OVERVIEW
Small Farmers Agribusiness Consortium (SFAC) is an Autonomous Society promoted by Ministry of Agriculture, Cooperation and Farmers’ Welfare, Government of India. It was registered under Societies Registration Act XXI of 1860 on 18th January, 1994
The Society is also registered as Non-Banking Financial Institution by Reserve Bank of India.
The Society is governed by Board of Management which is chaired, ex-officio, by Hon’ble Union Minister for Agriculture and Farmers Welfare as the President and the Secretary, Department of Agriculture, Cooperation and Farmers Welfare, Government of India, is the ex-officio Vice-President.
SFAC is implementing the central schemes of Government of India namely VCA, EGCGS for economic inclusion of small and marginal farmers in agribusiness activities.
Society is pioneer in organising small and marginal farmers as Farmers Interest Groups, Farmers Producers Organisation and Farmers Producers Company for endowing them with bargaining power and economies of scale. It provides a platform for increased accessibility and cheaper availability of agricultural inputs to small and marginal farmers and in establishing forward and backward linkages in supply chain management. This initiative has triggered mobilization of farmers for aggregation across the country with ultimate aim of sustainable business model and augmented incomes.
Recently the Society has been entrusted with the task ofimplementation of the critically important Delhi KisanMandi and National Agriculture Market Scheme on e-platform to progressively free agricultural trade and offer price discovery to farmers.
VISION AND MISSION
Vision
Promoting Agri-Business by encouraging institutional and private sector investments and linkages to ensure the empowerment of all farmers in the country.
Mission
To link small farmers to technology as well as to the markets in association with private, corporate or cooperative sector and if necessary, by providing backward and forward linkages.
OBJECTIVES AND WORKSCOPE
Objectives
- To catalyze agro-industrial growth in the country based on the principles of:
(a) Ecological sustainability
(b) Economic efficiency
(c) Social equity - To undertake or assist in undertaking programs for employment generation, growth and diversification of agriculture & agro-based industries to increase food production and export of agriculture products, in both primary and processed forms.
- To identify and promote post-harvest processing/manufactures units in the public , private and cooperative sector.
- To promote organization of marketing chain both for domestic and export marketing.
- To influence Government policies for agriculture, there by increasing the flow of resources and augmenting the rate of capital formation in agriculture sector.
- To pave the way for establishment of integrated producers’ organizations with forward and backward linkages.
- To prepare, print and publish papers, periodicals, monographs in furtherance of the objectives of the society.
Work Scope
SFAC in addition to the endeavors complying with its core objectives, also takes up implementation of schemes and programs of various Government of India (GoI), Ministries and Departments and other Financial Institutions and Banks on a service charge basis. The SFAC society is currently implementing the following schemes and programs viz.
The Schematic Pattern of Assistance from SFAC, out of GoI grants-in-aid for promotion of value addition in the hands of farmers, through setting up part-processing, semi-processing and full-processing facilities through the setting up of AgriBusiness ventures all over the country mostly in collaboration with the private sector and active cooperation of commercial banks
SFAC provides to agribusiness projects involving value addition in the hands of farmers. Most of these projects involve agri-partner and post harvest management, marketing etc.
SFAC is endowed with the task of implementation of National Agriculture Market by setting up of an appropriate common e-market platform through private partnership that would be deployable in selected regulated wholesale markets in State/wholesale markets in States/Union Territories (UT) desirous of joining the e-platform.
SFAC has been identified as central procurement agency by GoI for price stabilization of onion and pulses under Price Stabilization Fund.
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Kisan Mandi
Kisan Mandi (KM) is a platform for direct sale of fruits and vegetables to wholesale and retail buyers in Delhi / NCR. SFAC has launched a Kisan Mandi at Delhi in October 2014, with the objective of linking farmers and FPOs to wholesale and retail buyers in the Fruits and Vegetables (F&V) segment. The Delhi Kisan Mandi has already begun its operations. Till date, more than 28,247.712 MTs of fresh produce sourced directly from farmers and FPOs has been marketed to wholesale buyers, such SAFAL, organized retailers, hotels and caterers etc. SFAC has launch e-Kisan Mandi which trades in fresh produce over the internet for the first time in the country. Transactions are directly between producers and buyers, with no commission agents in the middle.
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HOW TO SELL YOUR AGRI PRODUCT ONLINE???
1. What is the National Agriculture Market (NAM) ?
NAM is envisaged as a pan-India electronic trading portal which seeks to network the existing APMC and other market yards to create a unified national market for agricultural commodities. NAM is a “virtual” market but it has a physical market (mandi) at the back end.
2. What is the difference between NAM and the existing mandi system?
NAM is not a parallel marketing structure but rather a device to create a national network of physical mandis which can be accessed online. It seeks to leverage the physical infrastructure of the mandis through an online trading portal, enabling buyers situated even outside the State to participate in trading at the local level.
3. Why is NAM necessary?
It is necessary to create NAM to facilitate the emergence of a common national market for agricultural commodities. Current APMC regulated market yards limit the scope of trading in agricultural commodities at the first point of sale (i.e. when farmers offer produce after the harvest) in the local mandi, typically at the level of Taluka / Tahsil or at best the district. Even one State is not a unified agricultural market and there are transaction costs on moving produce from one market area to another within the same State. Multiple licences are necessary to trade in different market areas in the same State. All this has led to a highly fragmented and high-cost agricultural economy, which prevents economies of scale and seamless movement of agri goods across district and State borders. NAM seeks to address and reverse this process of fragmentation of markets, ultimately lowering intermediation costs, wastage and prices for the final consumer. It builds on the strength of the local mandi and allows it to offer its produce at the national level.
4. How will NAM operate?
The NAM electronic trading platform has been created with an investment by the Government of India (through the Ministry of Agriculture & Farmers’ Welfare). It offers a “plug-in” to any market yard existing in a State (whether regulated or private). The special software developed for NAM is available to each mandi which agrees to join the national network free of cost with necessary customization to conform to the regulations of each State Mandi Act.
5. Are there any conditions for joining NAM?
States interested to integrate their mandis with NAM are required to carry out following reforms in their APMC Act.
a) Specific provision for electronic trading .
b) Single trading licenses valid for trading in all mandis of the State.
c) Single point levy of transaction fee.
6. Will the APMC mandis lose out business due to NAM?
No. NAM basically increases the choice of the farmer when he brings his produce to the mandi for sale. Local traders can bid for the produce, as also traders on the electronic platform sitting in other States. The farmer may chose to accept either the local offer or the online offer. In either case the transaction will be on the books of the local mandi and they will continue to earn the transaction fee. In fact, the volume of business will significantly increase as there will be greater competition for specific produce, resulting in higher transaction fees for the mandi.
7. Who will bear the costs of NAM?
The national level platform has been developed by the Ministry of Agriculture & Farmers’ Welfare, which will also bear the maintenance costs. As stated above, the integration costs for local mandis and customization of software, training etc. will also be paid for by the Ministry of Agriculture & Farmers’ Welfare as a one-time grant at the time of accepting the mandi in the national network. Thereafter, the running costs of the software at the local level, staff costs for quality check etc. will be met from the transaction fee to be generated through the sale of produce. The intention is to avoid any upfront investment by the mandi when it integrates into NAM, and also enable it to support the running cost through additional generation of revenue.
8. Who will actually operate the NAM platform?
Ministry of Agriculture & Farmers’ Welfare, Govt. of India has appointed Small Farmers’ Agribusiness Consortium (SFAC) as the Lead Implementing Agency of NAM. SFAC will operate and maintain the NAM platform with the help of a Strategic partner selected for the purpose.
9. What are the likely benefits of NAM?
NAM is envisaged as a win-win solution for all stakeholders. For the farmers, NAM promises more options for sale at his nearest mandi. For the local trader in the mandi, NAM offers the opportunity to access a larger national market for secondary trading. Bulk buyers, processors, exporters etc. benefit from being able to participate directly in trading at the local mandi level through the NAM platform, thereby reducing their intermediation costs. The gradual integration of all the major mandis in the States into NAM will ensure common procedures for issue of licenses, levy of fee and movement of produce. In the near future we can expect significant benefits through higher returns to farmers, lower transaction costs to buyers and stable prices and availability to consumers. The NAM will also facilitate the emergence of integrated value chains in major agricultural commodities across the country and help to promote scientific storage and movement of agri commodities.
10. Current Status
As on 31st July 2017, 455 Mandis (Click here for Mandi List) across 13 states have been intergrated with e-NAM namely, Himachal Pradesh (19 Mandis), Haryana (54 Mandis), Rajasthan (25 Mandis), Gujarat (40 Mandis), Maharashtra (45 Mandis), Madhya Pradesh (58 Mandis), Chhattisgarh (14 Mandis), Andhra Pradesh (22 Mandis), Telangana (44 Mandis), Jharkhand (19 Mandis), Odissa(10 Mandis), Uttarakhand(5 Mandis) and Uttar Pradesh (100 Mandis).
11. How soon will NAM be functional?
On 14th April, 2016 in 21 Mandis across 8 States Pilot trading of 24 Commodities namely Apples, Potato Onion, Green Peas, Mahua Flower, Arhar whole (Red Gram), Moong Whole (green gram), Masoor whole (lentil), Urad whole (black gram), Wheat, Maize, Chana whole, Bajra, Barley, Jowar, Paddy, Castor Seed, Mustard Seed, Soya bean, Ground nut, Cotton, Cumin, Red Chillies and Turmeric has been launched. As of 31st July 2017, 455 Mandis ( Click here for Mandi List) across 13 states are live and 69 commodities (Click here for Commodity List ) are being traded.
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