SMALL FARMERS DEVELOPMENT
AGENCY (SFDA), MARGINAL
FARMERS AND AGRICULTURAL
LABOURERS DEVELOPMENT AGENCY
(MFAL)- THEIR STRENGTHS AND
Small Farmers Development Agency
• In 1969, The RBI had appointed an All-India
Rural Credit Review Committee in 1969. The
chairman of this committee was B.
• This committee recommended establishment
of Small Farmers Development Agency (SFDA).
• This scheme was started in 1971-72 in select
• It was financed by central as well as state
government and a provision of subsidy was
made for the farmers from 25% (nontribal
farmers) to 50% (tribal farmers).
• The SFDA was the first programme in our
country in which there was a proper linkage of
the central Government, State Government
and Financial Institutions.
• Later in 1980, this programme was merged
with Integrated Rural Development
programme (IRDP), Marginal Framers and
Agricultural Laborers Development Agency
• In all, about 50 SFDA projects have been
established through out the country under the
Fourth Five-Year Plan.
The core philosophy of the SFDA was
• To investigate and identify the problems of
small farmers and ensure that various services
reach to them.
• To ensure that the farmers secure loans from
• To ensure that the farmers have access to
other assistances such as improved seeds,
fertilizers and other inputs.
• To improve their production and to increase
their income through state and institutional
• To make his farm business more efficient in
technology, and surplus in economic terms
and to supplement his resources and
• The agency primarily functions as a
coordinator between participants, credit
institutions, development departments and
• Identifying the participants according to the
definition of small and marginal farmers and
• Organize suitable programmes for improved
agriculture and related occupations.
• The agency does not give credit and advance
loans. It extends assistance to individual
participants and cooperative institutions, etc.,
in pursuance of the programmes drawn up for
MARGINAL FARMERS AND
• It was formed on recommendations of All
India Rural Credit Review Committee.
• Implemented on Fourth Five Year Plan for
marginal farmers and agricultural labourers.
• Under this scheme, 41 projects were
scheduled to be established throughout the
country in the Fourth Five-Year Plan to cover
farmers having holdings of not more than
one hectare and agricultural labourers having
a homestead and earning half or more of their
income from agricultural wages.
• Each Project aimed at covering about 20,000
households during the Fourth Five-Year Plan,
of which about two-thirds would be from the
marginal farmers and the rest from
• This was formulated with the specific
objectives of ameliorating the economic
conditions of the concerned sections and
bringing them to the maintstream of
• To study the nature and contents of the programmes
for marginal farmers and agricultural labourers
• To study the organisational and operational aspects of
the implementation of the Programmes.
• To assess the impact of these programmes on small
farmers, marginal farmers and agricultural labourers
with respect to increase in their incomes and the
availability of more employment opportunities.
• Identifying the eligible farmers and agricultural
labourers and their problems, devising economic
programmes for gainful employment for them,
augmenting the income of small farmers through
• promoting rural industries, evolving adequate
institutional, financial and administrative
arrangements for implementing various
programmes and creating common facilities for
production processing, storage, transportation
and marketing etc.