Create to Comply: Developing Knowledge Management and Compliance Mechanism for a FPC | JOHAR Project


Rajrappa Kisan Producer Company (RKPCL) limited was incorporated in February 2019, in the Ramgarh district of Jharkhand. FPC is promoted by Jharkhand State Livelihood Promotional Society (JSLPS), under JOHAR Project funded by World Bank. The demography of the FPC is in three blocks Gola, Patratu, and Mandu. The FPC has a member base of more than 4000 women, associated with their respective Producer Groups (PG) bifurcated as per activities carried out in the selected villages. The FPC has been involved in High-Value Agriculture (HVA) Crop production, marketing, fishery, livestock farming, and Non-Timber Forest Produce (NTFP).


FPC has had a full-time staff comprising of accountants and marketing managers since its inception. Also, the FPC maintains its bookkeeping since its inception. Since the concept of FPC was not very old to the members and the staff of RKPCL, it was a little difficult for them to carry out all the compliances related to the organization. The FPC incurred unwanted fines and penalties due to poor and lagging compliance. The root problem for the same was little awareness regarding necessary compliance and allied mechanisms to perform the same. Moreover, the FPC lacked proper management knowledge and structure to develop a mechanism around the same.


A dual challenge was identified at the FPC. The first challenge was a lack of knowledge regarding compliances and then the auxiliary challenge was fulfilling the compliance requirement. It was observed that lack of knowledge and medium to access the right information drew a cascading effect on the organization. The challenge for Ananya was to devise a methodology that can be adopted by the RKPCL to solve the problem of cascading effect.


As a technical support agency in JOHAR with a purpose to support FPCs in financial-related activities, The team devised a BRIDGE method to solve the crisis created by cascading effect. Read more about the BRIDGE method here: Case Study


ABOUT JOHAR PROJECT

JOHAR (Jharkhand Opportunities for Harnessing Rural Growth) is a project implemented in 68 blocks across 17 districts of Jharkhand, India. The development objective of the project is to enhance and diversify household income in select farm and non‐farm sectors for targeted beneficiaries in rural areas. Ananya is engaged as one of the Technical Support Agencies for enhancing creditworthiness of the Producer Groups (PGs) and Producer Companies (PCs) by way of imparting trainings, streamlining book keeping, helping adherence to regulatory compliance & supporting financial reporting & analysis.


The case study is authored by Avi Jain, Nagendra Rajawat and Neeraj Kumar.