Farmers in India are under perennial distress due to many factors such as low productivity, uneconomical land holdings and lack of irrigation. A brand new initiative is set to change the lives of farmers in India. Government with the help of World Bank has started a scheme to promote entrepreneurship among farmers. Under this new program will promote the formation of farm-producer companies (FPC) throughout the state.
Small groups of farmers will come together and form different companies, which start processing units at the local level. The finished goods of such ventures will be bought by giant brands like Tata, Amazon, Flipkart, Big Basket, Groffers, and many others.About S.M.A.R.T
State of Maharashtra, Agri-business, and rural transformation (SMART) is a very ambitious scheme of bringing about positive change in the way agricultural produced is processed, transported and marketed. The required know-how and training are given to various farmer bodies so that they can grow their agro-businesses. The basic aim of SMART is to bring about transformation by imparting training and guidance to farmers. It will not only enhance processing at the local level but also connect them to global markets. Various self-help groups, farmer bodies, and primary credit societies are encouraged to form efficient FPCs.
These FPCs are required to be registered under the Companies Act 2013 giving it an identity and legal status. This will facilitate the farmers to pull their resources together and undertake various activities like investments, technological inputs, market access, branding, and other related activities.
The small farmers will be benefitted by the proportionate sharing of profits and equal dividend distribution. The uniqueness of the scheme lies in the fact that only farmers are allowed to become members of FPC.
Role of Agricultural Machinery Manufacturing Companies
The SMART envisages starting various ‘farm equipment libraries,’ which will offer farm equipment and machinery on a rental basis to the FPCs. Apart from this a provision to offer farm equipment and machinery on easy instalments. One such manufacturing company that can help the FPCs is the Padgilwar Corporation. The company provides quality farming equipment that carter to various requirements in the farming process. The products of Padgilwar Corporation are durable as well as affordable. This is why they were able to create a goodwill among the dealers as well as farmers.
Farmer Producer Companies – A Game Changer
Farmers were demanding that farming should be declared as an industry. They demand remunerative prices based on the cost of production. They have been denied the status of the industry till now, but the present scheme of forming FarmerProducerCompany’s indoor to produce farm products at the local level has immense potential to bring much-required prosperity in the lives of farmers. The FarmerProducer Companies will be provided with cheap loans by NABARD. The Government of India has exempted this company from corporate tax for the first five years of its operations. It has also provided INR 500 Crores in the budget. The Farmer Producer Companies will be provided with seed equity from SAFC New Delhi. The organization will also offer credit guarantee to the tune of 85% of the product cost or maximum One Crore.
Conclusion
Requisite training and guidance about the formation of Farmer Producer Companies along with monetary incentives are set to change the lives of farmers forever. This scheme will be successful if backed by the Agricultural Machinery Manufacturing Companies like Padgilwar Corporation. It not only has a wide range of equipment to offer the farmers but also the right amount of spirit to empower them.
Agro Enterprise- A Way Forward
