Annexure -I

Proposed action plan for promotion of FFFPOs (aera, members, mode of work, which type of
process will be followed) and Potential Business plan

1. Approach and Methodology for implementing the assignment

The project will be implemented by our organization as a Cluster based business organization
(CBBO). Our organization will use the existing network of its farmer leaders to implement the
project successfully in the allocated districts and blocks. Our organization will create separate
administrative structure to implement the Project. Experts will be deployed to provide advisory
services to FFFPO’s to create sustainable business model. A FFFPO, which is an aggregation of
farmers, will provides higher bargaining power to farmers and helps them realize benefits from
economies of scale. We will provide support services for the parameters for maintaining the
sustainability of FFFPOs.

1. Effective leadership
2. A continuous flow of profit
3. Logical/rational distribution of profit
4. Growth of fund
5. Solving problems
6. Expansion of business
7. Regularity of meetings
8. Members present in group meetings
9. Participatory decision making
10. Proper maintenance of accounts
11. Transparency in functioning
12. Strength of linkages and network
13. External support

Regular capacity building of FFPO board members and other key appointments on Management
Practices

Board members of FFPOs in most of the cases are coming from farming background, head of
village committees, or holder of other leadership positions within the village or at Gram Panchayat
level. Some places where capacity building of board members is very important includes; villages
where local leadership is weak, large number of small holder farmers are present, villages which are
very remote, middlemen is in very strong position. Board members need regular capacity building
upon good management practices and help them develop their business and MIS skills. 

Intra FFPO learning and development platform to be started

There is a need of creating a local platform for learning from each other’s mistakes and success. A
district level knowledge forum will be formed for FFPOs, which should be guided under the
agriculture department or relevant capable government bodies.
 Increase role of FFPO in social development activities

FFPOs are created out of local community in village, where one livelihood activity is predominant;
it may be agriculture, fishing, horticulture etc. All producer groups come together and form FFPO.
Keeping this background in mind, It is necessary to identify the common social problems in the
community. All farmers, fishermen, other producers face similar social problems, as they hail from
one place. To increase the accountability of FFPO, there is a need to define its social role. This step
might help FFPOs in becoming socially responsible institution, which makes them more transparent
and socially accountable. 

Integrating role of FFPOs in strengthening rural entrepreneurial ecosystem

 FFPOs will play more substantive role in rural development in organizing grassroot producers by
collectivizing their produce at ground level. Then, structured marketing linkage can help those
members get their farm gate price in enhanced way improving their lifestyle.

1.1. Cluster based business Organisation

Our organization will work as a Cluster based business organization will establish new FFPO and
provide incubation support to FFPOs

Objectives of Cluster based business organization:

I. To address the ecosystem development challenges – Enterprise, Market, Product,

Knowledge, Idea, Culture, Financial requirements, etc., which shall foster in building an
entrepreneurial culture to promote rural economy through FFPO.

II. CBBOs will be a platform for an end-to-end knowledge for all issues in FFPO promotion.

III. CBBO will promote economically viable, democratic, and self-governing Farmer Producer
Organizations (FFPOs) and sustainable business model

IV. CBBO will remove hurdles in enabling farmers access the markets through their FFPOs,
both as buyers and seller

V. CBBO will facilitate access to fair and remunerative markets including linking of producer
groups to marketing opportunities through market aggregators.

VI. To create an enabling policy environment for investments in FFPOs to leverage their
collective production and marketing power
 VII. Create and provide a platform for FFPOs for accessing multiple avenues that provide
financial and technological support and encourage farmers to join in FFPOs. This platform
will provide mentorship support in all areas of business and technology including business
strategy, finance, human resources, investment proposals, emerging technology trends,
market research, etc. It will also support FFPO to network with industry to create a strong
network of, accelerate innovation and empower start-ups to scale faster.

VIII. Create the infrastructure and environment required for incubation for FFPO.

IX. Promote research and development (R&D) activities for the growth of FFPO.

X. Strengthening farmer capacity through agricultural best practices for enhanced

productivity.

XI. Ensuring access to and usage of quality inputs and services for intensive agriculture
production and enhancing cluster competitiveness.

2. FFPO : FFPO is a generic name, which means and includes farmer- producers’ organization
incorporated/ registered either under Part IXA of Companies Act or under Co-operative Societies Act
of the concerned States and formed for the purpose of leveraging collectives through economies of
scale in production and marketing of agricultural and allied sector
I. Objectives of FFPO

 The primary objective of mobilizing farmers into member-owned producer organizations, or

FFPOs, is to enhance production, productivity and profitability of agriculturists, especially
small farmers in the country.

 The participant farmers will be given the necessary support to identify appropriate crops
relevant to their context, provided access to modern technology through community-based
processes including Farmer Field Schools

 Farmers will be organised into small neighborhood informal groups i.e FFPO relevant to
their context including confederating them into FFPOs for improved input and output market
access as well as negotiating power

 Strengthening farmer capacity through agricultural best practices for enhanced productivity.

 Ensuring access to and usage of quality inputs and services for intensive agriculture
production and enhancing cluster competitiveness.

 Facilitating access to fair and remunerative markets including linking of producer groups to
marketing opportunities through market aggregators
 I. Strengthening farmer capacity through agricultural best practices for enhanced productivity
II. Ensuring access to and usage of quality inputs and services for intensive agriculture
production and enhancing cluster competitiveness.
III. Facilitating access to fair and remunerative markets including linking of producer groups
to marketing opportunities through market aggregators.

II. Approach and Methodology to establish FFPO

I. Mobilizing farmers into groups of between 15- 20 members at the village level (called
Farmer Interest Groups or FIGs) and building up their associations to an appropriate
federating point i.e. Farmer Producer Organisations (FFPOs) so as to plan and implement
product-specific cluster/commercial crop cycles

II. FFPOs are voluntary organisations, open to all persons able to use their services and willing
to accept the responsibilities of membership, without gender, social, racial, political or
religious discrimination

III. FFPOs are democratic organisations controlled by their farmer-members who actively
participate in setting their policies and making decisions. Men and women serving as elected
representatives are accountable to the collective body of members. In primary FFPOs
farmer-members have equal voting rights (one member, one vote) and FFPOs at other levels
are also organised in a democratic manner

IV. Farmer-members contribute equitably to, and democratically control, the capital of their
FFPO. At least part of that capital is usually the common property

V. FFPOs are autonomous, self-help organisations controlled by their farmer-members. If they

enter into agreements with other organisations, including governments, or raise capital from
external sources, they do so on terms that ensure democratic control by their farmer-
members and maintain their FFPO’s autonomy

VI. FFPOs operatives provide education and training for their farmer-members, elected
representatives, managers, and employees so that they can contribute effectively to the
development of their FFPOs. They inform the general public – particularly young people
and opinion leaders – about the nature and benefits of FFPOs

VII. FFPOs work for the sustainable development of their communities through policies
approved by their members.

III. Broad Activities to be undertaken by FFPOs

  The FFPOs may provide and undertake following relevant major services and activities for
their development as may be necessary

 Supply quality production inputs related FFPOs

 Undertake aggregation of smaller lots of farmer-members’ produce; add value to make them
more marketable.

 Facilitate market information about the produce for judicious decision in production and
marketing.

 Facilitate logistics services such as storage, transportation, loading/un-loading etc. on shared

cost basis.

 Market the aggregated produce with better negotiation strength to the buyers and in the
marketing, channels offering better and remunerative prices.

3. Project Implementation Strategy

Formation and promotion of FFPO is based on Produce Cluster Area, which is
broadly defined as:
FFPO SERVICE MODEL

The FFPO will offer a variety of services to its members. FFPO will provide end-to-end services to
its members, covering almost all aspects of cultivation (from inputs, technical services to
processing and marketing). The FFPO will facilitate linkages between farmers, processors, traders,
and retailers to coordinate supply and demand and to access key business development services
such as market information, input supplies, and transport services. Based on the emerging needs,
the FFPO will keep on adding new services from time to time.

 Financial Services: The FFPO will provide loans for FFPO related Needs
 Input Supply Services: The FFPO will provide low cost and quality inputs to member
farmers.

 Procurement and Packaging Services: The FFPO will procure agriculture produce from its
member farmers; will do the storage, value addition and packaging.

 Marketing Services: The FFPO will do the direct marketing after procurement of agricultural
produce. This will enable members to save in terms of time, transaction costs, weighment
losses, distress sales, price fluctuations, transportation, quality maintenance etc.

 Insurance Services: The FFPO will provide various insurance services related to FFPOs.

 Technical Services: FFPO will promote best practices of farming, maintain marketing
information system, diversifying and raising levels of knowledge and skills in agricultural
production and post-harvest processing that adds value to products.

 Networking Services: Making channels of information (e.g. about product specifications,

market prices) and other business services accessible to rural producers; facilitating linkages
with financial institutions, building linkages of producers, processors, traders and
consumers, facilitating linkages with government programs.

Tentative Work Plan with time-line

Timeline Activities Deliverables Means of verification

3 months
Stage One: Pre-project Detailed Project
Implementation (Three Report (i) Submitted DPR
months) (Checklist Provided)
Baseline on volume, value & (ii) Meeting minutes
market access, centrality List of Product and photographs of
analysis, specific clusters meetings
 identified
(i) Identification of Product (iii) Inception report
specific clusters Database of farmers
prepared,
(ii) Feasibility Analysis -break- computerized and
even estimates analysed

(iii) Project Implementation Various interface

Plan procurement, inputs, table prepared
storage and marketing

6 month Stage Two: Enhancing

Capacity & Implementation of (i) Farmers
Surplus Farm Production Plan Organized into FIGs, (i) List of FIGs/FIG
(Mobilization Phase) LRP identified and registers
training completed
(i) Village meetings- identify on improved (ii) List of LRP/
potential farmers, identify agriculture practices BF/LF trained and
opinion leaders ready for
(ii) FIG formed (min deployment
(ii) Identification of potential 50%) of target
farmers for FIG & FFPOs, (iii) Training
LRP/ BF/LF Identification (iii) Trained LRP/BF curriculum, training
ready for report & participant
(iii) Hand holding support for deployment in field list
Productivity Increase,
IPM/INM/ IPP (iv) Farmers (iv) List of farmers
Participated in adopting package of
(iv) Identifying Value- Improved practices
proposition for setting FFPO Agriculture/
(logic of collectivization) vegetable/pulse (v) No. of farmers
based farming supported, areas of
(v) Exposure Visit of system demonstration
Farmers/opinion leaders
(v) Farmers realized (vi) Six monthly
benefits in terms of report
increased yield and
less expenditures

12 Stage Three: Pre-formation

month Stage of FFPO/Collective and (i) Min 5 village
preparation of FFPOs business level agri business (i) FIG meeting
plan through FIG level exercise potential, gap registers and
analysis exercises shareholders list
(i) Demonstration conducted done. prepared
on improved agriculture
 practices (ii) Information (ii) Business Plan
documented and available at FFPO
(ii) Start up shareholders business plan drafted level and known to
campaign and shared with min 10% promoters
FIGs members and
(iii) Identification of training
needs & imparting training to (iii) 2 modulated (iii) Farmers
promoters and farmers of trainings imparted to information list
FFPO lead/promoters prepared
farmers on Business
(iv) FIGs meeting & plan (iv) FPC Accounts
orientation started for FFPO Statement
scoping, vision building (iv) Share money
exercise & exposure visit of from min 250 (v) Yearly Report
promoters farmers farmers collected

(v) Generate crop-wise (v) FIGs shown

household information with some
surplus, deficit and gap exists trends/indicators for
collective action
(vi) FFPO forming process
initiated (vi) Business Case
of FFPO/Collective
prepared (checklist
provided) Farmers
detailed information
list prepared

(vii) Share money

from 500 farmers
collected

18 Stage Four: FFPO formation

Month Stage
(i) Demonstration of (i) Demo Farmers
(i) Identification of FFPO Farmer Patronage to List
promoters by FIGs Project Concept
(70% repeat farmers (ii) Minutes of FG
(ii) Initiation of statutory and associative tier
process required for formation (ii) Collectivization meetings,
of FFPO like attainment of arrangements photographs
PAN, DIN of Directors etc (FFPO) Instituted
(iii) List of
(iii) Stabilize New Surplus (iii) Share money shareholders
Production System & Farmers from 750 farmers
in 2nd Crop Cycle collected

(iv) Finalizing list of FIG (iv) Institutional

members willing to join FFPOs Arrangements for
and start share money Market Access
 collection Placed

(v) Membership drive (v) Training

continues and framing of Bye- conducted for
laws/MoA /AoA, incorporation farmers
of FFPO

(vi) Training of FIG members

promoters on FFPOs

24 month
Stage Five: (FFPO
establishment stage) (i) FFPOs
established, (i) Minutes of
(i) Physical establishment of office/outlets opened meeting FIG
FFPO subscription to
(ii) FFPO/collective
(ii) CB inputs need assessment FFPO/Collective/
Aggregation (ii) Registration &
(iii) Strengthening FFPO – Structure Placed Compliances
providing services for system
development (Operating (iii) FIG members (iii) Business Plan
System, MIS, HR), deposited their share with key business
money processes
(iv) Business Planning
Exercise Market Linkages for (iv) Certificate of (iv) List of buyers
Produce FFPO incorporation consulted, meeting
awarded report & outcome
(v) Interface with (MoU on price,
buyers/marketers (v) 1st General Body volume and grading
Meeting conducted
(vi) Increasing FFPO’s equity within 90 days of (v) Minutes of BoDs
though matching grants from incorporation register
SFAC
(vi) FFPOs have (vi) Due diligence
formally applied to report submitted to
SFAC for equity SFAC and matching
matching grants grant released to
FFPOs
(vii) FFPOs
successfully passed
in due diligence
report prepared by
Charter Accountants
and submitted to
SFA

30 Stage Six: Business Plan

Month
(i) Implementation of business (i) Min 25% i) Business Plan –
plan of FFPO business activities including financing
executed as per plan plan

(ii) Statutory (ii) Regulatory

Clearance obtained approvals for FFPO
required to carry out activities
business activities
(iii) Certificates
(iii) Operating from concern
System grounded apartments obtained

(iv) Minimum 10% (iv) Farmers Field

target farmers Book (FFB)
accessed improved
agriculture services (v) Increased
including better business turnover of
FFPOs and reflected
in MIS and Balance
sheet

(vi) Pre project ends

report)

36 month
Stage Seven : Phase-out
Systems for post-project
sustainability (i) Copy of
(ii) BoDs passed Agreement
resolution for long
term agreement (ii) Minutes of BoD
Register
(iii) FPCs &
shareholders have (iii) FPCs balance
started getting sheet
income from the
business activities (iv) BoD, AGM
and showing growth registers and
track Satisfactory Reports
of Auditors
(iv) FFPOs are
regular in BoD (v) Project ends
meetings, AGM, report
internal Audits and
Statutory Audits
with minimum
deviation