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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
Source: Questionnaire
agricultu
ral
5%
business
2%live
stock
1%
wage
labour
83%
other
9%
secondary occupation
Source: Questionnaire
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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
Source: Questionnaire
Breader
seed12%
T.L
19%
Certifie
d
32%
Foundation
37%
seed variety
Source: Questionnaire
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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
Source: Questionnaire
56%
1%9%
34%
Purches seed from diffrent
market
Local Market Dealear
Co-operative KVK&GVT
Source: Questionnaire
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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
Source: Questionnaire
Bullock cart
14%
Tracktor
68%
Tampu
18%
Mode of transport
Source: Questionnaire
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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
Source: Questionnaire
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
Source: Questionnaire
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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
Source: Questionnaire
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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
Activities Outputs Outcomes
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
Activities Outputs Outcomes
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