Inclusive Supply Chain and Enterprise Development Key Interventions

PROJECT CLUSTERS

Village clustering was undertaken to gather previously unavailable data and target interventions effectively. The project identified 167 clusters across 18 blocks, further divided into 485 subclusters or product clusters. Each cluster and sub-cluster was mapped for supply chain commodities to generate data on coverage, household involvement, and production potential.

This data is authenticated through block-level sensitization programs, followed by Multi-Stakeholder Platforms (MSPs), which bring together stakeholders and actors with similar interests to enhance market conditions through shared learning, joint decision-making, and collective action.

The process begins with MSP 1, a one-day sensitization program where farmers, traders, and entrepreneurs gather in a central village to identify gaps and aspirations. In MSP 2, youths from MSP 1 become village facilitators, collecting data and forming Producer Groups based on similar livelihoods. MSP 3 addresses production issues and proposes support strategies for post-harvesting, logistics, and bank linkages.

THE WINDOWS OF OPPORTUNITY

Through its Inclusive Supply Chain and Enterprise Development component, the Megha-LAMP project provides essential financial support to micro-enterprises to support rural economic development. The objectives are to stimulate private investment across various stages of the agri supply chain, including input supply, production, post-harvest management, processing, marketing, and support services. This initiative aims to develop competitive supply chains, promote overall growth through market-led production, increase sales turnover, improve incomes, and create employment opportunities. It also seeks to promote the growth of networks of competent, market-based service providers.

The project provides four funding windows for different categories of business size.

Window 1

Small holders on Farm Investment

Small-scale producer investments in critical production constraints and initial post-harvest technologies and systems

Window 2

Service Providers

Input supply strengthening and agricultural/ Livestock technical Services supporting the supply chain

Window 3

Medium Enterprises Investment

Small /Medium enterprises investments in initial production, and post-harvest management, processing / marketing and support service market of the listed supply chain

Window 4

Larger Agribusiness Investment

Large business investments in the downstream supply chain

COLLECTIVIZATION OF FARMERS

Megha-LAMP tackles the challenges faced by small and marginal farmers, village-level input suppliers, and aggregators by enhancing productivity, delivering extension services, and developing value chains to improve market access and bargaining power. This is achieved by organizing them into member-owned and member-controlled Producer Groups (PGs), formed from farmers engaged in similar activities like agriculture, livestock, or NTFP. The focus is on expanding areas and marketing as collectives. These PGs, usually unregistered, are organized as Common Activity Groups, Farmers’ Interest Groups, or Joint Liabilities Groups, with an average size of 10 to 20 members. Membership is restricted to one member per household per group. Through this intervention, Megha-LAMP has empowered farmers to address input availability and marketing challenges, leading to increased productivity and improved incomes.

COLLECTIVE MARKETING CENTRES (CMC)

Collective marketing initiatives are being promoted by Megha-LAMP to respond to the growing challenge of rural farmers having little to no control in supply chains and enable them to regain bargaining power, cut costs of transportation and storage, and eradicate the influence and position of middlemen, while realizing fair and competitive negotiation prices for their produce at the markets. This was a result of observations of individual farmers not being able to keep up with varying market dynamics because of production and marketing issues that they face as individuals and a poor understanding and knowledge of how the market works. In view of this, Collective Marketing Centres (CMC) have been set up as one-stop shops for marketing and processing agricultural produce, input-supply, and for providing forward and backward linkages

Collective marketing initiatives are being promoted by Megha-LAMP to respond to the growing challenge of rural farmers having little to no control in supply chains and enable them to regain bargaining power, cut costs of transportation and storage, and eradicate the influence and position of middlemen, while realizing fair and competitive negotiation prices for their produce at the markets. This was a result of observations of individual farmers not being able to keep up with varying market dynamics because of production and marketing issues that they face as individuals and a poor understanding and knowledge of how the market works. In view of this, Collective Marketing Centres (CMC) have been set up as one-stop shops for marketing and processing agricultural produce, input-supply, and for providing forward and backward linkages

FARMERS’ MARKETS

In Meghalaya, agriculture and farming have been the primary livelihoods for many. Traditionally, farm produce is traded through inherited market systems based on supply and demand. However, these systems are dominated by non-farm agents driven by profit margins. Rural markets operate weekly, with trading agents setting prices for farmers’ produce. Despite the efforts of marketing committees, market infrastructure remains largely inaccessible and disorganized, leaving farmers without clear guidelines for managing surplus production. As a result, farmers increasingly seek information on current prices and lucrative markets, driving demand for input, funding support, market linkage, and enterprise development opportunities. To address these issues, Megha-LAMP has established Farmer-Owned and Farmer-Managed Markets, mobilizing farmer groups. The project aims to construct 50 such markets with additional funding from the North-Eastern Council (NEC). These markets offer improved infrastructure and basic facilities, including storage, parking, shades, and better sanitation.

Megha-LAMP’s farmers’ markets are also expected to generate additional revenue for farmers. Management committees will include representation from all primary stakeholders. Unlike conventional markets that impose fixed fees and taxes on farmers regardless of transaction size, the Megha-LAMP markets will levy fees and taxes proportionate to the goods, services, and facilities used by sellers and buyers

CAPACITY BUILDING

Megha-LAMP’s interventions extend beyond traditional farming support and emphasizes robust training and capacity-building of farmers. The project has invested in the development of farmers by conducting various training initiatives to not only enhance skills and knowledge of individual farmers but also cultivate a cadre of master trainers. Through specialized training sessions, farmers are equipped with the knowledge and capacity needed to engage in higher-order agricultural activities. Megha-LAMP’s commitment to building a knowledgeable and skilled farming community extends to empowering individuals to become master trainers themselves. This approach ensures that farmers not only improve their own practices but also play pivotal roles in elevating the capabilities of their peers and the broader agricultural community.