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NABARD-backed FPCs firm up plan to establish agro processing unit in TN
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Tuesday, 04 December, 2018, 08 : 00 AM [IST]
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Ranjana Sharma, Mumbai
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Farmer producer collectives (FPCs), with the continuous guidance and support of the National Bank for Agriculture and Rural Development (NABARD), has firmed up the business plan for the establishment of an agro processing unit in Ariyalur, Tamil Nadu.
A value addition centre, named Ariyalur Arima, has been established. It has agro processing machinery set up under the Government of Tamil Nadu’s Mission on Sustainable Dry land Agriculture (MSDA) scheme.
Ariyalur Arima, the first value addition centre set up by an FPC in Ariyalur district, aims to strengthen the value chain of farm produce, enhance marketability and help small and marginal farmers for increasing the farmer’s incomes of the FPC.
Commodities like groundnut, sesame and other millets are procured directly from members and farmers for producing value-added products.
The centre has a capacity to produce 2,500 litre of cold pressed gingelly oils per month and 3,000kg of flour per day, when run at its full capacity. Value-added products like vegetable oil, gram flour, etc. fetch better prices in the market, as they are prepared by traditional methods.
“The monthly turnover of the company is estimated to be about Rs 75,000, to start with. Out of this, the net profit for the FPC would be about Rs 20,000 per month,” said L S Naveenkumar, district development manager, NABARD, Ariyalur and Perambalur.
Further, NABARD, in coordination with Dalmia Bharat Foundation, is promoting the Ariyalur District Vegetable Farmer Producer Company since July 2016, mobilising the vegetable producers from Ariyalur block.
Recently, a joint monitoring visit was undertaken by NABARD and the foundation in order to guide the company to effectively plan and implement the agro-based business.
R A Krishnakumar, executive director, Dalmia Cements, visited the centre. While interacting with farmers, he said, “The FPC is functioning very well with the passionate involvement of all its members, and Ariyalur Arima will be a role model for value addition in the farming sector.”
He expressed his satisfaction over the performance of the FPC and acknowledged support from NABARD.
Naveenkumar indicated that the capacity building and technical hand holding of the FPC is provided by NABARD through grant assistance to the Dalmia Bharat Group Foundation, which acts as the producer organisation promoting institution (POPI) for the FPC.
He added that the value chain approach of the FPC shall address the issue pertaining to post-harvest management, storage and marketing of farm produce.
The board of directors of the company will be sensitised at least once a year for three consecutive years on areas like the functioning of FPCs, the organisational structure, business operations and management, market linkages, the legal aspects of FPOs, regulatory compliance, good governance practices, transparency and accountability, vision building, leadership development, communication skills and management information systems (MIS).
The FPC was started with 125 farmers, who were primarily members of Farmer Interest Groups (FIGs) from nine villages. It has 300 members now and is expected to have about 1,000 farmers by the end of 2019. It is expected to improve the bargaining power, net income and quality of life of small and marginal farmers.
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