Round Table Discussion on 11th – 12th March 2014 to discuss the work, challenges and constraints faced by the Farmer Producer Organizations and understanding their capital and capacity building requirements.
As the number of Farmer Producer Organizations (FPOs), Producer Companies / Collectives and interest in this institution, grows across the country, the issue of access to credit - linking FPOs to reliable and affordable sources of financing for working capital, infrastructure investment and other needs has assumed centre stage.
Friends of Women’s World Banking – India is a non-profit organization providing financial, institutional and capacity building services to partner organizations promoting livelihoods and self-reliance of small and marginal producers and women.
Backed by more than 30 years experience, FWWB anticipated the role that Community Owned Livelihood Enterprises could make on creating sustainable livelihoods for the poor and the community. In the context of poverty alleviation, the importance of these enterprises is emphasized as they leverage benefits of aggregation of ‘producers’ like higher bargaining powers for purchasing and selling, skill building, usage of technology and common infrastructure. To support such organizations FWWB under its LEAD Program provides:
- Financial services such as loan for working capital and asset building.
- Institutional and Capacity Building support such as training of management and staff on financial management, accounting practices, business plan preparation, establishment of proper systems and tracking mechanisms which would not only enhance efficiency but also deepen outreach and impact.
FWWB initiated lending to Farmer Producer Organizations (FPOs) in 2007 and during the current year has financially supported Agri Producer Companies to the tune of 7 crores. This support has gone to 20 organizations across 6 states of India.
Inspite of the importance of this intervention of supporting the producer companies of small and marginal farmers, FWWB’s attempt to raise funds from formal banking institutions has proved to be difficult.
FWWB would like to organize a round table on 11th-12th March 2014 in Delhi to discuss the work done, challenges and constraints faced by the FPOs and understanding their capital and capacity building requirements.
Expected Outcomes of Roundtable Discussion
The RTD is expected to bring out the below outcomes
- Current trends/scenario for POs
- Understand current challenges faced by POs
- Understand FPOs credit requirement and capacity building requirements
- Understand expectations and directions from funders