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.
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.
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.
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.
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.
