The Union Minister of Agriculture & Farmers’ Welfare emphasised the role of Small Farmers’ Agribusiness Consortium (SFAC) in enhancing incomes of marginal and small farmers by encouraging aggregation and agribusiness development.
Background of SFAC
SFAC was established in 1994 under the Societies Registration Act of 1860. It operates as an autonomous body, endorsed by the Ministry of Agriculture & Farmers’ Welfare.
Objectives of SFAC
SFAC aims to both promote agribusiness and encourage both private sector and institutional investments, with the ultimate goal being the empowerment of all farmers across the country. One of the key strategies employed by SFAC is the organisation of marginal and small farmers into Farmer Interest Groups, Farmer Producer Organisations, and Farmer Producer Companies. The objective behind this is to endow them with economies of scale and bargaining power.
Key Schemes Implemented by SFAC
SFAC has implemented several important schemes, including the Equity Grant & Credit Guarantee Fund (EGCGF) Scheme, Venture Capital Assistance (VCA) Scheme, Farmer Producer Organization (FPO) Scheme, and National Agriculture Market (NAM) Scheme.
Recent Initiatives/Developments by SFAC
Recently, SFAC introduced the Kisan Rath app, developed with assistance from officials of the Ministry of Agriculture. This app aimed at alleviating transportation issues for farm produce during the lockdown. Furthermore, SFAC signed a Memorandum of Understanding (MoU) with the Agricultural and Processed Food Products Export Development Authority (APEDA). This move was aimed at promoting better synergy in agricultural activities.
Details about the EGCGF Scheme
The Equity Grant Fund’s main goals are to enhance the viability and sustainability of Farmer Producer Companies (FPCs), improve the creditworthiness, and increase the shareholding of members to encourage their ownership and participation in their FPCs. The Credit Guarantee Fund Scheme provides a Credit Guarantee Cover to Eligible Lending Institutions (ELIs) to enable them to offer collateral-free credit to FPCs.
Venture Capital Assistance
The Venture Capital Assistance scheme provides financial support in the form of interest-free loans furnished by SFAC to address any shortfall in the capital requirement for project execution. This scheme is part of SFAC’s broad endeavour to bolster the economic standing and prospects of small and marginal farmers in the country.
