NABARD Initiatives for Farmers' Producer Organizations (FPOs) PDF

For Internal Use only d) Accelerator project for 30 FPOs in Karnataka sanctioned to Krishi Kalpa Foundation: An accelerator project for 30 FPOs in Karnataka was sanctioned with grant assistance of ₹ 159.70 lakh under FSPF...

For Internal Use only d) Accelerator project for 30 FPOs in Karnataka sanctioned to Krishi Kalpa Foundation: An accelerator project for 30 FPOs in Karnataka was sanctioned with grant assistance of ₹ 159.70 lakh under FSPF to enable FPOs play a pivotal role in fostering agricultural innovation and sustainable practices. The project intended to increase the turnover and revenue of FPOs through capacity building, credit linkage, market linkage, etc. e) School Soil Health Programme in 1000 schools: DoA&FW has implemented a pilot project on “School Soil Health Programme” by setting up of 20 Mini Soil Testing Labs in 20 schools (10 Kendriya Vidyalayas & 10 Navodya Vidyalayas) situated in rural areas. As an extension of the programme, NABARD has sanctioned financial assistance of ₹ 12.00 crore for setting up Mini Soil Testing Lab in 1000 schools i.e., KVS/NVs/Eklavyas Model Residential School (EMRS) identified by DoA&FW through NABFOUNDATION as channel Partner. The programme is intended to sensitize school students on the importance of soil health and engage them in soil testing programme and generate soil health cards to farmers through Soil Health card portal of GoI. f) Sanction of pilot for Mobile App Development for AC&ABC scheme: NABARD has sanctioned grant assistance of ₹ 61.36 lakh/- to National Institute of Agricultural Extension Management (MANAGE), Hyderabad for designing and development of Mobile App & Web Application for Agripreneurs for Agri Clinic & Agri business Centre (AC & ABC) scheme and Farmers under FSPF of NABARD for fulfilling the demand-side requirement of facilitating linkages between agripreneurs and farme₹ 4. Farmers’ Producer Organisations (FPOs) NABARD has set up dedicated funds viz., Producers Organization Development Fund and PRODUCE for demonstrating innovative models and facilitate mainstreaming of such models through funding by banking institutions for achieving larger outreach. Cumulatively NABARD has promoted about 7000 FPOs with a membership of more than 24 lakh farmer members, of which, about 82% are small and marginal. A. Progress under Scheme being implemented by NABARD for FPO a. Producer Organisation Development Fund (PODF): PODF has been created out of NABARD’s profit for supporting training and capacity building, market linkages, exposure visits and rural marts of FPOs, leading them to evolve into sustainable business organisations. During FY 2023-24, ₹397.17 lakh was disbursed under PODF. b. Producers’ Organization Development and Upliftment Corpus (PRODUCE) Fund: During 2014-15, GoI created Producers Organization Development and Upliftment Corpus (PRODUCE) Fund of 200.00 crore in NABARD for promotion of 2,000 FPOs. As on 31 March 2024, 2,154 FPOs were promoted and about 10.03 lakh farmers were mobilized contributing to an equity of ₹11,259.74 lakh. About 855 and 1678 FPOs promoted under the scheme have been credit and market linked, respectively. During FY 2023-24, ₹ 672.22 lakh was disbursed. c. Producer Organisation Development Fund-Interest Differential (PODF-ID): During 2018-19, NABARD introduced a new scheme i.e. Producers’ Organization Development Fund – Interest Differential (PODF-ID) for promotion and nurturing of 3000 FPOs. During FY 2023-24, 213 new FPOs were sanctioned under PODF-ID and ₹4144.19 lakh 31  For Internal Use only was disbursed. As on 31 March 2024, about 9.97 lakh farmers have been mobilized contributing to an equity of ₹10661.47 lakh. Further, about 919 and 1523 FPOs promoted under the scheme were credit and market linked, respectively. B. Central Sector Scheme on Formation and Promotion of 10,000 FPOs: GoI had announced Central Sector Scheme on Formation and Promotion of 10,000 FPOs in the Union Budget of 2019-20. NABARD, as one of the Implementing Agencies under the scheme, has empanelled 110 Agencies to work as CBBOs across the country. NABARD is convenor of D-MC in 353 districts & convenes SLCC meeting in 21 states. As on 31 March 2024, NABARD has sanctioned 1,694 FPOs under CSS on 10,000 FPOs. A total of 4.51 lakh farmers have taken the membership of various FPOs by contributing equity of ₹4321 lakh. During FY 2023-24, an amount of ₹1040.35 lakh was disbursed. C. Other Initiatives for supporting FPOs FPO incubator to FPO accelerator: NABARD has supported a FPO accelerator initiatives. This is a structured framework to empower FPOs by providing access to specialized training, mentorship, and resources. By leveraging these platforms, FPOs can enhance their operational efficiency, adopt modern agricultural techniques, and navigate market complexities. This model facilitates networking among FPOs, creating a collaborative ecosystem that encourages knowledge-sharing and collective problem solving & connecting them with leading agri -start-ups. Pilot project on Agri-Value Chain Financing: NABARD has sanctioned ₹ 9.90 lakh to Unnati (M/s. Akshamala Solutions Pvt. Ltd.) for training and digitisation of 08 FPOs and 1 PACS towards capacity building of FPOs, digitization, onboarding of FPO on uStore etc. in Bihar, Uttar Pradesh, and Maharashtra to create a model on Agri Value Chain Financing. Credit Guarantee Scheme: 93 ELIs (Eligible Lending Institutes) have onboarded with NABSanrakshan, so far, under Credit Guarantee Fund Trust for Farmer Producer Organizations (CGFTFPO) and credit guarantee cover of ₹ 278.20 crore have been sanctioned for 1195 FPOs (1561 guarantees). FPO Melas with SFAC and ONDC: NABARD, in partnership with SFAC & ONDC, is conducting FPO Melas (“TARANG-celebrating Collectivisation”) at 50 locations across 24 states/UTs to demonstrate the products of FPOs/OFPOs to enable the marketing & branding of FPO products & to uplift their sales across the country with the help of ONDC network (e-commerce). 23 Melas have been conducted in the first phase across 23 states/UTs. FPO Conclaves: NABARD conducted two conclaves on Sustainability of FPOs at BIRD, Lucknow and BIRD Kolkata. The Kolkata conclave was exclusively for FPOs of Eastern & Northeastern Region. Conclave brought out issues of FPO ecosystem and recommendations for making FPOs sustainable. Price Protection Scheme by NCDEX: NABARD has sanctioned ₹ 25.00 crore to NCDEX for a period of 01 year for Price Protection Programme for FPOs to encourage farmers to avail themselves of Put Option in commodity market. Price Protection through Put Option will enable farmers received assured strike price. The programme will also enable FPOs to avail credit at reasonable cost as bank/financing institution is sure about minimum price that would be realized by farmer’s produce. 32  For Internal Use only 2. Off-Farm Sector Development Off-Farm Development Department has been at the forefront of NABARD’s development initiatives in piloting various innovative interventions for marketing of off-farm products, promoting alternate livelihood options to help curb large scale migration of unskilled workforce to urban areas, reskilling, and promotion of incubation centres to encourage entrepreneurship and start-ups, etc. 1. Achievements during 2023 – 24 (₹crore) Fund Sanction Disbursement Target Achievement % Ach. Target Achievement % Ach. GVN 100.00 69.46 69% 65.00 62.87 97% 2. Skill Development Programme (SDP) During the year 2023-24, an amount of ₹ 16.18 crore was sanctioned for conducting 330 skill development programmes covering 11,416 youth. Approximately 60% of the skilled youth were women. All developmental initiatives under skill have been digitized and are carried out through “NABSKILL” (www.nabskillnabard.org) which captures data on real time basis, right from submission of applications, settlement of claims to effective implementation, monitoring/tracking, placement and building candidate wise data. The portal is accessible to training provider, training seeker and placement agencies. Glimpse of the project ‘Initiative to promote skill development and entrepreneurship among rural youth of Pali and adjoining districts of Jodhpur and Ajmer of Rajasthan’ 33  For Internal Use only 3. Off Farm Producer Organisation (OFPOs) During the year 2023-24, a total of 9 OFPOs in 5 states (02 West Bengal) (02 Bihar) and (02 Uttar Pradesh) (02 Odisha) and (01 in Kerala) have been sanctioned with grant assistance of ₹ 4.39 crore which are expected to benefit 2,520 artisans and weave₹ As on 31 March 2024, a total of 81 OFPOs covering around 25,922 artisans and weavers have been supported with grant assistance of ₹ 42.68 crore across 27 states. 4. Marketing Initiatives During 2023-24, grant support of ₹10.53 crore was sanctioned for setting up 175 rural marts, of which, 101 were mobile vans and ₹12.29 crore was sanctioned for setting up of 80 Rural Haats. Besides regional exhibitions and melas, support was extended for national level Surajkund Mela (in NCR) and Mahalaxmi Saras Mela (Mumbai) to facilitate artisans to directly access the consume₹ During the year, HO and ROs supported conduct of 139 exhibitions. More than 2809 artisans benefitted from these interventions, generating sales of ₹1123 lakh. An innovative scheme called ‘Stall in Mall’ was introduced in 2021-22 to provide support for hiring and/ or setting up of temporary stalls for a period of between one to three months in a year, in reputed malls, stores, market complexes, reputed hotels, and prominent premises (Govt or private), places with good footfall. During 2023–24, 8 stall in malls, with grant assistance of ₹ 84.56 lakh were sanctioned in West Bengal, Rajasthan, Madhya Pradesh, Tripura, Haryana, Punjab, Telangana, and Andhra Pradesh. 5. Rural Business Incubation Centres In order to develop a support eco-system for rural entrepreneurs, NABARD started supporting establishment of Rural Business Incubation centres (RBICs) in 2017-18. Efforts were continued to focus on supporting start-ups through the existing 7 RBICs. As on 31 March 2024, 1315 incubates have been mentored and 425 start-ups graduated and registered themselves with DPIIT, which in turn generated employment for 5,479 persons. 6. Catalytic Capital Fund NABARD introduced Catalytic Capital Fund in March 2020 with a corpus of ₹ 100 crore for supporting Rural and Agri Start-ups entering the “Valley of Death” phase. Presently, support is extended to such agri-startups through NABARD supported Rural Business Incubation Centres and NABARD subsidiaries. During 2023-24, ₹ 294.50 lakh was disbursed under Catalytic Capital Fund to MABIF, AIDEA and AgHub Foundation, for support to 20 start-ups. 7. Geographical Indications NABARD has supported the registration of 293 products under GI and has secured GI registration for 123 products. Some of NABARD supported products, that received GI certification in the Financial Year 2023-24 are Tangsa Textile Products (Arunachal Pradesh), Majuli Mask (Assam), Mankur Mango (Goa), Rajouri Chikri Wood Craft (Jammu & Kashmir), Jodhpur Bandhej Craft (Rajasthan), Risa Textile (Tripura), Jalesar Metal Craft (Uttar Pradesh), Sambhal Horn Craft (Uttar Pradesh) etc. Additionally, so far NABARD has supported registration of 15,820 producers as Authorized Users of GI. 34  For Internal Use only 8. Projects in DPR Mode During the year 2023-24, 10 innovative projects were given in-principle approval. This included projects such as Mobile Food Truck for Transgenders in Sivagangai district, Tamil Nadu; development of wood carving industry in Kargil, Jammu and Kashmir; modernization of workshed for the benefit of weavers of Kasargod Sarees, Kasargod, Kerala etc. The variety of the initiatives shows the impact of this scheme for the diverse target groups. Enhancing the livelihood of fisherwomen with the establishment of Tunnel Solar Dryer Technology for quality dry fish production in Parangipettai block of Cuddalore district, Tamil Nadu 9. Open Network for Digital Commerce (ONDC) An initiative to on-board the OFPOs onto Open Network for Digital Commerce (ONDC) to give them an access to the ever-increasing digital e-commerce market has been put in place. As on 31 March 2024, 24 (Twenty-four) OFPOs have been on-boarded onto ONDC network. 10. Capacity Building Fund – Social Stock Exchange (CBF-SSE) The Capacity Building Fund of Social Stock Exchange (CBF-SSE) was set up in NABARD with funding to be contributed by NABARD, SIDBI, BSE, NSE, and Othe₹ CBF is being used to improve the ability of all stakeholders to navigate through the operational dynamics of SSE, understand the nuances, processes, instruments, etc. As on 31st March 2024, NABARD (₹2.5 crore), SIDBI (₹2.5 crore), NSE (₹2.5 crore) and BSE (₹2.00 crore) has contributed to the CBF. Under the overall guidance of Chairman, NABARD convened first Advisory Board meeting of CBF-SSE. Three Executive Committee meetings were conducted during the FY 2023-24 to facilitate smooth operationalization of the Fund. Also, a cohort meeting of the stakeholders of SSE and, a multi-stakeholder seminar on ‘SSE: way forward’ under the chairmanship of Dr. Vivek Joshi, Secretary, Department of Financial Services (DFS), Ministry of Finance, Government of India was organized by OFDD, so as to provide a common platform for the NPOs, funders and other stakeholders to strengthen, stabilise and sustain the SSE ecosystem in the country. As a result of the coordinated efforts of NABARD, NSE, BSE, and other experts, 6 NPOs were listed on SSE. OFDD and FSDD have subscribed to the projects of two NPOs viz., Eklavya and Unnati, with subscription amounting to ₹30 lakh each. The off-farm development interventions are expected to create significant impact in the lives of rural people comprising artisans, craftsmen, and rural unemployed youth. 35  For Internal Use only 3. Micro-Credit Innovations The key objective of the Micro Credit Innovations has been to facilitate sustained access to financial services for the unreached segments of the population viz. the poor in rural hinterlands, through various products and delivery channels in a cost effective and sustainable manner. 1. Self Help Group (SHG) Programme NABARD has been extending grant support to partner agencies for promotion and nurturing of SHGs, training and capacity building of SHG members and other stake holders, besides initiating special programmes for backward regions. As on 31 December 2023, cumulatively, 140.07 lakh SHGs were savings linked, out of which 116.73 lakh are exclusive women SHGs. Besides, 73.49 lakh SHGs, which includes 69.02 lakh exclusive women SHGs, have loans outstanding to the tune of ₹240495.44 crore as on 31 December 2023. Progress as on 31 March 23 and 31 Dec. 23 is given in the table below: (Number in lakh, Amount in ₹ Crore) Particulars 2022-23 2023-24 (till 31 Dec 2023) No. of Amount No. of SHGs Amount SHGs Savings with banks 134.03 58892.68 140.07 60603.09 Loans disbursed (during the year) 42.96 145200.23 44.14 154044.49 Loans outstanding 69.57 188078.80 73.49 238995.44 NPA % 2.73 2.36 Average loan disbursed/ SHG 3.38 3.49 (₹ lakh) 2. Achievements under FIF and WSHG Fund 2023-24 (Amount in ₹ Crore) S.No Name of the Fund Target for Achievement Achievement Disbursement (%) 1. Financial Inclusion Fund 54.98 50.06 91.05% 2. WSHG Fund 11.60 10.88 93.76% Total 66.58 60.94 91.53% 3. JLG Promotion Joint Liability Groups (JLGs) are positioned as a strategic intervention for providing collateral free credit to small farmers, marginal farmers, tenant farmers, oral lessees, small artisans, etc., thereby reducing their dependence on informal sources for credit. During 2023-24 (till 31 December 2023), 52.03 lakh JLGs were financed by banks, with loans amounting to ₹157353.98 crore. Cumulatively, as on 31 Dec 2023, around 309.95 lakh JLGs have been provided with credit to the tune of ₹6.16 lakh crore. 36  For Internal Use only 4. Training & Capacity building and Livelihood Interventions for SHG members Cumulatively, 20,822 MEDPs were conducted as on 31 March 2024. A total of 2,447 LEDPs were implemented cumulatively as on 31 March 2024. 5. New Initiatives a) MCID introduced two new schemes for providing marketing support to SHGs/ JLGs/ Producer Organizations/ Micro entrepreneurs during FY 2023-24. Grant Support to SHGs/ JLGs/ POs for Physical Marketing of their products through Carts, Gram Dukans, Stalls in stations and airports (under AAI's AVSAR scheme) shopping complex, etc. SHG stall under AVSAR at Departure Lounge at Veer Savarkar International Airport, Port Blair- Rented in a cycle of 15 days per SHG. Grant support to SHGs/ JLGs/Producer Organizations (POs) for training, on boarding, and marketing of their products on online/digital marketplaces viz. E-commerce, social media platforms (such as Instagram, Facebook, WhatsApp) and ONDC. b) During FY 2023-2024, 78 e-commerce training programmes were conducted across the country. Further, 387 SHGs/JLGs/FPOs/OFPOs were on boarded on to the ONDC platform. The objective for FY 2024-25 is to scale up the programme and onboard maximum stakeholde₹ c) A Pilot project for equitable growth of Ultra Poor - Graduated Rural Income Generation Programme (GRIP) was sanctioned during FY 2023-24. The pilot project will be implemented in five districts across five states (Madhya Pradesh, 37  For Internal Use only Maharashtra, Odisha, Jharkhand, and Meghalaya) in 3 cohort sizes (250, 500 and 1000 beneficiaries), in partnership with Bandhan Konnagar, the CSR arm of Bandhan Bank. d) Pilot on Money Purse Application was sanctioned for piloting with one RRB and one Cooperative Bank. The objective of this project is to digitalise SHG transactions by leveraging technology to provide banking services to SHG members at their doorstep without visiting the bank branch physically, to provide seamless member-level data to CICs and provide credit history for members to get individual loans for livelihood activities. e) MOU with NRLM - Marking a strategic alliance to benefit rural women SHGs, NABARD and the National Rural Livelihood Mission (DAY-NRLM) under the Ministry of Rural Development, GoI inked a landmark MoU on 27 February 2024. The comprehensive MoU which covers a period of 3 years, seeks to harmonize NABARD’s role of enabler and facilitator in the SHG ecosystem since inception of the movement, with the transformative goal of NRLM to promote women led development in rural areas. f) A dedicated NABARD page on MYSTORE seller app of ONDC and a curated section for NABARD supported sellers (SHGs, JLGs and POs) on the homepage of the seller app were launched. g) Launch of Nab Enterprises portal for submission of proposals, processing of claims and issue of sanction letter by ROs for MEDPs. h) M-Suwidha- Microenterprises through Skill Upgradation for Women seeks the formulation of need based and location specific developmental projects by strategizing end-to-end interventions to provide sustainable livelihood solutions in farm and off-farm sector by identifying skill gaps, occupational fitments by choosing suitable professions/activities, providing skills through identified Knowledge Partners/Resource Agencies with marketing tie-ups and credit support from banks/ financial institutions. The scheme will be implemented in DPR mode. 6) Other Initiatives MCID sponsors Village Level Programmes (VLPs), which are conducted with support of banks and NRLM, for better interface between bankers and SHGs to facilitate opening of SHG accounts, their credit linkage and regular loan repayments, besides facilitating financial inclusion at the village level. During FY 2023-24, a total of 15794 Village Level Programmes were conducted as against the set target of 10172 VLPs. In addition, MCID has sponsored 1697 capacity building programmes. MCID extends support to Exhibitions/Melas/ Marketing Events, etc., to address the need for marketing of SHG/JLG products. During the FY 2023-24, 142 such marketing events/melas/exhibitions for SHG/JLG products were also organized throughout the country. As part of International Women’s Day 2024 celebrations, MCID organized an exhibition/mela for showcasing products of 18 SHGs, which saw the sale of ₹15.00 lakh (approximately), at NABARD Headquarters from 5th March 2024 to 7th March 2024. 38  For Internal Use only SHGs stall at IWD 2024 celebrations in NABARD, Head Office MCID brought out its annual publication of NABARD, titled ‘Status of Microfinance in India 2023-24’ on 12 July 2023. The bi-lingual publication is a comprehensive source of ground level data on SHG-BLP and JLG financing by banks, MFIs, and NABARD’s interventions in the microfinance sector. It is used as a reference document by key stakeholders connected with the microfinance sector in India. 7) Conference/meetings APRACA: Since 1977, RBI (ARDC) was one of the founder members of Asia-Pacific Rural and Agricultural Credit Association (APRACA) and NABARD has continued the membership with APRACA, Bangkok, Thailand. Shri Shaji K.V as Chairman of APRACA inaugurated and chaired the 98th Regional Policy Forum, 76th Executive Committee and 23rd General Assembly of APARCA at Nanning, China held on 5 th and 6th September 2023. Ms. L. Leivang, CGM, MCID moderated a panel discussion on ‘Green and climate finance to agrifood sector’. WSBI: World Savings Banks Institute (WSBI) is one of the largest international Banking Associations and the only global representative of savings and retail banks. 39  For Internal Use only NABARD has been a member of WSBI since 2008. NABARD’s membership with WSBI as renewed for the year 2023. At Sa-Dhan’s National Conference on Inclusive Growth conducted on 8th-9th November 2023, New Delhi, its annual publication ‘Bharat Microfinance Report 2023’ was released by Shri K. V Shaji, Chairman, NABARD who was the Guest of Honour and Keynote Speaker at the Conference. Further, Smt. L. Leivang, CGM, MCID was a panel member on ‘Transforming Micro borrowers to Micro entrepreneurs – The Synergy of Government and Financial Institutions’ MCID conducted a panel discussion on ‘Digital Solutions to onboard SHGs’ at Global Fintech Fest 2023, Mumbai, which had the participation of Shri. K Lakshminarayanan, GM, MCID, NABARD as the moderator, while Shri. Manigandan E V, CA & CEO, Anniyam Payment Solutions Private Ltd, Dr. Vinay Kumar Singh, Head MFIN India and Shri. K.S. Anbalagan, Senior Advisor, Retail & Social Banking, Indian Banks’ Association (IBA) were panel membe₹ 40