Sour & spicy slice of success: Hungunda FPCL, Bagalkot, Karnataka

Horticulture has largely been an unorganized sector in India and Karnataka was no exception. Agricultural ills such as small size landholdings, low bargaining power to access financial and non-financial inputs, services and appropriate technologies, higher transaction costs ailed the horti sector in Karnataka. There were also issues of middlemen collecting commissions from producers, and frequent delay in payments. Besides, produce was sold on the basis of volume, with prices being determined to the advantage of retailers and not farmers. Despite a climate conducive to horticulture, the focus on capitalizing this resource was conspicuous by its absence in Karnataka.

The entire scenario changed with the FPO wave that came over India. With this backdrop, the Hungunda Horticulture FPCL came into existence in Bagalkot District of Karnataka in July 2018 and has 1000 member farmers, from as many as 18 villages, currently. The main crops grown by members are onion and chilli. In addition, they grow lemon, maize, red gram and Bengal gram. The members have been supplying to markets in the nearby cities including Bengaluru. They have managed to establish tie-ups with companies such as ITC who buy their chilli on a contractual basis.

The FPC does not restrict itself to selling the crops it produces, it has also diversified into procuring and selling inputs such as seeds, fertilizers, pesticides etc. It also supplies agri and horti equipment and is reaping rich profits from these activities as well.

Within four years, the Hungunda FPCL embodies financial soundness. Due to the tireless efforts of its members, the FPC has maintained a reasonable level of liquidity and achieved a greater efficiency in utilizing the working capital. Its members are hoping to double their turnover from last year’s 10 cr to 20 cr by the end of the current financial year. Quite a feat!!

Bhiwani Green paves the way for Dadri farmers

Bhiwani Green Farm Producer Company Limited (BGFPCL) is a 6-year-old FPO based in Charkhi Dadri which is one of the 22 districts of Haryana. This little-known district was like any other, before the predominantly farmer community federated themselves into an FPO. What started as a half-hearted membership has turned into a full-blown and flourishing movement that has drastically improved the lot of farmers!

This 1000-member FPO was founded on 29th January 2016 and currently has an equity of Rs.10 lakh. Till not too long back, tomatoes dominated the entire area! It took efforts from ISAP India Foundation (formerly Indian Society of Agribusiness Professionals) to teach the member farmers the lesson of ‘not placing all their eggs in one basket’! Presently, the list of commodities of BGFPCL is a happy mix of vegetables such as tomato, green chilli, capsicum besides others, fruits including kinnu, guava and malta and grains such as wheat. In addition, the FPO retails in seeds, fertilizers, pesticides and even drip irrigation equipment. The monetary benefit of this varietal commodity approach has been to the tune of 15-20% per farmer. It has also cushioned them from market price fluctuations of a commodity, since in case they lose out on one commodity, they have others to bank on for sustenance. It has also given them the courage to engage in direct selling.

The benefits of the FPO are evident not only to members but also to the other farmers. They now have access to good quality inputs in their vicinity at reasonable prices. This has translated into higher yields and enhanced incomes as well as reduced costs. The FPO has also succeeded at providing a platform to progressive farmers for sharing their trials and tribulations which has motivated farmers with small and medium landholdings to think big and work harder.

A clear absence of awareness and thereby access to government schemes was the reason for the maladies of farmers in this area. The FPO members have greatly benefitted from the kisan goshtis and other capacity building trainings facilitated by ISAP India Foundation. The advisory received herein has been creating a buzz among the farmers as they have managed to improve the soil health of their farms as well as saved a considerable amount of money.

Tubewell irrigation was the common mode used, and irrigated about 2 acres of land, with the advent and availability of drip irrigation, farmers have increased their irrigation reach to 5 acres. The effort and time spent in dispensing water-soluble fertilizers too, has considerably reduced due to drip irrigation. The turnover of Bhiwani Greens Farm Producer Company Limited stands at 1.5 cr at year end. This FPO has alleviated the risks of farming and elevated the status of farmers in Dadri District.

Kupwara women farmers Capitalise on its Agroclimatic Advantage

One of the 22 districts of the Union Territory of Jammu & Kashmir is Kupwara. The agroclimatic conditions and topography of this area is perfectly suited to the cultivation of crops such as walnuts, almonds and saffron. It is no wonder then, that about 70% of the population of the district depends on agriculture and allied activities for their livelihood.

With renewed focus on the agricultural sector in the country, intervention of various flagship programmes/schemes such as PM KISAN, PM KMY, Soil Health Card scheme, Farm Mechanization, Madhu Kranti PMKSY have come into existence. They have resulted in a viable and significant change in various developmental indicators of the district. In this background, Indian Society of Agribusiness Professionals (ISAP) introduced the idea of Farmer Producer Company in this district.

Aimed at enhancing the living standards of the farmer members by getting them better returns for their produce, the Athvas Horti FED Producer Company was created in 2021 under the aegis of NAFED. Registered under the Companies Act, 2013 on 25th March 2021, the FPO has 800 farmer families of which a whopping 600 are women farmers. What started as a company primarily dealing in walnuts, has come to grow and market almonds, saffron and honey, all within a span of a little over a year!

In addition, farmers were compelled to sell their produce to local traders/middlemen at rates much lower than the prices these goods were sold for in the market. The absence of access to larger markets, reduced the scope of hard bargain for these farmers. Thus, it is evident the farmers are able to get better price realisation for their crop as a result of the interventions by the FPO.

Currently, the FPO has been actively engaged in developing market linkages for sale of produce. It has even tied up with e-commerce platforms for selling walnuts. The farmers are encouraged and enabled to sell their produce directly through the online platform. The Athvas Horti FED Producer Company also bulk markets its crops to few retail outlets in metro cities such as Bangalore & Hyderabad. What is more is the fact that women of the district get an opportunity to step out of the confines of their homes and venture into the world of entrepreneurs. This women led FPO gives its members a chance to realise their potential and script a story of their struggles and successes.