APEDA signs MoU with SFAC

FPOs are an institutional innovation to help smallholders to reduce the cost of produce by procuring necessary inputs in bulk at wholesale rates, aggregation of produce and bulk transport reducing marketing cost, etc. and extend their reach to modern technology and distant markets.

Key Point

• Agri Export Policy announced by the Government of India with “Farmers’ Centric Approach” suggests developing product-specific clusters in the country to help improving productivity and quality of the varieties of crops with special involvement of Farm Producer Organizations (FPOs).
• The policy also aims at addressing the obstacles faced by FPOs through an organization like Small Farmers Agribusiness Consortium (SFAC) and State level organizations to expand the FPO network. To bring in better synergy in the activities, APEDA has signed MoU with SFAC on 18th March 2020.
• It is expected that with the approach of collaboration with the organizations like SFAC, APEDA will be able to reach to a large farmer base for improving the production base of Agri products quantitatively and qualitatively both for maintaining the consistency of supply and establish an image of a quality supplier in the International market leading to increase in export volume and value and indirectly contribute to doubling of farmers’ income.

Areas of cooperation:

• 1.   SFAC to share the list of all clusters in various states with APEDA for achieving scale and aggregation with export orientation. APEDA and SFAC jointly work together to link up the FPOs/FPCs with the exporters to achieve the goal and doubling the farmer’s income as well.
• 2.   To work towards capacity development, outreach programs, awareness programs and workshops of various stakeholders.
• 3.   To work together to showcase to the Indian and Global Market, the products, technologies, processes, knowledge, and services by the FPO sector stakeholders through a variety of modes as may be identified by them from time to time.
• 4.   APEDA to facilitate certification of organic produce /areas by the FPCs assisted or identified by SFAC.
• 5.   To take-up an Agri-Business Promotion Unit in the North East and to mentor and handhold the FPOs in North East.

Agriculture Export Policy, 2018

• To provide an impetus to agricultural exports, the Government has come out with a comprehensive “Agriculture Export Policy” aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The Agriculture Export Policy has the following vision:
• i)   To double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime.
• ii)  To diversify our export basket, destinations and boost high value- and value-added agricultural exports including a focus on perishables.
• iii) To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
• iv) To provide an institutional mechanism for pursuing market access, tackling barriers and deal with sanitary and phytosanitary issues.
• v)  To strive to double India’s share in world agri exports by integrating with the global value chain at the earliest.
• vi) Enable farmers to get the benefit of export opportunities in the overseas market.

APEDA (Agricultural and Processed Food Products Export Development Authority)

• The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December 1985. The Act came into effect from 13th February 1986 by a notification issued in the Gazette of India.
• By the Agricultural and Processed Food Products Export Development Authority Act, 1985, (2 of 1986) the following functions have been assigned to the Authority –
• i)   Development of industries relating to the scheduled products for export by way of providing financial assistance or otherwise for undertaking surveys and feasibility studies, participation in inquiry capital through joint ventures and other reliefs and subsidy schemes.
• ii)  Registration of persons as exporters of the scheduled products on payment of such fees as may be prescribed.
• iii) Fixing of standards and specifications for the scheduled products for exports.
• iv) Carrying out inspection of meat and meat products in slaughterhouses, processing plants, storage premises, conveyances or other places where such products are kept or handled to ensure the quality of such products.
• v)  Improving of the packaging of the Scheduled products
• vi) Improving of marketing of the Scheduled products outside India
• vii) Promotion of export-oriented production and development of the Scheduled products
• viii)   Collection of statistics from the owners of factories or establishments engaged in the production, processing, packaging, marketing or export of the scheduled products or from such other persons as may be prescribed on any matter relating to the scheduled products and publication of the statistics so collected or of any portions thereof or extracts therefrom.

ix) Training in various aspects of the industries connected with the scheduled products.

• APEDA has marked its presence in almost all agro potential states of India and has been providing services to the agri-export community through its head office, five Regional offices, and 13 Virtual offices.
• i)   Head Office – New Delhi
• ii)  Regional Offices – Mumbai, Kolkata, Bengaluru, Hyderabad, and Guwahati
• iii) Virtual Offices – Thiruvananthapuram (Kerala), Bhubaneshwar (Orissa), Srinagar (J&K), Chandigarh, Imphal (Manipur), Agartala (Tripura), Kohima (Nagaland), Chennai (Tamil Nadu), Raipur (Chattisgarh), Ahmedabad (Gujarat), Bhopal (Madhya Pradesh), Lucknow (Uttar Pradesh) and Panaji (Goa)

Small Farmers Agribusiness Consortium (SFAC)

• It is a pioneer in organizing 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 the mobilization of farmers for aggregation across the country with the ultimate aim of the sustainable business model and augmented incomes.
• The Society has been entrusted with the task of implementation of the critically important Delhi Kisan Mandi and National Agriculture Market Scheme on e-platform to progressively free agricultural trade and offers price discovery to farmers. Currently there around 1000 FPOs/FPCs registered with SFAC.