The Small Farmers’ Agri-Business Consortium (SFAC) is an autonomous society under the Ministry of Agriculture and Farmers Welfare. Established in 1994, its mission is to empower small and marginal farmers by linking them to agribusiness opportunities, strengthening their value chains, and enhancing their market access.
Key Objectives of SFAC
- Farmer Collectivization: Promoting Farmer Producer Organizations (FPOs) to aggregate the strength and resources of smallholders for higher bargaining power.
- Value Chain Development: Facilitating forward and backward linkages, including input supply, credit, processing, and marketing support.
- Market Access: Connecting FPOs to domestic and international buyers, expanding reach beyond local mandis.
- Capacity Building: Providing training and skill development to farmer groups to enhance their production and entrepreneurial capabilities.
- Promoting Agri-Entrepreneurship Supporting farmer-led agribusiness ventures and fostering innovation.
SFAC’s Interventions
SFAC works through various schemes and initiatives:
- Equity Grant Fund: Providing financial assistance to FPOs.
- Credit Guarantee Fund Scheme: Mitigating credit risk through credit guarantees to lenders servicing FPOs.
- Venture Capital Assistance Scheme: Funding promising agricultural start-ups.
- Implementation Partner: SFAC often serves as an implementation agency for government schemes focused on farmer aggregation and value chain development.
Impact of SFAC
- FPO Formation: SFAC has played a crucial role in forming and nurturing thousands of FPOs across India.
- Market Linkages: Enabled FPOs to access bulk buyers, institutional markets, and even export opportunities.
- Enhanced Farm Income Improved value capture by FPOs through processing and direct marketing has boosted farmers’ income.
Case Study: SFAC-Enabled FPOs in Maharashtra
SFAC-supported FPOs in Maharashtra are aggregating various commodities, including vegetables and fruits. They have established collection and processing facilities, and built direct linkages to supermarkets and export houses, providing farmers with higher returns.
FAQs About SFAC
- Who is eligible for SFAC’s support? Registered FPOs, agri-entrepreneurs, and other stakeholders in the small farmer value chain.
- How to access SFAC schemes? Eligible entities can apply for support through SFAC’s website, designated banks, or implementing agencies.
MCQs
The primary purpose of SFAC is to:
A. Provide subsidized loans to farmers
B. Promote agricultural exports
C. Offer free agricultural inputs
D. Support small farmer value chains and agribusinesses
Which of these is NOT a direct intervention by SFAC?
A. Equity grants to FPOs
B. Market linkage support
C. Weather forecasting services
D. Skill development workshops for farmers