Background
The Ministry of Agriculture first proposed the idea of SFAC in the early 1990s. The primary objective was to create a platform for small and marginal farmers to participate in agribusiness activities. The government recognized that the small and marginal farmers, who constitute around 85% of the farming community in India, face numerous challenges, such as a lack of access to finance, technology, and market linkages. SFAC was established in 1994 as a registered society under the Ministry of Agriculture and Farmers' Welfare, Government of India.Functions and Roles
SFAC bridges the gap between small and marginal farmers and the market. Some of the key functions and roles of SFAC are:-
Facilitating agribusiness activities
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Promoting farmer-producer organisations
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Providing market intelligence
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Facilitating access to credit
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Capacity building
Advantages
SFAC has several advantages for small and marginal farmers in India. Some of the key advantages are:- Access to markets: SFAC provides small and marginal farmers with access to domestic and international markets. SFAC facilitates linkages between farmers and buyers, enabling farmers to sell their produce at remunerative prices.
- Access to finance: SFAC facilitates access to credit for small and marginal farmers. SFAC also assists FPOs financially to strengthen their financial management and creditworthiness.
- Technology adoption: SFAC facilitates the adoption of modern technologies in agriculture by small and marginal farmers. SFAC provides technical assistance to farmers on crop selection, crop management, and post-harvest management.
- Diversification: SFAC promotes crop diversification, which helps small and marginal farmers to reduce their dependence on a single crop. Diversification helps farmers to manage risk, improve productivity, and access new markets.
- Empowerment: SFAC empowers small and marginal farmers by creating FPOs. FPOs act as a platform for small farmers to come together and engage in collective marketing, procurement, and value-addition activities. FPOs help small farmers to improve their bargaining power and access new markets.
