India is an agrarian economy and agriculture continues to be the mainstay of the Indian Economy, whose contribution to the national gross domestic product is about 25% and provides livelihood for nearly 65% of the population. It provides employment to about 65% of the labour force, which accounts for nearly 27% of GDP, it contributes 21% of the total export and raw material to several Industries. Agricultural sector has tremendous potential for expansion of employment opportunities and consequently mitigating the levels of rural poverty. These objectives can be achieved only if concerted efforts are made to realize the untapped potential of this sector. Low productivity in many crops, imbalance in the regional development, post harvest losses and inadequate processing facilities are some of the major weaknesses. There is a greater need for efficient linkages between the producers and the consumers for expanding employment opportunities and increasing the rural income through better marketing of agricultural products.
Establishment of SFAC
Realizing that the prevailing need for creating a conducive environment for generating rural employment and enhancing farmers income, the then Honable Finance Minister announced the decision of Government of India’s new innovative for setting up of Small Farmer’s Agri-Business Consortium in his budget speech for the year 1992-93 in the following words:
Special attention needs to be paid to supporting innovative ideas for generating income and employment in rural areas through support to various types of agri-business.
The setting up of the Small Farmers’ Agri-Business Consortium (SFAC) in 1994 was a sequel to the above announcement for bringing about and facilitating a farm-focus growth through new ventures in agro-based industries. SFAC has emerged as a Developmental Institution with its core aims and objectives focused on increased production and productivity, value addition, provision of efficient linkages between producers and consumers. SFAC deals with agriculture in its wider connotation, including fisheries and horticulture.
