labourer, 4.01 are engaged in house

hold industry and the rest are in other

Source review of Madhya Pradesh Economy, CMIE,

Au ust 2004

35%

24%

41%

Madhya pradesh - Sectoral contributionto GDP

Aricultural

Industries

Services


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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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7 ANALYSIS AND FINDING7.1 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.

7.2 Source of livelihood

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.

17%

67%

16%

House type

concerate Thatched Mixed

Source: Questionnaire

Agricultu

re

95%

service

4%

business

1%

Primary occupation


agricultu

ral

5%

business

2%live

stock

1%

wage

labour

83%

other

9%

secondary occupation



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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 it

affects productivity and therefore it is the

easiest factor to be changed in the process

of culture. It is also to help stop the

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

in five villages. JVM-421 genotype is very

good,which entered into competition

with reactive and hybrid under rain fed

conditions is to have a higher return

potential of 30%, and adapted

intercropping and loved by the farmer. JVM-

421 with an average maturity (80-100 d),

lodging tolerance, ears completely covered

by balls, and flint grain white fat

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.

59%

41%

Maize variety

JVM-421 HYV


Breader

seed12%

T.L

19%

Certifie

d

32%

Foundation

37%

seed variety



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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 use is low

compared to other

varieties. The efficiency of

water use is 13.08k/ha.mm.

This region is rain-fed area

so farmers are mostly

preferred HI-1418 seed

varieties.

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.

HI-1418

45%

sujata

10%

lok-1

28%

wh147

17%

Wheat variety


56%

1%9%

34%

Purches seed from diffrent

market

Local Market Dealear

Co-operative KVK&GVT



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8 MARKET ANALYSISThe 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.

8.2 Selling theproduce

Mostly farmers prefer local

market & weekly haat to sale

their produce as they have

low transaction cost in

comparison to Wholesalemarket/mandi & cooperative.

56%

1%9%

34%

Purches seed from diffrent

market

Local Market Dealear

Co-operative KVK&GVT


Bullock cart

14%

Tracktor

68%

Tampu

18%

Mode of transport



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8.3 Production Three different crop last three year:-

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

0

20000

40000

60000

80000

100000

120000

140000

2008-09

2009-10

2010-11

2008-09

2009-10

2010-11

2008-09

2009-10

2010-11

Wheat Maize Gram

production

production


0

50000

100000

150000

200000

250000

2008-0

9

2009-1

0

2010-1

1

2008-0

9

2009-1

0

2010-1

1

2008-0

9

2009-1

0

2010-1

1

Wheat Maize Gram

sold

own use

production



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Maize followed by wheat is 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.

8.5 Mode of transport:-

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. Crop Area(acc) Production(q)

1 Maize 234.75 1074

2 Wheat 136.58 770

3 Soyabean 242.9 1229

4 Gram 66.48 129.4

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

Gram-1.94q.

Bullock cart

14%

Tracktor

68%

Tampu

18%

Mode of transport



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9 DEMAND ESTIMATION OF AGRICULTURE INPUTS IN THETARGET 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 farmersOther 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 Urea(q) DAP(q) Seed(q)

Soyabean 17.64 67.4 76.55

Maize 50.97 60.3 16.53

Gram 8.7 28.55 14.66

Wheat 42.25 48.95 65.9

Total 119.56 3031.65 173.64


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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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10.1Rural Marketing Pattern

Transportation of various

farm produce from farmer

field

Consume

Supply to big retail such as

Ruchi soya,ITC soya etc.

Facilitate the

transportation, supply

Sell throughFarmer association

Facilitator helps the farmer in retailshopping of soyabean in the local

market through retail out

Storing collection

Grading packing, sorting &

distribution

Facilitator (FIG) helps the farmerin producing the different

Create the big marketing

linkage for surplus product(Retail marketing) at the state

Proper communication

channel b/w farmer &

Create the local marketing

link b/w agricultural produce

Proper information of supply throughthe Managers of Improve tech. & post

Role of the farmer

Association in farm produce

Promote thenetworking of regulate

Promotion of different varieties

of farmer farm in vegetable

production reproduces

Direct marketing of thefarm produce by the


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10.2Supply 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.

10.3Present 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

10.4Some existing models of movement of farm produce from farm tomarket-

Traditionally 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.

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

Rural Primary

MarketRegulated marketed (principal)/

collection center

Direct market

(Saturday market, spotmarket)

Wholesale, Processor, traders

Retail vendor

Consumer


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Model of Supply Chain of Produce Required

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

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

Production at

Market information &

communication center

Sorting /grading/PackagingCollection center

District mandiesRegulated wholesalemarket

Local market

Sunday market Whole sellerNational mandies

DistributorLocal

Retailer

Consumer


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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.

10.5Value 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 collectinformation 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.

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


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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.

10.6Constraints 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 Transportation Handling & Value added services


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10.7Reasons for Improvement of Rural market of the tribal region Socio-economic changes (lifestyle, habits and tastes, economic status) Literacy level (25% before independencemore 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

10.8Future 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 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.


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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 beprovided. Trainings on business plan development

Provide the training of use of MIS to the member of FA.

11 UNDERSTANDING PRODUCER COMPANY11.1PRIMARY 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.

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

11.3PRODUCER 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.

11.4PRODUCER 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.


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11.5WHO 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.

11.6CHARACTERISTICS 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).''

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.


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13 STAGES OF PROJECT DEVELOPMENT FOR PRODUCERCOMPANY

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 onthe feasibility analysis

13.2Feasibility 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 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 ofthe 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 inquestion and the related factors affecting its procurement /inputs/ production/ storage/

marketing.


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Cost-benefit and break-even analysis for the proposed activity/activities of theorganization.

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

13.4Organizing 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 forformation 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.

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.

13.5FormalizingVisioning: 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 ofthe group and avoid conflict within the group


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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 officebearers, 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 perthe byelaws of the organization.

Collect share capital and other necessary fees: Collect the share capital, membership feesas applicable from members and deposit in the bank account.

Registration: Complete the documentation required for registration and follow-up theprocess 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

13.6Registration 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 decidesto function as an informal group, registration may not be required at all.

Systems development

Operating system: Facilitate detailing of the Operating system, including the accountingsystem 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 theorganization, as customized software may not be available for different activities.

HR system: In case the organization has hired significant number of staff, the HR systemwill have to be developed as well. Otherwise the system for roles and responsibilities,

authority, compensation/remuneration etc. of the Executive board/operational sub-

committee members who run the day-to-day operations should be developed.


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Planning and review: Formulate a process and template for Business planning. Alsodevelop 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.

13.7Business 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.

13.9Monitoring and review Monitor the operations and governance of the institution closely through reports and

visits.

Review the performance jointly provide guidance for overcoming problems.14 KEY ACTIVITIES, TIMELINE, DELIVERABLE AND MEASURES OF

VERIFICATION

Timeline

Key Activities Deliverables Means of verification

1.month

Stage One : Pre-projectImplementation (one month) (i)

Baseline on volume, value &market access, centrality analysis,

(ii) Identification of Productspecific clusters (iii)Feasibility

Analysis -break-even estimates(iii) Project Implementation Plan -

procurement, inputs, storage andmarketing,

Detailed Project Report(Checklist Provided) (i) List of

Product specific clustersidentified (ii) Database of

farmers prepared,

(i) Submitted DPR (ii)Meeting minutes and

photographs ofmeetings

8.

month

Stage Two : Enhancing Capacity

for Surplus Farm Production (i)Village meetings identify potentialfarmers, identify opinion leaders

(ii) Identification of potentialfarmers for producer

company(PC), LRP/BF/LFIdentification (iii) Exposure Visit

of Farmers/opinion leaders (iv)

Farmers Organised in PC, LRP

identified and Trainingcompleted(i)Farmer Origination and FG

formed (ii)Trained LRP/BFready for deployment

(iii)Extension Model includingMonitoring Systems in Place

(i) List of FO (ii) List

of LRP/BF/LF trainedand ready fordeployment (iii)

Training curriculum,training report &

participant list.


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Forming Farmers Organisations

(v) Identification of TrainingNeeds of FOs (vi) Imparting

training to farmers of PCs

16.

Month

Stage Three : Implementation for

Surplus Farm Production Plan(i)Hand holding support on

Productivity Increase, IPM/ INM/IPwm

(ii)IdentifyingValue-propositionfor setting PC (logic of

collectivization)

(i)Farmers Participate in

Improved vegetable/pulsebased farming system

(ii)Disgaggregation/Aggregation Systems put in place

(iii)Business Case ofFPO/Collective prepared

(checklist provided)

(i)List of farmers

adopting package ofpractices

(ii)No. of farmerssupported, areas of

demonstration(iii) Business Case of

PC/ex-ante

24.

month

Stage Four : Pre-formation Stage

of FPO/Collective and StabilizeNew Surplus Production System &

(i)Farmers in 2nd Crop Cycle(ii)Market Linkages for Produce

(iii) Systems of single commoditymarket : portfolio-cropped

household farming systemInterface detailed (iii)Exposure

Visit, consultation for PC scoping,vision & structure

(i) Demonstration of Farmer

Patronage to Project Concept(70% repeat farmers)

(ii)Collectivizationarrangements (PC) Instituted

(i) Repeat Farmer List

(ii) Minutes of FG andassociative tier

meetings, photographs.

36month

Stage Five :Formation of FPO/Collective

Aggregation for market access (i)Finalising list of PC Constitutions

of Internal Systems(ii)Membership & Governance andframing 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) Institutional Arrangementsfor Market Access Placed (ii)

PC/Collective/AggregationStructure Placed

(i) Minutes of meetingFG subscription to

PC/collective(ii) Registration &

Compliances(iii) Business Plan withkey business processes

(iv) List of buyersconsulted, meeting

report & outcome(MoU on price, volume

and grading)(v) List of needs,

training design, trainingreports.

48.

month

Stage Six :

Phase-out Systems for post-projectsustainability

Business Plan (i) Statutory

Clearance obtained (ii)Operating System grounded

(iii)Agreement for long-termsupport with LPO

(i) Business Plan

including financingplan (ii) Regulatory

approvals for PCactivities


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14.1Project OutcomesEconomic Impact

Per hectare productionimproved by 10% by end ofproject period

Increase in net return tofarmer (Inflation +10%)

Increase in sub-sectordevelopment for agriculture

Reduce gap in availability ofinputs by 20-25%

Increased food & nutritionalsecurity

Market linkage for thebackward and forward

integration will be ensuredwith competitive market

Additional employmentgenerated 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 womenfarmers 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 athousehold level

Improved food and nutritionalvalue

Leadership role of producers intechnology absorption

Positive health and nutritionimpact on consumers


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15 CONCLUSIONAgricultural 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 company 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 publicpolicy and institutions, including local and national governments; and enhancing their bargaining

power in the marketplace.

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


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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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16 ANNEXURE-1Project Objective: 1 Mobilising farmers in groups and build their

associations (FPOs) to plan and implement product

specific cluster/ commercial crop cyclesActivities Outputs Outcomes

Organize farmer into informalgroup(FG)

Train members and leaders inmatters relating to group

functioning, group norms andsystems.

Form associations/FPOs ofFGs.

Train members and leaders ofFPOs to nurture FGs and

mediate vis--vis externalresource institutions such as

government, financialinstitutions and markets.

3000-4000 farmers from8-10 villages in close

geographic custerorganized into FGs

prepared for intensivevegetable/pulse based

livelihoods interventions. FGs organized into

FPOs/Informalassociations supporting

productivity, efficientaccess to input and

output markets, linkageswith agriculture

programs. 75% meet or exceed

quality benchmarks ongroup 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

Project Objective: 2 Strengthen farmer capacity through agricultural best

practices for enhanced productivity

Activities Outputs Outcomes

Conduct exposure for selectedmen and women from projectvillages to villages/ farms

practicing modern farmingmethods, such as different

crop mixes, moderntechniques and intensive

farming.

Discuss alternate farmingsystems with groups offarmers suitable to their

specific situations andgenerate household farming

plans/ portfolios. Identify training and

extension needs and potential

60% of all familiesinterested to take upimproved crops have

access to quality inputs. 40 % of participant land

brought into intensivefarming

80% families cultivate adiversified basket oflocally suitable crops.

LRP training modulesbeing implemented inlarge number.

Trained LRPs supportingimplementation of the

household and cluster

Participatingfamilies haveassured supply

of quality inputsand services,

Network ofinput and

services

deliverymechanismsdeveloped in the

local area. Participating

families feelconfident to

intensify their


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LRPs to function as

community based extensionagents.

Train LRPs to provideextension support to farmers

adopting new farmingsystems.

level farm plans agriculture.

Project Objective: 3 Ensuring access to and usage of quality inputs andservices for intensive agriculture enhancing cluster

competitiveness


Helping families accessworking capital from

SHG/MFI, banking sector andother sources.

Link / develop supplychannels for inputs and

services: On-field handholding support

by LRPs to ensure appropriate

usage of quality inputs Demonstration of usage and

effectiveness of relevant farmmechanisation practice

70 % of participatingfamilies using quality

inputs PCs/Producer

Aggregations promoted,families covered by these

collectives Gross Crop Output per

hectare increase by 100

% in rupee value terms

Participatingfamilies have

assured supplyof quality inputs

and services, Network of

input andservicesdelivery

mechanismsdeveloped in the

local area.

Project Objective: 4 Facilitate access to fair & remunerative markets

including linking producer groups to marketing

opportunities by market aggregators


Developing productionclusters for producing

significant volume ofmarketable surplus

Identifying and buildingaggregation / desegregation

centers in production clusterwherever required

Linking these clusters withmarket players (e.g. vegetable

traders, commission agents,retailers, etc.)

Producer collectives takingoutput marketing

Formation of PC

Intensive, marketoriented production

clusters developed. Surplus produce

marketed at remunerativeprices.

participant familiesengaged in coordinated

market-orientedproduction

Producers collectivesaggregate and market

produce from members. Market aggregators/

retail chains buy producefrom producer collectives

Sustainable andcompetitive

linkages formarketing exist

for theirproduce,

families inproduction

clusters havemultiple options

to sell farmproduce,

The prevailingrates in the

cluster are fairvis--vis large


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Annexure-2

Energising Farm Production Systems: Institutional Arrangements for Transition to

Coordinated Surplus Frame:-

markets in the

region.

Farmer Producers Organization

1000 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 aKisan Sahyogi and accessing farm business services - inputs, equipment hire,

output pooling & storage from a single node

Kisan SahyogiVillage Based Extension Cadre/LRP assists in on-field agronomic practices &

in ut-out ut transactions 30-40 farmers (2 FG in 1-2 villa es in 3-5 km. radius

Agriculture Specialist Supports 10-15 Sahyogi in field implementation. Expected

to create a bestfit adaptation of RSP (Recommended Scientific Practices) infield 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.

Farmers


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Annexure-3

GENERAL INFORMATION VOLUNTEER

101.

Information Name

Respondents Name

Gender Male/Female

Village Name

District

State

102.

Caste

Category

Religion House Type

FC 1 Hindu 1 Concerete 1

BC 2 Muslim 2 Thatched 2

SC 3 Christian 3 Mixed 3

ST 4 Other 4 Other 4

If other, then specifiedEducation Qualification of the respondent:-

Annual Income:-

103. Household: Background Information

Category Number

Number of adult males:

Number of adult females:

Number of Child :-

Boys:Girls:

104.

Capital Assets

Number

A) BullockB) CowC) Buffalo


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D) GoatE) TractorF) Motorcycle/ScooterG) RadioH) TV B/WI) TV C/WJ) VCRK) Electric FanL) CycleM)Telephone

Phone no-

105.

Irrigation Assets

A) Open WellB) Bore wellC) Electric pump SetD)

Diesel Pump Set

E) PondF) CanalG) StreamH) Other

106.

Source of livelihood

Primary occupation Secondary occupation

1. Farming 1. Farming2. Carpentry 2. Carpentry3. Services 3. Services4. Business 4. Business5. Live stock 5. Live stock6. Other 6. Other

If other, then specified

107.Total Land Holding:

108.

109.

Type of Land

Irrigated Land Rain fed Lowland Upland Medium Land Other(Specify)

Land Type in AcreCultivated land uncultivated land Irrigated Land Forest Land


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110.

INPUTSREQUIRED:

201. What type of fertilizer are you using? (Per acre)

Bio Fertilizer Chemical Fertilizer Both

Urea DAP MOP Zinc

HowMuch(per

acre)

Price(peracre)

SEED:

301. What type of seed are you using?

A. Breeder B. Foundation C. Certified D. T.L E. Own seed302. Are you involved in Seed Production? Yes/No

If Yes, Which seed do you produce?

303. Are you sell the seed? Yes/ No

If yes, at what price per Quintal & where?

304. Do you get any subsidy from Govt.?

Yes/No

If Yes, How much?

Type Of Crop(In acre)

Wheat Gram Soya been Corn


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305. Which type of variety do you use?

Crop

Soya been Gram Wheat Maize

Variety Name

MARKET

401. Where do you purchase the seed?

A. Localmarket

B. Dealer C. Co-operative D. KVK E. Other

402. Where you are selling the produce (Wheat, Soya been, corn, Gram)?

A. LocalMarket

B. Co-operative

C. APMC D. Mandi E. Whole salemarket

403. What is the price at different market?

Market Price/ Quintal

Soya been Gram Wheat Maize

Local Market

Cooperative

APMC

Mandi

Whole sale Market

404. Mode of Transport

405. Cost incurred in transportation?

406. Do you have any storage Facility?

A. YesB. NoIf Yes (Where?)

407. Distance of the nearby market from your villages.

501.COST OF CULTIVATION

Crop

Soya been wheat Gram Maize


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601.PRODUCTION

Cost of

inputs

Seed

FertilizerInsecticide

PesticideFungicide

CulturalCrop Production

Cost oflabour

BroadcastingHand weeding

Fertilizer applicationPlant protection

IrrigationHarvesting

Post harvesting

Cost of

machinery

Tillage

SeedingHarvesting

Irrigation

Cost of

power

Total

Crop Area(in acre) Amt. of seed Sown Quantity of produce

2008-09

2009-10

2010-11

2008-09 2009-10

2010-11 2008-09

2009-10

2010-11

Soya been

Wheat

Gram

Maize

Crop Own use Sold

2008-09 2009-10 2010-11 2008-09 2009-10 2010-11

Soya been

Wheat


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602.IMPACTS OF AN INCREASE IN COST OF WHEAT CULTIVATION

A. What have been the impacts of the increase in cost of Soya bean cultivation?a. Reduction of investment in wheat cultivation whilst area constant or increasedb. Diversification of crops in other seasonsc. Adopting other monsoon cropsd. Other please (specify)

Gram

Maize

Migration

Hamlet Nos. Reasons for migration Duration of migration Places of migration

5 years ago 2011

Documents

MTS-II Final Report