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Farmer Producer Organization in Andhra Pradesh: a Scoping Study Rythu Kosam Project

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Farmer Producer Organization in Andhra Pradesh: a Scoping Study Rythu Kosam Project Research Report IDC-16 ICRISAT Development Center Farmer Producer Organization In Andhra Pradesh: A Scoping Study Rythu Kosam Project We believe all people have a right to nutritious food and a better livelihood. ICRISAT works in agricultural ICRISAT-India ICRISAT-Niger ICRISAT-Ethiopia research for development across (Headquarters) Niamey, Niger Addis Ababa, Ethiopia the drylands of Africa and Asia, Patancheru, Telangana, India [email protected] [email protected] making farming profitable [email protected] ICRISAT-Malawi for smallholder farmers while ICRISAT-Nigeria Lilongwe, Malawi reducing malnutrition and ICRISAT-India Liaison Office Kano, Nigeria [email protected] environmental degradation. New Delhi, India [email protected] ICRISAT-Mozambique Maputo, Mozambique We work across the entire value ICRISAT-Mali ICRISAT-Kenya [email protected] chain from developing new (Regional hub WCA) (Regional hub ESA) ICRISAT-Zimbabwe varieties to agri-business and Bamako, Mali Nairobi, Kenya Bulawayo, Zimbabwe linking farmers to markets. [email protected] [email protected] [email protected] ICRISAT appreciates the support of CGIAR investors to help overcome poverty, malnutrition and environmental degradation in the harshest dryland regions of the world. See http://www.icrisat.org/icrisat-donors.htm for full list of donors. About ICRISAT: www.icrisat.org ICRISAT’s scientific information: EXPLOREit.icrisat.org /company/ /PHOTOS/ /ICRISAT /ICRISAT /ICRISATco /ICRISATSMCO ICRISAT ICRISAT ICRISATIMAGES 01-2017 DEVELOPMENT ISBN 978-92-9066-592-2 DC CENTER Citation: Raju KV, Kumar R, Vikraman S, Moses Shyam D, Srikanth R, Kumara Charyulu D and Wani SP. 2017. Farmer Producer Organization in Andhra Pradesh: A Scoping Study. Rythu Kosam Project. Research Report IDC-16. Patancheru 502 324. Telangana, India: International Crops Research Institute for the Semi-Arid Tropics. 160 pp. ISBN 978-92-9066-592-2 This report is available at http://oar.icrisat.org/9870 Cover page photos: Prawns, Turmeric, Jasmine flowers and Banana: KV Raju, ICRISAT Groundnuts: Rajesh Nune, ICRISAT © International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), 2017. All rights reserved. ICRISAT holds the copyright to its publications, but these can be shared and duplicated for non-commercial purposes. Permission to make digital or hard copies of part(s) or all of any publication for non-commercial use is hereby granted as long as ICRISAT is properly cited. For any clarification, please contact the Director of Strategic Marketing and Communication at [email protected]. Department of Agriculture, Government of India and ICRISAT’s name and logo are registered trademarks and may not be used without permission. You may not alter or remove any trademark, copyright or other notice Farmer Producer Organization In Andhra Pradesh: A Scoping Study Rythu Kosam Project KV Raju, Ranjit Kumar, Surjit Vikraman, Moses Shyam, Srikanth R, D Kumara Charyulu and Suhas P Wani ICRISAT DEVELOPMENT DC CENTER Sri N Chandrababu Naidu Chief Minister, Andhra Pradesh Message The Government of Andhra Pradesh has envisaged, “Sunrise Andhra Pradesh: Vision 2029 to promote a happy, inclusive and globally competitive society”. As part of this, the state has set up seven missions and the Primary Sector Mission is one of them. To begin with, the state in collaboration with the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) has developed a strategy for Primary Sector development to enable double-digit growth in the Primary Sector across its 13 districts of the state. In order to improve welfare and living standards of farmers, particularly small holders, the government wishes to create an appropriate ecosystem in the state. Certain commodities are identified for providing necessary support system for the entire products and creating value chain. In this entire process, one of the important elements is by promoting innovative institution for farmers to support this transformation. Considering this, the Government of Andhra Pradesh (GoAP) based on a series of consultations with public and private organizations, experts, NGOs and farmers, had brought out the Policy and Operational Guidelines to promote Farmer Producers Organizations (FPOs). Further, the GoAP requested the ICRISAT to carry out a comprehensive scoping study of the functional FPOs in the state. This study is an outcome of intensive discussions with several proposed and functional FPOs and other stakeholders across Andhra Pradesh. I am sure, this study would provide valuable input to the Government of Andhra Pradesh and its various departments, besides, other state governments in India and other countries, who plan to promote FPOs. I am congratulating the ICRISAT team for bringing this timely publication for the benefit of farming community in the state. (Nara Chandrababu Naidu) Sri S P Tucker Chief Secretary, Andhra Pradesh Message The new state of Andhra Pradesh, during the last two years have been relentlessly striving to achieve multidimensional growth. Enormous efforts have been directed to strengthen agriculture, horticulture, and fisheries, dairy, and meat/livestock sectors in terms of new technology, productivity improvement, infrastructure, knowledge, IT applications, market intelligence, linkages, and credit and finance arrangements and so on. But, majority of small and marginal farmer producers in the state are unorganized and fragmented. They are highly prone to underpricing at various stages of production, marketing and value addition. The lack of synergy among concerned government departments is further escalating this situation in the state. Even though the state has robust existing social capital and their productive relationships across commodities are absent. To overcome this situation and to generate more wealth for the farmers, there is an urgent need for creating of membership based institutions which are globally found to be backbone for primary sector growth. So, both Union and State governments are clearly putting considerable emphasis on promoting “Farmers Producers Organizations (FPOs)” as an important policy for creating an ecosystem for enhancing farmers’ profits in the state across sub-sectors. This comprehensive report on ‘Farmer Producer Organization in Andhra Pradesh – A Scoping study’ under Rythu Kosam Project is a timely effort delivered by ICRISAT team to deeply understand the snapshot of FPOs in the state. I am quite confident this report will enhance the understanding of all concerned departments, academicians, researchers, scholars and NGOs. (Satya Prakash Tucker) Contents List of Abbreviations ..................................................................................................................................... xv Preface ........................................................................................................................................................ xvii About the Authors ..................................................................................................................................... xviii Executive Summary ........................................................................................................................................1 Chapter 1. Introduction .................................................................................................................................4 1.1 Background ........................................................................................................................................4 1.2 FPOs in Andhra Pradesh .....................................................................................................................4 1.3 Why this study? ..................................................................................................................................5 1.4 Pre-study planning .............................................................................................................................5 1.5 Consultations with the government departments .............................................................................6 1.6 Report outline ....................................................................................................................................7 Chapter 2. Literature Review .........................................................................................................................8 2.1 Need for setting up of FPOs................................................................................................................8 2.2 Current status of FPOs .......................................................................................................................9 2.3 Reasons for success and failure of FPOs ......................................................................................... 12 2.4 Review of national policy and process guidelines on FPOs ............................................................. 15 2.5 An overview of the current policy and operational guidelines for FPOs of Andhra Pradesh state ............................................................................................................................ 16 2.6 Critical lessons learnt and gaps ....................................................................................................... 18 Chapter 3. Methodology ............................................................................................................................ 20 3.1
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