Business Session 2

Business Session 2 (Code BS 2): 12 November 2019 (14:00 – 15:30 hrs.)

Session Theme: Small-holder aggregation Model for Efficient Value Chain and their Financing
Session Organizer: National Bank for Agriculture and Rural Development (NABARD), India


Indian agriculture has been predominantly production oriented and focused on enhancing the productivity of traditional crops with very little attention towards demand-based commercialization of agriculture in the context of changing consumption pattern. Small and marginal farmers account for 85 percent of the agricultural land holdings. Some of the key constraints of small/marginal holding farmers are lack of capital and credit access, fragmented landholdings, inadequate extension services, poor bargaining power, low market efficiency & lack of price discovery system. Aggregation of smallholders of agricultural produce through organizing farmers into Farmers Producers Organizations (FPOs), has been considered as one of the effective means of addressing these constraints and enhancing the farmers’ income.

Problem statement:

Field level studies have clearly established the positive role of such aggregations in terms of increased net income of farmers through informed decision making, improved access to inputs and agro-services, institutional credit, marketing facilities and enhanced efficiency in the farming operations. However, there are challenges and policy gaps in the ecosystem. The important challenges and confronting issues in building sustainable FPOs, are: (a) Lack of technical Skills/ Awareness, (b) Inadequate Professional Management, (c) Weak Financials, (d) Limited access to credit, market and basic infrastructure, (d) Lack of Risk Mitigation Mechanism etc.

Building of robust FPO movement requires mass awareness generation among farmers/ value chain actors and other stakeholders and initiating critical reforms to strengthen the FPO ecosystem, such as adopting appropriate flexible policy by State Governments, strengthening rural marketing infrastructure, earmarking suitable budgets, encouraging private investors to set up efficient agricultural value chains with integration of FPOs for productivity enhancement, aggregation, value addition and collective marketing etc.

Expected Output:

The experts of this business session (BS2) of the 6 th World Congress have been drawn from the stakeholders directly promoting or supporting FPO movements in the country. They will deliberate on this top priority development agenda and expected to provide some workable pathways so that the Government will be able to redesign the public/private support systems in promoting FPOs and their efficiencies to bring a noticeable change in rural and agricultural ecosystem. The session detail appended below:

14:00 to 15:30 Business Session 2 (Code BS 2): Session Theme: ‘Smallholder aggregation Model for Efficient Value Chain and their Financing’ (Session Hosted and organized by NABARD, India)
  • Setting the tone: FPO movement in India and contribution of NABARD: Presentation by Shri Sunil Kumar, Chief General Manager, NABARD;
  • Session Chair: Prof. Ramesh Chand, Member, NITI Aayog, Government of India: Introduction to the topic and opening remarks;
  • Presenters
  • Prof Amar KJR Nayak, Professor, Xavier Institute of Management (XIM) Bhubaneswar, Odisha;
  • Dr. Suresh Pal, Director, ICAR – National Institute of Agricultural Economics and Policy Research (NIAP), New Delhi, India.
  • Shri Anil Kumar Sharma, Executive Director, Financial Inclusion and Development Department, Reserve Bank of India; Mumbai, India
  • Mr. Bruno Vindel, Task Team Leader, Agence Francaise De Development (AFD), Paris; France
  • Shri Ashish Mondal, Director, Action for Social Advancement (ASA); Bhopal; India
  • Open forum for Q & A
  • Conclusion and wrap up remarks by Session Chair