JHAMBUKHAND KISAN SAMMELAN

Second Annual General Meeting of Jhambukhand Kisan Agro Producer Company Schedule:

Date:- 21st February, 2012

Time:- 12:00 Noon - 2:00 PM

Venue:- Vajakhara village, Sagwadiya, Tehsil- Garhi, Banswara (Raj.)

Wheat Seed Production at JKAPCL- A step towards Contract Farming

BACKGROUND:-
Jhambukhand Kisan Agro Producer Co. Ltd., Banswara is a Community Based organization promoted under National Agricultural Innovation Project (NAIP) for Livelihood and Nutritional Security of Tribal Dominated Areas through Integrated Farming System and Technology Models. Since its inception, JKAPCL has strived at its best under the guidance of Mahanrana Pratap University of Agriculture & Technology, Udaipur (MPUAT), Krishi Vigyan Kendra, Banswara (KVK) and ACCESS Development Services, Udaipur. Major activities of JKAPCL include Agriculture based input supply of Quality hybrid seeds, Fertilizers and Pesticides recommended by MPUAT, Udaipur. The other business include output marketing of its member’s produce from grains such as Maize, Wheat to Vegetables. Grading is one area where JKAPCL is focusing on to brand itself as a quality grain supplier in South rajasthan. However to sustain in the long run, the Producer Company is trying to intervene in seed production and take up Seed Multiplication at a larger scale.
WHEAT SEED PRODUCTION AT JKAPCL:- In an effort to increase the agri based livelihood, Jhambukhand Kisan Agro Producer Co. Ltd. Put its best to come up with tie ups with its business partners for contract farming. Of many such efforts, a ray of hope came from Rajasthan State Seeds Corporation Ltd (RSSC), Banswara for seed production. RSSC came forward to associate with JKAPCL on a buyback agreement for wheat seed Production. JKAPCL selected 23 farmers from its project area and took over 75 Acres of Irrigated Fertile Land from farmers in lease from its share holders.
STAKEHOLDERS:-
S.N. Stakeholder Role
1 Farmer Primary stakeholder, beneficiary
2 KVK Technical support provider
3 Cert. Agency Inspection and Verification for approval of seed
4 RSSC Foundation Seed Supplier and lead partner in pricing
5 JKAPCL Implementing agency, Facilitator for farmers and Coordinator
6 ACCESS Strategic Partner & Market Support & Coordination
FINANCIAL BENEFITS:-
S.N.Activity Amount
1 Average Input Cost incurred by farmer per Acre INR 4962/-
2 No. of farmers Benefited 23
3 Net input Cost for Seed production INR 283125/-
4 Turnover JKAPCL INR 759328/-
5 Gross Profit to farmer per Acre of Land INR 20179/-
6 Net Profit to farmer per Acre of Land INR 15217/-
7 Net Profit to producer Company INR 34328/-

At every step, JKAPCL team put its best to aware farmers regarding seed production and identified 23 selected farmers. It tried its best that all the farmers get the best POP information, JKAPCL team conducted a 3-day camp facilitated by Krishi Vigyan Kendra, Banswara where the experts from KVK trained the seed producers on Weed management Practices. At regular interval, the certification agency has sent its inspection team to the field for supervision. RSSC Ltd. conducted a stakeholders meet and training activity on seed production. JKAPCL also has organized a farmer interaction for wheat production, a fully sponsored event with RSSC Ltd, Banswara. Representatives from MPUAT, Deptt. Of Agriculture, Banswara also participated in the event.
CHALLENGES:-
The limited supply of foundation seed by RSSC has led us to look for alternative opportunities beyond the public sector companies to go for seed production at a larger scale.
The limited supply leads to higher procurement cost to the producer company, so JKAPCL is opting for seed production at a large scale to minimize the procurement cost.
THE ROAD AHEAD:-
The activity has been found successful with the successful production of over 500 Qtl. Of seeds procured by JKAPCL. The activity has come up with lot many challenges that the producer company faced. Also we’ve come up with lot many opportunities that can be explored to go for seed production at a large scale and also go for various crops such as Soyabean, Maize, Moong and Vegetable seed production on a buyback agreement. JKAPCL is in talks with Monsanto India Ltd, Raasi Seeds etc. for seed production activities. For Wheat Production, looking at the large scale demand and the resource availability, JKAPCL is trying to go for Seed Certification. This will led it to grade the seed, Test the germination, package and brand in its own name. The success has inspired many farmers to go for seed production and seed replacement for higher return from agriculture.


For more information on JKAPCL activities, mail us at:
jhambukhandkisan@gmail.com

JHAMBUKHAND KISAN SAMMELAN

JHAMBUKHAND KISAN SAMMELAN

JHAMBUKHAND KISAN AGRO PRODUCER COMPANY LIMITED (JKAPCL) is having its First Annual General Meeting on 23rd of September, 2010 in a grand ceremony.

Participants:-

1. Farmers
2. Representative of farmer federations from Banswara, dungarpur and Udaipur
3. Agriculture Deptt., Banswara
4. Horticulture Deptt., Banswara
5. Seed, Fertilizer and Agricultural equipment companies and other corporate partners

Major attractions of the event:-

1. JKAPCL BOD announcement
2. JKAPCL Share issue to shareholding farmers
3. Jhambukhand Kisan Sammelan- "A corporate farmer interaction"
4. Prize distribution
5. Cultural event

Venue: KOHALA GHATI, just 20km. away from Banswara(Raj.) along Dungarpur- Ahmedabad state highway.
Time: 9 am - 6 pm

***Students, researchers, development professionals from the field of agriculture and rural marketing are invited. For corporate prtners, regarding participation in the event and sponsorship and other queries, please call us at +91 95496 50637, +91 95496 50605 E-mail: jhambukhandkisan@gmail.com

Producer Company incorporated in Banswara as JKAPCL

JHAMBUKHAND KISAN AGRO PRODUCER COMPANY LIMITED


Corporate Identity Number: U01122RJ2010PTC032229


On 28th Day of June, 2010 'Jhambukhand Kisan Sangh' has been incorporated as JHAMBUKHAND KISAN AGRO PRODUCER COMPANY LIMITED under Part IXA of the Companies Act, 1956 (No. 1 of 1956) and is private limited. Now its in the final stage of getting registered under Sales Tax and other Licenses. JKAPCL board is being represented by elected Farmer Representatives from 11 different villages, 2 Village Institution Experts from JKAPCL, Representive from Maharana Pratap University of Agriculture and Technology, Udaipur and Access Development Services, Udaipur.

JKAPCL will soon be organizing its First Annual General Meeting of its shareholders. Today, JKAPCL has over 700 farmer shareholders.

The current Board of Directors of JKAPCL:-


1. LAXMAN LAL DAMOR (CHAIRMAN)


2. VAJENG PATIDAR (SECRETARY)


3. LAXMANLAL SOLANKI (TREASURER)


4. PRABHULAL JADWA


5. LAXMANLAL NINAMA


6. RAJENDRA KUMAR BAMANIA


7. NARAYAN DAMOR


8. ASHOK BUJ


9. RAMESH CHANDRA DAMOR


10. DR. INDRAJIT MATHUR


11. KULRANJAN KUJUR

Highlights from Team Review Meeting

The RPC Review Team visits and interacts with the
Executive Committee and other leaders of the Producer Company.

Producer Company Takes Root in Banswara District

The Jhambu Khand Kisan Producer Company, Limited

Under the NAIP Project in the Banswara District, 61 farmer business groups (805 members) have been formed in two villages, Garhi and Talwara. Of these groups 36 groups (481 members) have been successfully making regular savings for six months, and have become constituents of the The Jhambu Khand Kisan Producer Company, Limited.

Every group is represented at company meetings on the thirtieth of each month. They collect member fees and discuss business issues such as demand for agricultural inputs and commodity prices. Decision making is done through collective approach. Groups have demonstrated a 90% attendance rate, as absent groups are held accountable through a financial penalty.

Through their savings efforts, members have built a corpus of Rs. 61,400 and achieved Rs. 14,05,490 in turnover. Some farmers mobilize additional savings to the groups through income from NREGA labour.

The company utilizes a self-governing mechanism through two committees comprised of elected members. The eleven-person Executive Committee overseas the operational and business aspects of the company, while the twenty-five member Monitoring Committee ensures that proper procedures are followed and accurate records kept. The Producer Company will soon be federated into a legal entity, creating significant opportunities for expansion, the raising of additional capital, establishing marketing linkages, and overall member empowerment.

Building Capacity and Tracking Success

Leaders from constituent groups of the Jhambu Khand Kisan Producer Company receive regular capacity training from ADS. In the last financial year over 40 trainings were held in the areas of leadership and vision building, book keeping and auditing, conflict resolution and collective decision making, common fund management, and developing credit and other market linkages.

In addition farmers also receive training on the benefits and functions of a Producer Company through discussions, videos, and site visits. Three such exposure visits were organized to Producer Companies in Madhya Prdadesh, while farmer leaders also visited sites in Rajasthan to learn about differences in commodity prices and local market dynamics.

All members of Jhambu Khand Kisan Producer Company, Limited are increasing their knowledge and capacities on the farm as well. In close coordination with NAIP project institutions like MPUAT, farmers learn best practices for improving agricultural yield. In addition ADS works with members to provide up to date commodity pricing information so farmers can earn higher returns on their yields.

Close tracking of performance ensures that groups progress and farmers benefit. ACCESS maintains copies of all groups’ records, and tracks areas such as attendance, savings, agenda topics, adherence to by-laws, and loan repayment. Groups that may be struggling are identified so that resources can be focused on their training needs.

Facilitating Market Linkages

ACCESS conducted a diagnostic study to identify primary crops on which to focus production and marketing efforts. Ginger and saunf were identified as high-risk, high return crops requiring significant investment, while maize, okra, and chili was identified as lower risk and recommended for production. It was also noted that farmers are exploited when purchasing inputs, so input procurement became a primary focus for intervention.

The 481 members of Jhambu Khand Kisan Producer Company, Limited collectively purchased Rs. 12,51,890 of inputs in the last year, but demand still remains even higher. Through this collective purchasing initiative, each farmer was able to save on average Rs. 150 over the market price. In addition to financial benefit, group purchasing allows farmers to develop the skills of prior planning and regular saving, while also reducing expenditure on transportation and reducing time associate with travel. Table 1 displays data relating to the cash realization of the farmers who participated in collective procurement efforts.

In addition to collective input procurement, work has also been done in the area of collective output marketing of maize, chili, ginger, and brinjal. While marketing efforts were successful for forty-six famers, seasonal drought still led to below-potential yields for many others.

Despite these challenges, JKPCL purchased Rs. 2.25 lakh of agricultural surplus from its members, then selling it at profit in the greater market. Participating farmers were able to earn 50 paisa per kg on maize, and 2 rupees per kg on green chili and brinjal over the market price.

Future Projects

The coming months will be productive and exciting ones for the members of Jhambu Khand Kisan Producer Company, Limited. From an organizational perspective, the Producer Company will be legally registered and incorporated in the early months of 2010. A formal business plan is being drafted for the company as well. It will include a thorough analysis of current market and value chain structures, a demand analysis, implementation plans, business strategy recommendations, and detailed financial projections. The plan outlines the governance of the company, which follows:

Production and market linkages will also increase for JKPCL. With the assistance of the College of Dairy and Food Science Technology - MPUAT, the Producer Company has developed quality product lines of red chili and ginger, samples of which have been exhibited to potential buyers in the market place.

One such buyer, ITC has evaluated the product and is ready to purchase at least six tones red chili. To facilitate the linkage, JKPCL has formed a chili purchasing committee, which has been trained on post-harvest technologies by ITC. The committee will visit Guntur, Andhra Predesh, for training on ITC’s standards. Through this action the farmers will receive three rupees per kg premium over the market price.

Two additional business lines are also being developed for the Producer Company. One is an animal feed production enterprise, operated by three women’s FBG’s from the Sagwariya village. JKPCL will package, brand, and sell the feed, and has already allocated Rs. 20,000 specifically for the project. Lastly, plans are being developed for JKPCL to open a vegetable shop in the Partapur village. Based on its success, the model will be replicated in other villages as well.

Progress with the NAIP

As progress continues under the NAIP Project, we are excited to share some photos from farmer business meetings and procurement efforts!

NAIP Project Featured in the News

Planting the Seeds of Business Successes in South Rajasthan

Project Background
ACCESS Development Services is a not-for-profit Section 25 company offering specialized technical assistance in the areas of microfinance and livelihood promotion. ACCESS’s unique intervention model improves the livelihoods of India’s poor farmers by organizing them into business groups, aggregating their small surpluses, and integrating them into the value chain.
ACCESS has been working in two districts of South Rajasthan through the National Agriculture Innovation Project (NAIP), under a program entitled Livelihood and Nutritional Security of Tribal Dominated Areas through Integrated Farming System and Technology Models.
ACCESS uses a unique, replicable livelihoods model to organize, aggregate, and integrate poor producers.
As a member of a consortium led by Maharana Pratap University of Agriculture and Technology (MPUAT) and including Krishi Vigyan Kendra (KVK), ACCESS’s role is to organize farmers into business groups along self-help principles, to facilitate savings, to aggregate surpluses, and to conduct training and capacity-building sessions. Eventually groups will be federated into a legal entity as a Producer Company.
Farmers develop business and leadership skills early-on which are later applicable in the Producer Company. The project targets groups in two tribal-dominated districts, Dungarpur and Banswara, both characterized by low income and productivity, poor soil and water management, poor adaptation of new technologies, limited inputs, and high population ratio. To date, ACCESS has reached four clusters across the two districts including approximately 5,000 households in 23 villages.


The Sagwariya Cluster

Since work in the Sagwariya Cluster of Banswara began in October 2008, ACCESS has formed 25 Farmer Business Groups totaling 265 members. Farmer Business Groups consist of 10-15 members from the same hamlet who pool savings to collectively purchase inputs through a joint bank account. Each group sends one group leader to a monthly meeting at the cluster level. They selected Jammbu Khand Kisan Sangh as the name of their cluster.

The Executive Committee of Jambu Khand Kisan
Sangh discusses opportunities for cluster betterment.

Monthly cluster meetings follow a set agenda which includes discussing how to strengthen the FBG’s, pooling savings for collective purchase, selecting which crops to grow in the next cycle, designing marketing strategies, and other pertinent issues. At meetings farmers also contribute 10 rupees per member (totaling 2,650 rupees per month) to the corpus fund to be used for operational expenses. Meetings are inclusive and participatory by the farmers, and are facilitated by members of the ACCESS team.

Recently group representatives elected leaders to two committees at the cluster level: the Executive Committee, consisting of a President, Secretary, and Cashier; and the Monitoring Committee, consisting of a President and Vice- President.

Progress of Jhambu Khand Kisan Sangh
Since its inception, the Sangh has collectively procured agricultural inputs of 181 quintals of high quality wheat, 40 quintals gram, and 12.5 quintals maize sees. The Sangh then distributes them to 603 member and non-member farmers at a margin that is used to cover operational expenses. Farmers who are not members of FBGs pay a slightly high price for the inputs. Through these collective procurement efforts, farmers have saved 30-40% of their cost over procuring from local trader, and Sangh has raised Rs. 48,000 for their corpus fund.

Partnership with RSSCL
By purchasing collectively, 150 farmers in the Sagwariya Cluster saved 330 rupees each - 49,500 rupees total - on their most recent seed purchase.The Jammbu Khand Kisan Sangh cluster recently achieved considerable success through a partnership with Rajasthan State Seed Corporation Limited, Banswara (RSSCL), a semi-public organization with which ACCESS has linked the farmers for collective procurement of better seed varieties.

Representatives of the Farmer Business Groups
attend the regular monthly meeting in Banswara.

ACCESS establishes market linkages between producers and organizations such as Rajasthan State Seed Corporation, Ltd. RRSCL has offered support for production as well as a buy-back guarantee mechanism for production of certified seeds of wheat, gram and maize.The market price for the seed variety purchased was 21 rupees per kilogram, and the dealer price through RSSCL was 14.30 rupees per kilogram. However, due to the collective purchasing efforts, the cluster received an additional 50% subsidy under the Central Sponsorship Scheme (CSS), paying only 7.15 rupees per kilogram. The seed was sold to the individual farmers at 10 rupees per kilogram, with the difference (2.85 rupees per kilogram) put into a cluster savings account. Each of 150 contributing farmers received 30 kilograms, totaling 45 quintals. The resulting savings to the farmers over the market price was 11 rupees per kilogram - 330 rupees per individual, and 49,500 rupees for the cluster.


Looking Forward
Farmers in the Jammbu Khand Kisan Sangh cluster will continue to benefit from the work of ACCESS Development Services’ livelihoods initiative. They will maintain the business partnership with RSSCL, as well as explore future opportunities for business growth. Such opportunities include producing and processing high-value red chili and establishing forward-market linkages through agreements to sell to distributors such as ITC, Ltd. and Reliance Food Processing Solution Ltd. Coming months will also see the legal transformation of the cluster organization into a registered Producer Company.