Key Performance Indicators (KPIs) for State Rural Livelihoods Missions

(SRLMs) as Cluster- Based Business Organization (CBBO)

Contents
1. ​Background ​1
2. ​CBBO Activity & Time Line (Gantt Chart) ​1
3. ​Comments on Selected Activities of CBBO ​3
4. ​Deliverables ​6
4.1 Deliverables: Year-1 (Formation Phase) ​6
4.2 Deliverables: Year-2 to 5 (Nurturing/ Hand-holding
Phase) ​9

1. Background

Department of Agriculture Cooperation & Farmers’ Welfare (DAC &FW), Government of

India (GoI) has launched the scheme- Formation and Promotion of Farmer Produce
Organizations (FPOs), to promote 10,000 new FPOs in the country by 2023-24. The
Department has designated Foundation for Development of Rural Value Chains (FDRVC) as
an Implementing Agency (IA), to promote 100 FPOs allocated to the Ministry of Rural
Development (MoRD), GoI under the above stated central sector scheme.
FDRVC will engage well performing State Rural Livelihoods Missions (SRLMs) as Cluster-
Based Business Organization (CBBO), to form and nurture the FPOs following the
Operational Guidelines of the Scheme and as suggested by MoRD from time to time.

FDRVC will needfully guide the empaneled SRLMs and closely monitor work of the
SRLMs, to ensure that they perform activities to make the FPOs economically sustainable. It
will also be vigilant about utilization the project fund, to be received by the SRLMs and
FPOs post all necessary due diligence.

2. CBBO Activity & Time Line (Gantt Chart)

Following Gantt chart/bar chart provides a visual view of tasks scheduled over time for
CBBO. The vertical axis of the Gantt chart shows the tasks that need to be completed, while
the horizontal axis represents time.
Task Month
1-6 7-12 13-18 19-24 25-30 31-36 37-42 43-48 49-54 55-60
Identification of potential
√
Production Clusters

Conducting Baseline Survey √

Preparation of Business
√
Plan
Mobilization of
producers/farmers and √ √
formation of FIG
Registration of FPO as per
Standard Operating √
Procedure (SOP)
Working on post
incorporation- immediate √
statutory compliances
Collection of share fee √ √ √

Recruitment of FPO Staff √

Capacity Building of FPO √ √ √

Fulfilment of compliances of
FPO associated with √ √ √ √ √ √ √ √ √
governance and business
Alignment of
resources/facilities to start √
the FPO business activities

Perform routine activities to

promote financially viable √ √ √ √ √ √ √ √
and sustainable FPO

Availing first tranche of

√
Equity Grant for FPO

Availing Second tranche of

Equity Grant for FPO , if √
any
Availing first tranche of
Credit Guarantee Facility √
for FPOs
Availing second tranche of
credit guarantee facility for √
FPO , if any
Availing third tranche of
credit guarantee facility for √
FPO, if any

Formation of the Project

√
Advisory Body

Conducting periodic
meeting of the Advisory √ √ √ √ √ √ √ √ √ √
Body
Reporting to FDRVC and
coordinating in monitoring √ √ √ √ √ √ √ √ √ √
of the project by FDRVC
Making data entry in
√ √ √ √ √ √ √ √ √ √
Integrated portal of NPMA
Submitting Utilization
Certificate and other √ √ √ √ √ √ √ √ √
compliances
Submitting Project
√
Completion Report

3. Comments on Selected Activities of CBBO

Task Comments
Identification of potential Identify potential districts/blocks/villages and agribusiness
Production Clusters activities that can be carried out in the area
Prepare survey template/toll, conduct field trial of the data
collection toll, make sampling plan, train surveyor, collect
Conducting Baseline Survey
data from beneficiaries, analyse data, prepare and submit
report to FDRVC
Develop business plan template and prepare comprehensive
business plan covering following points-
(a) Production plan- aggregation following quality norms,
Preparation of Business processing and warehousing
Plan (b) Marketing and Sales Plan- product, positioning,
packaging and labelling, pricing, place of sale, sales channel,
distribution plan, promotion/ /branding (ATL & BTL
activities) etc.
Mobilize farmers/producers via village level awareness
meetings. The meetings are to be arranged post prior
Mobilization of
intimation to the community members on timing and agenda
producers/farmers and
of the meeting)
formation of FIG
From Farmer Interest Groups (FIGs) on every 15-20 primary
producers
Identify and onboard of CA firms for registration of FPOs as
Registration of FPO as per FPCs under the producer companies act; prepare matrix to
Standard Operating identify first subscribers; train staff for subscriber selection;
Procedure (SOP) select subscribers and directors, prepare MoA and AoA and
incorporate FPO as FPC under the producer companies act.
Working on post
Open bank account, obtain PAN and TAN, conduct 1st BOD
incorporation- immediate
meeting and AGM and document it for every FPO
statutory compliances
Collection of share fee Collect share fee and issue share certificate
Finalize the recruitment process for FPO staff
engagement and get it approved form the FPO board,
Recruitment of FPO Staff develop Job Description, invite application, screen applicant
and conduct job interview, issue appointment letter to
shortlisted candidate and recruitment the staff
Identify training need, prepare/identify training module,
execute training and exposure visit as per the target. The
Capacity Building of FPO
trainings will be on- roles and responsibilities, business
management and capital/ equity mobilization
Orient BODs on Standard Operating Procedures (SOPs)
pertaining to governance and business of FPO; prepare
Fulfilment of compliances annual accounts, conduct audit and file declaration with the
of FPO associated with tax authority as per the requirement; File annual accounts and
governance and business annual return with ROC as per need; and, make the FPOs
complied with applicable mandatory licenses and
permissions to run the planned businesses

Avail Business Tools/Software of the FPOs as per the

Alignment of business needs of every FPO; and identify venue and arrange
resources/facilities to start facilities for procurement, processing (for Agro-
the FPO business activities produce/output) and storing activities as per the business plan

Provide incubation/handholding services to FPOs in day-

today Agri-input and/or Agro-produce business activities as
per the business plan.

The Agro-produce/output business activities broadly

involve- aggregation/procurement as per pre-fixed quality
Perform routine activities to
norms, processing, packaging and labelling, warehousing,
promote financially viable
managing logistics, managing sales and payment follow up,
and sustainable FPO
marketing/branding (ATL & BTL activities), MIS &
accounting, etc. as per the business plan

Each FPO to execute minimum 50% of its Agri-business

Availing first tranche of
Equity Grant for FPO
Availing Second tranche of
Equity Grant for FPO , if
any
Availing first tranche of
Credit Guarantee Facility
Plan in 2nd, 3rd and 4th year of the business, and execute
100% of its Agri-business Plan in 5th year
Prepare the grant application for Equity Grant and submit it
to FDRVC, make the FPOs enter into Agreement with
FDRVC- post receiving the grant- to use the money as per the
scheme guideline, and ensure that the scheme guideline is
followed
"
Prepare and submit FPO application for Credit Guarantee
Fund to Eligible Lending Institution (ELI), and ensure
for FPOs correct utilization of the fund and regular repayment

Availing second tranche of

credit guarantee facility for "
FPO , if any
Availing third tranche of
credit guarantee facility for "
FPO, if any
Form an advisory body consisting of various stakeholders
Formation of the Project
including state government representative, NGOs, RIs, KVKs
Advisory Body
or any other support institutions
Conducting periodic
Arrange one meeting of the Advisory Body in every six
meeting of the Advisory
months
Body
Report to FDRVC, in first week of every month, about-
progress made in last month, prevailing issues and action
Reporting to FDRVC and
plan for coming month.
coordinating in monitoring
of the project by FDRVC
Co-ordinate FDRVC in mentioning of resources availed,
activities done, outputs and outcomes obtained
Making data entry in Timely update project related data in the Integrated portal of
Integrated portal of NPMA NPMA
Submitting Utilization
Submit, six monthly Utilization Certificate and other
Certificate and other
compliances of CBBO and FPO, to FDRVC
compliances
Submitting Project
Submit Project Completion Report to FDRVC
Completion Report

4. Deliverables

Following set of quantifiable measurements, in formation phase (year-1) and hand-holding

phase (year-2 to 5), are to be used to gauge performance/operational achievements of CBBO.

4.1 Deliverables: Year-1 (Formation Phase)

Activity Output/Outcome

1-6 months 7-12 months

Identification of Potential production clusters
potential Production identified for allocated FPOs
Clusters
Conducting Baseline Baseline study reports, for allocated
Survey FPOs, submitted to FDRVC
Preparation of Business Business plans, for allocated FPOs,
Plan submitted to FDRVC
Mobilization of Minimum 300 farmers mobilize, per
producers/farmers and FPO, and FIGs formed (each of 15-
formation of FIG 20 members)
Registration of FPO as Allocated FPOs registered as FPCs
per Standard Operating under the Producer Companies Act
Procedure (SOP)
Working on post 1st BOD meeting and AGM
incorporation- conducted and recorded for allocated
immediate statutory FPOs
compliances

Bank accounts opened, and PAN and

TAN obtained for allocated FPOs
Collection of share fee Share fee collected from minimum
300 members at the rate of INR 500
per member in the first year, for
every FPO
Recruitment of FPO CEO and Accountant
Staff appointed for allocated FPOs
following a standard
recruitment process
Capacity Building of One training of BODs and
FPO FIG leaders conducted, for
every FPO, on roles and
responsibilities, fund/equity
mobilization and business
management
One training of CEO
conducted on business
management, for every FPO
One Exposure visit
completed, for every FPO
Fulfilment of BODs of allocated FPOs
compliances, of oriented on Standard
allocated FPO, Operating Procedures (SOPs)
associated with pertaining to governance and
governance and business
business

Preparation of annual
accounts, auditing and filing
declaration with the tax
authority are done as per the
requirement
Filing annual accounts and
annual return with ROC done
as per the Producer
Companies Act
FPOs complied with
applicable mandatory
licenses and permissions to
the planned run businesses
Alignment of Business Tools/Software of
resources/facilities to the FPOs, as per the business
start the FPO business needs, are ready
activities

Procurement, processing (for

agro produce/output) and
storing venue and facilities
identified, as per the Business
Plan
Formation of the Project A project advisory body formed
Advisory Body

Conducting periodic Six-monthly review meeting of the advisory body conducted and
meeting of the Advisory documented guidance provided on the project implementation
Body

Reporting to FDRVC Reported to FDRVC, in first week of every month, about- progress
and coordinate FDRVC made in last month, prevailing issues and action plan for coming
team in monitoring of month.
project

Co-ordinated FDRVC in mentioning of resources availed, activities

done, outputs and outcomes obtained

Making data entry in Required data/status reports are timely updated in Integrated portal
Integrated portal of of NPMA
NPMA
 Submitting Utilization Six monthly Utilization
Certificate and other Certificate and other
compliances compliances of CBBO and
FPO submitted to FDRVC

​
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4.2 Deliverables: Year-2 to 5 (Nurturing/ Hand-holding Phase)

Activity Output/Outcome

13-18 months 19-24 months 25-30 months 31-36 months 37-42 43-48 49-54 55-60
months months months months
Another
Mobilization of
minimum 200
producers/farmers
new farmers
and formation of
mobilized,
FIG
per FPO
2nd trance of 3rd trance of
share fee Share fee
collected collected
from from minimum
Collection of share minimum 500 500 farmers, per
fee farmers, per FPO,
FPO, at the to make it total
rate of INR INR 2000 worth
500 per of share per
member member
One training
One training of
of BODs and
BODs and FIG
FIG leaders
leaders
Capacity Building conducted,
conducted, for
of FPO for every
every FPO, on
FPO, on
business
business
management
management
One training
of CEO One training of
conducted on CEO conducted
business on business
management, management,
for every for every FPO
FPO
One Exposure
visit One Exposure
completed, visit completed,
for every for every FPO
FPO
Fulfilment of
compliances of
FPO associated
with governance Preparation of annual accounts, auditing and filing declaration with the tax authority are done as per the
and business requirement
Filing annual accounts and annual return with ROC done as per the Producer Companies Act
FPOs complied with applicable mandatory licenses and permissions to the planned run businesses
Perform routine
activities to
promote
financially viable
and sustainable Production activities (for agro produce/output) are executed as per the plan, following quality norms for-
FPO aggregation, processing, packaging, labelling and warehousing
100 % of the sales
target achieved and
the FPOs are making
Minimum 50% of the sales target achieved, as per the business plan, via multiple net profit from the
marketing tie-ups business as per the
plan

Credit policy of the FPOs are adhered to and there is almost zero payment default from customers

First tranche of Equity Grant

received by allocated FPOs,
Agreement of FPOs done
Availing first with FDRVC- post receiving
tranche of Equity the grant- to use the money
Grant for FPOs as per the scheme guideline,
and the scheme guideline is
followed in utilization of the
fund
Remaining amount, out of total available Equity Grant
Availing Second (INR 2000), received by allocated FPOs in the second
tranche of Equity tranche, Agreement of FPO done with FDRVCs- post
Grant for FPOs , if receiving the grant- to use the money as per the
any scheme guideline, and the scheme guideline is
followed in utilization of the fund
First tranche of Credit
Guarantee fund received by
allocated FPOs, utilization
Availing first of the fund is done as per the
tranche of Credit business need specified in
Guarantee Facility the application to Eligible
for FPOs Lending Institution (ELI),
repayment is done as per the
amortization schedule of the
ELI
Second tranche of Credit Guarantee fund received by
Availing second
allocated FPOs, utilization of the fund is done as per
tranche of credit
the business need specified in the application to
guarantee facility
Eligible Lending Institution (ELI), repayment is done
for FPOs , if any
as per the amortization schedule of the ELI
Third tranche of
Credit Guarantee
fund received by
allocated FPOs,
utilization of the
Availing third fund is done as per
tranche of credit the business need
guarantee facility specified in the
for FPOs, if any application to
Eligible Lending
Institution (ELI),
repayment is done as
per the amortization
schedule of the ELI
Conducting
Six-monthly review meeting of the advisory body conducted and documented guidance provided on
periodic meeting of
project implementation
the Advisory Body
Reporting to
FDRVC and
coordinate
Reported to FDRVC, in first week of every month, about- progress made in last month, prevailing issues
FDRVC team in
and action plan for coming month.
monitoring of
project

Co-ordinated FDRVC in mentioning of resources availed, activities done, outputs and outcomes obtained

Making data entry

in Integrated Required data/status reports are timely updated in Integrated portal of NPMA
portal of NPMA
Submitting
Utilization
Six monthly Utilization Certificate and other compliances of CBBO and FPO submitted to FDRVC
Certificate and
other compliances
Project
Submitting Project Completion
Completion Report
Report Submitted
to FDRVC

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