FORMATION OF FPOS- FOCUS NAGALAND

Background:

FOCUS project in Nagaland came into force during the year 2019, and currently is in its 6^th year of existence. The overall objective of the project is ‘to enhance the income and climate resilience of 118,000 households.

The project is designed targeting its intervention around 2 components namely;

1. Improved Agricultural Resilience and productivity
2. Value chain and Market Access

Both the components are interlinked as ‘Improved agricultural resilience and productivity’ focuses its interventions around improving farming systems and enhancing productivity while the component ‘Value Chain and Market Access’ involves its intervention on aggregating produces and meeting market demands.

FOCUS- Nagaland has undertaken Crop based and Livestock based Value Chain Development (VCD) in 8 project districts of Nagaland. Under Crop based VCD the project has identified four main crops- Ginger, Naga Chilly, Coffee and Large Cardamom. Under Livestock VCD piggery was emphasized.

As part of the Value Chain Development initiative- FOCUS project has formed 16 FPOs based around the Value chain commodities supported under the project. Currently the Project has formed and registered 16 FPOs (2 each) from all the 8 project districts- comprising of 8 Crop Based FPOs and 8 Livestock FPOs.

Project’s Objective in forming FPOs:

1. Improving Market Access for rural farmers and enhancing profitability of farmers for their produces
2. Increasing the farm income of Rural farming households through market linkages facilitated by FPOs
3. Develop working Business models which can be adopted by other farming collectives/ group

Current Status of FPOs

• On an average each FPO approximately has a membership of 150 The project currently has a total of 3193 members from all the 16 FPOs
• The FPOs are all registered under the Co-operative Department and bank accounts activated for all the FPOs
• Business Plans have been developed for all the 16 FPOs
• 5 FPOs have carried out business transactions for crops such as Ginger, King Chilly, Lime, Kiwi
• FPOs approximately have a share capital of 15,96,500 lakhs

Seed Fund/ Grant-in-aid support for the FPOs:

The project is supporting the FPOs with a onetime grant support of Rs.10,00,000 (rupees ten lakh only) to assist the FPOs in enhancing their business plans. This support is expected to be utilized by FPOs to become operational service centres for farmers to access extension services for both production and marketing.

16 FPOs supported by FOCUS-Nagaland receive Grant-In-Aid/Seed fund

FOCUS Nagaland organized an MoU signing Programme for the release of grant-in-aid to 16 FPOs supported by FOCUS project, Nagaland on the 28th of June 2024, at the Secretariat conference hall, Nagaland, Kohima. The programme was graced by Mr. Mhathung Yanthan, Hon’ble MLA & Advisor for Agriculture, Government of Nagaland. In his address, Mr. Mhathung Yanthan acknowledged FOCUS for the initiative in supporting financial assistance to FPOs and encouraged the FPOs present to utilize the opportunity in reaching larger markets and collectively achieve economic gains through the umbrella of FPOs. On a note of caution, he cited that many FPOs are formed only to exist, he urged the farmers present to strive in becoming performing FPOs which he believes will play a vital role in transforming the market and business scenario of the State. He ended his note with an encouragement to continue coming together and create a space where sharing of knowledge and experiences can take place.

The State Project Director, Mr. Shanavas C, IAS, in his welcome address appraised all the farmers present on the purpose and objectives of forming FPO, and urged them to become efficient service providers for farmers to access the larger markets. In his speech, he encouraged the FPOs to promote the fellow farmers’ business through value chain development and also promote the youth farmers, while also encouraging them to be successful associations utilizing the grant-in-aid/ seed fund in diversifying their business activities to expanding their operations. Participants of the programme included the District Project Management (represented by the District Agriculture Officers), District Project Officers of all 8 districts, 2 representatives each of the 16 FPO’s, representative of FOCUS contract partner Synergy Technofin Pvt. Ltd (Mr. SL David, Rural Social Community Development Expert) and the staff members of the Project Management Unit, Kohima. The grant-in-aid amounted to One Crore Sixty Lakhs (Rs Ten lakhs each to every FPO) which is a one-time grant provided to assist the FPO’s in their agricultural marketing business plans. The programme was chaired by Ms. Hraveine David, Manager- Gender & Community Institutions, FOCUS-Nagaland, and the closing note was addressed by Mr. Zacheo Murry, Manager-Knowledge Management, FOCUS-Nagaland.