Collective marketing model expands opportunities for smallholders

New Delhi (Indian Catholic News) — A smallholder-led agricultural marketing model in central India has helped farmers improve market access, strengthen collective organizations, increase incomes and maintain sales especially during the COVID-19 pandemic, according to a study by Caritas India.

The findings come from the Smallholder Adaptive Farming and Biodiversity Network (SAFBIN), a Caritas India initiative operating in Madhya Pradesh state.

The study documents lessons from SAFBIN-supported farmer institutions in Sagar and Mandla districts, where Smallholder Farmers Collectives and District Farmers Forums were used to aggregate and market farm and forest products collectively.  According to the report, “The findings are very much encouraging.”

Researchers found that collectives in Sagar “utilized it for collectivizing, aggregating of farm and forest products for marketing collectively even during the Covid-19 Pandemic situation.” Farmers also “significantly accessed to 35 types of different socio-economic entitlements by mobilizing ₹20.92 million ($218,561) through 2,393 persons over the years.”  

The report identified several positive outcomes, including the “concept of collectiveness for marketing,” “market linked crop-based value chain is clear at each level,” and a “district level forum has good representation and is actively functioning.”

Cluster facilitators support collective marketing

A key feature of the model is the use of Cluster Level Facilitators, or CLFs, selected from local communities. The report says these facilitators are responsible for “marketing of surplus small farm agri-food collectively to the nearby market with a uniform price for all.”

According to the study, the model is designed to be an “inclusive marketing model” that emphasizes the participation of small-scale farmers, “especially the women farmers in particular.”

The report states that SAFBIN worked “from doubling farm production to a meaningful market linkage.” Surplus products were collected regularly and sold in government markets, with proceeds credited to farmers’ individual accounts.  

Researchers concluded that the approach helped make smallholders “accessible to the larger market with a higher level of negotiation with the buyers” while also giving importance to local conditions and collective action.

Increased income and stronger farmer organizations

The study highlights several success factors, noting that “The integration of smallholders in value chains works well where the ‘engagement of CLF’ provides a substantial benefit.” It also says “Changing the way of production requires time, continuous coaching, eventually some subsidies and interaction among smallholders.”  

Among the lessons learned were “More unity in the smallholders at their household as well as community level,” “Improved use of resources,” “Increased small farm production and income,” and that “Collectivization and CLF approach made them access to government mandis and market to negotiate and sell their own farm produces.”

The report concludes that “Engaging smallholders in value chains can generate benefits for smallholders as well as for buyers, suppliers, and other actors in the value chain.” It adds that “This innovative and smallholder led model can be recommended for other areas for collectivization of the farm as well as forest produces.”

One farmer, Jagdish, described the impact of the initiative: “This season has opened our eyes and we have greater hopes of selling other produces too in the future in a more organized way through farmer producer organization. Thanks to SAFBIN and the entire team for helping us in a great way.”

Read the full report.