Connecting Farmers to Markets

FPO update – March 2021

Snapshot
FPOs On-boarded 322*
260
224 FY 20-21
FY 19-20
135 8,84,546
FY 18-19
64 5,26,451
322* FY 17-18
2,56,952
Farmer Producer Organisations FY 16-17 2,09,283
(FPOs) 1,22,085
have opened accounts
No. of farmers representing the FPOs
*Cumulative figures
8,84,546
Farmers represented by all FPOs
Repeat trades by FPOs
14 45 41
40
States covered
35
30
18 25 22 21 20 20.51
Commodities traded
20
15 11 11 12.4
135 10 6
FPOs Traded on the NCDEX 3.4
5
platform 0
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21

56,188 Quantity traded ('000 MT) No. of FPOs

Traded Quantity MT

Progress 2016-21 (Traded Quantity MT)

3,23,220
Farmers represented by trading
FPOs

11,698 24,337 30,519 34,219 56,188

42,745
Farmers registered for Price
dissemination (SMS Service)

FY16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21

*(All figures 2016-21)
*Cumulative figures

Connecting Farmers to Markets 1 March 2021

 Quantity Traded (MT) FY 20-21
Commodity wise Total Traded Quantity (MT)

9,500 8,780
9,000
8,500
8,000
7,500
7,000
6,500
6,000
5,500
5,000
4,500
4,000
3,500 2,770
3,000 2,620
2,270
2,500
2,000 1,510 1,490
1,500 890
1,000 399 620
500 110 60 60 150 200 40
-

Summary
Cumulative
S.No. Particulars FY 20-21 Jan-21 Feb-21 Mar-21
2016-21

1 FPOs On-boarded 62 7 2 2 322

2 Total Farmers Base 3,54,543 3,628 455 1,080 8,84,546
3 FPOs Traded 62 16 9 16 135
4 Farmers Base of FPOs Traded 2,72,867 1,72,207 8,908 8,690 3,23,220
5 Commodities Traded 15 8 9 9 18
6 Quantity Traded (MT) 21,969* 2,397 2,140 5,665 56,188*
7 Traded Turnover (Rs in Lakh) 9,017 1,096 1,214 3,569 17,463
8 Delivery Given (MT) 4,656 835 340 348 9,878
9 Delivery Taken (MT) 10 10 0 0 80
Turnover of Delivered Quantity (Rs.
10 1,744 391 168 221 2,895
Lakh)
11 Farmers Base 2,508 438 176 143 12,883
*This also includes options trade

Connecting Farmers to Markets 2 March 2021

 State – Stats March 2021
Madhya
Particulars Gujarat Rajasthan Maharashtra
Pradesh

FPOs Traded 4 5 2 5

Farmer base of traded FPOs 3,517 1,951 645 2,577

Quantity traded in MT 120 580 50 4,915

Total number of FPCs on-boarded 0 0 2 0

Farmer base of on-boarded FPCs 0 0 1,080 0

Chana,
Castor, Wheat, RM Seed, Soybean, Soybean,
Commodities traded Jeera Chana, Wheat Chana, COCUD Soymeal, Soy
Oil

Sehore,
Anajr, Patan,
Bikaner, Kota, Washim, Khandwa,
Districts representing traded FPCs Jasdan,
Bundi Ahmednagar Ashoknagar,
Gandhinagar
Jamoniya

Commodities traded since April 2016

Barley Chana Castor COCUD Dhaniya Guar Seed

130 MT 3,040 MT 1,170 MT 3,790 MT 740 MT 230 MT

Jeera Kapas Maize Pepper RM Cake RM Seed

543 MT 24 MT 18,790 MT 16 MT 40 MT 3,050 MT

Soy Meal Soy Oil Soybean Turmeric Wheat Guar Gum

60 MT 1,570 MT 22,055 MT 260 MT 480 MT 200 MT

Connecting Farmers to Markets 3 March 2021

 DIGITAL PLATFORM TAKING THE
FARMERS FORWARD

Uttar Pradesh Govt. Develops India’s First FPO Portal: Uttar Pradesh chief minister Yogi Adityanath launched the
UP FPO Shakti Portal as part of the Kisan Kalyan Mission at an event in Gorakhpur. The portal, the first of its kind in the
country, has been developed by the department of agriculture with the support of the Bill and Melinda Gates Foundation
(BMGF) and is aimed at benefitting the farmers at the grassroots level. It will bring farmers, producer groups, traders
and the department of agriculture and other allied departments of the state government on one platform. Lauding the
efforts of the agriculture department, the chief minister said that the department has been working tirelessly to support
the farmers and Farmer Producer Organizations (FPO) in the state. “UP had taken precedence in introducing various
agri reforms. It has now launched the country’s first portal fully dedicated to its farmers,” he said at the portal launch
event, adding that the initiative will enable farmers to expand their market base, reduce dependency on mandis and
facilitate national and trans-boundary trade.

For More info:https://www.financialexpress.com/economy/uttar-pradesh-govt-develops-indias-first-fpo-

portal/2217322/

NAFED e- Kisan Mandis: NAFED e-Kisan mandis (NeKM) is electronic trading platform with physical infra-structure at
each proposed location in partnership with local Farmer Producer Organisations (FPCs and Cooperatives) to be
integrated with a National Level Digital Marketing Platform. The mandi has both physical and virtual infrastructure and it
is based on spoke & hub model. The physical infra-structure will include digital platform with auctioning facility, pack-
house (including sorting-grading, packing and pre-cooling facilities), warehouse and cold storages if required. FPOs will
get funding support through Agriculture Infra-Structure Fund (AIF) and subsidies available under various Central and
State Government schemes.

For more info: https://www.pib.gov.in/PressReleseDetail.aspx?PRID=1707955

India’s First FPO under Co-Op Act takes birth in UP; NCDC to handhold: Country’s first farmers producer
organisation (FPO) – a green chilli and mushroom processing unit — has been registered under the ambit of the
cooperative societies act in Varanasi, according to a press release issued by NCDC. Registered on February 26, 2021,
Krishak Utpadak Sanghthan Evam Audyanik Viparan Sahkari Samiti, in village tikri under Kashi Vidyapeeth block of
Varanasi, Uttar Pradesh will be set up for processing high value vegetable products. The focus commodities of the FPO
are mushroom and green chilli. The FPO falls within the Prime Minister’s Parliamentary Constituency. Generally, the
FPOs are registered under the companies’ act. However, this is the first time that such an entity has been established
under the Cooperative Societies act as the part of the Government’s Central Sector Scheme titled “Formation and
Promotion of Farmer Producer Organizations (FPOs)” to form and promote 10,000 new FPOs.

For more info: https://www.indiancooperative.com/ncdc/indias-first-fpo-under-co-op-act-takes-birth-in-up-ncdc-to-

handhold/

Connecting Farmers to Markets 4 March 2021

 NCDEX Footprint
NCDEX is actively engaged in training farmers, handholding the Farmer Producer Organisations (FPOs) and
connecting them with the Exchange platform in several states across the country. We have successfully on-boarded
322 FPOs so far.

Punjab - 2

Rajasthan - 65 Uttar Pradesh - 4

Bihar - 15

Gujarat - 37

Jharkhand- 1

Odisha- 2
Madhya Pradesh - 50
Maharashtra - 133
Chhattisgarh - 2

Telangana - 5
Karnataka - 3
Andhra Pradesh - 2

Kerala -1

The number of FPOs in each State represent those FPOs who have either traded or opened a trading account with
NCDEX.

Connecting Farmers to Markets 5 March 2021

 FPO Connect
In the month of March, 2021, 8 awareness program were conducted, 1571 farmers participated
from 4 states.
3rd March – Conducted awareness
program for Newai Kisan producer
Company Limited, Rajasthan based
FPO, 5 representatives
participated.
8th March – 6 members were
participated from Gujarat in
Commodity Market awareness
training program with Reliance
Foundation.
18th March – Awareness program
on Commodity Market and
Options in Goods was explained
to Gujarat based FPOs with
CESMA.
Connecting Farmers to Markets
4th March – Introduction to
Commodity Market program
conducted for Rajasthan based
FPO with FDRVC.
9th March – Training program on
Introduction to Commodity
Market for Gujarat based FPOs
with Gujpro, 6 representatives
participated.
19th March – Training conducted
on Commodity Derivatives Market
with Yara Fertilizers for MP based
FPOs.
Link – (Click here)
6 March 2021
5th March – Awareness program
on Commodity Market for FPOs
of Rajasthan with Grant
Thornton, 12 representatives
participated.
12th March – Conducted
awareness training on
Commodity Market with Reliance
Foundation and Sambhav
Foundation, 25 representatives
participated.
 Important Links
 Frequently Asked Questions for FPOs (Hindi)
https://www.ncdex.com/Downloads/Download/pdf/FAQ_for_FPO_17092018.pdf

 Revised plan for utilization of regulatory fees foregone by SEBI

https://ncdex.com/downloads/fpo/Revised%20Utilization%20Plan-
%20Regulatory%20Fees%20forgone%20by%20SEBI%202020-21.pdf

 Circular on Early Pay-in Facility for Farmer Producer Organisation (FPO)

https://www.nccl.co.in/wp-content/uploads/2018/09/FAQ-on-Early-Payin-of-commodities-for-
FPO-clients.pdf

Soybean
Circular on Utilization of Fund Created out of the Regulatory Fee Forgone by SEBI – Additional
Guidelines
Chana
https://ncdex.com/Downloads/NCDEXImpact/PDF/Utilization%20of%20Fund%20Created%20ou
Guar Gum
t%20of%20the%20Regulatory%20Fee%20Forgone%20by%20SEBI%20%E2%80%93%20Additio
Refined Soy Oil Futures
nal%20Guidelines-%20SEBI%20circulr%20Oct%2019%20,%202020.pdf

 NCDEX under its price dissemination policy offers you to avail the SMS facility. We encourage
you all to register yourself to avail price SMS service, details of which is available through this
link.
https://www.ncdex.com/HelpDocuments/PDP-SMS-Registration_process.pdf

 State-wise List of the Warehouses Registered with WDRA

https://wdra.gov.in/web/wdra/registered-warehouses

 Guidebook of commodity derivative market for FPO – NICR brings the ‘Guidebook for FPOs to
participate in Commodity Derivatives Market’ in association with and under the guidance from
NABARD, GIZ, BIRD-Lucknow and KfW.
https://lnkd.in/escjp8x

Swastya FPC on Reliance deal Mandi.com is a weekly show

for 1000 MT paddy aired on DD Kisan channel,
twice every Sunday at 8:05
A.M. and 5:30 P.M.

All Episodes of Mandi.Com

https://www.youtube.com/watc
are available at
h?v=5DatNaV43qQ https://ncdex.com/fpo/link-of-
mandicom-episodes

Connecting Farmers to Markets 7 March 2021

 Kheti Ke Sikander
On the back of growing confidence, Nimadanchal Agriculture FPC grows its business

Nimadanchal Agriculture Farmer Producer Company
Limited in Khandwa district, MP was incorporated in
November 2016 with 400 farmers from 12 villages of
Pandhana block. The initial yearning of the founder
members was not different from those in other parts of the
country. The nearest mandi was 20-30 kms. away and the
farmers feared they would not get a fair price as the bidding
was concentrated in a few hands. In most of the cases, the
farmers had little crop left with them due to their prior
commitments with their money lenders. In these
circumstances, the farmers got in touch with an NGO that
was working there to promote organic farm practices. The
farmers were advised to establish a Farmer Producer
Organization (FPO) to steer off all these problems and thus,
Nimadanchal Agriculture FPC came into existence.
The company started its business activities with
procurement of wheat. But before the procurement, the
member farmers were trained to upgrade the crop quality at
farm gate itself. The first year, FPC successfully purchased
wheat worth around Rs. 16 lakhs. It purchased wheat at Rs.
1650 per quintal from the farmers when the average price is
mandi was ruling at around Rs. 1500 per quintal. As is
discussed earlier, the farmers didn’t have much crop to sell.
But whatever wheat they could manage to sell to their FPC,
helped them to break the vicious cycle of borrowing from the
commission agents. This paved the way for more
procurement next year and in 2017-18, the FPC spent Rs.
40 lakhs on the purchase.
benefit of around Rs. 4 lakhs due to seed purchasing facility
given by the FPC.
Both the procurement and seed businesses grew gradually
over the years. And when the whole world was grappling
hard to stay afloat due to COVID-19 predicaments,
Nimadanchal Agriculture FPC touched a new record in its
business by registering a turnover of Rs 1.5 cr in 2020-21.
“This has been a good year for our FPC. We added Chana
in our seed business and also started working on NCDEX
futures platform. Although I had heard about it since long, it
was last year only when we first traded in futures. We sold
10 MT soybean in October-November last year and 5 MT in
March this year. These trades gave us a decent profit which
strengthened our confidence in the system,” said Trilok
Gupta from the FPC.
Now, the FPC is planning to work in Chana and Cotton Seed
Oil Cake (COCUD) in near future. “Mandi rate in COCUD is
hovering around Rs. 3200-3500 per quintal whereas we may
get the same from NCDEX at 20% lesser rate including all
our other expenditure. So we are planning to buy it from the
Exchange’s platform in days to come,” Gupta said. “We
have now 1512 shareholders out of which 1172 farmers
have been benefitted to the tune of Rs. 27.47 lakh till date
through our businesses.”
Naturally, if the FPC is beaming with confidence to achieve
new heights in coming days, it is not without reason.

Apart from procurement, Nimadanchal Agriculture FPC took

up another business during 2017-18. The FPC realized that
the seeds their small farmer members got almost always
yielded less than those used by big farmers in the locality.
Smelling some rot in it, the FPC started its own seed
business in 4 commodities, wheat, cotton, maize and
soybean. In the first year, its seed business fetched more
than Rs. 10 lakhs. But the real benefit that the farmers got
was the seeds’ timely delivery, and that too in their village
centre only. This saved around Rs. 100 per bag for farmers
apart from their time and transport cost that they had to bear
for purchasing the seeds. Moreover, the farmers tasted the
benefits of buying seeds with proper receipt for the first time.
They not only started getting better productivity, but also got
awareness about their right to claim if they got bad quality
seeds. In monetary terms, more than 250 farmers got

Connecting Farmers to Markets 8 March 2021

 Gujarat State in Focus
Highlights*
 NCDEX Commodities – Castor Seed, Cotton Seed
Oil Cake, Jeera, Coriander, 29MM Cotton, Kapas,
Guar Seed, Guar Gum & Wheat
 NCDEX Delivery centres – Deesa, Patan, Kadi,
Gondal, Bhabhar, Rajkot, Surender Nagar, Unjha
 Number of FPOs registered on Exchange
platform: 37
 Number of Farmers associated with 37 FPOs:
58,418
 No. of FPOs participated till date: 12
 Number of Farmers associated with 12 FPOs:
9,237
 Total commodity deposited by FPOs: 693 MT
 Total traded commodity by FPOs: 5,343 MT
 Commodities traded by FPOs: Jeera, Dhaniya,
COCUD, Soybean, Castor, Guar Seed, Guar Gum,
RM Seed, Wheat & Turmeric
 Commodities deposited at: Deesa & Unjha
 Financial assistance provided to FPOs:
NABKISAN, Annanya Micro finance & Samunnati
Finance
 Participating Members: Kunvarji Commodities
Brokers Pvt limited & Swastika Investmart Ltd.
 Partner Organisations for capacity building in the
state - NABARD, Reliance Foundation, GUJPRO
IFFCO Kisan Sanchar Ltd. & Shikshan Ane Samaj
Kalyan Kendra
*cumulative figures
Connecting Farmers to Markets
Gujarat is a north-western Indian State, bordered by
Rajasthan to the northeast, Daman and Diu to the
south, Dadra and Nagar Haveli and Maharashtra to the
southeast, Madhya Pradesh to the east, and the
Arabian Sea and the Pakistani province of Sindh to the
west. Its capital city is Gandhinagar, while its largest city
is Ahmedabad. The State took its name from the word
‘Gujara’, the land of Gujjars, who ruled the area during
the 700’s and 800’s.
Gujarat is endowed with varied terrain and numerous
sacred sites. In its urban center of Ahmedabad is the
Calico Museum of Textiles, displaying antique and
modern Indian fabrics. Spiritual leader Mahatma
Gandhi's base from 1917–1930 was Sabarmati
Ashram, where his living quarters remain on view. The
Jama Masjid (Friday Mosque), built in the 15th century,
has a huge courtyard and a columned design.
Gujarat has shown good progress in agriculture. The
economy of Gujarat is largely dependent upon
agriculture. More than 50 percent of the total available
land is being used for agriculture. The main food crops
are Bajra, Jowar, Rice and Wheat. Major commercial
crops or cash crops are Groundnut, Tobacco, Cotton,
Linseed, Sugarcane, etc. Other important cash crops
are Isabgul (Psyllium Husk), Jeera, Mangoes and
Bananas.
NCDEX IMPACT
 FY 20 -21, around 6,620 farmers have
traded on the NCDEX platform through 8
FPOs with traded volume of 3,769 MT
 6 FPOs delivered 571 MT of
commodities (Castor & Jeera) on
NCDEX platform
 4 FPOs, representing 906 farmers have
registered with the Exchange
9 March 2021
 NCDEX Indices

Link for Rainfall Index – (click here)

NCDEX AGRIDEX is India’s first return based agricultural futures Index which tracks the performance of the ten liquid
commodities traded on NCDEX platform. The index represents the basket of ten commodities which are selected
based on the liquidity on exchange platform. NCDEX AGRIDEX can be used for various purposes such as effective
benchmarking, diversification of basket, overall directional indicator of agricultural segment.

NCDEX AGRIDEX is computed in real-time using the prices of the 10 most liquid commodities traded on the NCDEX
platform. The eligibility of its constituents is decided by the average traded value on the exchange platform and based
on other SEBI guidelines. Commodities are weighted based on their national production value and their total traded
value on the exchange platform and based on the guidelines issued by the SEBI .

NCDEX AGRIDEX February month return has been 6.85% with annualized volatility for the month of Mar 13.36%,
while the annualized volatility for the period shown in the above chart (i.e. Apr’20 to Mar’21) was 12.78%. and return
30.82%. The chart below shows the constituents of the Index and their current exposure in the index

TABLE 1: SECTOR-WISE COMMODITY CLASSIFICATION

Sector Commodities
Cotton Complex Cottonseed Oil Cake, Kapas, Cotton
Grains Wheat, Barley, Maize Paddy
Industrial Products Guar Seed, Guar Gum, Castor Seed
Oilseed and Oil Complex RM Seed, Soybean, Refined Soy Oil, Crude palm Oil
Pulses Chana, Moong
Softs Sugar
Spices Turmeric, Dhaniya, Jeera

Connecting Farmers to Markets 10 March 2021

 Partner Ecosystem
Promoting
Agencies

Supporting
Agencies

Financing
Agencies

Consulting
/ Training
Agencies

Members

Connecting Farmers to Markets 11 March 2021

Disclaimer
------------------------------------------------------------------------------------------------------------------ --------------------------------------
This Report is for general information of the recipients. The views and opinions expressed in this document may or
may not match the views of the reader. It does not constitute a personal recommendation or take into account the
particular investment objectives, financial situations, or other needs of the reader. This document is not intended to be
and must not be taken as the basis for any investment decision. It should be noted that the information contained
herein is from publicly available data or other sources believed to be reliable. We are not soliciting any action based
upon this material. Neither NCDEX, nor any person connected with it, accepts any liability arising from the use of this
document.

Connecting Farmers to Markets 12 March 2021