FPO Promotion


In the year 2009, watershed works are initiated through NGO- SEEDS by NABARD in Capacity Building Phase (CBP) which covers 101 hectares of land. In the meantime, SEEDS organization have the formed 22 women SHGs and Village Watershed Committee (VWC) with 15 members in five villages, The initial activities undertaken are rising of bunds, formation of farm ponds & tree plantations.

Though Watershed project intend for the farmer development, the study area was mostly cultivated by Dalit community people using the leased land. So there is an essentiality to work for the upliftment in the area and hence 5 farmer clubs are formed with 20 members covering five villages, Reviewing the progress, NABARD sanction Full implementation Phase (FIP) in the year 2011 for 11230305 hectares of land covering five villages benefiting 600 farmers for Sustainable agriculture in watershed Project in two village Panchayats namely Azhagiyanallur and Nanthikundu in the Kariapatti block of Virudhunagar district,


S.NoFarmers Producer OrganizationNo.Of.FarmersSupporetd ByShare Capital Mobilization
1SEEDS FPO3099NABARD30.99 Lakhs
6MAIZE FPO1004SFAC10.04 Lakhs
7COCONUT FPCL1000SFAC10.04 Lakhs
10NANJIL NADU FPO1000SFAC10.00 Lakhs

In 2012. a PRA has done for need assessment of the farmers. Through these need assessments. we identified as most of the farmers are cultivating in leased land. loan from money lenders. agriculture produce forced to sale for brokers. less rainfall. droughts and consequently inadequate profit from the business. To address all these problems of farmers in Agricultural Livelihoods and to obtain a good income from the land using available rain water. millet cultivation was promoted in rain fed farming.

In this condition the SEEDS Former Producer Company was emerged in the year 2015 with 125 members from five villages. Among them. ten active and interested farmers was selected and given FPC exposure visits. where they gained knowledge on company act and importance of registration. Several meetings are organized subsequently to enable deep discussion on the subject.

On April 2015. SEEDS FPO was registered in Company act. The selected 10 members constituted a Board of Directors (Bob). The Bob contributed Rs.10000/- each and thus FPO is registered with 1 lakh initial investment. Primarily. the FPO started with 125 members.

The first Procurement done was Kuthiravali. a minor millet nearly 21 tones marketed to Kalyani Mills. Paramakudi from 60 farmer beneficiaries and FPO have made a turnover of Rs 5 Lakhs.

The second business was through herbal marketing as Virudhunagar district is well known for its drought due to very low annual precipitation.

During the Off season of Agriculture. people are engaged in gathering the wild herbals which grow up naturally and supplied to CCb as a dried material of around 150 tones to a turnover of Rs 5 Lakhs benefitting 200 gatherers.

Various Agricultural commodities around 10 tones are marketed to a bulk buyer Safe Harvest. Bangalore and FPC have achieved a turnover of Rs 14.71 Lakhs.

The salient feature that. SEEDS-FPO do not compromise on quality of the products during the procurement from farmers and honor the committed orders in time pushes the Safe Harvest Company to make potential orders in subsequent years.

After realizing the positive factors of the FPO. 350 shareholders joined voluntarily. In 2016 a dynamic CEO was appointed. CbOs are placed through FPO. addition of shareholders. making linkages with the bank. doing the agricultural business activity are all happening in a full swing.

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 farm
  • Ensure the correct weighment of the produce.
  • Farmers need not to spend time and money on transport and
  • No need of bargaining & commission to middle men & brokers as FPO is procuring the products directly.

The FPO fix good rate to the farmers produces by an increase of Rs.5 to Rs.10 per kg. than the local traders and merchants comparatively. Thus. there was a new revolution in price fixing was made. Through the external linkage support from the financial institutions ANANAYA finance. Ahmadabad & SAMUNNATI finance. the FPO disbursed the financial assistance to Livelihoods through Crop Loan & livestock loan to the tune of Rs191.80 lakhs covering 593 farmers in 2016-17.

The business turnover obtained in 2016-17 is Rs 1.39 crore which is a 6-fold increase when compared to 18.69 lakhs during 2014-15. In July 2017. a SEEDS fertilizer shop is opened by the FPO to reduce the cost on fertilizers. and provide quality Pesticides & Agricultural inputs for the benefit of the farmers. For the first time. awareness of Kothari brand mixed fertilizers was made successfully instead of SPIC in this area & around 25000 metric tons of inputs procured and supplied to farmers’ use which shows a positive growth rate of Crop & yield.

SEEDS group of aimed a business 1180 tones of commodities to FPOs are volume of Agricultural achieve a turnover value of Rs 408 crore in 2017-18 to the corporate supply of commodities, This year a new concept “Home Product marketing” was started for beepavalio primarily to supply farmer produced home products to 500 local families as festival crockery which consist of 27 materials for the cost of Rs 1000 per package which is equivalent to 1400 if purchased in 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 & Secretary Mr. SD. Pandian and his Father in those times contributed more for the establishment & sensation, They mingle well with the community as they have the working field experience in Boodhan movement of Vinoba Bhavaeo They are easily approachable due to their simplicity which makes the FPO attaining success throughout,

Then the well built institutions like SHGs, Farmer clubs, Village water shed committee laid a strong foundation for the growth of FPO Capacity building of the stake holders through series of training programmes on Sustainable Agriculture, summer ploughing. soil testing, Bio farming practices, Social awareness. Promotion of Crop insurance & Goat Institutions and Periodical Millet farming. Livestock management, organized through Resource rearing monitoring of the progress of FPO by the RI its timely technical guidance’s are the plus factors for the hiking growth

  • 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 credit from formal financial institutions and community institutions with lesser cost of credit, diversified financial products including insurance
  • Improved awareness, access and capacities to realize all eligible entitlements, facilitated through localized community resource persons
  • Innovations, success stories, best practices from the project implementation captured, documented and experience disseminated for wider replication
  • Increased levels of skills and performance of rural women and their households 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 and human development indicators of health, food and nutritional security