Bardhaman II BDP

Farmers Producer Company Limited
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Contents
Sl. Chapter Particular Page No.
No.
1 Chapter I Background 5-7
1.1 Main Objective of the FPO 6-7
1.2 Major Challenges faced by Farmer Producer Companies 8
1.3 Rational for Formation of FPOs/FPCs 8
2 Chapter II Executive Summary 8-13
2.1 Cluster Profile 9
2.2 About the Producer Company 9
2.3 Farmer Producer Company at a Glance 10-11
2.4 Block Index Map 12
2.5 SWOT Analysis for The Proposed Business Plan 12-13
3 Chapter Business Activity - 1 (Input Shop) 14-20
III
3.1 Input Supply 14
3.2 Operational 14
Plan
i Advertisement of Services 14
ii Collection of Indents 15
iii Vendor Selection 15
iv Pricing & Payments 15
v Delivery of input farmers 15-16
3.3 Sale of Input 16
Business Summary of Seed Facilitation 16
Business Summary of Fertilizer 17
Urea Application Demand Analysis 17
DAP Application Demand Analysis 18
Business Summary of Fertilizer Facilitation 18
Business Summary – Pesticides/ Insecticide 19
Business Summary of Pesticide Facilitation 20
4 Chapter Business Activity – 2 (Input Supply) 21-23
IV
4.1 Operation Plan for Aggregation & Sale of Produce 21
a Scouting Buyers 21
b Awareness Generation 21
c Aggregation of Produce 21
d Payment to Farmer 22
e Soliciting & Servicing orders 22
4.2 Marketing Strategy 22
i Production & Supply 22
ii Demand & Consumption 22
iii Market Pricing 23
iv Distribution Channel 23
v Market Potential 23
4.3 Sale of Produce 23-24
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Business Summary of Aggregation and sells of produce 23
(Trading):
5 Chapter V Business Activity - 3 (Primary and secondary processing of 25-29
surplus produce)
5.1 Operational Plan 25
a Plant Capacity 25
b Service Charge 25
c Processing and Value Addition of 26
Tomato
5.2 Analysis – Scope in the area – Key Commodities / 27
Activities:
a Sorting and Grading of Fruits and 27
Vegetables
b Packing 28
c Linkage With Bulk Buyer 28-29
6 Chapter Market Plan & Risk Analysis 30-33
VI
6.1 Assessment of Market Opportunities 30
6.2 Robust Supply Chain Model 31
6.3 Designing the Strategies for Marketing 31
6.4 Post Sales Service that an FPO can offer 31-32
6.5 Risk Management 32-33
7 Chapter Organizational and Management Plan 34-35
VII
8 Chapter Financial Plan 36-43
VIII
9 Chapter Project Impact 44
IX
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List of Table
FPO at a glance
SWOT Analysis
General Profile of FPC
PC village wise detail
Crop wise area, production, and productivity of block
Crop wise Area, production, and productivity of shareholders
BOD Profile
Gaps identified and interventions proposed
Administration expenses
Administration expenses
Institution expenses
Fixed electricity expenses
Advertisement expenses
Manpower Expenses
Agri-produce purchase quantity in quintals
Agri-produce procurement expenses
Agri. Input quantity
Input purchase cost estimates
Variable electricity cost estimates
Direct manpower expenses
Depreciation employing the Straight-Line Method
Members’ and Non-Members’ Cleaned and Graded Quantity in Quintals
Cleaning and Grading Income Estimates
Agri-produce trade quantity in quintals
Agri-produce trade estimates
Agri-input trade quantity
Agri-input trade estimates
Assessment of working capital
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List of Abbreviation
FPCL Farmer Producer Company Limited

BOD Board of Directors
CFC Common Facility Centre
FPO Farmer Producer Organization
FCSC Farmer Common Service Centre
Ha Hectare
HHs House Holds
Kg Kilogram
KVK Krishi Vigyan Kendra
IA Implementing Agency 10,000 FPOs Formation and Promotion Project
MRP Minimum Retail Price
MSP Minimum Support Price
PPP Private Player Parties
SWC State Warehousing Corporation
SFAC Small Farmer Agribusiness Consortium
PA Producer Association
PC Producer Company
PG Producer Group
Sq. Ft Square Feet
Qt Quintal
MTG Multitask Group
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Chapter – I
Background
To double the Income in Farming Sector - a gigantic task as has been envisaged by the Hon’ble Prime
Minister, Govt. of India, special emphasis has been given for FPO formation, for collectivization of small
and marginal farmers having land less than one Hectare, (60% surveyed farmers holds up to 0.5Ha
and 24% holds land up to 1.0 Ha. ) who are the main shareholder and are the main contributors of the
rural economy are facing challenges both in respect of production and post-production stages, has
been recognized as an effective and appropriate tool to reduce cost of production, increase per unit
productivity and facilitate better market linkages to ensure augmentation of income, which in turn
will improve rural economy with creation of job opportunities for rural youths.
Department of Agriculture, Cooperation and Farmers’ Welfare, Ministry of Agriculture & Farmers’
Welfare, Government of India has launched a Central Sector Scheme for formation and promotion of
10,000 Farmer Producer Organizations (FPOs) with following objectives:
➢ To provide holistic and broad-based supportive ecosystem to form new 10,000 FPOs to
facilitate development of vibrant and sustainable income-oriented farming and for overall
socio-economic development and wellbeing of agrarian communities.
➢ To enhance productivity through efficient, cost-effective and sustainable resource use and
realize higher returns through better liquidity and market linkages for their produce and
become sustainable through collective action.
➢ To provide handholding and support to new FPOs up to 5 years from the year of creation in
all aspects of management of FPO, inputs, production, processing and value addition, market
linkages, credit linkages and use of technology etc.
➢ To provide effective capacity building to FPOs to develop agriculture entrepreneurship skills

to become economically viable and self-sustaining beyond the period of support from
government.
Small Farmers Agribusiness Consortium is one of the Implementing Agencies in the State of West
Bengal.
1.1 Main Objective Of the FPO
The concept of collective strength is not new. Cooperatives are working traditionally for the farmers
benefit and Agri development by supplying credit and other services. But most of these institutions
are weakened due to poor financial resources and lack of professional management. This resulted to
defunct institutions.
In agriculture and Agri – allied sector most of the collectives have disproportionately focused on the
production side, while providing very little attention to processing, value addition and market
linkages. Hence it requires farmer-controlled institutions to engage in a more holistic and end-to-end
approach in addressing the issues faced by the small farmer. Traditional cooperative societies were
developed based on single activity; however, with changing scenario, holistic value chain approach is
required to develop sustainable collective Institution.
Proposed Farmer Producer Organizations (FPO), therefore, consider interventions starting from
procurement/Initial services Detail Project Report of Bardhaman II Block, Purba Bardhaman
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District, West Bengal to production and processing to marketing in collective form. Implementing
Agencies are supporting this intervention by setting up Cluster- Based Business Organizations
(CBBOs) at the State / Cluster level to form and promote FPOs as per their requirements. CBBOs are
entrusted to assist in the implementation of the program as per scheme guidelines and as may be
suggested by the NPMA. The CBBOs are entrusted,
➢ To carry out baseline survey, cluster finalization, value chain study, formation of groups and
FPOs and assist in their periodical meetings, registration of FPOs, training and capacity-
building, linking these bodies to input suppliers, technology providers and market players.
➢ The CBBOs will help FPOs in preparation and execution of business plan for long term
sustainability, assist in regular interface with various stakeholders like Govt. Agencies,
Financial Institutions, Training and Research and development Institutions at the cluster level
and facilitate them to avail the Equity grant and credit guarantee facility as per their needs for
creation of necessary common pool production, marketing and processing infrastructure.
➢ Will also assist FPOs in communication dissemination to farmers by way of market and crop
advisory, periodical submission of progress reports to NPMA, adherence to all legal and
statutory compliances, MIS Reports generation, proper financial management and utilization
of funds and over all monitoring of the various activities crucial for long term sustainability.
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1.2 Major Challenges faced by Farmer Producer Companies
➢ Many FPOs lack the capacity to manage the supply-chain operations and store the unsold
produce, besides faltering in procurement, logistics and price negotiations.
➢ E-retailing and e-marketing are viable possibilities for FPOs.
➢ Finding the right markets bypassing the present maze of intermediaries is critical for the
success of the FPOs.
➢ Implicitly, ICT tools and block-chain technology for agriculture are the need of the hour. Block-
chain tech, using hyper ledger in the Agri space, enables tracking inefficiencies and improving
transparency in the value chain operations. This would also help identifying better markets
for the produce, improve banker’s comfort to finance such Agri-supply chains managed by
farmers.
➢ Currently, only a few FPOs have developed mobile phone-based extension guidance to help
reduce cost of cultivation and access information about market prices of commodities. This
needs to be followed by all the FPOs.
1.3 Rational for Formation of FPOs/FPCs

There is a need for aggregation of farmers in order to benefit from economies of scale. Producers’
organizations help in reducing the transaction costs and provide a forum for members to share
information, coordinate activities and make collective decisions (Singh, 2013). FPOs (cooperatives/
SHGs/FIGs/Producer Companies), no doubt, have the potential to bring about vertical integration in
the traditional fragmented supply chains with need-based long term business plans. But they also
create opportunities for producers to get involved in value all supply chain activities such as input
supply, credit, processing, marketing and distribution. Now the question arises as to how to develop
an appropriate design for formation of producer organization, the success of which can sustain and
succeed under different limitations.
Government of India has issued guidelines to encourage states to directly support FPO promotion as
a regular activity under various Schemes including RKVY during the XII Plan. These guidelines are
meant to help the states follow a standard methodology for FPO promotion, as well as to provide
indicative costs and a monitoring framework. States may directly engage promoters (such as NGOs,
private companies, research bodies, cooperatives, farmers’ groups) to mobilize the small farmers.
Alternatively, SFAC is empanelling suitable Resource Institutions (RIs) on their behalf. Another option
for the States would be to award the work directly to SFAC, to undertake FPO promotion by providing
the necessary budget to SFAC from the RKVY head.
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Chapter II
Executive Summary
Burdwan II Block has an area of 189.57 km2 / 18957 Hectares. It has 1 panchayat samity, 9-gram
panchayats, 116-gram sansads (village councils), 89 mouzas and 83 inhabited villages. Headquarters
of the Block is at Barshul. Location – 23011'44"N and 87057'38"E.
Gram panchayats of Burdwan II block/panchayat samiti are: Baikunthapur I, Barsul I, Kurmun I & II,
Baikunthapur II, Barsul II, Nabastha I, Bandul II, Gobindapur and Nabastha II.
Agro-Climatic Zone (Planning Commission) - Lower Gangetic plain region (III) and Agro Climatic Zone
(NARP / ICAR) - Old Aluuvial Zone (WB-3)
Areas of Clusters are for Paddy, Baikunthapur I, Nabastha I & II, Gobindapur, Kurmun I & II GP. For
Vegetable, mustard seed, Tila / sesame seed cultivated in the areas under Gram Panchayat
Baikunthapur II, Barsul I & II. Mushroom farming area is mainly under Barsul I GP, Saktigarh area.
Cluster meetings concentrated in the areas – Barshul, Saktigarh, Hatgobindapur, Nabastha areas. All
BOD members are also from these areas.
There is a good scope for this prospective FPC to turn it into a sustainable and profitable venture as
the Govt is trying to provide all the support and the farmers are ready to work as a collective and are
also geared up to use new farm technology and innovations.
Ownership by farmers of agricultural land is as follows - Bargadars 7.55%, patta (document) holders
11.42%, small farmers (possessing land between 1 and 2 hectares) 4.38%, marginal farmers
(possessing land up to 1 hectare) 17.06% and agricultural labourers 59.59%. In numbers, Bargadar –
4090, Patta holders – 6023, Small farmers – 2372, Marginal farmers – 9250, Agricultural labourers –
32304.
Principal agricutural product is Paddy. Total area of the block is 18957 Hectares, total agricultural
land in use is 12950 Hectares. In Kharif season, Aman cultivated in 90 % of land and Vegetable in 10%.
In Rabi season, Boro in 50% of land, whereas, Potato in 20%, Oil seed in 15%, Vegetable in 12% and
Others 3%. Irrigation of the block statistics are as follows: Canal covers an area of 9890 hectares, deep
tubewell in 835 hectares with total 10725 hectares. Pruductivity of paddy is for Aus 32.53 qt/ha,
Aman 28.25 qt/ha, Boro 35.60 qt/ha.
2.1 Cluster Profile

Cluster areas are selected by the CBBO in consultation with the ADA, Dept. of Agriculture, local
progressive farmers, SHG-based Cluster level Federation, and local PRI members. However, it should
be ensured that a cluster of a minimum of 300 – 500 small & marginal farmers should be formulated,
within one Block, identifying contiguous villages of Bardhaman II Block.
Paddy in Kharif season, all the farmers of the block use to cultivate Aman paddy. But, in Rabi season
Boro cultivation main concentration areas are under Baikunthapur I, Nabastha I & II, Gobindapur,
Kurmun I & II GP. In other areas, Boro paddy cultivated in parts.
Vegetable, mustard seed, Tila / sesame seed cultivated in the areas under Gram Panchayat
Baikunthapur II, Barsul I & II.
Mushroom farming area is mainly under Barsul I GP, Saktigarh area.
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Village Profile
Sl. No. Village Name Population Households Nearest Town

1 Barshul 5483 1320 Bardhaman
2 Saktigarh 8432 1946 Bardhaman
3 Hatgobindapur 5832 1381 Bardhaman
4 Nabastha 2387 602 Bardhaman
5 Baikunthapur 2742 642 Bardhaman
6 Bhaita 1797 456 Bardhaman
7 Khargram 3015 741 Bardhaman
2.2 About the Producer Company

Nakshikatha Farmers Producer Company Limited was registered on 25/08/2023 under the
Companies Act 2013 and has its registered office at PLOT - 467, C/O - A. H. MONDAL, DR. A K T
ECHARITY SAKTI, Bhaita, Burdwan - II, Bardhaman - 713149, West Bengal. Nakshikatha
Farmers Producer Company Limited has a strong back up of committed promoters and directors
who are however not very skilful in terms of marketing and financial aspects of business management
but have expertise in agriculture production and understand collective marketing concepts. It has
applied for Rs. 15 Lakh for Equity grant from the Implementing Agency assisted by the 10,000
FPO Formation and Promotion of Central Sector Scheme and implemented by the Govt. of India.
FPOs can get up to Rs. 18 lakh / FPO as Management Support. This Company will have its main
revenue generating business activities in terms of collective purchase of inputs (seeds & fertilizers),
product aggregation and marketing of produce, as well as primary processing of agricultural produce
i.e. cleaning, sorting and grading of the produce.
This Producer Company formed in Paddy, Vegetable, Oil Seed, Mushroom Cluster. This FPC has been
established in Paddy, Vegetable, Oil Seed, Mushroom Cluster village of Barshul of District Purba
Bardhaman. Details about the crop portfolio in this block is detailed out in this plan.
2.3 Farmer Producer Company at a Glance
Sl. Particulars Details

No.
1 Name of the FPO Nakshikatha Farmers Producer Company Limited
2 Legal status Registered
3 Registration act COMPANIES ACT 2013
4 Registration number and date Reg. No.- U01301WB2023PTC264528
Date- 25/08/2023
5 Place of registration Bhaita, Saktigarh
6 Address of registration PLOT - 467, C/O - A. H. MONDAL, DR. A K T
ECHARITY SAKTI, Bhaita, Burdwan - II,
Bardhaman - 713149, West Bengal
7 Contact details
· Address PLOT - 467, C/O - A. H. MONDAL, DR. A K T
ECHARITY SAKTI, Bhaita, Burdwan - II,
Bardhaman - 713149, West Bengal
· Phone/Fax 79088 26747
· Email bardhaman2fpc@gmail.com
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· Website
8 Board of Directors
· No of directors 10
· Women directors 1
9 Name of the CEO & Contact Number Atahar Mondal. 85090 26080
10 Number of employees on payroll 2
11 Share capital (Rs. lakh) 600000

Authorized Paid up 110000
12 Number of shareholders
· Farmer members 309
· Institutional members 2
· FIG 10
· Farmer clubs 2
· Non shareholder farmers Total 20
13 Bank account
· Bank and branch State Bank of India
Saktigarh, Purba Bardhaman
· Account number 42240944180
· IFSC SBIN0006116
14 Funding agency
· Name Small Farmer Agribusiness Consortium
15 Area of operation
· Block Bardhaman - II
· Panchayats Baikunthapur I, Barsul I, Baikunthapur II, Barsul
II, Nabastha I, Gobindapur and Nabastha II.
· Villages Barshul, Saktigarh, Hatgobindapur, Nabastha,
Baikunthapur, Bhaita, Khargram
· Markets Barshul, Hatgobindapur, Bardhaman Town
16 Sectors in which the FPO is working Agricultural Input, Agri-Machineries, Production,
Processing, Packing & Repacking, Marketing,
Credit sectors.
17 Key commodities and core Activities Paddy, Oil seed, Vegetable, Mushroom
Production, Procurement, Marketing
18 Proposed commodity(s) and value Paddy, Vegetable, Oil seed, Mushroom.
chain Activities Processing will be done for all the primary
products.
19 Licenses obtained
· Fertilizer Applied
· Pesticide/Insecticide Applied
· Seed Applied
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· FSSAI FSSAI License Number - 1282 3022 0004 89,
Kind of Business - Wholesaler, Distributor,
Retailer, Category of License - State License,
Issued On 08-11-2023, Valid Upto 07-11-2024
20 Infrastructure available with FPO 1. Office
2. Outlet
21 Business turnover achieved Rs. Year

22 Profit Rs. Year
23 Major risks faced NA
24 Good practices promoted by the FPO NA
25 Major market and distances Two large and major market at two Gram
Panchayat area, Barsul and Gobindapur which
are historically famous. Distances from office of
FPC are 2 Km and 10 Km respectively.
26 Major bank and distances
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2.4 Block Index Map
2.5 SWOT Analysis for The Proposed Business Plan
Strength
• Knowledge on Production Activity - Experienced, traditional farmers are there. They are all
acquainted with farming of paddy, oil seeds, vegetables. Seeds, fertilizers are available in all the areas
and they are accessible. Rice mills, cold storages are present in surrounded areas. There is high
demand level for rice, vegetables, oil seeds, mushrooms. Accessible highways and railways are readily
available which promote business.
• Collectivized producer individuals seeking to generate big volume.
• Fine understanding of the concept of FPC and its importance in FPCs leaders
• Membership of farmers are organized by Farmer Mobilization programmes, through village level
meeting, large meeting with Block and District level agriculture related officers and elected
representatives.
• Ownership by farmers of agricultural land.
• Professional support from Implementing Agency is available all the time.
• Possesses written constitution and article to guide operations.
Weakness
• Limited financial resources
• Inadequate capacity to afford skilled human resources
• Inexperienced board
• Poor infrastructure facilities
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• Limited entrepreneurship skills
• Low investment capacity of members (equity)
• Inadequate support of Bankers and other funding organizations
Opportunity
• Vast untapped potential to increase membership
• Scope for value addition
• Diversification potential towards more remunerative crops & activities
• Internal & external financial access through leveraging services of apt institutions and schemes.
• Equipment hiring services
• Agri input business
• Seed production
• Joint marketing of produce (avoiding exploitative middlemen)
• Scope for producers to secure
• To seek maximum share in consumer price.
• To seek better and competitive marketing opportunities.
• To minimize cost of production.
Threats
• Failures of crops
• Market fluctuation
• Changing Govt. Policies
• Competition from local business
• Cooperative failure due to influence
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Chapter III
Business Activity – 1 (Input Shop)
The Businesses the FPO can undertake shall be classified into three main categories: -
➢ Trading – “buying and then selling” businesses such as procurement and sale of inputs,
commodities, value added products etc.
➢ Production – Primary / secondary processing of the goods of their farmer members
➢ Services – Providing services such as dissemination of latest pre- and post-harvest practices
and technology, doorstep delivery of inputs, crop health monitoring, advisories on Integrated
Pest Management (IPM) and good agriculture practices (GAP) and marketing of produce on
behalf of farmer members.
The farmers procure the required inputs like seeds, fertilizers and other agricultural input from the
nearby Bardhaman Town, Gobindapur. These markets are around 15 - 20 KM away from the
clusters. Though, seeds and fertilizers are sold out by local Samabay Samiti - but it is confined only
among the shareholders of SS. In very few cases, they procure certified seeds and even they are lacking
knowledge on better quality certified seeds due to lack of proper information services. Bardhaman
Town is the nearest market where better-quality certified seeds are available, but they could not
access the service due to lack of collectivization and information.
The following are the ways these challenges can be overcome.
3.1 Input Supply

Proposed Business Activity
The Technical Agency will facilitate farmer market linkages in order to maximize the benefit to the
target population and need of this activity emerged from discussion with the FIG leaders and other
stakeholders. All farmers face challenges in buying good quality (certified) inputs due to supply
constraints and collusion among dealers in the local markets. Inputs are mostly not available on time
and farmers often end up paying above the MRP. All these issues lead to need for collective purchase
of inputs and the PC could be the entity to facilitate this activity for its members especially by creating
linkages and negotiating with the Companies.
3.2 Operational Plan
The Nakshikatha Farmers Producer Company Limited will follow a step-by-step procedure to
perform this activity wherein a series of consultations at PG, PC, FIG and market levels will be
undertaken.
i) Advertisement of services
The PC will advertise its services through a meeting of all PC leaders at least 90 days before the start
of the sowing season (either Kharif or Rabi) to declare its intention to supply Agro-Inputs among the
farmers of the cluster.
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➢ Input Promotion- Initially a word-of-mouth strategy will be used to boost the input demand
in the operational area. Concurrently, public awareness through meetings and announcement
through Toto informing all farmers about the availability of inputs.
➢ Output Promotion- Product promotion will be pursued through word of mouth from PC
leaders to members, personal contacts, mobile SMS/WhatsApp, exhibitions, Kisan fairs,
marketing agencies etc.
ii) Collection of indents
A multichannel strategy will be adopted in order get the best prices if it is not possible to get the best
price through bulk sales of commodity at a point. In order to make available the planned quantities
of inputs on time, the Producer Company has to receive the demand & collection (money) 45 days in
advance before the commencement of the season. Each FPC leader will collect input requirement
along with quantity, choice of varieties and brands from all members of his/her PC on a template
shared by the FPC. The FPC members will be encouraged to club their requirements in case of small
and medium farmers if their need is below the standard packet sizes available in the market. Enquiries
from non-members will be directly attended by the PC office bearers. Every member who wishes to
procure various inputs through Producer Company shall deposit an estimated amount in the account
of the company and a receipt for the same needs to be given to the concerned member/FPC Leader.
Inputs will be provided during or before the sowing time in Kharif and Rabi season. The Inputs will
be purchased from different agencies or from some authentic private sources like or any other such
company where in FPC wishes to procure from. Member farmers will be informed through the
committee when inputs arrive at PC office/go-down and same is distributed to them according to their
demand at that site only. FPC CEO will collect the filled-in templates from the respective FPC leaders
and non-members to collate the data for overall requirement of inputs for the FPC.
iii) Vendor selection

Once the final input requirement is finalized, Nakshikatha Farmers Producer Company Limited
leaders will commence dialogue with input suppliers. Interested parties will be asked to quote their
prices and supply the terms & conditions separately for each of the inputs. Based on the quotations
and supply terms, the best three will be shortlisted and one to one meeting will be arranged between
suppliers & FPC leaders for further negotiation & signing the supply contracts. Payment & Delivery
dates will also be finalized in the same meeting.
iv) Pricing and payments
PC leaders will add its service charges including expenses to the price finalized with the input supplier
to derive the price of inputs for members. Charges proposed to be levied by the PC towards sourcing
& supply of seeds are considered to be based on the margin of the product. The price and expected
delivery dates will be intimated through an open notice and also shared in a meeting with the PC
leaders. The PC will share details and indented quantum of farmers with the supplier
(dealer/distributor/manufacturer). The PC will maintain regular liaison with the supplier and also
make advance payments to the supplier if necessary. This will ensure hassle free and timely supply of
the inputs.
v) Delivery of inputs to farmers
The dealer will supply the indented inputs to the FPC along with separate invoices raised in name of
each farmer. On receipt of the inputs, FPC office bearers will match the invoices and the goods and
create separate lots for each PG. On the delivery day, FPC leaders will hand over the inputs to the FIG
leaders who will receive the goods against a signed acknowledgement. FPC leaders will in turn
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distribute the inputs among FPC members based on the quantities indented and paid for by each
member. Inputs along with the invoice will be supplied directly to the non-members from the FCSC
premises only.
The FPC functionaries will note the allotment number mentioned on each of the input bags and note
the same while supply to the FPC leaders. FPC leaders will in turn note the allotment numbers while
distributing the inputs among the members and share it with the FPC treasurer. It will be used by the
FPC to address grievances from the farmer and seek replacement from supplier in case some lot is
found to be defective.
It is assumed that the FPC will utilise its regular work force and manage this activity within the general
FCSC expenses. It will plan the activity in such a manner that neither extra work force nor additional
expenses be required to complete it. All transportation expenses for the inputs to and from the FC will
be borne by the farmers.
3.3 Sale of Input
Business Summary of Seed Facilitation:
Sl. No Particular Y1 Y2 Y3 Y4 Y5
1 No. of Members 300 550 750 750 1000
2 No. of Active Members 100 300 350 500 650
3 No. of Non-Members
4 Seed Quantity
Required (in KG or
per Saplings)
Paddy 4000 8000 10000 15000 20000
Oil Seed 1000 1500 2000 2500 3000
Vegetables 80000 90000 100000 110000 120000
Sub Total
5 SEED VALUE IN RS/KG
Paddy 240000 480000 600000 900000 1200000
Oil Seed 65000 97500 130000 162500 195000
Vegetables 120000 135000 150000 165000 180000
Sub Total (Rs.) 425000 712500 880000 1227500 1575000
6 Seed Revenue (in Rs.)
Paddy 2,80,000 5,60,000 7,00,000 10,50,000 14,00,000
Oil Seed 75000 112500 150000 187500 225000
Vegetables 2,40,000 2,70,000 3,00,000 3,30,000 3,60,000
Sub Total (Rs.) 5,95,000 9,42,500 11,50,000 15,67,500 19,85,000
The details are prepared keeping in mind the following factors
➢ The numbers are on the basis of discussion with the BoDs and also on the number of
farmers in the Cluster and also nearby villages who are prospective shareholders
joining the FPC in next 5 years.
➢ The seed turnover is also calculated on the basis of the current cropping pattern and
the crops and the seed requirements of each crop. The seed requirement is mostly
calculated on the basis of farmer’s input.
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➢ The area under these producers is based on the average area (1acre) per
producer in the FPC.
➢ The FPC is focusing primarily on farmer members and also would include non-
members in subsequent years.
➢ Transportation expenses for the inputs to and from the FCSC will be borne by the
farmers (Mostly they will come to FCSC and will buy it from there) and the
transportation cost of delivering the inputs at FCSC location will be ensured from the
supplier’s side
➢ 5% inflation is considered for operating costs and revenue every year
➢ Rate for the seed is based on the current market rate and is subject to change over a
period of time.
Business Summary of Fertilizer

Following is the business summary of fertilizer facilitation
Meetings were held with farmers to understand their difficulties faced in procurement of fertilizers
and the come up with intervention ideas to ameliorate the same. Farmers have stated that they face
maximum difficulty in procuring the fertilizers that are required in bulk quantities. They stated that
Urea and DAP and 10:26:26 are the 3 major fertilizers that are required in large quantities. The
farmers need to procure these from local area and get them to the villages on their own entailing high
transaction cost and loss of time. Therefore, the PC has decided to take up collective procurement of
the above 3 fertilizers and make them available to the farmers at nearby locations. Requirement and
usage of these fertilizers were ascertained from the farmers during the group meetings and the same
were triangulated with information from the department personnel and the input suppliers to arrive
at per acre requirement for different crops. The numerical representation of assumptions is below.
Indenting, advance payment, invoice and distribution system will be similar to that followed for seed
supply. The assumed rates and quantum of sale of the fertilizers are mentioned in the tables below.
Charges proposed to be levied by the PC towards sourcing & supply of fertilizers are considered on
the basis of product.
Urea Application Demand Analysis
In Bardhaman II block they require medium amount of urea as it is mostly Paddy being grown.
This is the most concentrated solid nitrogen fertiliser and it is marketed in the pilled form. It is
sometimes used for aerial top-dressing. In the soil, urea changes to ammonium carbonate which may
temporarily cause a harmful local high pH. Nitrogen, as ammonia, may be lost from the surface of chalk
or limestone soils, or light sandy soils when urea is applied as a top-dressing during a period of warm
weather. When it is washed or worked into the soil, it is as effective as any other nitrogen fertiliser
and is most efficiently utilised on soils with adequate moisture content, so that the gaseous ammonia
can go quickly into solution. In dry conditions in the height of summer it is probably better to use
ammonium nitrate.
DAP Application Demand Analysis
Diamonimum Phosphate is the widely used fertilizer by the farmers. It is high in nutritional value and
is popular among the farmers. The ammonium phosphate fertilizer was first made available in the
year 1960. Phosphoric acid reacts with ammonia to form hot slurry which is then cooled to get the
granulated products. The nutrient value stands at relatively high grade at 18-46-0. For making the
Diamonimum phosphate fertilizer of 1-ton capacity it requires 1.5 to 2 tons of phosphate rock, 0.4
18 | P a g e
tons of sulfur to dissolve the rock, and approximately 0.2 ton of ammonia. The DAP is an excellent
source of phosphate and nitrogen. DAP has an alkaline pH and suspend in soil quickly to release
phosphate and ammonium for the plants. The DAP must not be used to close to the roots as the release
of the ammonium can damage the seedlings and the plant roots, and damage occurs when the pH is
higher than 7. DAP is an excellent source of Nitrogen that will gradually be converted into nitrate by
the soil bacteria so a rise in pH is the temporary effect. The differences in the DAP and
Monoammonium phosphate is minor or no difference in plant growth and yield due to Phosphorous
source with proper management.
Business Summary of Fertilizer Facilitation:
Sl. No Particular Y1 Y2 Y3 Y4 Y5
1 No. of Members 300 550 750 750 1000
4 Fertilizer Quantity
Required (in KG)
NPK Kg
DAP- (di-ammonium 1500 2200 3000 3800 4500
phosphate) Kg
MOP (10:26 - 28:28 27750 40000 52400 68500 82000
etc)
Any other Fertilizer 15000 22500 30000 37500 45000
5 Fertilizer Value (in
Rs.)
NPK 0 0 0 0 0
DAP – (di-ammonium 60000 88000 120000 152000 180000
phosphate)
MOP (10:26 - 28:28 832500 1200000 1572000 2055000 2460000
etc)
Sub Total (Rs.) 15,92,500 24,11,000 30,92,000 40,77,000 48,80,000
6 Fertilizer Revenue (in
Rs.)
NPK 0 0 0 0 0
DAP – (di-ammonium 67,500 99,000 1,35,000 1,71,000 2,02,500
phosphate)
MOP (10:26 - 28:28 915750 1320000 1729200 2260500 2706000
etc)
Sub Total (Rs.) 17,33,250 25,44,000 33,64,200 43,06,500 51,58,500

➢ The numbers are on the basis of discussion with the BoDs and also on the number of farmers
in the Cluster and also nearby villages who are prospective shareholders joining the FPC in
next 5 years.
➢ The Fertilizer details are also calculated on the basis of the current cropping pattern and the
crops and the various fertilizer requirements of each crop. The fertilizer requirement is
calculated on the basis of the protocol (Department of Agriculture) and also through farmer’s
input.
19 | P a g e
➢ The area under these producers is based on the average area (1acre) per producer in
the FPC.
➢ The FPC is focusing primarily on farmer members and also would include non-members in
subsequent years.
➢ Transportation expenses for the inputs to and from the FCSC will be borne by the farmers
(Mostly they will come to FCSC and will buy it from there) and the transportation cost of
delivering the inputs at FCSC location will be ensured from the supplier’s side
➢ 8-10% inflation is considered for operating costs and revenue every year
➢ Rate for the fertilizers is based on the current market rate and is subject to change over a
period of time.
➢ Discount offered by the fertilizer supplier is based on the difference in the rate at the
distributor level and the retailer & subject to change over a period of time
Business Summary – Pesticides/ Insecticide
Following is the business summary of pesticide facilitation
Pesticides are indispensable in agricultural production. They have been used by farmers to control
weeds and insects, and their remarkable increases in agricultural products have been reported. The
increase in the world’s population in the 20th century could not have been possible without a parallel
increase in food production. About one-third of agricultural products are produced depending on the
application of pesticides. Without the use of pesticides, there would be a 78% loss of fruit production,
a 54% loss of vegetable production, and a 32% loss of cereal production.
Therefore, pesticides play a critical role in reducing diseases and increasing crop yields worldwide.
Thus, it is essential to discuss the agricultural development process; the historical perspective, types
and specific uses of pesticides; and pesticide behavior, its contamination, and adverse effects on the
natural environment. The review study indicates that agricultural development has a long history in
many places around the world. The history of pesticide use can be divided into three periods of time.
Pesticides are classified by different classification terms such as chemical classes, functional groups,
modes of action, and toxicity.
Pesticides are used to kill pests and control weeds using chemical ingredients; hence, they can also be
toxic to other organisms, including birds, fish, beneficial insects, and non-target plants, as well as air,
water, soil, and crops. Moreover, pesticide contamination moves away from the target plants,
resulting in environmental pollution. Such chemical residues impact human health through
environmental and food contamination. In addition, climate change-related factors also impact on
pesticide application and result in increased pesticide usage and pesticide pollution. Therefore, this
review will provide the scientific information necessary for pesticide application and management in
the future.
Business Summary of Pesticide Facilitation:
Sl. Particular Y1 Y2 Y3 Y4 Y5
No
1 No. of Members 300 550 750 750 1000
4 Pesticide application in L / 3.5 - 5 3.5 - 6 3.5 - 7 3.5 - 8 3.5 - 9
Bigha
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Pesticide price per Bigha 4500 4500 4500 4500 4500
applied
5 Pesticide value (in Rs.) 3375000 6187500 8437500 8437500 11250000
6 Pesticide revenue (in Rs.) 3712500 6806250 9281250 9281250 12375000

➢ In market there are a range of pesticides and related suppliers. Therefore, we have
considered Rs.4500 per Bigha as purchase cost for the pesticide.
➢ 5-10% margin is considered on the pesticide purchase cost.
➢ Quantity of pesticides are for one year with two to three times cultivation (paddy – vegetable
– oil seed)
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Chapter IV
Business Activity – 2 (Input Supply)
Proposed business activity

The farmers in this locality sell their crops mainly at Barshul hat, Hatgobindapur markets directly
to customers - which is around 5-10 KM from the middle point of the Cluster. In some case, where
production is high, local wholesalers procure the marketable vegetables directly from the farmers and
then carry it in distant towns. There is a scope of storage, grading, sorting and packaging of products
at Barshul, where there are large spaces and infrastructure beside BDO office. It has been reported
during baseline that the farmers get only Rs 5 to Rs 15 per Kg vegetables in average subject to
maximum Rs 20. So, collective marketing through FPC is the only approach to save the farmers from
a high degree of exploitation. The CBBO SSCOP has already made a tie up arrangement with bulk
buyers at Kolkata, Durgapur, Assansol for bulk marketing of Vegetable & Paddy at reasonable prices
which may be replicated at large scale across the Block.
The FPC members of Nakshikatha Farmers Producer Company Limited have decided to explore other
markets with assistance from the FCSC service provider and line department officials to help the
farmers expand their market in search for better prices and trade terms. They also decided to facilitate
aggregated sale of produce.
(4.1) Operation Plan for Aggregation & Sale of Produce

a) Scouting Buyers
FPC Leaders will scout market players and make exhaustive commodity-wise list of potential buyers
along with the terms of trade from the existing local markets and also bigger markets which are far
off. They will shortlist potential buyers based on negotiated settlements and draw up rate contracts.
The PC will be supported by the FCSC service provider and CBBO during the 1st year of this business
so as to enable them to do it independently in subsequent years.
b) Awareness Generation
The PC will brief the PC leaders the terms of trade and quality specifications and prices prevalent at
higher order markets. The PC leaders will in turn share the same with PC members and enlist quantum
of surplus produce that each member is willing to sell collectively through FCSC. Awareness camps,
campaign through mikes to make other farmers of the block aware about the initiative of the FCSC.
Quality requirements and price offers of higher order market will be mentioned in such campaigns
along with invitation to sell through FCSC.
c) Aggregation of Produce
Each FPC leader with the support of CEO will create a list of interested group members along with
surplus quantum available for sale through FCSC. These lists will be submitted to the FPC BoD. Non-
members directly convey their willingness and quantum of surplus produce to be sold through FCSC
to the FPC BoD. Final list outlining the quality and quantum of produce available for sale through FCSC
will be drawn up by the FPC BoD. 90% of produce after cleaning grading will be sold immediately to
the bulk purchasers in the region and rest of the produce will be sold to other buyers at a lesser price
(There are no storage facilities – FPC is planning a small warehouse).
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d) Payment to Farmer
Buyer will pay money of produce bought to PC that the PC will pass on to the members either through
the PC bank account or directly to farmers in cash after deduction of facilitation charges. PC will then
transfer money to members in case of account transfers. For other farmers, the treasurer of the PC
will directly make the payment from FCSC counter.
The PC will insist on advance or spot payment from the buyer. It will pay the farmer after receiving
payment from the buyer. Under ideal circumstances, the farmer will get money within 48 hours of the
transaction.
In the financial calculations, the rates for the produce have been maintained at the average mandi
price of nearby APMCs at the time of preparation of this proposal. No variations have been shown over
the 5 years of project period. This has been done to overcome possibility of hazardous estimation due
to inconsistent movement of commodity prices and low annual increment of MSP.
e) Soliciting & Servicing orders
The FPC will identify buyers from higher order markets and negotiate with them for rate contract and
supply orders. As per the demand from these identified buyers the FPC will undertake supplies at pre-
negotiated rates. The FPC will also undertake regular market scouting and maintain liaison with other
buyers to ensure that regular enquiries are received by the FCSC. As and when a suitable order comes
up, the FPC will intimate the farmers through FPC leaders and open notices about the crop, quality
specifications and quantum requirement. The FPC will intimate the terms of payment and time and
location of aggregation under the same notice.
The FPC will also take up spot sales from time-to-time based on queries from the market. In such
cases, the FPC will announce the rates to the farmers on daily or deal basis after deducting FPC
facilitation charges. Farmers will be asked to bring their produce to the FCSC at a given time. FPC will
monitor the entire process based on terms of the buyer. Record of the quality of produce & price
offered will be noted at the FCSC and supply and payment receipts will be issued to the farmers. The
FPC will keep equipment like moisture meter and weighing machine for free use of members to
facilitate trading.
(4.2) Marketing Strategy:

We conduct an extensive analysis of a number of elements, including production, demand, price,
distribution routes, and competition, in order to analyze the market for Vegetables and Paddy in the
Bardhaman II Block. A general strategy for studying the market for these agricultural goods is as
follows:
(i) Production & Supply

✓ Analyze the Bardhaman II block's indigenous output of Vegetables & Paddy to start. To do this,
information about the area under cultivation, crop yields, and seasonal variations are
gathered.
✓ Identify the main farming techniques, crops, and innovations utilized in the area.
(ii) Demand and Consumption

✓ In local and surrounding marketplaces like Barshul, Gobindapur, Satgachhia, Bardhaman
Town ascertain the demand for Vegetable & Paddy. Surveys, discussions with local farmers,
and information from agricultural departments can all be used for this.
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✓ Analyze the consumption trends, taking into account both home and industry consumption
(for things like processing or animal feed, for example).
(iii) Market Pricing

✓ Farmers out of the natural habitat area of Vegetables sometimes shows interest on cultivation
of Vegetables with chemical inputs for more production and more profit. This will be lessened
by proper training. Analyze the changes in the price of Vegetables & Paddy. Analyze past price
information to spot seasonal price changes.
✓ Recognize the variables that affect price changes, such as seasonal supply, demand dynamics,
and outside market variables.
(iv) Distribution Channels
✓ Draw out a distribution plan for these goods. Wholesalers, merchants, neighbourhood
markets, and potential customers in nearby towns and cities may all be included in this.
✓ Analyze these channels' efficacy and efficiency, looking for any areas that could want
improvement.
(v) Market Potential
✓ Based on our findings, offer suggestions to stakeholders including farmers, dealers, and
policymakers.
✓ Write a summary on the basis of research and offer your thoughts on the Bardhaman II block's
prospective market for more verities of rice and maize.
To gather accurate and up-to-date information, it may be necessary to collaborate with local
agricultural authorities, conduct surveys, and conversation with local farmers, traders, and other
relevant stakeholders in the Bardhaman II block. Additionally, consulting with agricultural experts
and leveraging government reports and data sources can enhance the depth and accuracy of our
market analysis.
(4.3) Sale of produce
Business Summary of Aggregation and sells of produce (Trading):
Sl. Particular Y1 Y2 Y3 Y4 Y5
No
1 No. of Members 300 550 750 750 1000
4 Budgeted
Procurement
Quantity (in Kgs)
Paddy 30000 35000 40000 45000 50000
Vegetables 1000000 1050000 2000000 2050000 3000000
Oil Seed 1000 1500 2000 2500 3000
5 Budgeted
Procurement Value
(in Rs.)
Paddy 600000 700000 800000 900000 1000000
Vegetables 330000 346500 660000 676500 990000
Oil seed 50000 75000 100000 125000 150000
Sub Total (Rs.) 980000 1121500 1560000 1701500 2140000
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6 Budgeted Sale Value
(in Rs.)
Paddy 750000 875000 1000000 1125000 1250000
Vegetables 550000 577500 1100000 1127500 1650000
Oil Seed 55000 82500 110000 137500 165000
Sub Total (Rs.) 1355000 1535000 2210000 2390000 3065000
7 Budgeted Profit / Loss 375000 413500 650000 688500 925000
(Rs.)
Critical Assumptions:
• The Area under these products is based on the average area (1 acre) per producer in
the FPC.
• The member growth is the estimate based on the discussions with the BoD of the PC
• Only 20% of marketable surplus will be aggregated and traded by the FPC in the first
year.
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Chapter V
Business Activity – 3 (Primary and secondary processing of surplus
produce)
Need of the proposed business activity

Farmers have expressed their concerns regarding lack of remunerative prices for their produce in all
group meetings. However, during interaction with market players (traders, procurement agencies,
processing units etc.) it was clearly stated that they are unable to pay better prices as produce brought
in by the farmers are a mix of good and poor quality and supply consistency is lacking. The market
players, especially the industries, expressed their willingness to pay more for quality produce
specifically for cleaned and graded products supplied as per order and specifications. During
subsequent meetings these findings were shared with FPC leaders. The leaders discussed the matter
among themselves and group members and expressed their desire to take up basic cleaning & grading
through the FCSC and also facilitate aggregation and collective marketing of the produce to higher
order markets to achieve better price through negotiated settlements long-term tie-up. This will help
farmer members to realize better prices for their produce.
The FPC plans to take up the Manufacturing, Grading, Packaging, Marketing of Puffed Rice /
Murmua and sell it thereby profiting the farmer members.
5.1 Operational Plan:
LOCATION:
Near Saktigarh Railway Station, also beside old G T Road, which is also the area where FPC office and
Seed, Fertilizer shop has been established.
RAW MATERIAL AVAILABILITY:
The only Raw Material is the Particular Variety of Rice, which is abundant in the area and have a long
history of Muri making in large scale and also traditional way.
MARKET OPPORTUNITIES:
In the locality two large hats, Bardhaman Town and nearby Kolkata and also Durgapur Assansol
Industrial Coal Mining area, there are always a high demand throughout the year.
PROJECT DESCRIPTION:
CAPACITY OF THE PROJECT:

• The capacity of the project is 135 MT of Puffed Rice per year.
PRODUCTION TARGET:
• Qty.: 94.50 MT/Annum or 7.875 MT/Month.
• The scheme is worked out per shift (8 Hour) basis and 300 working days per annum.
26 | P a g e
MANUFACTURING PROCESS:
The Particular varieties of Rice soaked in water and drain the water and put the Rice in the Rice.
Puffed Making Machine. Add salt in the rice as per taste. Using the technique of pressure development
in producing rice puff and then packing as per requirement.
PROJECT COMPONENT AND COST:
FINANCIAL ASPECTS: -
Land & Building - 200 sq. meter covered area on rent
Plant & Machinery - 236,500.00
Office Equipment & Furniture - 50,000.00
Working Capital - 677,870.84
Pre-Operative Expenses - 25,000.00
Production Unit
i Puffed Rice Making Machine – 1 no. cost - 125,000.00
ii Soaking Vessel – 2 nos - 50,000.00 (2 x 25,000)
iii Weighing Balance - 1 - 15,000.00
iv Miscellaneous Equipments / items - 25,000.00
Total Cost of Machinery & Equipments - 215,000.00

Electrification & Installation Charges @ 10% - 21,500.00
Total Cost of Production Unit – 2,36,500.00
Furniture & Fixtures - 50,000.00
Pre-Operative Expenses - 25,000.00
Total Fixed Capital – 2,61,500.00
Business Idea and Business Opportunity – Value Chain
5.2 Analysis – Scope in the area – Key Commodities / Activities:
Value Chain Analysis:
A successful Business Plan is one that has found a way to create value for customers i.e., away to
address and of customers. The customers in an FPO can be farmer members or retailers or
wholesalers depending on the type of product or service. The very foundational objective of an FPO
is adding value to the produce as against selling the raw product directly in the market.
27 | P a g e
a. Sorting and Grading of Rice & Pulses
Since vegetables are produced in the area, for adding value in them, or to get a higher price, manual
sorting and grading might be an ideal option. Sorting is a separation based on the individual physical
properties of raw materials such as weight, colour, size, shape, density, etc. while grading is
classification on the basis of quality incorporating commercial value, end use and official standards.
Definition of a good harvest is not physically damaged and looks attractive. Sorting is done to separate
the good harvest and the moderate.
Grading of Crops
The major summer vegetables / primary crops are Paddy, Pulses, Musterd etc. While winter crops
include Tomato, Pumpkin, Cucumber and Chilli etc. The secondary crop includes Oil seed. However, it
may be clarified that economic activities are overlapping and a section of farmers also engaged in
more than one activity, especially livestock rearing and fish farming. These vegetables could also be
graded based on size into 3 grades as small, medium, and large. The vegetables like tomatoes are
graded based on color.
Objectives of Grading
▪ To get a higher price.
▪ To have different marketing values.
▪ To adjust to the world market.
▪ To facilitate marketing.
▪ To facilitate packing.
▪ To facilitate transporting.
▪ To increase the shelf life.
Advantages of Grading shall be the following:

• A remunerative price in the market could be obtained due to the absence of substandard
products or specimens.
• Marketing efficiency could be enhanced by facilitating buying and selling of products without
personal selection.
• Grading enables the farmers to set a reasonably higher price for the graded products.
• Marketing costs in packing and transportation shall reduce by grading.
• Grading reduces the possibility of contamination of the whole lot by the diseased and defective
specimens as they are sorted out.
• Grading assures fairness for both the buyers and the sellers.
• Properly graded vegetables and fruits assure ease of purchase for the consumers who could
buy without inspection.
b. Packing:
Packaging of fruits and vegetables prevents damage during transportation and handling. For securing
a better price, fruits and vegetables are to be transported from the area of production to the nearby
cities like Kolkata. Usually, plastic baskets are used for handling fruits and vegetable, while locally
available materials like Bamboo baskets could also be used for this purpose.
c. Linkage with Bulk Buyers:

Attempt shall be made to establish linkage with bulk buyers like exporters, processing units,
Institutional buyers etc. both in and around the State.
Understanding the consumers’ piece of the value chain thinking puzzle should lead farmers to
ask:
28 | P a g e
• What products, and what characteristics of those products, are consumers
looking for?
• Which crops and how much should I grow and how should I grow them?
• Can I process those crops to make them more attractive/valuable to the consumers?
• How can I improve my share, in the overall process leading to the crop reaching the consumer?
Though simple in definition, the concept of value chain holds tremendous meaning to it. Farmers start
their agricultural activities from pre-sowing and end up with marketing of their produce, during
which, the initial produce will transform into a consumer good. A full range of value chain prism is to
be visualized from pre sowing to marketing for describing this value chain. A habit of looking at any
agricultural produce through its value chain prism must be cultivated for understanding the business
elements of operation of the produce.
Mapping the Value Chain:
Value Chain of priority for our FPOs has already been identified and communicated as primary and
secondary crops allotted to FPOs. Now let us proceed with the next step of mapping of each value
chain. Mapping the value chain has three main objectives:
• Visualize networks to get a better understanding of connections between actors and processes
in a value chain
• Demonstrate interdependency between actors and processes in a value chain
• Create awareness of stakeholders to look beyond their own involvement in the value chains
29 | P a g e
Chapter VI
Market Plan & Risk Analysis:
Once the Business Opportunities are identified, analysis should be made on markets. i.e. market for
selling the inputs to its members and non-members and market for selling its products.
Many FPOs struggle to find potential markets for their produce. Sometimes even the availability of
potential markets is enough as they lack professional approach to markets. Due to this, they prefer to
restrict themselves to input businesses with their share holder farmers and non-shareholders as it is
a low hanging fruit and risk free.
However, the role of marketing gets very important as an FPC matures from selling the primary
products to secondary and tertiary products or processed goods. To sustain in the business, it is
advised to cater to the needs of both members as well as non-members albeit with an advantageous
treatment towards members to encourage their presence and growth with the FPC.
6.1 Assessment of Market Opportunities:
Assessment should begin with analysing the strengths and weaknesses of a FPC in terms of its
product/service, access to consumers and the capability to reach different segments of the market.
This can be done by
Understanding the markets - Complete information about the market - its coordinates like distance,
climate, seasons, traders etc. It is good to target more than one market so that one can hedge the other
in times of eventualities
Profiling the customers - Profiling is about understanding the type of consumers, the needs, and
their attitude towards the product/service of the FPO. Complete information about buyers or
consumers - their age group, ethnicity, sex, behaviour, preferences, and occasions of buying, frequency
of buying, education levels and cultural demographics among others.
Type of product Type of customer targeted
Sl.No. Type of Type of customers Value Addition

Product targeted
1 PADDY RICE MILL Rice Processing, Branding & Marketing
An understanding about the quality of the product - Quality is the extent to which a product or service
meet the needs, from the customers’ point of view. Quality includes functionality, attractiveness, and
safety with respect to certification requirements. Profile the product/service to be marketed. Its
uniqueness is an important aspect. Ask yourself the question “why market should buy our product
instead of the other competitor’s product?” Profile the product in terms of its shelf life, quality,
consumer preference, Price advantage, competitiveness in processing and other special features such
as organic or residue free
Understanding the Competitors - To the extent possible an FPO should match if not exceed to the
“essential needs” offered by the competitors
Understanding the pricing of the product - Pricing depends on transportation charges in addition
to cost of production, processing, value addition, packaging etc. In certain instances, it may not be
30 | P a g e
workable to handle a customer at a faraway place, if the transportation charges are included or its
shelf life doesn’t support for the duration of its transport or for any other factors affecting its viability
Understanding features of your product – Based on the markets it is catering to, appealing features
such women produced products made from natural ingredients, product with unique features like
tribal products etc. can be marketed by emphasizing this value proposition
6.2 Robust Supply Chain Model:

Supply Chain and Market are closely existing entities. FPO should have a robust supply chain model
in place before attempting to approach markets. The key informants about of a robust supply chain
model are
➢ Total saleable quantity in the given season/week/sale period
➢ Specifications about packing/labelling/branding etc.
➢ Grading and quality specifications meeting the market best standards of that commodity
➢ Weekly/daily/monthly volume of saleable quantity out of total saleable quantity
➢ Point or place of delivery (Ex-delivery point)
➢ Transport details
➢ Sample circulation norms
➢ Expected Price
➢ Payment terms
➢ Tax related information
Without the above informants firmly in place, any attempt by an FPO to approach markets, may
sometimes be a less remunerative exercise and on occasions may even result in a failure.
6.3 Designing the Strategies for Marketing:
Strategies for marketing in most cases are for increased sales. Sales is about contacting potential
customers and convincing them to buy the product or service of the FPC. An FPO handles the products
that are seasonal in nature. Planning for marketing requires logistics such as warehouse, cold storage
etc. In the absence of strong initial capital, it can sometimes be difficult for an FPO to survive without
a down payment by the customers. However, this may not always be possible keeping in view the
market standards and sales policy of the competitors. In such cases setting a credit policy are also
plays a major role. However, the credit policy should clearly state:
➢ The customers for whom the credit will be extended
➢ Credit amount limits for each customer type
➢ Duration of the credit
➢ Penalties and consequences of default or delayed payment
➢ Maximum quantity of sales that should be allowed in credit
6.4 Post Sales Service that an FPO can offer:

➢ Terms of replacement of goods
➢ Compensation for damaged goods
➢ Insurance in transit
➢ Risk free transport without damage
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Customer Communication:
Communication is a process of business (“Sender”) giving “information” related to products and
services to the customer (receiver). The receivers here can be:
➢ Farmer members for the input sales and product procurement requirement
➢ Suppliers of services such as seed and fertilizer business dealers, mulching, drip
equipment dealers etc
➢ Retailers, wholesalers, and the final consumers, about the products/services of the FPO
While an FPO can do the business with both members and non-members, to sustain its business,
preferential treatment can be given to the members as a privilege feature for being associated with
the FPO. As this communication strongly reaches out to across, there is a possibility of increasing the
membership of the FPO leading to its growth. It is the responsibility of the FPO to identify the robust
suppliers of services in the market and communicate them about the potentiality of their FPO. Similar
is the case with retailers, wholesalers, and customers of the product market.
Considerable time must be spent on communication which becomes the key factor to achieve the
desirable growth of the FPO. Hence, planning for communication involves,
➢ Deciding the objective

➢ Understanding the target audience
➢ Designing and executing the plan of reaching the target audience
6.5 Risk Management:
Identification of risks and setting possible safeguards to manage them is an integral part of the risk
analysis. Though in an ideal world all risks can be envisaged to be eliminated, it is an impossible
proposition. So, risk management must involve the process of identifying risks and assessing whether
they can be eliminated entirely or mitigated to manageable proportion through operational resilience.
If the risks seem unmanageable to the extent of affecting the very existence of the business, then one
may discard the business idea all together. As risks may continue to remain in the business
environment both internally and externally, even after starting the business, it is extremely important
to develop a risk assessment mechanism and risk mitigation strategy. Some of them can be:
Identifying and mapping the processes/factors that would have the biggest impact on earnings, if
disrupted. For Example, a bad monsoon may severely affect crop production in rain-fed areas thus
reducing earning of the FPO considerably
Identifying critical infrastructure – Including processes, relationships, people, regulations, plant,
and equipment - that supports the FPO’s ability to generate earnings
For instance, the break-down in the Bulk Milk Chilling unit, could lead to the whole stock of milk to be
spoilt and go waste, besides adversely affecting the supply chain.
Identifying the main vulnerabilities - Vulnerability is the inability to cope with the adverse effects
of an event or risk. For Example, storage, processing, and trading of commodities can come under new
regulation, imposing conditions which the FPO may find difficult to comply with, at a short notice.
Identifying the weakest links - the elements on which all the others depend. For instance, a single
buyer for all produces, is the weakest link in this scenario
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Developing planned response to mitigate the risks. Consider an enterprise creating some critical
infrastructure like a spare refrigerated van for ferrying chilled milk as part of its contingency plan
Support from Government departments and Corporate for market linkages
State and Central Governments have schemes for preferential procurement of produce from FPOs. For
Ex: procurement of certified seeds through FPOs has been implemented by the Government of
Chhattisgarh. The facilitating agency should be able to get the relevant information from the
respective Governments.
The corporate need continuous supply of desired quality produces for processing and value addition.
Therefore, they prefer to enter a contract with few FPOs who will meet their requirements.
Usually the following mechanisms are adopted:
➢ Retail chains tie up with FPOs for procurement, especially for continuous supply of vegetables
& fruits and processed staples
➢ Corporate extend dealership for farm machinery and inputs to FPOs
➢ Corporate provide primary processing machinery to an FPO with a buy-back arrangement for
the produce
➢ Corporate can initiate contract farming with buy back arrangement of assured markets
Available Marketing Haats

Physical infrastructure/ facilities under Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) have been developed in 224 village haats, as on 31.03.2020, there are 6845
numbers of Agriculture Produce Marketing Committee (APMC) markets in the country. In order to
provide better farmer - market linkages and fair prices to farmers, in addition to regulated markets,
there are other markets also like non-regulated wholesale markets, farmer – consumer markets,
purchase centres and private wholesale markets. In addition, Government is promoting to declare
warehouses and cold storages as deemed market yards to improve the farmer – market linkages.
Further, Government of India had launched reform linked National Agriculture Market (e-NAM)
scheme, a virtual platform integrating physical wholesale mandis/ markets of different States/ Union
Territories (UTs) to facilitate online trading of agriculture and horticulture commodities to enable
farmers to realize better remunerative prices for their produce. All these contribute towards better
marketing efficiency and also better prices to farmers. So far, based on earlier targets and as per the
proposals received from States/ Union Territories (UTs), 1000 mandis of 18 States and 3 UTs have
been integrated with e-NAM platform. As on 9th February, 2022, more than 1.72 crore farmers & 2.16
lakh traders have been registered on e-NAM platform.
33 | P a g e
Chapter VII
Organizational and Management Plan
Human Resource Plan:

Human Resources required for the smooth running of the FPC
CEO
Accounts/MIS
Role and Responsibility of Staff:

CEO:
➢ Manage affairs of FPO
➢ Operate / authorize to operate bank account
➢ Safe custody of cash /assets
➢ Sign documents as authorized by the Board
➢ Maintain books of accounts, prepare annual accounts, present audited accounts to Board &
Members in AGM
➢ Inform Members about operations & functioning of PC
➢ Make appointments subject to delegated powers
➢ Assist Board in formulation of policies / objectives /strategies
➢ Advise Board on legal & regulatory matters
➢ Exercise powers required in ordinary course of business
➢ Any other functions / powers as delegated by the Board
Accounts/MIS:
➢ Preparing accounts and tax returns

➢ Administering payrolls and controlling income and expenditure
➢ Auditing financial information
➢ Compiling and presenting reports, budgets, business plans, commentaries, and financial
statement
➢ Analyzing accounts and business plans
➢ Providing tax planning
➢ Financial forecasting and risk analysis
➢ Managing colleagues, workloads, and deadlines
➢ Designing, Monitoring, analyzing the IT systems
Role of Responsibility Governing Board (BODs + Promoters):
➢ Approval of budget and adoption of annual accounts

➢ Issue of bonus shares
➢ Declaration of limited return & distribution of profit
➢ Conditions and limits of loans to Directors
➢ Include new members into the company
➢ Appointment/superintendence/Control of CEO and Staffs
34 | P a g e
➢ Make sure the books of accounts are maintained properly; Prepare annual accounts
➢ present in AGM with Annual’s report
➢ Buy and sell properties in the ordinary course of business
➢ Sanction loans to members not being the directors or his relatives
35 | P a g e
Chapter VIII
Financial Plan
The financial plan translates all the other parts of the business - the value chain proposition,
opportunity, the operating plan, the marketing plan into anticipated financial results. It contains the
status and the future projection of financial performance of the business with the selection,
evaluation, and interpretation of financial data along with other relevant information in financial
decision making. It represents the best estimates of the risks involved and the return on investment.
Three financial areas are generally discussed in the financial plan:

A. Capital requirement and financing pattern
B. Financial projections indicated in the form of statements
C. Financial returns indicated in the form of financial ratios
A. Capital Requirement and Financing Pattern:

Any FPO will have financial requirement to start and run the business. The capital requirement will
depend on the nature and volume of business which would vary from one business to another. Both
fixed costs and variable costs determine the capital requirement of an FPO.
Estimating Costs and Margins for an FPO:
Measuring costs and margins enables the FPO to determine the priority with which the activities are
to be taken up among the core processes identified. It compares profit potential of one value chain
with that of another, to assess whether it may be worthwhile to switch from one chain to another.
Margins for FPO may not always be the top priority. If farmer members’ margins are increased because
of the FPO activities, they remain loyal to the organization. Loyalty pays off in terms of patronage-
based business and equity payment.
Variable Costs:
These are costs that are dependent on the production output. While calculating some of the variable
costs such as transport costs, they may change based on volume as well as distance to be transported.
Cost of transit losses are also to be accounted while calculating transport costs, storage costs etc.
Examples of Variable Costs of an FPO:
• Procurement of raw material, storage cost, processing, transportation, insurance, etc.

• Management and administration cost for day-to-day activities, which may include staff
• Salary, (Manager/CEO, Production Officer, Accountant, Marketing officer, etc.) travel,
• Electricity, water, meeting expenses of BoD/GB, insurance & other statutory fee and other
miscellaneous expenses
• Training and Capacity Building of BoDs and PC functionaries: Training on subjects as
• Provisions in the act, rules and regulations, statutory compliances, roles and responsibilities
of BoD/General Body, banking operations and also by exposure visits to successful FPOs.
36 | P a g e
Fixed Costs:
• These are the costs, for the expenses paid out regularly that do not fluctuate with the sales
level.
• Examples include general office expenses, rent, depreciation, utilities, telephone, property tax
etc.
• Land tenant charges, an amortization, capital costs (interest on long term loans) then it should
be counted as fixed costs.
Other Costs:
• Money spent on repaying loans

• Money spent on buying productive assets (e.g. machinery, land etc.)
• Direct costs - Money spent specifically for production of goods or providing services. The
examples are raw material cost and labour cost
• Indirect Costs are money spent on running the business but on activities not directly related
to production of goods or services. For Ex: interest on loans
Understanding Revenue:
Revenue is the money that a business earns by selling its products or services
Following are NOT accounted as revenues
• Borrowing money for running the business

• Capital investment by the owner
• Money received through selling of productive assets (like building, machinery)
Understanding Profitability
• Profitability, as a percentage number, tells us how many rupees out of 100 rupees revenue is
the profit
• Profitability % = (Profit/Revenue) x100
Understanding Capital:
• Capital is the total amount of money needed by the business to perform business operations
• Capital in business consists of Fixed Capital and Working Capital
• Fixed Capital is necessary for buying productive things (assets) such as machinery, land,
• Buildings, storage etc. Working Capital is used for the day-to-day tasks such as buying
materials, paying wages, paying salaries, etc.
Sources of Capital: Equity capital, Reserves and Short-Term Loans
Opportunity Cost:
It is defined as the foregone benefit that would have been derived by the option not chosen.
For Ex: an FPO has a working capital of Rs.2 Lakhs. It has two choices for doing business. One is
supplying high quality seed and the other is supplying fertilizers at wholesale price to the farmer
37 | P a g e
members. Only one business can be done with its limited working capital availability. The business
the FPO will forego to undertake the other business is the opportunity cost.
Financial Statements Include:
• Trading and Profit & Loss Account (Expenses & Losses and Incomes & Gains)
• Cash Flow Statements (How cash flows through operations, investing and financial activities)
• Balance Sheet (Assets, Liabilities and Capital)
Working on Variables (Assumptions):

The CEO of an FPO along with key office bearers and board members should collect the basic financial
data regarding the FPO. Profiling on basic business aspects of FPO including its present position in
terms of members, share capital collected, asset position and costs will help in working out the
financial statements. The assumptions regarding the yield, procurement cost, transportation cost,
storage costs etc., should also be considered based on the current year’s data by discussing with
experts. An example sheets for Basic Assumptions are placed below for ready reference.
Projected P&L
Sl Particular Y1 Y2 Y3 Y4 Y5
No
1 Seed 1,70,000 2,30,000 2,70,000 3,40,000 4,10,000
2 Fertilizer 1,40,750 1,33,000 2,72,200 2,29,500 2,78,500
3 Pesticide 337500 618750 843750 843750 1125000
4 Aggregation and Sales of 375000 413500 650000 688500 925000
Produce
5 Cleaning & Grading 0 0 1760000 2200000 3300000
&Packaging & Marketing
Total Profit 1023250 1395250 3795950 4301750 6038500
Capital Investment:
The infrastructure and machinery equipment enlisted below are as per the need of the FPC in that
block to establish a FCSC for (C&G). This is in accordance with the support that Implementing Agency
has proposed for primary processing during Stage – I of establishment of FCSC. The FPC even
highlighted the need for storage fa
cility as currently they do not have any in their village. During the first few years of the business, the
FPC will be able to assess the no. of producers that would be interested in availing storage facility and
also the quantum that would be stored in the go down before sale of the produce through FCSC.
Fixed Capital Investment

Puffed Rice - 261,500.00
38 | P a g e
Agri Input Trading & Processing Estimates
Seed
SL. No Particular Y1 Y2 Y3 Y4 Y5
1 Seed Purchase
Value (in Rs.)
Total (Rs.) 425000 712500 880000 1227500 1575000
2 Seed Revenue (in
Rs.)
Sub Total (Rs.) 5,95,000 9,42,500 11,50,000 15,67,500 19,85,000
Profit 1,70,000 2,30,000 2,70,000 3,40,000 4,10,000
Fertilizer
1 Fertilizer
Purchase Value
(in Rs.)
Total (Rs.) 15,92,500 24,11,000 30,92,000 40,77,000 48,80,000
2 Fertilizer Sales
Revenue (in Rs.)
Total (Rs.) 17,33,250 25,44,000 33,64,200 43,06,500 51,58,500
Profit 1,40,750 1,33,000 2,72,200 2,29,500 2,78,500
Pesticide
1 Pesticide 3375000 6187500 8437500 8437500 11250000
Purchase value
(in Rs.)
2 Pesticide Sales 3712500 6806250 9281250 9281250 12375000
revenue (in Rs.)
Profit 337500 618750 843750 843750 1125000
Aggregation Business
1 Budgeted 980000 1121500 1560000 1701500 2140000
Procurement
Value (in Rs.)
2 Budgeted Sale 1355000 1535000 2210000 2390000 3065000
Value (in Rs.)
Profit / Loss 375000 413500 650000 688500 925000
(Rs.)
Cleaning & Grading &

Packaging
39 | P a g e
Sales Revenue - 0 1760000 2200000 3300000
Profit
Profit & Loss Statement:
Particulars Y1 Y2 Y3 Y4 Y5
Income from C&G job 0 17,60,000 22,00,000 33,00,000
work services &
Packaging &
Marketing
Income from 1023250 1395250 2035950 2101750 2738500
commodity trading
and input sales
Closing stock of 0 0 0 1967660 2406820
finished goods
Total Revenue 77,71,800 1,15,98,400 1,75,40,000 2,38,44,260 2,97,75,020
Opening stock of 0 0 0 1967660 2406820
closing goods
Variable Cost
Raw Material Cost 0 49000 56000 63000 71000
Purchase of Inputs 60,38,300 90,29,500 1,21,97,700 1,52,48,900 1,85,97,100
Manpower – Direct 0 0 0 1550000 1700000
Variable electricity 36000 36000 48000 48000 48000
cost
Fixed Cost
Administrative 0 0 0 125000 175000
Expenses
Institutional Expense 35000 50000 75000 100000 200000
Manpower – Indirect 20000 30000 50000 50000 75000
Repair and 10000 10000 10000 25000 50000
maintenance cost
Fixed electricity cost 0 0 0 18000 24000
Marketing and 20000 50000 100000 200000 500000
Advertisement
Total Operational 61,59,300 92,54,500 1,25,36,700 1,74,27,900 2,14,40,100
Expenses
Earnings Before 16,12,500 23,43,900 50,03,300 64,16,360 83,34,920
Interest, Depreciation,
Taxes and
Amortization
(EBITDA)
Depreciation 96750 140634 300198 384982 500095
Earnings Before 1515750 2203266 4703102 6031378 7834825
Interest and Taxes
(EBIT)
Interest Expense 90945 132196 282186 361883 470089
40 | P a g e
Earnings Before Taxes 1424805 2071070 4420916 5669496 7364735
(EBT)
Tax 213721 310661 663137 850424 1104710
Earnings After Taxes 1211084 1760410 3757778 4819071 6260025
(EAT)
Cash Flow Statement
Sl. Particulars Y1 Y2 Y3 Y4 Y5
No
1 Profit After Tax (PAT) 1211084 1760410 3757778 4819071 6260025
2 Working Capital loan 1500000 0 0
3 Equity/ Share capital 0 700000 0 800000 0
4 IA Investment Grant 0 0 0 0 500000
5 Increase of current 300000 400000 500000 600000 100000
liabilities
6 Depreciation 0 0 0 0 0
Sub Total (A) 1511084 2860410 5757778 6219071 6860025
Cash Outflow (Rs.)
1 Capital Expenditure
A Building and Interiors 30000 50000 100000 200000 0
B Plant and Machinery 0 0 1400000 0 0
2 Increase of current asset 0 0 0 0 0
3 Loan Repayment
A Working capital loan 0 1654591 0 0
(interest + instalment)
Sub Total (B) 30000 50000 3154591 200000 0
Net Cash Flow (A-B) 1481084 2810410 2603187 6019071 6860025
Opening Cash and Bank 905542 1280205 2378889 3009536 3230013
Cumulative Cash Balance 575542 1530205 224298 3009536 3630013
Balance Sheet:
Particulars Y1 Y2 Y3 Y4 Y5
ASSETS
Current Assets
Cash and Bank Balance 575542 1530205 224298 3009536 3630013
Accounts Receivables
Other Current Assets
Total Current Assets 575542 1530205 224298 3009536 3630013
Gross Fixed Assets 1400000 1372000 1344560 1317669
Less: Depreciation 28000 27440 26891 26353
TOTAL ASSETS 0 1372000 1344560 1317669 1291315
LIABILITIES & SHAREHOLDERS
EQUITY
CURRENT LIABILITIES
41 | P a g e
Accounts Payable & Accrued
Expenses
Other Current Liabilities 0 1654591 0 0
Total Current Liabilities 0 0 1654591 0 0
TOTAL LIABILITIES 575542 1530205 1878889 3009536 3630013
Share capital 300000 400000 500000 600000 100000
Grant 600000 900000
Reserves and Surplus 875542 2530205 3278889 6684636 3730013
Add: Opening Balance (P/L 905542 1280205 2378889 3009536 3230013
Account)
Profit & Loss) During the Year 0 0 0 0 0
Appropriation – Dividend 54333 76812 142733 180572 193801
Total Reserves 851210 1203392 2236156 2828964 3036212
TOTAL EQUITY 851210 1203392 2236156 2828964 3036212
TOTAL LIABILITIES & EQUITY 1426752 2733597 4115045 5838499 6666224
Sensitivity Analysis:
Sensitivity Analysis
Quantity Variation (%) Y1 Y2 Y3 Y4 Y5
Income from C&G job work 0 0 17,60,000 22,00,000 33,00,000
services & Value addition
Income from commodity 77,71,800 1,15,98,40 1,57,80,00 1,96,76,60 2,40,68,20
trading and input sales 0 0 0 0
Closing stock of finished 0 0 0 1967660 2406820
goods
Total Income 7771800 11598400 17540000 23844260 29775020
Expenditure
Opening stock of closing 0 0 0 1967660 2406820
goods
Fixed Cost (Excl. of 85000 140000 235000 518000 1024000
Depreciation, Amortization
and Interest)
Variable Cost 60,74,300 90,65,500 1,22,45,70 1,68,46,90 2,03,45,10
0 0 0
Total Operational Expenses 6159300 9205500 12480700 19332560 23775920
Depreciation 123186 184110 249614 386651 475518
Earnings Before Interest 6036114 9021390 12231086 18945909 23300402
and Taxes
Cost Variation (%) Y1 Y2 Y3 Y4 Y5
Income from C&G job work 0 0 1760000 2200000 3300000
Income from commodity 7771800 11598400 15780000 19676600 24068200
trading and input sales
Closing stock of finished 0 0 0 2007013 2454956
goods
Total Income 7771800 11598400 17540000 23883613 29823156
Expenditure
42 | P a g e
Opening stock of closing 0 0 0 1967660 2406820
goods
and Interest)
Variable Cost 6074300 9065500 12245700 16846900 20345100
Depreciation 107788 161096 218412 338320 416079
and Taxes
Quantity Variation (%) Y1 Y2 Y3 Y4 Y5
Income from C&G job work 0 0 1760000 2200000 3300000
Income from commodity 7771800 11598400 15780000 19676600 24068200
trading and input sales
Closing stock of finished 1967660 2406820
goods
Total Income 7771800 11598400 17540000 23844260 29775020
Expenditure
Opening stock of closing 1967660 2406820
goods
and Interest)
Variable Cost 6074300 9065500 12245700 16846900 20345100
Depreciation 61593 92055 124807 193326 237759
and Taxes
Cost Variation (%) Y1 Y2 Y3 Y4 Y5
Revenue from processing 0 0 1760000 2200000 3300000
service charge & value
addition
Revenue from facilitation of 3035000 4300000 6060000 7325000 9085000
sales
Revenue from facilitation of 4736800 7298400 9720000 12351600 14983200
input supply
Total Income 7771800 11598400 17540000 21876600 27368200
Expenditure
Opening stock of closing 1967660 2406820
goods
and Interest)
Variable Cost 6074300 9065500 12245700 16846900 20345100
Depreciation 123186 184110 249614 386651 475518
and Taxes
43 | P a g e
Chapter VI
Project Impact
Current Incomes
Income of the Respondents
It has been already discussed that the surveyed households of Bardhaman II mostly used to earn their
livelihood through vegetables cultivation, Agri-horticulture, livestock development and paddy. The
following table suggests that 76 % respondents belong to annual income up-to Rs. 75,000/- and 20 %
has reported up to Rs. 1,00,000/-, and only 4 % respondents are above Rs. 1,00,000/-. This income is
exclusively from selling vegetables and it is supplemented with additional income from livestock
promotion or other supplementary activities.
One of the reasons for low price of vegetables is the lack of warehousing or storage of vegetables.
Storage is an important marketing function which involves holding and preserving produces from the
time they are produced until they are needed for consumption. Further, it helps to earn a better return
creating time-utility in the produces. consumption. Further, it helps to earn a better return creating
time-utility in the produces.
But there is no cold storage or warehousing facility in nearby and its surroundings and hence, there
is no special arrangement for storage of crops. Obviously, farmers harvest the crop and sale it directly
in the market daily with their own arrangements. Due to absence of bargaining power, farmers are
compelled to market their yield whatever price is being offered at market.
Proposed Impacts post FPC is functional
• Individual member benefit:

The members of the FPC are envisaged to gain from the activities of the FSCS. Such benefits can be
categorized into direct and indirect benefits. Under direct benefit, the PC is set to benefit from their
share in the profit due to ownership of shares in the PC. However, the indirect benefits far outweigh
the direct ones. Such benefits are noted hereunder.
1 Purchase of inputs:
• Reduction in transport cost and time due to availability of inputs in the village.
• Lower price of inputs due to passing on of bulk purchase discounts by PC.
• Timely availability of quality inputs due to planned and negotiated purchases by FPC.
2 Aggregated sale of produce:

• Better rates than APMC due to lower deductions in weight and lower transaction charges.
• Proper weighing and rate fixation due to transparent operations.
• Stability in rates due to negotiated rate settlement with buyers by PC.
3 Processing of produce:
• Availability of facility for value addition where there was none.
• Better rates for produce after Processing.
4 Leasing of Agro-equipment:
• Availability of mechanized farming facility where very few options exist.
• Cheaper access and user rates for thresher.
• Savings through low or no labor costs and reduced exposure to vagaries of nature.
5 Incremental asset:
• Increased value of shares in a profitable business entity leading to asset enhancement.
44 | P a g e

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Farmers Producer Company Limited

FPCL Farmer Producer Company Limited

➢ To provide effective capacity building to FPOs to develop agriculture entrepreneurship skills

1.3 Rational for Formation of FPOs/FPCs

2.1 Cluster Profile

Sl. No. Village Name Population Households Nearest Town

2.2 About the Producer Company

2.3 Farmer Producer Company at a Glance

Sl. Particulars Details

11 Share capital (Rs. lakh) 600000

21 Business turnover achieved Rs. Year

2.5 SWOT Analysis for The Proposed Business Plan

• Collectivized producer individuals seeking to generate big volume.

• Ownership by farmers of agricultural land.

• Professional support from Implementing Agency is available all the time.

• Possesses written constitution and article to guide operations.

• Limited financial resources

• Inadequate capacity to afford skilled human resources

• Poor infrastructure facilities

• Low investment capacity of members (equity)

• Inadequate support of Bankers and other funding organizations

• Vast untapped potential to increase membership

• Scope for value addition

• Diversification potential towards more remunerative crops & activities

• Equipment hiring services

• Agri input business

• Joint marketing of produce (avoiding exploitative middlemen)

• Scope for producers to secure

• To seek maximum share in consumer price.

• To seek better and competitive marketing opportunities.

• To minimize cost of production.

• Changing Govt. Policies

• Competition from local business

• Cooperative failure due to influence

3.1 Input Supply

3.2 Operational Plan

ii) Collection of indents

iii) Vendor selection

3.3 Sale of Input

Business Summary of Seed Facilitation:

The details are prepared keeping in mind the following factors

Business Summary of Fertilizer

Urea Application Demand Analysis

DAP Application Demand Analysis

The details are prepared keeping in mind the following factors

Business Summary – Pesticides/ Insecticide

Following is the business summary of pesticide facilitation

Business Summary of Pesticide Facilitation:

The details are prepared keeping in mind the following factors

Proposed business activity

(4.1) Operation Plan for Aggregation & Sale of Produce

e) Soliciting & Servicing orders

(4.2) Marketing Strategy:

(i) Production & Supply

(ii) Demand and Consumption

(iii) Market Pricing

(4.3) Sale of produce

Business Summary of Aggregation and sells of produce (Trading):

Need of the proposed business activity

5.1 Operational Plan:

CAPACITY OF THE PROJECT:

PROJECT COMPONENT AND COST:

Total Cost of Machinery & Equipments - 215,000.00

Business Idea and Business Opportunity – Value Chain