Collective Business Efforts by FPO in Amreli Gujarat

With an aim to ensure better income for the producer farmer by organizing them in their own cooperative, Indian Farm Forestry Development Cooperative Limited (IFFDC) mobilized 1500 farmers in Block Dhari,  District Amreli (Gujarat) and registered  “Shree Dhari Khedut Krushi Utpadak & Processing Sahakari Mandali Ltd.” under Gujarat State Cooperative Act-1961 in the month of September, 2021. Need based skill and capacity building inputs were imparted to the members through trainings and exposure visits. The Small & Marginal producer farmers are not having the volume individually (both inputs and produce) to get the benefit of economies of scale, therefore, the cooperative was encouraged to undertake collective business action for their economic benefits. 

The Dhari Cooperative (FPO) under facilitation of IFFDC started commodity trading business of Gram, Wheat, Groundnut, Extraction of Groundnut Oil and other produces and in two crop season their turnover reached to Rs 55 crores and earned about Rs 53 lakh through the commodity trading business etc. The member farmers benefited with getting 15% dividend on their shares. These efforts of this cooperative created a great example towards success of the Government of India’s Central Sector Scheme for Promotion of 10,000 Farmer Producers Organizations (FPOs) for transforming the agriculture into business and doubling farmers income.

Initiation of Business Activities:

•        The FPO has started agri-inputs supply i.e. Fertilizers including IFFCO Nano Urea (Liquid), Quality Seeds, Pesticides etc after obtaining license from the Govt Authorities.

•        Besides the agri-inputs, the FPO is also providing agriculture Machineries and equipment i.e. Tractor, Power Tiller, Sprayers, Seed Drill etc to the member farmers to promote mechanization in agriculture.

•     The FPO started commodity procurement center for GUJCOMASOL and procured 1,01,922 qtls Gram, undertaken trading of 2,967 qtls Wheat and 266.46 qtls Groundnut from members farmers with total turnover of Rs 55.51 crore so far and earned profit of about Rs 54 lakh.

•    The FPO also initiated extraction of Groundnut oil and so far 6000 liters groundnut oil extracted which sold to the members farmers. 

SUCCESS MANTRA

•             The chairperson herself has came forward and taken interest and lead and put efforts in community mobilization, formation of Cooperative, mobilizing required funds and initiation of business activities. She has developed good rapport with the member farmers, cooperative department, govt officials, industries people etc to mobilize need based inputs.

•             The Shree Dhari Cooperative declared dividend @15% of the share for the year 2022-23 which is encouraging and attracting more and more farmers to join the FPO and become shareholders because the FPO succeed to reach at the level of giving dividend just in 2 years period of its registration.    

•             Assured market linkage with GUJCOMASOL is helping farmers in avoiding distress sale in the hand of intermediaries and local market on low prices.

LESSONS LEARNT

•  The success of the organization/FPO/Cooperative etc depends on the interest and efforts of the leaders/Board Members/Management. Further, Early returns of investment assured the farmers and induce them to become shareholders of such FPOs/Cooperatives.