FPO Promotion

GENESIS

The major working area of SEEDS NGO is under rain fed through which the farmers able to cultivate only one or two crops in a year. During the summer the land will become fallow. This situation influences lot in the socio-economical status of the people of this region. Hence SEEDS has given priority to work on the Land Development activities. Though watershed project intend for the farmer development, the study area was mostly cultivated by Dalit Community people using leased land. So there is an urgency to work for the upliftment of the area.

During the year 2009, SEEDS approached the National Bank for Agriculture and Rural Development (NABARD) for initiating a Capacity Building Phase (CBP) which covers 101 hectares of land. The project has helped us to promote 5 Farmer Interest Groups (FIG) consisting 20 members each and Village Watershed Committee (VWC) cosisting of 15 members in five villages.  Rising of bunds, formation of farm ponds and tree plantation activities are undertaken seriousely.

Reviewing the progress of the project, NABARD has supported for Full Implementation Phase (FIP) in the year 2011 covering 1123 hectares of land. The project evisage for developing water harvesting systems like checkdams, farm ponds, deepening of ooranis, channel renovation, field bunds, bush clearance, levelling and tree plantation in five village Panchayats in the Kariapatti Block of Virudhunagar District with the support of Tamil Nadu Watershed Development Agency (TAWDEVA).

The establishments of water harvesting systems have helped to recharge the open well and drinking water borewells which ultimately improve the water capacity of the cultivable lands leading increase in the cropping system and cropping pattern.

SEEDS PROMOTED FPO’S

S.NoFarmers Producer OrganizationNo.of.FarmersSupported byShare Capital Mobilization
1SEEDS FPO3099NABARD30.99 Lakhs
2RAMANAR MILLETS FPO1967NABARD19.67 Lakhs
3RAMANATHAPURAM CHILLIES FPO2184NABARD21.84 Lakhs
4VIZHTHUGAL FPO1285NABARD21.85 Lakhs
5VIRUTHAI MILLETS FPO1560SFAC15.60 Lakhs
6MAIZE FPO1004SFAC10.04 Lakhs
7COCONUT FPCL1000SFAC10.04 Lakhs
8PULIYUR & PUGALUR MILLETS FPO1000SFAC10.00 Lakhs
9THENI COCONUT FPO1000SFAC10.00 Lakhs
10NANJIL NADU FPO1000SFAC10.00 Lakhs
11NALLARU COCONUT FPO1000SFAC10.00 Lakhs
In the year 2012, a Participatory Rural Apprisal (PRA) throuhg which we identified as it is drought prone low rainfed area, most of the farmers are cultivating in leased land, depend on money lenders for financial needs, forced to sale the agriculture produce for middle man and consequently loss or inadequate profit from the business. To challenge all these problems initially millet cultivation was recommended as rainfed farming.

The SEEDS Former Producer Company was emerged in the year 2015 with 125 shareholders from this project area as the need of the hour. Around ten active farmers were selected for an exposure visits to FPC where they gained knowledge on Companies Act and importance of registration. Several meetings were organized subsequently to enable deep understanding on the subject.

During April 2015 SEEDS FPCL was registered under the Companies Act. The selected 10 members constituted as Board of Directors (BoD) who contributed Rs.10,000/- each and thus the FPO raised 1 lakh as its initial investment.

The first successful Trade done with “Kuthiravali” -minor millet, procured from 60 farmers belongs to Paramakudi region and marketed to the tune of 21 MT to Kalyani Mills. The SEEDS FPO has made a turnover of Rs 5 Lakhs throuhg this new venture which has given confident over the FPO. The second business was through herbal marketing as Virudhunagar District is well known for its wide rage of traders during the summer.

During the off seasons people are engaged in gathering the wild herbals which grown up naturally.  The supply of 150 MT dried herbal plants to one NGO Covenent Centre fof Development (CCD) which costs to the turnover of Rs 5 Lakhs benefitting 200 gatherers.

Various agricultural commodities around 10 MT are marketed to a bulk buyer Safe Harvest, Bangalore throuhg which the FPC have achieved a turnover of Rs 14.71 Lakhs.

The salient feature of the SEEDS-FPO is do not compromise on Quality of the products during the procurement and Timely supply of the committed orders.  These characters have made the Safe Harvest Company to make potential orders in subsequent years.

After realizing the positive factors of the FPO, 350 shareholders joined voluntarily. In the year 2016 a dynamic Chief Executive Officer (CEO) and five Community Development Organisers (CDO) were appointed which increased the number of shareholders; create linkages with the banking sectors, planning for new agricultural business activity – made all possible.

Benefits for the farmers:

The major advantages enjoyed by FPO shareholders are

  • Timely credit facility for crop production.
  • Payments to the farmers are made promptly in the farmgate itself.
  • Ensure NO weightloss of produce.
  • Reduced farmers time and money on transport
  • No bargaining, No commission since No middlemen.
The FPO fix comparatively good rate to the farmers produces by an increase of Rs.5 to Rs.10 per kg than the local traders. Thus there was a new revolution in price fixing was made. Through the external support from the financial institutions like ANANAYA and SAMUNNATI have helped the FPO to disburse Crop and Livestock loan needs of the farmers for Livelihood support to the tune of Rs192 lakhs covering 593 farmers in FY 2016-17.

  • The business turnover obtained in FY 2016-17 is Rs 1.39 crore which is 6-fold increase when compared to 18.69 lakhs during FY 2014-15.
  • In July 2017 fertilizer shop was opened by the FPO to reduce the cost on fertilizers, provide quality pesticides and agricultural inputs for the benefit of the farmers.
  • For the first time awareness on Kothari brand mixed fertilizers was made successfully instead of SPIC in this area
  • Around 25000 MT of inputs procured and supplied to farmers’ use which shows a positive growth rate of Crop and the Yield.
  • SEEDS aimed at business 1180 MT of commodities to FPOs achieve a turnover value of Rs 408 crore in FY 2017-18 to the corporate supply of commodities.
  • This year a new concept “Home Product Marketing” was started to supply farmer produced home products to 500 local families which consist of 27 products for a cost of Rs 1000 which is equivalent to Rs.1400 in the open market.
The reason for the successful achievement of the FPO is analyzed, The foremost rationale is that the real field work done by the Founder and  Secretary Mr. SD. Pandian and his Father in those times contributed more for the establishment, their simplicity, easily approachable and mingling with the community as they have working experience in Boodhan Movement of Vinoba Bhavaeo.

The well built people’s institutions like SHGs, farmer clubs, village water shed committee are laid a strong foundation for the growth of FPO. Capacity building of the stake holders through series of training on sustainable agriculture, summer ploughing, soil testing, bio farming practices, social awareness, promotion of crop insurance and goat rearing etc., organized through Resource Institution and proper monitoring of the activities are the key plus factors identified for the Ground Success.

  • Formation and strengthening of community institutions of agriculture-dependent rural families to manage and self-govern – generic women SHGs, producer groups, farmer groups and their apex bodies
  • Improved productivity, reduced cost of cultivation, better returns and thereby increased income from agriculture through adoption of sustainable agricultural practices
  • Diversified livelihood opportunities and promotion of agriculture and allied enterprises (dairy, goat, small ruminants, agriculture inputs production units, value addition units etc.)
  • Improved availability and access to financial institutions with low reate of interest with diversified financial products including insurance
  • Improved awareness, access and capacities to realize all eligible entitlements, facilitated through localized community resource persons
  • Increased skills and performance of rural women engaged in agriculture and allied livelihoods
  • A positive shift in the bargaining power in favor of communities as they interact with other players on a stronger footing
  • Drudgery reduction for women in agriculture through use of appropriate women friendly tools / technologies for pre- production, production and post-production operations
  • Improved opportunities for employment and business environment for community to take up entrepreneurial activities in project areas
  • Enhanced capacities and availability of localized community management service providers, and established linkages with key players in the agriculture value chain
  • Substantial employment generation and asset creation; and assets in the name of women
  • Significant improvement in poverty reduction and human development indicators of health, food and nutritional security