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Small and marginal farmers in Tamil Nadu will benefit from a ₹ 100-crore collective farming initiative this year with the State government in the process of identifying villages to implement the programme.
Farmers are being organised in a three-tiered structure: Farmers Interest Groups (FIGs) of up to 20 farmers each; Farmers Producers Groups (FPGs) comprising five FIGs totalling 100 farmers; and Farmers Producers Organisations (FPOs) of 10 producers groups each. The first two bring farmers together to achieve economies of scale in production with contiguous areas being farmed as a single unit. The FPOs will play a marketing function.
According to a press note, last year over 10,000 FIGs were organised into 2,000 FPGs. Each of the producers’ groups have been given an investment grant of ₹5 lakh to purchase farm equipment. Apart from using the equipment within the group, these can also be rented out to other farmers.
Purchasing power
Of the total ₹100 crore granted last year, over 8,800 equipment including three integrated harvesters, 747 tractors, 1,849 power tillers, 1,369 weeders, 783 rotavators and over 3,400 other farm machines and equipment were purchased benefiting 1.98 lakh small farmers, the note said.
The FPGs have also been organised into FPOs and these are now in the process of becoming registered companies.
The FPOs are eligible for financial assistance of ₹20 lakh over a period of two years under the provisions of the Small Farmers Agri-business Consortium. The State government will also support these organisations access equity grant of ₹10 lakh available under the SFAC, said the press note.
Agricultural marketing
In the current year, the official said the Tamil Nadu Agricultural Marketing and Agri Business wing hopes to register at least 50 FPOs as companies. As of now, 45 have already been registered with the Registrar of Companies to become Farmers Producers Companies.
The Tamil Nadu Agricultural Marketing and Agri Business will support each company with ₹20 lakh under the National Agriculture Development Programme or the Rashtriya Krishi Vikas Yojana.
The government has a contract farming policy that is in the final stages of formulation.
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