National Vegetable

8/12/2019 National Vegetable

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Department of Horticulture, Govt. of Odisha and CTRAN Consulting, Bhubaneswar.

INTRODUCTION

1.1 PURPOSE

The documents provides a systematic sight in to the process of promoting FIGs and FPOs at the

district level of Orissa (four districts namely Cuttack, Khordha, Jajpur, Puri) as part of theNational Vegetative Initiative Scheme (NVI) supported by SFAC and

1.2 SCOPE

Marketing of Agriculture products in developing economies is mostly informal and in the

control of unorganized sector. However, the argument in favour of giving producers real

bargaining powers is strongest in situations in which the marketing system is characterized by a

myriad of powerful intermediaries. In these circumstances, the price-makers are the

middlemen and both producers and consumers are price-takers. This has provided a scope for

an intervention which would facilitate better market linkages for farmers and get a higher sharein the value chain and protect them from exploitation and also consumers getting a reasonable

price.

The promotion of FIGs and FPOs has embarked on similar objective by means of

establishing aggregation centres which would provide direct linkage for farmers to consumer

end. The vegetable kiosks promoted by Department of Horticulture (Udyan Fresh) would

provide an interface between the producers and the consumers with minimization of the

intermediary chain between them.

This is being done with full integration of technology starting from the farmer ID, all the way to

subsidy transfer, weighment and payment directly to the farmers bank account in a

transparent manner.

1.3 ROLES AND RESPONSIBILITIES

There are different players in overall process, where CTRAN has been performing the role of

system integrator the overall intervention with the support of Directorate of Horticulture and

SFAC. Key tasks of different players are as follows.

ENTITY RESPONSIBLITIES

Department of Horticulture, Govt. of Odisha Technical and financial support for FIG & FPO

promotion, Capacity building of farmers, monitoring

and supervision, regulating the overall operation

Surendra Agritech Pvt. Ltd. Operation of Udyan Fresh Kiosks in a PPCP

framework.

SFAC Technical and financial support for FIG & FPO

promotion.

CTRAN Consulting, Bhubaneswar Sensitization of farmers, formation of FIG & FPO,


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Capacity building of farmers, strengthening the FIGs

and FPOs, requirement assessment and appraisal to

Directorate and SFAC, reporting and documentation

ATMA Technical Support and demonstrations

Basix Livelihood School Training of LRP / Staff

NABCON Periodic Monitoring

Synergy Business Plan development for FPOs, monitoring

Aggregators Managing the aggregation points and marketing

Axis Bank Pvt. Ltd. Facilitating individual and group bank accounts,

loan, credit and insurance facilities, ATM services to

FIG members

2. PROCESS DESCRIPTION

2.1 OVERVIEW

Around 8.43% of the national area under vegetable cropping falls within Odisha. Out of 54Lakh

ha of gross cropped area in the state (source: economic survey 2011-12, Govt. of Odisha), in

kharif season, 3.04 lakh ha is under vegetable cultivation of which 62.17% area is irrigated.During Rabi, total area covered under vegetable is 3.90 lakh ha of which 84% area is irrigated.

Vegetable cultivators in India face multiple regulations; hence the growth of the sector is

limited. Considering the share of contribution made by agricultural sector in Odisha economy,

a spurt in reforms is much awaited. Luck of proper infrastructure and small land holdings have

been the main identified bottlenecks in Odisha.

To address this issue, the RKVY (Rashtriya Krishi Vikash Yojna) aims at a 4 percent growth in

vegetable production in the XI plan period. Successively, Govt. of India has allocated Rs. 300crore for implementation of vegetative initiatives in different state of India including Odisha.

The baseline survey was conducted after the allocation of funds by the Govt. of India in four

districts namely Cuttack, Puri, Khorda and Jajpur as these districts mostly cater to the vegetable

requirements of the urban areas of Odisha. The research concluded that while Khorda leads in

vegetable production in the state followed by Cuttack and Jajpur, Puri has the leas cultivable

area for vegetables. The date also revealed major crops of the region and their district wise

distribution. The findings of Baseline survey has laid down the frame work of project

implementation initiated as part of the National Vegetative Initiative, supported by SFAC and

Department of Horticulture, Govt. of Odisha and CTRAN Consulting, Bhubaneswar.

2.2 OBJECTIVE

The purpose of the project was to sensitize and mobilize the farmers and unify them into an

association (Farmer production organization) that would strengthen their position in the

product value chain. Setting up of aggregation points would facilitate better access to

consumer end via aggregators and would also ensure better return for the farmers.

The objectives in a nutshell:


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Mobilizing farmers at the village level & build their association at an appropriate federatingpoint to plan and implement product specific clusters / commercial crop cycle.

Strengthen farmer capacity through best agricultural practices for enhanced productivity. Ensuring access to and usage of quality inputs and services for intensive agriculture

enhancing cluster competitiveness.

Facilitate access to fair & remunerative markets, including linking producer groups tomarketing opportunities by market aggregators.

2.4 PROCESS DETAIL

2.4.1 Identification of Districts

A participatory and consultative approach was followed involving the stakeholders at different

levels. At the state level, identification strategies were adopted with regular consultation with

nodal officers at Directorate of Horticulture and Orissa Horticulture Development Society

(OHDS). With due consultation, four districts were identified for the baseline survey, namely

cuttack, Khordha, Jajpur and Puri on the basis of the proximity of the districts to the major

urban markets in the state.

2.4.2 Baseline Survey

Following the district identification, vegetable growing pockets of each district were identified

with consultation meetings with district level officials of Horticulture department. For

validation, inputs from selected PRI members, seed suppliers, fertilizer & pesticide supplying

agents were also considered. The major vegetable growing areas were finalized for the survey.

Geographical boundary (revenue circle) was not the parameter for identification of clusters.

The identified vegetable pockets (clusters) of the districts were:

Districts Area Clusters

Cuttack Athagarh Sathilo

Samsarpur

Mahakalbasta

Banki Kushapangi

Parthapur

SimilipurGolaganda

Baranga Harianta

Sainso

Khalrda

Usma

Kaalrda

Khordha Balipatna Bhakarsahi

Somanasasan


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Balianta Jhintisasan

Bolagarh Badakumari

Begunia Siko

Haja

Jajpur Rasulpur Barabati

Singapur

Odiso

Kalan

Naghuabar

Jabara

Badakainchi

Puri Satyabadi Balapur

Balarampurgarh

Bidyadharpur

Nimapada Resinga

UchhapurBalanga

Pipili Teisipur

Rupadipur

Saraswatipur

Chandradeipur

Kakatpur Jaleswarpada

Bangurigaon

Othoka

Latahran

2.4.3 Survey Tools

Data was collected from both the primary and secondary sources through desk research and

field survey.

The farmers schedule was used to capture information from the individual vegetablegrowing farmers.

The traders schedule was used for information related to local aggregators and traders. The semi-structured checklist was used to collect information from the sample villages

through focus group discussion with farmers / vegetable growers.

While farmers and traders tools were structured, the FGD checklist was semi-structured in

nature. Ten per cent of the total numbers of farmers (6000) in the districts were taken as

sample size.

The secondary sources of information including data on types of vegetables cultivation, area,

production, productivity and available infrastructure etc. were collected from the State

Horticulture Mission, District Level Horticulture Department, related web sites and other

available reports. The sample population was distributed evenly over all the four districts and


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identified clusters to ensure that the selected sample is representative of all the village

population. Focus group discussions were conducted in each cluster.

Key Conclusions of the Baseline Survey

Low or unrewarding selling price was one of the major issues identified. During FGD it was

learnt that due to increased production cost and lack of suitable market linkages, the vegetable

growers were not getting remunerative price for their produce.

Expenditure on Fertilizers and pesticides:

Since the cost of production is sometimes higher than the selling price of the vegetables, the

margin of profit remains negligible or often losses are incurred. As a result of which the

farmers fail to invest on fertilizers or pesticides or they have to borrow from local traders on

high cost short term credit.

Technical Knowhow & Awareness:

Evaluating the awareness and technical knowledge of the participating community is crucial for

effective implementation of the project plan. In the present study, attempt was made tomeasure the awareness of the respondent farmers about the existing schemes for vegetable

cultivation and the improved technologies of farming. The research concluded that most of the

farmers were unaware of the schemes and programmes and relied on interpersonal

communication for information.

As far as the capacity building programmes are concerned, very limited no. of farmers (only the

progressive ones) attended the exposure visit to Punjab Agriculture University. Few had

attended training programme in KVK at Keonjhar district on raising different types of vegetable

seedlings.

Intensive communication with the farmers showed their interest in IPM and INM inputs,training on disease control and application of fertilizers and pesticides, farm mechanization and

growing vegetables under protected cover.

Due to lack of awareness on modern cultivation technologies, the age old practices are still

persistent. Thus the farmers should be made aware about that the latest technologies and

practices to make vegetable production more profitable.

Irrigation Facilities:

Whether it is in Rabi or Kharif Season, vegetable cultivation requires sufficient irrigation

facilities. The baseline study showed that the popular means of irrigation in the villages are the

traditional methods like bore well, dug well, LI points and rivers. Modern technologies like drip

or sprinkler irrigation system are not in use. For example, Siko Cluster of Begunia Block has

more number of LI points mostly managed through panipanchayats. Most of the LI points are

run by Kerosene or diesel operated DG sets due to lack of electrification thereby increasing the

cost of irrigation for farmers.

Investment Problem:

Unavailability of timely credit is a major bottleneck for farmers. In most of the cases they either

depend on loans from money lenders or fellow farmers for financial assistance. The procedural


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delay in loan access adds to the financial burden. Thus the farm investment suffers due to lack

of sufficient financial base. The Co-opsand the Commercial banks are the only credit providers

for the farmers. Short term loans from PACS are not adequate and the loan size varies between

max. Rs. 5,000-10,000.

Market Risks

The farm products are sold at the farm gate or to the local traders. The farmers are mostly

unaware of the market price and are duped by the trader and often paid lesser than the actual

selling price. Due to, lack of transportation facility, time and financial constraints, the farmers

themselves cannot travel to the local market to sell their produce and have to rely on the

middle men and local traders to sell their produce.

Storage:

The storage facilities for crops are almost non-existent at the cluster level, thus the leafy and

the perishable items need to be sold on the day of harvest itself. Sometimes these are sold at

throw away price or get wasted, adding to post harvest loss.

Packaging and Transportation:

After the cleaning and sorting procedure at the farm gate, the vegetables are packed in gunny

bags, plastic bags, bamboo baskets or plastic trays. The discarded vegetables account for a

huge field loss. Along with the field loss, the transportation cost and items that are perished on

the way to the market adds to the net post harvest loss.

Access to Market / Mandi / Aggregator:

The intermediary (middle man and local traders) are the only links to the markets. But often

the local traders or the middle men do no show interest in buying small quantity of produce

from individual farmers. Most of the farmers suffer from inadequate dissemination of marketintelligence and are often unaware of prevailing market prices till they visit the mandi. Further,

to save the transportation costs, they travel only to the closest market instead of exploring

prices in other accessible markets. In the worst case, farmers are forced to sell locally at the

village level at a much lower price to prevent heavy loss and wastage.

Post Harvest Management:

Limited number or absence of processing and preservation units in the studied clusters is

responsible for the post harvest losses incurred by the farmers of the region. Farmers are

mostly not aware of the handling procedures. The horticultural crops, because of their high

moisture content are inherently more liable to deteriorate especially under tropical conditions.Moreover, they are biologically active and carry out transpiration, respiration, ripening and

other biochemical activities, which deteriorate the quality of the produce. Hence most of the

perishable and leafy vegetables rot while transporting from the farm to the cold storage.

Processing and preserving units in proximity to the farms would enhance the shelf life of frcops.

Lack of facilities in markets:

Of the only eight regulated market complex at Birabati, Banki, Athagarh, Nimapada, Pipili,

Cuttack, Bhubaneswar and Khurda, three are non-functional. The regulated markets lack

infrastructure like auction and drying platforms. The stands in the open field are only provided


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to the farmers against a hefty fee of Rs. 70-100 daily. Also the market places reel under acute

shortage of water supply, lack of sanitary facilities and grading arrangements.

Further, farmers complained about the market arrangements due to unauthorized charges and

inadequate infrastructure. While selling vegetable produce in the whole sale market, the

farmers have to pay 10% of the sale proceeds and there are no facilities available for free

parking of vehicles and cycles.

2.4.4 Formation of FIGs

The aim of the project is to strengthen the farmers through creating awareness as well as

empowering them through training, technical support and financial aid to ensure solution to

the identified problems.

The first and foremost task is to mobilize and integrate the farmers together in to FIGs

(Farmers Interest Group). The project aims at improving the farmers capacity through regular

training, providing access to the key service providers and market and also by facilitating

communication which would enable resource and knowledge sharing among the farmers.

Vegetable growers of the identified clusters have been organized into FIGs, each consisting of20 members. They have been exposed to regular sensitization meetings. Through 2-3 rounds

of sensitization meetings the farmers are made aware on the aims and objectives of the NVI,

the benefits the project, the execution of the project plan and their roles in the project.

Local people aware of the farming status of the area were selected as Local Resource Persons

(LRPs). They effectively established a coordination link between the farmers, the service

providers and facilitators. The LRPs are also responsible to coordinate with the farmers and

help them with the formalities as a part of the project (such as registration and opening of an

a/c with the bank).

Functions of FIG:

Organising regular group meetings

Agri-inputs (seed, fertilizer, pesticides) planning and collective procurement Crop planning / crop rotation Mobilising farmer groups into FPOs Raising small savings Convergence with other deployment schemes / line departments Promotion of collective marketing and developing linkages with market players2.5 PROJECT IMPLEMENTATION PLAN

Cluster identification is followed by FIG formation that determines the course of the projectfurther. The process focused on capacity building along with supportive activities fro field

evaluation and monitoring, strengthening the FIGs into formal registered bodies. Each

registered body under the Cooperative or the Company Act would integrate together 1000

farmers forming a Farmer Producer Organisation (FPO). FPOs have better price negotiating

ability and stronger capacity to establish market linkages. FPO formation works on the

principle of a cohesive rapport among the members to ensure a symbiotic growth and

function among the members of the FPO. Each member of the FPO is provided with a


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unique ID. Each member has been provided with a bank a/c for credit of the subsidy

amount and the selling price of their products through direct online transfer using RTGS.

The capacity building phase emphasizes on training the farmers to use advancedtechnologies for better cultivation and post harvest management. Capacity building phase

is aimed at equipping the farmers and fostering their abilities to manage the available

resources properly. They are also exposed to field trials for demonstration of improved

applications. These helps the farmers acquaint themselves better with the processes.

Training

Each training session educates the farmers for enhancing their skills on production technology,

improved farming techniques etc. Along with technical training, the training also focus on HRD

practices including group processed, team building, conflict resolution and enterprise

management. Technical training includes production technology, Integrated Nutrient

Management (INM), Integrate pest Management (IPM) and Post Harvest Management (PHM)

training to the farmers in collaboration with the Agriculture Technology Management Agency

(ATMA) and the State Agricultural Universities (SAU).

Non Technical

HRD:

Lack of coordination among the farmers is one of the major issues that the baseline survey

identified. The HRD training besides technical advice and knowledge addressed the issue of

lack of coordination and sought to integrate individual farmers into groups to ensure better

sharing of resources and knowledge among them. The training programmes promoted group

dynamism among individual farmers and integrated them into an organized group.

The promotion of group dynamism emphasizes on the following aspects:

Behaviour Participation Personality Leadership Responsibility of FIG members and office bearers Functions of FIGs and FPOTechnical

Production Technology

The training sessions aim at educating the farmers about the improved method andtechnologies of faming such as crop management and cultivation, irrigation management,

Production of improved quality of seedlings, nursery management and Hi-tech agriculture like

protected cultivation etc to increase productivity.

The capacity building exercise through enhancing knowledge of the farmers aims to equip the

farmers with strategies for dealing with all common issues faced in agriculture. Also the

initiative has introduced a help line for the farmers to seek help from agro specialists for any

kind of problems faced including pest attack etc.


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Knowledge about improved production technologies such as usage of staking for crops like

tomato, pumpkin etc has been disseminated. These technologies have not only helped

improving the quality of vegetables but also ensured lesser wastage for the farmers.

INM:

Integrated Nutrient Management (INM) refers to the maintenance of soil fertility and

application of plant nutrient at an optimum lever for sustaining the desired productivity and

optimization of benefits from all possible sources of organic, inorganic and biological

components in an integrated manner. The training sessions have been oriented to impart

knowledge on INM to the farmers and explain the importance of retaining soil fertility for

better cultivation and quality of crops. Members of 90 FIGs have attended training on INM and

few have successfully applied it in their farms.

Case Study

Name of the farmer: Sridhar Sahoo

Age: 50Yrs.

Village: Uparpatharpur Village, Parthapur cluster in Banki area, Cuttack:-

Vermicompost, an organic manure is prepared through the process of composting using various

worms, usually red wigglers, white worms, and other earthworms to create a heterogeneous

mixture of decomposing vegetable or food waste, bedding materials, and vermicast. Containing

water-soluble nutrients, vermicompost is an excellent, nutrient-rich organic fertilizer and soil

conditioner. This process of producing vermicompost is called vermicomposting. This process

is an effective method of INM.

Sridhar Sahoo of Uparpatharpur village has adopted the use of Vermicompost instead of buying

commonly used expensive fertilizers such as DAP from the local traders at a cost as high as Rs.12,000 per tonne excluding local levies. Other than the high cost of consumption these

chemical fertilizers also takes a toll on soil health and productivity.

The training progammes have introduced among farmers, the use of vermicompost, an organic

soil manure which along with fertilizing the soil, preserves the quality for a longer time. This

has reduced the cost of production for the farmers. This project intervention has helped

Sridhar Sahoo and likes to access the Govt. subsidies to construct a vermin cast in their farms.

Sridhar Sahoo says that the cost of production has considerably reduced per hectare as

compared to DAP use. Since DAP is unaffordable at times, these farmers had to often rely on

the cheap manures like cow dung etc. These fertilizers are unable to yield quality crops whichdecreases the market prices of the farm produce adding to the farmers loss. Application of

vermicompost has yielded better quality vegetable which earns increased market price. The

market price of his farm produce has increased by a minimum of Rs. 3-5 per kg.

The training programmes have successfully facilitated an easy access to govt. schemes for the

farmers, but Sridhar Sahoo complains of the disparity between the cost borne by the Govt. and

the effective cost. The Govt. subsidy available for building a vermin cast is Rs. 20,000, whereas

the effective cost of building the same estimates around Rs. 55,000. Thus the high initial cost to

be borne by the farmers is often a concern for the farmers including Sridhar Sahoo.


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IPM:Integrated pest management (IPM) is a broad based approach that integrates a range of

practices for economic control of pests. IPM aims to control pest population below the

economic injury level (EIL). As vegetable farming is vulnerable to pest attack, trainings have

been oriented on IPM practices too. Members of 90 FIGs have already attended IPM trainings

and many have adopted the practice of IPM techniques in their farms.

Case Study

Name of the farmer: Ballabh Behra

Age: 25Yrs.

Village: Koimundi, Parthapur cluster in Banki area, Cuttack

Pest management has been much easier for Ballabh Behra since he has attended the training

sessions. He has received subsidized pheromone traps distributed by the Dept. of Horticulture.

Each farmer was given four pheromone traps per acre of land.Ballabh Behra agrees that the pheromone traps are much effective alternatives than the pest

control chemical available at cost as high as Rs. 1500 per litre. He says More than the harvest

the pest management has always been an issue of concern for us. After the training session

managing pest attacks have been much easier.

He has effectively used the pheromone traps in his farm during Okra cultivation. The traps have

shown remarkable results in controlling pest attacks and as a result has minimized the loss. The

pests and insects like butterflies would eat up the crops earlier and render them unfit for sale.

Also the market values are slashed and the price earned is not remunerative for them. After

the usage of pheromone traps for pest control the post-harvest wastage quantity has

decreased by around 30 percent.A pheromone trap is a type of insect trap that uses pheromones (A pheromone is a secreted or

excreted chemical that triggers a social response in members of the same species) to lure

insects. Sex pheromones and aggregating pheromones are the most common types used. A

pheromone impregnated lure is encased in a conventional trap such as a Delta trap, water-pan

trap or funnel trap. The farmers were trained on the usage and benefits a pheromone traps in

the training session by plant pathologist Sujata Patnaik. They were taught about the principle

of how pheromone traps work, and also how the device controls egg laying phenomenon

thereby controlling the population.

Case Study

Name of the farmer: Subash Chandra Sahoo

Age: 30Yrs.

Village: Koimundi, Parthapur cluster in Banki area, Cuttack

CTRAN consulting and the Directorate of Horticulture, Odisha have laid the platform to educate

the farmers on process of farming, farm management and agro marketing strategies.

Preparation and usage of Panchgavya is an effective method of pest management.


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Subash Chandra Sahoo, aged 30 yrs from Koimundi village from Pathrapur cluster in Banki,

Cuttack has been sensitized on the benefits of Panchgavyain the training session. The

affordability of Panchgavya is much higher compared to the other pest control chemicals. As

compared to the expensive chemical fertilizers he had to purchase from the traders at Rs.

2,000/- per litre, the Panchagavyais a much cheaper substitute made from easily available

ingredients. The homemade Panchgavya (or cowpathy) can be easily prepared with use of five

budget ingredients derived from cow.

Panchgavya is a blend of five products namely milk, curd, ghee, cow urine and dung. The costof production of Panchgavya is around Rs. 150 per litre compared to the cost of commonly used

pesticides at Rs. 2000/- per litre. The decreased cost of pest management has ensured a

reduced cost of production enabling higher profit margin. Subhash Ch. Sahoo has already

prepared the panchgavya himself and will apply it to his fields shortly.

Panchgavya is not only a soil manure but serves other purposes of a pest repellent, enhancing

plant immunity and soil fertility booster. All these benefits of the same product have reduced

the cost of production and S.C Sahoo expects an average profit of Rs. 4000/- per acre of land.

Daily application of Panchgavya would also improve the quality of crops which has higher

market price than the crops produced using common pesticides and manures. With improving

the soil fertility , Panchgavya helps trees develop a profuse canopy and dense rooting system.Even the taste and shelf life could be improved by the practice.

The training session has also provided knowledge on the use of Panchgavya as explained by S.C.

Sahoo.

BenefitsNormal Chemical pesticides and manures PanchgavyaHigh cost (Rs. 2000 per litre) Much Lesser cost (Rs. 150 per litre)

Exclusive functions (pesticides for pest

repelling, manures for higher yield etc)

Works as a manure, pest repellent, immunity

booster, protects against soil microbes.

Depletes soil fertility and hardens the textureof the soil Betters soil fertility and soften the soil texture.

Lesser market value for chemically produced

vegetables

Higher market value for organic products

Ensure instant benefits Ensures long run benefits by improving the

rooting system which helps plant to stand

protracted drought conditions

Has to be applied exclusively for individual

plants

Works for almost all kinds of crops including

fruits, vegetables and plantation crops too.

Post Harvest Management:

Post harvest handling is the stage of crop production immediately following harvest, including

cleaning, sorting and packing. The moment a crop is removed from the ground, or separated

from its parent plant, it is likely to rot. Thus to enhance the shelf life of farm produce including

vegetables, post-harvest Management techniques play an inevitable role. It largely determines

final quality, whether a crop is sold for fresh consumption, or used as an ingredient in a

processed food product. Effective handling decreases post harvest losses.

Around 75% of farmers in Cuttack and 60.57% in Jajpur suffer heavy post harvest loss while

their produce is transported to market. Losses are also incurred during harvest, transportation

from field / farm yard to home, due to lack of storage facility, during packaging etc. The


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average post harvest wastage ranges from 15 to 30% of the net produce. The major issue

identified was lack of cold storage facilities in proximity to the farms.

The initiative seeks to address the issue through introduction of aggregators or aggregation

centres in the product value chain. The aggregators would collect the vegetables from the farm

gate or the farmers may also sell their produce at the aggregation points. The vegetables are

weighed with digital weighing scales and the price of vegetables is transferred to the farmers

bank account simultaneously via online transfer. Thus the burden of post harvest loss is not

borne by the farmer any more. Also individual farmers are provided with plastic craters toprovide ease of storage and transportation to the aggregation point.

FARM TRIALS

For demonstrating the usage of the technologies promoted in the training programmes and to

acquaint the farmers with the usage, farm trials are conducted. The farmers actively participate

in the simulation process in presence of experts to help them acquaint with the application. For

example the FIG members at Banki Cluster were given with Pheromone traps which they tried in

their farms in the presence of plant pathologist. If any farmer had faced any problem is using

the device, they were guided for proper application.

EXPOSURE VISITS

The exposure visits introduce the farmers to the results of successful integration of sustainable

agricultural practices in the farms. The trained farmers are taken to field visits for exposure to

the technologies already applied in the fields. This not only helps them learn the tricks of

proper application of the methods but also convince them of the promised benefits.

2.6 FORMATION OF FPO

The farmer producer Organization (FPO) is a formal body registered under the Company Act or

the Cooperative Act of the Govt. with an organizational hierarchy headed by a board of

directors. The producers organization integrates together a no. of FIGs, thereby increasing the

number strength of the body. The primary objective of FPOs is to introduce a farmer ownership

model and do away with the existing middleman dependence. The farmer ownership model

unlike the middle men structure gives maximum power of price negotiation with the producers.

The FPOs strengthen the farmers through organizing them into groups. The accumulated

production in a group is much higher than an individual which shifts the power to the producer

side.

Functions of FPO

OUTPUT BUSINESS

The FPO would be responsible for facilitating market linkage for the farmers thoroughaggregation points and direct access to retail outlets or the vegetable kiosks at the urbancentres promoted by the Directorate of Horticulture as an integral part of the project.

Planned harvesting of crops and control the product flow with preservation of produceaccording to the market demands and price

Minimise the intermediary points in the supply chain thereby helping a two way profitabilityfor both the producers and the consumer.

INPUT BUSINESS


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Other than strengthening the output linkage for the farmers, the FPOs also provide input

services through facilitating access to subsidized schemes, farmer support services, availability

of subsidized schemes, farmer support services, availability of subsidized seeds, fertilizers and

other farm extension service.

PROCESSING

Value added services include post harvest processing which increases the market value of

primary agricultural commodities. Particular processes like organic produce or regionallybranded products increase the consumer appeal and consumer willingness to pay a premium

over a similar product. Since the farm value of consumables continue to decrease over time

since harvest, the value additional processes which are also made available by the FPOs would

help the farmers capture a bigger shae of the market through processed goods. Along with

value addition to farm products, the objective also would help in waste management,

processing of consumer crops or vegetables, protecting crops from post harvest loss.

POST HARVEST TECHNOLGY

The post-harvest technology aims at enhancing the shelf life of vegetables after harvest. This

ensures lesser post harvest wastage which is common issue faced by all the major clustersidentified. Most of the farmers incur a huge loss while transporting the crops from the farms to

the markets. This is due to lack of cold storage at proximity. The project aims to speed up the

process of reaching the consumers through facilitation of market linkages. The aggregators

would collect the vegetables from the farm gate or the farmers can sell the vegetables at the

nearest aggregation points according to their convenience. Plastic craters have been provided

to all the FIG members of the clusters so that the crops are transported properly after harvest

and subsequently reach the retail outlet and then the consumers.

MARKET LINKAGE

Proposed Marketing Plan

Each FIG is a member of the market chain. The FIG members are directly connected to themarket through the aggregation points.

The aggregators either collect the farm produce from the farm gates or the farmers selltheir farm products to the nearest aggregation point. Each aggregation point clearly

displays the rate of vegetable for the day on NIC charts derived from the existing rates of

the local markets.

The vegetables are weighed at the aggregation centers with digital scales and the price issubsequently transferred to the farmers bank account.

The UDYAN FRESH refer vans collect the vegetables from the aggregation points andtransport it to the nearest retail outlet at the urban centres by the day itself.

2.7 TECHNOLOGY & E-GOVERNANCE

The server interface developed by the Department of Horticulture has effectively introduced a

transparent system for money transfer and every member would have an access to the

information on the portal. Each member would know the existent rates at the different

aggregation points. Purchase rates and MIS reports are also available on the portal. The

interface provides a common platform for all the stake holders including the aggregation point


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in-charge who can keep a tab on the rate of commodities, quantity of commodities etc on any

given date.

The e-governance technology offers a common platform to let the directorate monitor each

beneficiarys subsidy details. The interface between each individual farmers and the

directorate would facilitate the district level officials to update the disbursement details of

beneficiaries in phase wise manner. This ensures complete transparency in manual driven

system and provides link between the coordinating authority and the farmers in the outskirts.

3. PROCESS LOGFRAME

Table 1 : table showing the detained log frame of the project

SN Components Activities Outputs Outcome & Impact

1 Mobilizing farmers

in groups and build

their associations

(FPOs) to plan andimplement product

specific cluster /

commercial crop

cycles

Organize farmers intoinformal groups (FISs)

Train members andleaders in mattersrelating to group

functioning, group

norms and systems

Form associations /FPOs of FIGs

Train members andleaders of FPOs to

nurture FIGs and

mediate vis--vis

external resource

institutions and

markets

3000 farmers from8-10 villages in

close geographic

cluster organizedinto FIGs prepared

for intensive

vegetable / pulse

based livelihood

interventions.

FIGs organizedinto

FPOs/informal

associations

supporting

productivity,

efficient access to

input and output

linkages with

agriculture

programs.

75% met orexceed quality

benchmarks on

group functioning

Farmers in 80% FIGs

confident and keen

to positively change

their currentcondition and have

developed plans to

synergise planning

and market access

on the cluster

identified products.

Strengthen farmercapacity through

agricultural best

practices for

enhanced

productivity

Conduct exposure forselected men and

women from project

villages to villages /

farm practicing

modern farming

methods, such as

different crop mixes,

modern techniques

and intensive farming

60% of all familiesinterested to take

up improved crops

have access to

quality inputs

40% of participantland brought into

intensive farming.

80% familiescultivate a

High adoptionrates of new

practices

promoted under

this project.

75% projectfamilies report

over 50%

increase in yields

in pre existing


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Discuss alternatefarming systems with

groups of farmers

suitable to their

specific situations

and generate

household farming

plans / portfolio Identity training and

extension needs and

potential LRPs to

function as

community based

extension agents

Train LRPs to provideextension support to

farmers adopting

new farming systems

diversified basket

of locally suitable

crops

LRP trainingmodules being

implemented in

large number

Trained LRPssupporting

implementation of

the household and

cluster level farm

plans

crops.

75% projectfamilies have

diversified their

cropping pattern

to cluster

identified crop

The expertiseand services of a

cadre of rained

LRPs being

utilized by the

community

effectively.

Ensuring access to

and usage of quality

inputs and services

for intensive

agriculture

enhancing cluster

competitiveness

Helping familiesaccess working

capital from

SHG/MFI, banking

sector and other

sources

Link / develop supplychannels for inputs

and services

On field handholdingsupport by LRPs to

ensure appropriate

usage of quality

inputs

Demonstration ofusage and

effectiveness of

relevant farm

mechanization

practices

70% ofparticipating

families using

quality inputs

FPOs/ProducerAggregations

promoted

Families coveredby these

collectives

Gross crop outputper hectare

increase by 100%

in rupee value

terms

Participatingfamilies have

assured supply

of quality inputs

and services.

Network of inputand services

delivery

mechanisms

developed in the

local area

Participatingfamilies feel

confident to

intensify their

agriculture.

Facilitate access tofair and

remunerative

markets including

linking producer

groups to marketing

opportunities by

market aggregators

Developingproduction clusters

for producing

significant volume of

marketable surplus

Identifying andbuilding aggregation

/ desegregation

centres in production

cluster wherever

Intensive, marketoriented

production

clusters developed

Surplus producemarketed at

remunerative

prices participant

families engages

in coordinated

Sustainable andcompetitive

linkages for

marketing exist

for produce

Families inproduction

clusters have

multiple options

to sell farm


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required

Linking these clusterswith market players

(eg. Vegetable

traders, commission

agents, retailer etc)

Producer collectivestaking outputmarketing

Formation of FPOs

market oriented

production

Producerscollectives

aggregate and

market produce

from members

Marketaggregators /

retail chains buy

produce from

produce

collectives

produce.

The prevailingrates in the

cluster are fair

vis--vis large

markets in the

region

4. INTEGRATION OF TECHNOLOGY AND MEASUREMENT OF IMPACT

The key identifiers of change after the intervention are as follows:

Capacity building and better coordination

The training programmes conducted as an exclusive capacity building initiative under the

project has accumulated collective strengths of farmers and has thus strengthened the price

negotiating power for them. The collective produce since contributes a bulk to the market has

fortified their position different from the usual deprived and exploited section. The farmers of

the villages have come together and have started sharing their resources for individual progress

as well as contributing to the progress of the sector which drives the rural economy.

Payments schedule: To free the farmers from exploitation by the middleman, the aggregators

have been empowered to collect the farm produce either from the farm gate of the farmers

can also sell it at the aggregation centre. This ensures better weighing of the products through

a digital scale and the best possible price is assured to the famers based on an average of the

prices of all the local markets. The farmers are issued a receipt with the detail of the quantity

they sold at the aggregation point and the corresponding price is transferred to their accounts

hosted by Axis Bank through online transfer on a daily basis.

Better Market Linkage

The aggregation points have minimized the intermediary chain that the farmers had to travel to

reach their products to the consumers. The ease that the aggregation centres have providedthe farmers to sell their produce has minimized the rigorous labour for them along with

reduction in transport charges. The farmers are free from the risk of wastage as the entire farm

products are sold at the aggregation points and there is no chance for post sell wastage or

compromise on the price to ensure better sell.

Better farm price through aggregation centres:

The rate charts available at all the aggregation points offer rate transparency to the farmers.

They are even free to choose whether they want to sell their farm products at the aggregation


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centre. It they are offered better price elsewhere they are free to sell their products to that

particular agent. Thus the initiatives have strengthened the farmers position and have offered

a free choice for them.

A survey in Harirajpur village in Banki, Cuttack, showed the outcomes related to price

realization which affirmed that the farmers share has been increased and the enhancement is

highest in case of tomato.

5. CONCLUSION

The project intervention in Odisha has shown a remarkable progress and has already oriented

total of 1500 farmers in Jajpur and 2000 farmers in Cuttack district. The stakeholders have

actively intervened to open group accounts and inter initiate inter lending activities within the

groups. The FIG members have chosen their leader representatives among whom a board of

directors has been selected for the FPO registration. Both the FPOs at Cuttack and Jajpur would

get the DIN numbers shortly.

Eleven retail outlets have been opened and running successfully in Bhubaneswar. The Govt.

has mooted outlets for Cuttack too. The outlets are being managed through PPP model andhave been offering a fair price procuring vegetables directly from farmers and eradicating

middlemen.

5.1 IMPACTS OF INTERVENTION

Almost all the FIG leaders have acquired skills on updating records and monthly grouprecords are properly maintained.

Role clarity among the executive body members on group management. After attending the HRD trainings, the FIG members (30%) have adopted soil testing

measures.

FIG member have started using potash for cabbage cultivation and Vermicompost were notin use earlier.

Extensive use of Pheromone trap as pest control measure among FIG members has beenobserved.

Vegetable growers have adopted use of staking in Tomato and wire in case of creepers forbetter production.

As pest control measure nearly 69% of farmers have adopted deep ploughing, soil firingduring soil preparation and seed treatment

Eleven FIG group members have started preparing organic fertilizers like Panchgavya andhave also used it in their farms.

Few farmers have constructed compost pits 71 farmers have applied for poly house structure and Vermin compost units (Bank DampadaBlock-60 and Rasulpur-11) Many of the farmers are using crates in order to check post harvest loss and are practicing

proper grading, sorting and packaging of vegetables. They are fetching better market price

because of these practices.

Farmers are showing interest in collective marketing. Unity has increased among FIG members. Inter group interaction is leading to sharing of

knowledge and resources on vegetable cultivation, production and marketing.

Increased rapport with horticulture department, resource organizations and plantpathologists for advice.


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Increased knowledge among farmers on Horticulture schemes and provisions.6. Annexure

A survey conducted in Harirajpur, Banki, Cuttack with a sample size of 43 members has

established few areas of improvement related to market access as recommended by the

beneficiaries.

Table 3: The suggestive measures and the corresponding number and percentage of

respondents.

SL

No

Suggestions No. of

Farmers

Percentage

of Farmers

1 Receiving messages through SMS related to price of different

vegetables of nearby markets

41 95.34%

2 Opening of more aggregation centres 43 100%

3 Willingness to sale total produce to the aggregator 42 97.67%

4 Provision of retail outlet for FPO / FIG in vegetable malls withgovt. support

39 90.69%

5 Training for domestic processing 40 93.02%

6 Introduction of new crops 35 81.39%

7 Credit linkage 43 100%

8 Establishment of market yard in clusters 43 100%

9 Protected farming in group mode 38 88.37%

10 Training for quality management storage 42 97.67%

11 Study Tour 40 93.02%

12 Mechanization 39 90.69%

13 Increasing activities of FPO 41 95.34%14 Continuance of the project 43 100%

15 Delay in release of subsidy 43 100%

16 Supply of crates at subsidized rate 43 100%

During the implementation period, the following challenges were faced and the corresponding

solutions have been planned:

Table 4: the Key challenges and the corresponding initiatives

KEY CHALLENGES INITIATIVES / SOLUTIONS

M ore farmers interested to get associated

with the process

The matter was discussed with the

Stakeholders.

The block Athagarh in Cuttack district is

considered for extension where CTRAN has

already mobilized 2500 additional farmers and

FIG promotion in nearing completion.

Unavailability of Agri-inputs For timely distribution of Agri-inputs, seed

requirement of FIG members was assessed

and dealers were contacted. The farmers


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have accumulated their share of money and

received seeds from the Horticulture

department.

Also supply of vegetable seedlings has been

planned for distribution to FIG members on

subsidized rate.

Lesser Budget for exposure The issue was discussed with SFAC and

Horticulture Department. Strategies have

been designed which are to be facilitated by

BASIX livelihood School.

Operational expenses of FIGs & FPOs With intervention, FIGs have been motivated

to raise monthly savings to enable required

capital sharing at FPO level. Provision of

revolving fund / matching contribution could

also address the issues.

Limited access to agri inputs All the FIG members still do not have access to

subsidized agri inputs. Efforts need to be

made for enabling access to suitableprovisions and supply inputs at lesser price.

Market Linkage support through FPO The FPOs formed do not have formal

collaboration with market promoters. Efforts

in this regard have been planned for FPOs to

provide better market linkages to its

members. For the purpose the FPO with the

assistance of Horticulture Dept. & SFAC could

plan for asset creation and initiating Business

activities.

National Vegetable

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