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Agriculture | Can farmer producer groups replace arhtiyas, push crop diversification? -Vibhor Mohan

Can farmer producer groups replace arhtiyas, push crop diversification? -Vibhor Mohan

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published Published on Dec 16, 2017   modified Modified on Dec 16, 2017
-The Times of India

CHANDIGARH: Agri marketing in Punjab is unimaginable without commission agents (arhtiyas). But a section of farmers in the state are beginning to respond to farmer producer organizations' (FPOs) attempt at marketing as an alternative to the traditional direct selling. The move is also expected to help farmers break the wheat-paddy cycle and take to growing vegetables.

A study sponsored by National Bank for Agriculture and Rural Development (NABARD) has found that the 69 FPOs in the state with 2,991 farmers as members have facilitated a shift towards crops without minimum support price (MSP). Twenty-nine more FPOs will be added in the ongoing financial year.

The report makes out a case for integration of FPOs into the agriculture policy of the state by providing them agricultural produce marketing committee (APMC) licenses.

In the case of wheat, out of 74 sampled farmers, 73 continued to sell their produce directly even after FPOs were formed. However, out of 21 pea farmers, 11 switched to FPOs. For other vegetables (except tomato, potato and peas) too, half of the 20 sampled farmers shifted to FPOs.

Not just that, eight other farmers who were growing other crops too shifted to growing vegetables on a part of their land and sold it through FPOs. These included cauliflower, pea, cabbage, tomato, radish, carrot, onion, brinjal, okra, round gourd, ridge gourd, bitter gourd, cucumber, water melon and chilli.

Prof Satish Verma of Reserve Bank of Indian (RBI) chair at Centre for Research in Rural and Industrial Development (CRRID), who has conducted the study said, "The trend shows that agri marketing through FPOs in more profitable, especially for marginal and small farmers who have adopted the new system. Out of 23, 17 were marginal farmers and three semi-medium," he added.

Some of the farmers in Darapur (Jalandhar) and Sujanpur (Pathankot) areas are selling peas and other vegetables only through FPOs. Besides, peas grown over 70% of the land, was sold through FPOs. The area under other vegetables post FPOs has grown marginally to 12 acres from 9.60 acres. "It depends on the functioning of each organisation. The FPO concept is yet to evolve to be really beneficial for marginal farmers. For instances, some FPOs are still relying on commission agents as licenses are still hard to come by," said Kiran Singh, a small farmer from Pathankot.

However, the shift doesn't seem that easy as it turns out that even in case of matured FPOs, the area under cultivation of vegetables as well as sugarcane in kharif season was high but the farmers continued to sell all their produce directly.

"But this area has shifted from cultivation of paddy, which is indicative of some crop diversification taking place in the state. A subtle trend seems to be underway towards growing of produce basket crops, particularly vegetables," added Verma.

The agricultural produce marketing committee (APMC) Act in Punjab makes it mandatory for farmers to sell their produce only in government organised markets through commission agents. These markets are manifested with several imperfections leading to asymmetric information that harms the interests of farmers, says the report.
 
 
The Times of India, 15 December, 2017, please click here to access 

The Times of India, 15 December, 2017, https://timesofindia.indiatimes.com/city/chandigarh/can-farmer-producer-groups-replace-arhtiyas-push-crop-diversification/articleshow/62076859.cms


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