Outreach

A new approach to marketing of agricultural produce

Bhoomitai Fanner’s Producer Company Limited,
Dhupthmahagoan Taluka Aurad and District Bidar

Bhoomitai Farmer’s Producers Company was registered under company’s act 1956 on 21st of June 2016 vide its registration NO. U01100KA2016PTC094312 from registrar of Companies, Bengaluru. It was promoted by OUTREACH and supported by NABARD. The objective of this producers company was to reduce the input expenditure of the farmers and increase the output income so that the farmer income could increase.

After incorporation of the company, training and exposures visits were conducted to the board of directors and some members of the company. While promoting institution it was told them how company could get the benefit mainly by increasing their bargaining power. Then members purchased equity shares to become the members of the company. Their expectations were raised and started to ask question to the company board and promoting institution when they would deliver their promises. Then company Board of directors and promoting institution decided to start the input business.

The company obtained all the required licenses from the authority concerned such as Mandi license, seed license, pesticide license & Goods & Services Tax.

The company started the input business by purchasing pesticides from main distributorship. Sold these inputs to the farmers on meagre margins that is at 15 per cent so that famers get the benefits and to increase the confidence of the farmers. In the last financial year of 2017-18, the turn over was to the tune of Rs. 11,20,000/ and the profit @ 15 per cent was Rs. 1,68,000/.

During the financial year 2017-18 Government of India decided to procure the red gram from farmers at Minimum Support Price. In Karnataka it gave the responsibility to NAFED in tum NAFED gave the responsibility of procurement of red gram to Karnataka State Cooperative Marketing Federation. It distributed the procurement responsibility for fanners to different Primary Agricultural Credit Cooperative Societies and Farmer’s Producers Company. In Bidar district it gave this responsibility mainly to Primary Agriculture Credit Cooperative Society and only three Farmer’s Producers Company & Bhoomitai farmer’s Producers Company was one among them.

Bhoomitai got permission for procurement in the last moment where only two days were left to register the farmers and it has registered 113 farmers. It procured 1,506 quintal of red gram from farmers. The agency was given a commission @ 1 per cent on the total procured amount i.e., 90,360/-.

Secondly permission was given for procurement of Bengal gram which was registered by 189 fanners. It has procured 968 quintals and agency got commission @ 1 per cent. On account of these two businesses undertaken the confidence of farmers got increased about the company. This would go a long way.

During the financial year 2017–18 Government of India decided to procure the red gram from farmers at Minimum Support Price. In Karnataka it gave the responsibility to NAFED in turn NAFED gave the responsibility of procurement of red gram to Karnataka State Cooperative Marketing Federation. It distributed the procurement responsibility for farmers to different Primary Agricultural Credit Cooperative Societies and Farmer’s Producers Company. In Bidar district it gave this responsibility mainly to Primary Agriculture Credit Cooperative Society and only three Farmer’s Producers Company & Bhoomitai farmer’s Producers Company was one among them.

Red gram Proquirment under MSP

Bhoomitai got permission for procurement in the last moment where only two days were left to register the farmers and it has registered 113 farmers. It procured 1,506 quintal of red gram from farmers. The agency was given commission @ 1 per cent on the total procured amount i.e.,90,360/-.

Secondly permission was given for procurement of Bengal gram which was registered by 189 farmers. It has Procured 968 quintal and agency got commission @ 1 per cent.

On account of these two businesses undertaken the confidence of farmers got increased about the company. This would go a long way.