Farmer Producer Organisation

Topics: Marketing, Cooperative, Organic food Pages: 6 (1078 words) Published: September 9, 2013
Kodangal Farmers' Producers' Company Ltd.
Kodangal is a Town and Mandal in Mahbubnagar district, Andhra Pradesh. Kodangal is located under Mahbubnagar district. From Hyderabad it is located at a distance of 95 km. The FPC has 98 FIGs (Farmer Institution Groups) as members. There are 1740 registered members, out of which 834 members have paid share capital. FPC Structure

Board of directors


The board of directors constitute of primary producers elected from among the FIGs. Production and Marketable Surplus
Crop| Avg Land under cultivation (acre)| Avg yield per acre| Avg production per farmer (Qtl)| Avg Consumption| Avg Marketable Surplus| Red Gram| 2.22| 5| 11.1| 0.2| 10.9|
Black Gram| 0.19| 3.1| 0.589| 0.1| 0.489|
Green Gram| 0.37| 3| 1.11| 0.14| 0.97|
Bengal Gram| 1.11| 4| 4.44| 0.6| 3.84|
Cotton| 0.33| 8| 2.64| 0| 2.64|
Sorghum| 1| 9| 9| 4| 5|

* From the data provided in tables above we can see that pulses are the major crop in the area. Red gram is the preferred crop in Kharif season. * While talking to farmers and ALC officials it was found that farmers prefer to migrate for working as wage labourers in Rabi and summers. * SFAC, through ALC India is promoting the Kodangal FPO for procurement of pulses * Farmers get chemical fertilizers from input suppliers and Managromore centre. At input suppliers they pay about 10% more than the market price. * After production the small and medium farmers sell their produce directly to market. They are unable to sell processed pulses which could have given them higher profits. * While talking to members of ALC India Kodangal, it was found that DAP of Godavri brand hasd been distributed to farmers at RS. 1181 when it was available at a price of Rs. 1250 in the market. * However the plan to provide seeds/fertilizers/pesticides is through contracting some company which will provide the inputs to farmers at MRP and not overcharge them. The supplier company will benefit from scale of operation. * From seeing the production of pulses in the region as well as talking to some of the ALC India officials the need of the hour in the region seems to be a dal mill and a warehouse. So my business plan caters to the same. For the data estimation I have consulted pulses production data of ALC India, have visited Venkatesh Narasimha Dal mill in Kodangal which has a capacity of 5MT/day. * The dal mill will act as a source of earning revenue for the FPC. It can lead to increase in its capital. * The dal mill will process the pulse output so that farmers can command higher price for their produce while the warehouse will help them store the processed dal to be sold in the market when the price is high enough. The warehouse will also prevent distress selling by the farmers. SWOT Analysis


Understanding of Farmers about FPC
The farmers are very clear about the group strength they have in dealing with traders and retailers. There are also very secure about their deposits in banks as everybody has a pass book. This addresses their past fears of organizations running away with their money. Farmer’s requirements from FPC

* License
* Dal mill processing unit
* Machinery
* Storage godown and spray pump
Mulkanoor Cooperative Rural Bank and Marketing Society Ltd
Mulkanoor Co-operative Rural Bank and Marketing Society Ltd., established in the year 1956 is located at Mulkanoor, Dist Karimnagar, Andhra Pradesh. Presently the society has 7356 members and operates in 14 villages. The annual turnover of the society is 156.77 lakhs and the products of the society includes Financial services, Input supply services, Marketing Services, Consumer services, Welfare services. It is a multipurpose society. Mulkanoor is located at a distance of 164 km. form Hyderabad Cooperative Structure



The general body constitute of primary producers elected from...
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