Collaborative Ventures Between Farmers’ Collectives and Corporations

Farmers’ collectives collaborating with corporates to boost agri-produce procurement

Collaborations between farmers’ collectives and corporate giants such as Olam, Big Basket, and Britannia are revolutionizing direct agri-produce procurement practices, aiming to eliminate intermediaries and enhance farmer incomes. This strategic partnership has seen over 8,500 Farmer Producer Organizations (FPOs) joining the Agriculture Ministry’s Online National Agricultural Market (ONDC) platform, with significant governmental support in licensing, infrastructure development, and financing.

Corporate entities like Olam International have initiated direct procurement of agricultural produce from FPOs, marking a significant shift in the agricultural supply chain dynamics. Notable procurements include Olam’s maize acquisitions from farmers’ collectives in various districts of Uttar Pradesh and Bihar. Other prominent players like Mother Dairy, Big Basket, Britannia, and Country Delight are also exploring procurement collaborations with FPOs, as affirmed by an agriculture ministry official.

The move towards direct procurement is not only aimed at boosting farmers’ incomes but also at streamlining the market system and fostering long-term business relationships. Private entities engaged in direct purchases are currently bearing mandi taxes in respective states, prompting authorities to consider waiving mandi fees for FPOs to enhance market competitiveness and infrastructure development.

Under the aegis of the ministry of agriculture’s initiative, efforts are underway to connect corporate buyers with FPOs through interactive webinars and direct engagements. Major buyers like Olam International, Big Basket, Britannia, and others are actively participating in these discussions, facilitated by entities such as the government e-marketplace (GeM) and Agricultural Processed Food Products Exports Development Authority (APEDA).

To enhance the procurement of fresh produce, recent initiatives have seen FPOs actively involved in wheat procurement operations in states like Rajasthan and Uttar Pradesh during the ongoing marketing season. These endeavors, led by cooperatives like NCCF, aim to integrate FPOs into mainstream procurement channels for the benefit of farmers and associated primary agricultural credit societies.

Currently, over 8500 FPOs are engaged on the government’s ONDC platform, offering a variety of agricultural products for sale. To further bolster the business prospects of farmers’ collectives, FPOs are being provided with input licenses and dealership opportunities for essential resources like seeds, pesticides, and fertilizers, enhancing their financial sustainability.

Overall, these collaborative efforts between farmers’ collectives and corporates are reshaping agri-procurement practices, empowering FPOs to realize better value for their produce and establishing a robust foundation for future growth.