FPO Field visit/Workshop 22.06.22 ( Velugu)

FPO composition ( 10 to 15 minutes)

For two purposes

1. Since it is about what they know, gives confidence to initiate deliberations.

2. Having or not having visibility to the data related to these gives them some indication of need to data management.

   -Name

   -Year of formation

   -Shareholders

   -Geography

   -Capital

   -Turnover

   -Audit report

Girivikasam Mutually Aided Cooperative Society Ltd.

Registered on 2015 August 3 and registered under 1995 MACS act.

FPO shareholders 1256 from villages 69 of 7 Gram Panchayath spread across in Kotturu block

9 elected Governing body (4 Female & 5 Male)

K. Karranna is the president of the FPO

M.Kameshwar Rao , Secretary

S.Nageshwar Rao, Treasurer

H.Krishna Rao , BOD members

B.Narsamma , BOD members

A.Santhi. BOD Member

B.Ganesh, BOD members

B.Hasnotti, BOD members

A.Subhika, BOD members

So far they did not hire any CEO and accountant but all the activities taking care of by FPOs BODs. reason for not hiring CEO has been the fund crunch.

Subcommittees : Season wise they constitute subcommittees and they perform their job for the season and terminate it end of the season.

Activities ( 20 to 30 minutes)

What are all the business activities FPO has been doing?

-Purpose is to start with what they know and identify data points either they know well or they dont know.

( Example: In this case , questions like what is the % of curcumin, How do they decide MRP?, Who are they buyers?, What are the quality parameters buyers want to know etc)

largely FPOs undertake, cashew, turmeric and hill brooms business. FPOs generally, procures from the farmer members spread across 67 villages and trade by keeping a margin of 2 to 4 rupees.

They do not undertake product grading, sorting and values addition activities. They prefer to sale raw produce to traders.

Proposed Business / Activity ( 30 minutes)

Why this activity -List out all valid points

-Helps them to understand reasons behind proposing the Business

-We will ask them Gender /Climate perspective in particular once they are done with all the reasons and if they don't cover these two.

Storage cum processing Unit

1 . To do primary processing

2. Hold commodity till they get good price

3. Asset creation - Recognition

4. Can get insurance.

5. Crop loss can be reduced.

6. Skilled work to women

( points to be translated)

Risks involved in the activity ( 20 minutes)

List all the risks in the proposed activity

Helps them to understand that there are risks and they know what they are.

1. Lack of marketing information and opportunity to participate in the bug markets. Markets are controlled by traders and mediators . Very minimal support for the farmers who are willing to sell their produce in the markets.

2. There is no unity among farmers as farmers does not have equal land share or crop productions, and their needs and challenges are different hence small farmers tends sell their produces as when they require money.

3. FPOs activities also not high as desired. Since FPOs activities are low then automatically farmers will get less benefits from the FPOs

4. Natural calamities also discourage farmers to to sell (Distress sell) due to heavy rains and other weather issues because they do not have proper storage facility to store the produce till they get good prices.

5. These farmer groups are mostly depending on the natural streams and rains that mean they cultivate annually one or two crops and hence this could be also reason for less participation.

6. Another major challenge is risk that they do not have sufficient working capital to take up procurement for business.

What are the plans to overcome the risks ? ( 20 minutes)

-They get a chance to discuss mitigation plans and FPOs with experience in similar business activities might suggest proper risk aversion plans and if it is new activity they need facilitation to think about the risks.

1. BODs and farmer members should play a active role to foresee the the challenges and takes necessary steps to deal with them.

2. FPOs : governing body should be play a key role in bringing the transparency and accountability in all aspects of FPO functions. Apart from the ready to share 25 % profits with farmers as bonus , this will increase farmer members participation and bounding to FPO on business aspects.

3. FPO should develop a long term and shot business plans and similar line they should also execute it properly. FPOs should form sub committee to strengthen their wings in business as marketing sub committee, procurement committees, accounts committees extc.

List all the stakeholders/ users

List all the persons / institutions /

-We usually ask the kind of data points that these service providers need from FPO. ( for one service provider in detail) And for rest, we ask them to list data points in their meetings

1. FPO members

2. Traders

3. Processing Units

4. Horticulture department

5. Banks

6. ITDA

7. Other FPOs

8. Focus groups

Budget -

Estimated budget and sources of support (30 Minutes.

-High level budget -Invetsment / Returns

-Projections -They need support from Experts or need templates to fill

When FPO approached Department of Horticulture 2 years , they had given cost estimation for construction of 60x40 Square feet dimension warehouse cost was Rs. 600 per sft that mean it was Rs.14,40,000. But keep material prices hike in the mind and also considering market price then cost may go up to Rs.800 per sft price then the total cost will be Rs.19,20,000/-

They are in the process to submit subsidy application to Dept.of Horticulture to get 75% subsidy on the Government construction estimation cost i.e. Rs14,40,000

other major cost they need invest for the land where they are planning to construct warehouse. this land has already donated a farmers to FPO which is costing around Rs.1 lakh and now this land was registered on FPOs name.

They are planning to mobilize Rs.1 lakh from the fpo shareholders remaining Rs.18,00,000 are expecting from Digital Green.

Scale

List the crops, quantity and number of farmers

This gives clear indication of season wise crops they are planning to work with / Quantity and Number of farmers to get the services ( 10 minutes)

Cashew, turmeric and Hillbrooms largely

and in small quantity they also deals with the tamarind.

Sofar they have done bus

2020-21

Cashew, turmaric, hillbrooms - they have done 47 lakhs business they hav edone

2021-22

Rs.67 laksh (+)

they have already procured 2.5 MTs turmeric worth 2lakhs procured from farmers.

and similarly Cashew 13.5 MTs procured and worth 16 lakhs they paid to farmers

Hillbrooms : 51 MTs 97 Kgs procured from the farmers and the worth Rs.42 lakhs (+)

1256 registered shareholder

Explain about your FPO ( 1-2 minutes

-Name

-Year of formation

-Shareholders

-Geography

-Capital

-Turnover

-Audit report

Use board, registration certificate, Audit reports ( minimum 2 years)

Activities being carried out ( 1 minute)

-List of activities

-Turn over of each activity

-Number of farmers benefited

-Photos, Machineries etc

Proposed Plan ( 1-2 minutes)

-List reasons for selecting the activity

-Crops / quantity/ Farmers

-Board, chart paper

Budget ( 2-3 minutes)

-Estimate

-Different sources of support

-Time line

Excel sheet, written stuff on board ,

Stake holders ( <1 minute)

-List all the stakeholders

Board

Impact

-What impact the activity would have

For example this FPO said

1. Reduces crop loss

2. Realise better price

3. Job creation especially for women semi skilled workers.

FPO Members

1. Crops

2. Price

3. Payment system.

FPO

FPO

-PG wise discussion.

-13 tons of Cashew nut procured over period of 3 months from about 300 farmers.

Traders

-Quantity available

-Quality ( Moisture)

-Price

-Aggregation point

-Time of availability

FPO

FPO

-Like any other farm gate sale with the farmer.

Bank

-Asset Value

-Numbe of Beneficiaiary

-Audit report

-Shareholders particulars

-Balance sheet

-Value certificate

-GST

-KYC documents

FPO

Different agencies

Yet to approach Bank

Other FPOs

1. Facilities available

2. Rent details

FPO

Committee

NA

Department of Horticulture -

To get a subsidy

FPO has got approval letter for construction.

Yet to establish the relationship

ITDA

@Kamalakar Vemula​ (Unlicensed) , can you please the support availed by the FPO from ITDA and the process?