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Small Farmers’ Agri-Business Consortium (SFAC)

Topics Covered: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.

Small Farmers’ Agri-Business Consortium (SFAC)

What to study?

For Prelims and Mains: SFAC- objectives, functions and significance.

Context: Agricultural and Processed Food Products Export Development Authority (APEDA) has signed an MoU with the Small Farmers Agribusiness Consortium (SFAC) to have a better sync with their activities for the benefit of farmers.

Key facts:

  • As per the MoU, both organisations will work towards capacity development, outreach programs, awareness programs and workshops of various stakeholders.
  • APEDA will facilitate the certification of organic produce/areas by the FPCs assisted or identified by SFAC.

Significance of this approach:

It is expected that with the approach of joint collaboration with the organizations like SFAC, APEDA will be able to reach to a large farmer base for improving the production base of agri products quantitatively and qualitatively both for maintaining the consistency of supply and establish an image of quality supplier in the international market leading to increase in export volume and value and indirectly contribute to doubling of farmers’ income.

About SFAC:

The Government established Small Farmers’ Agri-Business Consortium (SFAC) as a Society in January 1994 to facilitate agri-business ventures by catalysing private investment through Venture Capital Assistance (VCA) Scheme in close association with financial institutions.

The role of State SFACs is to aggressively promote agribusiness project development in their respective States.

Management: The Society is governed by Board of Management which is chaired, ex-officio, by Hon’ble Union Minister for Agriculture and Farmers Welfare as the President and the Secretary, Department of Agriculture, Cooperation and Farmers Welfare, Government of India, is the ex-officio Vice-President.

The main functions of SFAC are:

  1. Promotion of development of small agribusiness through VCA scheme.
  2. Helping formation and growth of Farmer Producer Organizations (FPOs) / Farmer Producer Companies (FPCs).
  3. Improving availability of working capital and development of business activities of FPOs/FPCs through Equity Grant and Credit Guarantee Fund Scheme.
  4. Implementation of National Agriculture Market (e-NAM) Electronic Trading platform.

Agricultural and Processed Food Products Export Development Authority:

  • It is an authority established under an act of Parliament and under the administrative control of the Ministry of Commerce and Industry, Government of India.
  • It has been mandated with the responsibility of export promotion and development of the scheduled products viz. fruits, vegetables, meat products, dairy products, alcoholic and non-alcoholic beverages etc.
  • APEDA has also been entrusted with the responsibility to monitor import of sugar.

Insta Link:

Prelims Link:

  1. APEDA- important functions.
  2. What are FPOs?
  3. What is eNAM?
  4. Provisions wrt Cooperatives.

Mains Link:

Discuss the role and significance of Small Farmers’ Agri-Business Consortium (SFAC) in ensuring the welfare of farmers.

Sources: pib.