Building Capacity of Smallholder Farmers for a Collective action

When the whole world is working towards achieving the Sustainable Development Goals to end poverty and hunger, achieve food security, improve nutrition and promote sustainable development, the need to strengthen smallholder farmers becomes more pertinent.

Indian’s soaring economy is based on its agriculture base and smallholder farmers contribute 70% of its total production. Hence, it is imperative to work for smallholder improvement in terms of area under cultivation, empowerment, production, productivity, food security, sustainability, and risk management. Small farmers livelihoods are being threatened due to the liberalization and privatization of Indian agriculture and the increasing interest of private capital in the agribusiness sector. Smallholder agriculture faces several constraints related to the small size of the operation. These include the inability to create scale economies, low bargaining power because of low quantities of marketable surplus, scarcity of capital, lack of market access, shortage of knowledge and information, market imperfections, and poor infrastructure and communications.

Against this backdrop, a renewed interest in farmer organization has developed to form a smallholder farmers producer company where the emphasis has been placed on its potential role for collectivisation and food production, productivity, consumption, value addition and marketing of surplus produces. Most of the collective-action emphasizes increasing economies as well as the lowering of transaction and coordination costs as the main benefits of organizing farmers. The creation of smallholder’s pool to maintain their farm production, access to markets, risk management and income improvements are the major reasons for establishing farmers’ producer company

In Jharkhand, Agrarian Prosperity Program (APP) has more than 80% smallholder farmers having agriculture as their mainstay of livelihood. Over the periods, APP has enabled food security of 1111 most-marginalised small farm families through environment-friendly farming practices. Organic farming has shown tremendous result and created a good impact and interest amongst the community. The food basket is diversified with pulses, cereals like wheat, maize, minor millets, and vegetables.

In view of doubling farmers income of Godda, Dumka, Gumla and Chatra District of Jharkhand, Caritas India along with Akhand Jyoti and National Bank for Agriculture and Rural Development (NABARD) has organised a capacity building training for 20 Farmer Productive Organisations (FPO). Chief Executive Officer to (CEO) of 5 farmers producer companies from APP has participated in this residential training at Gram Sathi Voluntary Organisation, Deoghar, Jharkhand. The training aimed to promote smallholder farmers on Legal and Statutory Requirements, Governance and Management of PO and Role and Responsibility of CEO, team building & Conflict resolution.

“Agriculture sector is a high priority for the Government of Jharkhand and a single window facility is provide for smallholders to access information on various Government schemes, weather, pricing of agriculture produces and products, soil health, seeds, fertilizers, crop insurance, financial support and technical knowledge of agriculture production”, informed DDM of Deogarh, Mr. Badyanath Singh to the participants.

Apart from the training, exposure to the ZAMA organisation led by women SHG helped the CEOs to understand the producer company processes. The aspect and importance of value addition of agriculture produce or non-agricultural produce were also shared by Dr. Devajyoti Mukharjee with the participants.

Mr. Krisna Kumar Kanheiya shared about the financial management marketing process and financing institutions. He also shared that for marketing efforts of the producer organisation, NABARD will provide credit and/or grant support for setting up of marketing infrastructure facilities for the sale of produce source of funds for FPOs.