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Organizing and Linking Farmers with Markets: Experience of the NATP Project in India: 

Organizing and Linking Farmers with Markets: Experience of the NATP Project in India J.P. Singh, Ministry of Agriculture, India Burton E. Swanson, University of Illinois K.M. Singh, ATMA Patna, Bihar, India Financed by the Government of India and the World Bank

Key Elements of the Strategy: 

Key Elements of the Strategy Shift from food security (i.e., Green Revolution) to diversifying into high-value products India had become self-sufficient in basic food crops Growing domestic market for high-value products; dairy, eggs, fresh fish, fruits and vegetables, etc. To implement this new strategy, farmers had to be organized, trained and linked to these new domestic and international markets Implementing organization pilot tested under NATP was the Agricultural Technology Management Agency or “ATMA” (In Hindi, ATMA mean “soul;” therefore ATMA has become the soul of agricultural development in India.)

ATMA was the Mechanism Used to Decentralize Extension: Critical to a Building “Market-Driven” Extension System: 

ATMA was the Mechanism Used to Decentralize Extension: Critical to a Building “Market-Driven” Extension System Regional and urban market opportunities tend to be “location-specific;” therefore, extension planning must be “bottom-up!” India pilot-tested this decentralized extension model between 1998-2005; now the Government of India is implementing this “market-driven” extension or ATMA model nationwide.

Steps in Implementing the Strategy: 

Steps in Implementing the Strategy Conduct PRA and then develop a Strategic Research and Extension Plan (SREP) for each Project District Identify and evaluate “Success Stories” Determine most promising products/markets Organize farmers into groups Farmer Interest Groups (FIGs) at village level & Farmer Associations (FAs) at block, district & state levels Farmer leaders are critical to the success of FIGs Exposure visits and demonstrations are used to motivate FIG members. Investigate markets to identify interested manufacturers or wholesale markets (i.e., avoid traders; shorten the supply chain to avoid middlemen.)

Implementing the Strategy (cont.): 

Implementing the Strategy (cont.) Collaborate with research (e.g. SAUs or KVKs) to develop and test production and post-harvest technologies and then train FIG members to produce to contract specifications. Public-Private Partnerships are emphasized at block level; emphasis is on “contract farming” between FIGs and companies (e.g. Pepsi and Hindustan Lever are contracting for basmati rice and vegetables for processing)

Building Social Capital VIS-À-VIS MARKET DEVELOPMENT: 

Building Social Capital VIS-À-VIS MARKET DEVELOPMENT Two basic types: Bonding Farmer Federation

Organizing Women Farmers into Commodity-Based Farmer Associations in India: 

Organizing Women Farmers into Commodity-Based Farmer Associations in India

Training Course for Farm Women Leaders: 

Training Course for Farm Women Leaders

Using Farmer Leaders to Teach Other FIG Members about How to Cultivate and Process Aromatic Crops (Mentha): 

Sri. Jagdish Singh in Bihar attended ATMA training programs on medicinal and aromatic plants. In 2002, he formed a FIG of 10 like minded farmers. The FIG now sells mentha to three processing firms. Average net return of $600/ha. He has developed his own low-cost distillation plant (value-added processing). Using Farmer Leaders to Teach Other FIG Members about How to Cultivate and Process Aromatic Crops (Mentha)

Another “Farmer Leader”: 

Another “Farmer Leader” Sri Dhirendra Singh in Bihar formed a group of 15 farmers in 2003 They were introduced to aromatic plants, like lemon grass, citronella and Palma Rosa through an exposure visit. Now each FIG member earns about $700/hectare per year from aromatic crops

Contract Between Fragrance Herbs, Ltd. And FIG Members to Produce Essential Oils : 

Contract Between Fragrance Herbs, Ltd. And FIG Members to Produce Essential Oils Contract negotiated between Fragrance Herbs, Ltd., Patna and FIG’s to supply Mentha, lemon grass, citronella, and Palma Rosa. The company is setting up distillation plants for oil extraction. The company is supplying planting material to ensure product quality. Mr. Krishna Prasad of M/s. Fragrance Herbs in negotiation with PD, ATMA, Patna

Slide12: 

FIG Members Are Producing Organic Vinca Rosa (periwinkle) for a New Diabetes Drug under Contract with a Medicinal Manufacturing Firm

FIG Meeting on Mentha Strategy: 

FIG Meeting on Mentha Strategy

Training Farmers How to Produce Button Mushrooms: 

Training Farmers How to Produce Button Mushrooms

Integration of Fish, Pork and Duck Production + Medicinal Plants: 

Integration of Fish, Pork and Duck Production + Medicinal Plants Piggery Ducks Sweet Potatoes

Production and Value-Addition of Turmeric in Punjab: 

Production and Value-Addition of Turmeric in Punjab Production

Growing Cactus to meet the demand of Urban Consumers : 

Growing Cactus to meet the demand of Urban Consumers

Impact of this New Extension Strategy on Crop Diversification and Farm Income (Average changes in production area and income in 28 project districts between 1999-2003; IIM Lucknow data): 

Impact of this New Extension Strategy on Crop Diversification and Farm Income (Average changes in production area and income in 28 project districts between 1999-2003; IIM Lucknow data) Horticultural Crops: 12  16% Oil Seeds: 3  11% Herbs and Medicinal Crops: 1  5% Sericulture: 0  1% Area planted to cereals declined: 55  47%, but yields increased 14% During this period, average farm income increased 24% in project districts in contrast with only 5% in non-project districts

Conclusion: Key Elements of this New Extension Strategy: 

Conclusion: Key Elements of this New Extension Strategy Refocus some research and extension resources to high-value crops/products, including market assessment Decentralize extension planning and decision-making; begin by focusing on local and regional market opportunities. Empowering Farmers—organize and train farmers so they can link to high-value markets; they must get organized to achieve economies of scale and to increase market power.

Slide20: 

Organizing and Linking Farmers with Markets: Experience of the NATP Project in India J.P. Singh, Ministry of Agriculture, India Burton E. Swanson, University of Illinois K.M. Singh, ATMA Patna, Bihar, India Financed by the Government of India and the World Bank