Farmer Producer Companies and FTAs: A Case Study of Nashik's Grape Farmers
UPSC Relevance
Prelims: Indian Economy (Agriculture - FPOs/FPCs, Agricultural Exports), International Trade (Free Trade Agreements - FTAs).
Mains:
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Major crops cropping patterns in various parts of the country; Issues related to direct and indirect farm subsidies; Food Processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management; Land reforms in India. (FPOs are a key topic).
Key Highlights from the News
Main Event: The India-UK Free Trade Agreement (FTA) offers great hope to grape farmers in Nashik, Maharashtra.
Benefit of FTA: Under this agreement, Indian grapes will be able to enter the UK market duty-free (previously, there was an 8% tariff). This will make Indian grapes more competitive in the global market.
Secret to Success: The main factor behind the success of these farmers is collective farming through Farmer Producer Companies (FPCs).
Role of FPCs:
FPCs give small farmers bargaining power.
They help aggregate products in large quantities required for the international market.
They help farmers meet the stringent quality control norms required for export.
Change for Farmers: Through the FPC model, farmers received better prices, timely payments, and an improved standard of living. This attracts youth to farming.
Location: Nashik, known as the "Grape Capital of India."
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