Profile
Settings
Refer your friends
Sign out
SFAC is a non-profit organisation dedicated to improving the earnings of small and marginal farmers by aggregating and developing agribusiness.SFAC is credited with pioneering the development and expansion of Farmer Producer Organisations/Farmer Producer Companies, which are currently in use. SFAC is working to create an ecosystem for FPOs/FPCs to make them long-term sustainable and viable. To strengthen the availability of working capital and the expansion of business activities, SFAC offers FPCs programmes such as the Equity Grant and Credit Guarantee Fund Scheme.
About SFAC
According to the Societies Registration Act, 1860, the SFAC was created in 1994 as an autonomous agency of the Ministry of Agriculture & Farmers’ Welfare.
- SFAC is credited with pioneering the development and expansion of Farmer Producer Organisations/Farmer Producer Companies, which are currently in use. SFAC is working to create an ecosystem for FPOs/FPCs to make them long-term sustainable and viable.
- To strengthen the availability of working capital and the expansion of business activities, SFAC offers FPCs programmes such as the Equity Grant and Credit Guarantee Fund Scheme.
- Through the VCA Scheme for value-added processing and marketing links, SFAC encourages the growth of small agribusiness.
- SFAC is also implementing the National Agriculture Market Electronic Trading (e-Nam) platform. By creating a unified market for agricultural products, farmers will be able to get better prices.
How does SFAC help the Farmers in Increasing their Income?
Farmers benefit from it because it connects them to global and domestic value networks. It also offers farmers training, loans, technology, and encouraging investment.
To boost the availability of working capital and the development of business activities, SFAC offers Farmer Producer Organisations (FPO) programmes such as the Equity Grant and Credit Guarantee Fund Scheme.
The objective is to empower all farmers in the country and increase agribusiness investments and connections through the support and engagement of institutions and the private sector.
Equity Grant & Credit Guarantee Fund (EGCGF) is one of SFAC’s most important programs. The other two programs are Venture Capital Assistance (VCA) and the National Agriculture Market (NAM).
SFAC has recently established the Kisan Rath app, which can transport farm produce during lockdowns with the support of officials from the Ministry of Agriculture.
The MOU was signed with APEDA (America’s Agricultural and Processed Food Export Development Authority) to enhance agricultural synergy.
About SFAC: Statements
SFAC 2 and 5
The accounting process involves recognising and realising revenue, expenses, gains, and losses. Cash accounting is recorded (paid) as soon as cash is received. The concept of realisation is essentially the same as recognition. Since this is a nice and easy to follow format, we don’t like it. Our accounting system is accrual-based.
When revenue is earned (or gained), it is recorded in accrual accounting. It may occur sooner, later, or simultaneously when cash is received. When expenses (losses) are incurred, they are recorded immediately. The cash payment may occur before, after, or simultaneously with this.
Accountants typically report only accounting data on those items that can be valued in monetary terms. In the United States, if something isn’t measurable, it won’t be reported.
Although we gave a warranty, we do not know when or if we will have to repair the item, nor how much it will cost to do so. However, based on previous experience, we can estimate (guess) the amount. It will be billed as a warranty expense.
SFAC 3 and 6
- An income statement includes revenue, expenses, gains, and losses.
- The Statement of Changes in Stockholders Equity shows the contributions, dividends, and net profit.
- According to a balance sheet, assets, liabilities, and stockholders’ equity are included.
- In the Statement of Cash Flow, the company explains where its money came from and went – operations, investments, and financing.
- Notes accompanying financial statements are essential. Without them, it’s nearly impossible to grasp “the figures” (remember Full Disclosure).
Importance of SFAC
SFAC promotes the development of small agribusiness through its VCA Scheme for value-added processing and marketing linkages.
In addition, SFAC implements the National Agriculture Market Electronic Trading (e-Nam) platform. Its purpose is to provide farmers with a single unified market for agricultural products, resulting in a much higher level of price discovery.
To empower small and marginal farmers with bargaining power and economies of scale, we should establish Farmer Interest Groups, Farmer Producer Organisations, and Farmer Produce Companies.
Conclusion
If we talk About SFAC: As evidenced by the actual interventions in the assessment sample, SFAC VCA has generally performed well in the past. However, impacts, i.e. the extent to which the interventions have reduced poverty, are not evident. Since most investments are still in their infancy, this is the case.
However, there are strong indicators, such as strong backward links to farmers and significant increases in off-farm employment, which suggest that future benefits will be significant. Without SFAC’s involvement, many of the companies examined in the sample would not have existed.
