92
S
tate
of
I
ndia
’
s
L
ivelihoods
R
eport
2015
One of the initiatives taken by Access
Development Services for this year’s report
was collection of basic data on member-
ship, governance, staff, business and key
financials. In spite of close follow up, data
was received fromonly 64 PCs, from7 states
(Jharkhand, MP, Maharashtra, Odisha,
Rajasthan, Tamil Nadu and Telangana) and
17 districts
6
covering 62 blocks.
Only 10 of these responses are complete
in all aspects. While one can understand
the reluctance of promoting organisations
to share detailed data on business specific
to individual FPO, inability to share other
basic data raises serious questions about the
existence and actual functioning of PCs and
also the monitoring reports being called for
by POPIs. Since PCs are promoted largely
through government funds and apex PCs are
operational in states with larger concentra-
tion of PCs, it should be possible to track the
performance of PCs. Future policy initia-
tives and modification of existing strategies
for support and nurturance of FPOs cannot
be designed in a data vacuum. Information
on membership, active users, business
volumes, market access, impact of the FPO
on incomes of members etc., should be
gathered so that the fledgling organisations
can be provided the right direction through
appropriate incentives. SFAC andNABARD
need to invest in a web-based monitoring
mechanism, which can facilitate monitor-
ing at different levels—PC themselves, by
POPIs, by apexes, by funders; this will also
build confidence of financial institutions in
lending to PCs.
Member mobilisation and
ownership
Access was able to collect membership data
from 47 FPOs for 2014–15. The minimum
and maximum numbers of total share-
holders are 11 and 5637, respectively, with
the average number being 922. Six PCs,
especially focusing on dairy, have exclusive
women membership, the other companies
have mixed membership. Many PCs are
being promoted under SFAC funding or
NABARD funding. The data available with
SFAC (May 2015) shows that the aver-
age membership per FPO was marginally
more than 1000. The PCs interacted with
during the mission mention that there is a
potential to increase the membership four
fold to 4000.
Access Livelihoods ConsultingCompany,
Hyderabad promotes larger mobilisa-
tion. ALC aims to promote PCs of 10,000
households in 20 to 25 villages over a eight
year time frame. The company believes that
unless a producer to consumer model is
established, benefit may not accrue to pro-
ducers; hence ALC works on shorter value
chains where connectionwith end consumer
has very few intermediaries. While produc-
tion is carried out in villages within 30 to
35 kilometer radius, sales to end consumers
is also aimed in a radius of 100 kilometers.
Thus, commodities with local markets are
targeted in the FPCs promoted by ALC.
Though membership on the basis of
shareholders is larger at 750 to 1000, true
ownership in terms of patronage and avail-
ing of services is yet to stabilise. Fund release
by funding agencies is based on themember-
ship targets to be achieved. SFAC requires
1,000 members whereas NABARD has an
understanding with promoting organisa-
tions that at least 750 members will be
mobilised under each PC. Some of the state
government schemes for promotion have
lower membership targets, of 500 to 750,
to be achieved. The funders require these
performance benchmarks to be achieved
in 12 to 18 months. At present many of
the POPIs are working in new geographic
zones where they are commencing work
for the first time; rural populace, especially
farmers are used to receiving subsidies and
other freebies. Mobilising them to manage
their own institution sustainably and con-
vincing them to subscribe to share capital
6
Badwani, Chhatarpur, Cuttack, Jhabua, Mehboob
nagar, Mandya, Mayurbhanj, Nagapattinam, Nanded,
Nizamabad, Nuapara, Pune, Ratlam, Singbhum,
Tiruvannamalai, Kanchipuram and Tonk.
