Vrutti is the Fund Manager for HIVOS initiated project (under its Green Entrepreneurship programme) for Mobilizing and Strengthening Small Producers to Move into Sustainable and Market-Worthy Organisations. This is a Million-acre Initiative with 500,000 Small Producers.SGF – A brief: Small Grant Facility (SGF) is a financial grant support initiative from Hivos managed by Vrutti Livelihoods.
- SGF is accessible to Facilitating Organisations (FO) such as NGOs/CBOs etc., in various parts of India, who are working directly with small producers and interested to enable these producers into establishing market-worthy and sustainable producers organisations
- SGF will help FOs to achieve this intent by extending them a grant to access required capacity building services from service providers who are identified and empanelled by SGF
- SGF will extend funds to access variety of critical services that are required to mobilise and capacitate small producers and establish strong and self-sustainable producers organisations
SGF is a part of a larger multi-stakeholder platform called ProCIF (Producers’ Enterprise Catalyst and Incubation Facility) that seeks to transform asset-poor producer organisations into self-reliant enterprises. SGF will be a facility that is appropriately designed to propel producers and producer groups to collectivise into producer organisations, access capacity building support to build themselves into self-sustaining producer organisations.
Goal and Coverage of SGF
To support Facilitating Organisations (that have a good reach to producers) with funding support to enable them to access services from variety of service providers and ensure development of effective Producer Organisations that are ‘market-ready’.
The support from SGF to FOs will help producers to reach a level of recognisable capacities and link up to various services in the market place on market terms. It will create a pipeline of producers’ organisations to be mentored and molded for further linkages to finance, markets, technology and services. Also, it will create a network of Service Providers and build environment amicable for Incubation and Handholding of Producer Organisations on a sustainable basis.
The Focus Sectors of SGF are Farm, Forest, Fisheries and Livestock.
Target: Aim is to cover at least 23 FOs by December 2014 (13 FOs by December 2013 and another 10 during Jan-Dec 2014, given the current resources for support)
Estimated Grant Support per FO: The grant support will be based on actual capacity building needs and can be up to Rs. 15 Lakhs.
Duration and Type of Support by SGF to a FO: Duration is demand based and the support is fixed based on assessment of need. Support could range from a one-off training/ workshop of just couple of days to a year or so where mentoring and handholding support is provided.
Types of support facilitated by SGF: Visioning and Strategy, Legality, Environment and Market mapping for Linkages, Financial Management, Taxation and Linkage to Financial Systems, Governance, Monitoring, Capacity Building and other Organisational Management Services. Any other specific support required that is not listed can also be considered, if essential, to achieve the objective.
SGF's USP: Process appropriate to the needs and capacities of the FO's and producers through simple, facilitatory, grass-root engagement via appropriate locally relevant support services.
Role of Vrutti under SGF: SGF will work through FIVE streams:
- Stream 1: To periodically communicate, identify, appraise and engage with potential Small Producers’ Organisations across the country to get support from service providers
- Stream 2: To periodically identify, assess and empanel a list of service providers with a potential to support Small Producers’ Organisations across the country
- Stream 3: To periodically evaluate the capacity and strength of supported Small Producers’ Organisations and refer them to suitable market players
- Stream 4: To explore opportunities for resource mobilisation from various stakeholders for supporting SGF
- Stream 5: To extract key learning from experiences of SGF implementation; document and periodically improve the SGF framework and focus, and scale up the engagements
Vrutti is the SGF facility manager. Vrutti will have a team of five people, with SGF Manager being the overall coordinator of the fund.
IFHD along with Vrutti Livelihood Resource Centre organized aworkshop with Hivos partners on 22nd and 23rd May 2014 in Bangalore to discuss the following:
- Explore the possibilities of promoting new FPOs with Hivos partners,
- Bring in more FPOs (already promoted by Hivos partners) to the ProCIF incubation facility and
- Explore possibilities of working with Hivos partners as service providers of ProCIF to support FPOs in Sustainable production and post-production technologies