Slowly, but surely, Farmer Producer Organisations (FPOs) are knocking the path of progress. A collective effort by the officials and members of FPOs are making it possible. This will give an assurance not only to members of FPOs but also open doors to farmers for profit.
Here is one such example where three FPOs in Khammam district that have made a profit of ₹96 lakh in just two months of chilli season.
Teja is best variety of red chilli that was much in demand being produced in Khammam district. Usually, after harvest the farmers take the produce to the market and wait for the buyers. Some time the waiting will be for three to four days. Similarly, the farmers have to lose some part of their produce in the form of ‘Tarugu.’ There will be distress selling as well.
Three FPOs – Sirivennela, Madhira and Konijerla – came forward to make the situation win-win for both farmers and themselves. They have started their activity of procuring chilli from farmers about two months ago and established village level procurement centres (VLPC) at 11 places covering 22 villages in five mandals – Kamepalli, Singareni, Enkoor, Konijerla and Madhira.
A total of 21,474.25 quintals of chilli from 1,254 farmers and the total value of commodity purchased by FPOs was ₹36.92 crore. With FPOs coming to door step and purchasing the produce, the farmers were relieved from transporting the produce to the market, no need to pay market commission, no deduction in the name of Tarugu, no distress sale and assured price. All this has transformed to the tune of ₹1.93 crore benefit to farmers.
Plant Lipids, a private firm came forward to pay ₹4.5 per kilogram to farmers.
By doing this business all the three FPOs got a commission of ₹96,63,435.
While FPOs has taken care of establishment of VLPCs, identification and felicitation of farmers, quality assurance, coordinating with company for transport of produce, arranging gunny bags, hamali and local transport, Plat Lipids has taken the responsibility of quality evaluation at the farm gate and offer price, logistics arrangement and release of payments. Be’nishan has taken care of legal compliance, generating invoices and disbursement of FPOs.
“We are hesitant to sell our produce to the government and worried whether they would release payments immediately or not. But we were proved wrong. About half of farmers in our village who sold red chilli had benefited better than us and the payment was cleared in three days. We only feel that officials should start the procurement centres a little early,” Kistaiah, a farmer of Jannaram village in Etukru mandal of Khammam district told The Hindu adding that government procurement benefited farmers in getting better price for their produce.
