SFDA and MAFALDA

Small Farmers Development Agency (SFDA)

In 1969, The RBI had appointed an All-India Rural Credit Review Committee in 1969. The chairman of this committee was B. Venkatappiah. This committee recommended establishment of Small Farmers Development Agency (SFDA). The core philosophy of the SFDA was

1. To investigate and identify the problems of small farmers and ensure that various services reach to them.
2. To ensure that the farmers secure loans from cooperative banks.
3. To ensure that the farmers have access to other assistances such as cooperative banks, improved seeds, fertilizers and other inputs.

This scheme was started in 1971-72 in select districts. 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 (MAFALDA)

• Marginal Framers and Agricultural Laborers Development Agency (MAFALDA) was also established with SFDA to assist the marginal farmers and agricultural laborers in maximum productive use of their small holdings and skills by undertaking animal husbandry horticulture etc.