New Avenues for Farmers

Our farm projects aim at providing higher value to farmers by cutting their transaction costs and moving them up the value chain.

New Avenues for Farmers

Our farm projects aim at providing higher value to farmers by cutting their transaction costs and moving them up the value chain.

Approved Projects

Kota and Baran Producer Company

Soyabean
Coriander
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About the Project

District: Kota and Baran | State: Rajasthan

Commodities: Soyabean, Coriander

Activities: Aggregation, Trading, Processing, Marketing

Status: Approved

The proposed PC would be in the business of procuring Soybean and Coriander from its member-owners at the  prevailing market prices. Producer company will bypass the brokers/Commission Agent, Mandi Trader, and the Processors and undertake the value chain activities like aggregation, procurement,  storage/warehousing, primary processing (cleaning and grading) and secondary processing.

In case of Soybean the PC will preliminary engage in commodity trade and subsequently in production of crude soybean oil, DE oiled cake (DOC). These products will be sold to SMES as well as medium and large processors like Cargill, Shiv edible, Ruchi soya etc. Whereas in case of coriander the PC will initially primary process the  commodity and sell it to the clean and sort the grains to larger business like MDH, Catch, Patanjali and Everest etc. Also based on the first years’ experience the PC will set up its own processing unit from 2 nd year to produce coriander powder which will be further marketed to wholesalers.

As per proposed business plan processing of procured commodities will start from 2nd year onwards. Initial processing plant will be of capacity of 3 TPD for Coriander and 100 TPD for Soybean. Coriander will have cleaning and grading and crushing division. Soybean plant will be crushing and refinery unit. Plants will be fully automatic so that operational cost should be optimized.

Processing plant will be set up at Baran District head quarter considering its optimum market availability from all sides of its boundary like nearby MP state, Maharashtra and being at centre point of production.

Sidhi and Singrauli Producer Company

Small Millets
Mustard
Sesame
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About the Project

District: Sidhi and Singrauli | State: Madhya Pradesh

Commodities: Small Millets, Mustard, Sesame

Activities: Aggregation, Trading, Processing, Marketing

Status: Approved

Project Brief

The approved project at Siddhi & SIngrauli will benefit around 23000 women farmers that grow minor millet, sesame and pigeon pea. The beneficiaries would be organized into a producer company that would engage into aggregation, processing and marketing of the identified crops. The corner stone of the approved project is the Digital commodity collection centers (D3C) where the member farmers sell their produce to the PC. The D3C not only provides a fair and competitive market close to the farm-gate to the member farmers but also lets the PC control the quality of the procured commodity in terms of buying cleaned produce and ensuring varietal segregation. The PC will also leverage the D3C in ensuring traceability of the procured commodity and monetize the same by transacting with the willing buyers. During the off-season these D3C would double up as farm extension centers that would disseminate information on best practices and also sell farm inputs to the member farmers.  The PC would institute 88 such D3C during the project period. 

The procured millet would be processed into millet rice in a PC owned 2 MT per hour capacity plant. The sesame would be cleaned, graded and packed into 50Kg bags in a company owned sesame cleaner and grader. The procured pigeon pea would be processed into split dal at the third-party processing center. The majority of the value added products of the PC in the initial years would be sold in bulk to other processors and traders in the market. To capture the margins that branded products offer the PC would  be investing into developing brands and channels from the very beginning. With time and effort, the branded product sales would have a larger contribution to the top line of the PC.

Chhindwada Producer Company

Minor Millets
Maize
Wheat
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About the Project

District: Chhindwada | State: Madhya Pradesh

Commodities: Minor Millets, Maize, Whear

Activities: Aggregation, Trading, Processing, Marketing

Status: Approved

Project Brief

Chhindwara produces around 30% of the Maize grown in MP and it also is one of the larger producer of minor millet (around 10%) in MP. Add to that a high poverty head count ratio of 62.6% and a tribal population of 48.5%. The above facts and the situation at the ground, where one would find the aggregators and traders ruling the roost provides a very fertile ground for promotion of the community-based enterprise. The approved Chhindwara projects envisages to do exactly the same. The project would organize around 21000 women farmers from around 400 villages into a Producer Company during the project period. The PC owned by the producer-shareholders would aggregate Millet and Maize in kharif and Wheat in rabi. The procurement would happen through PC instituted 131 D3C.

The procured minor millet would be processed into millet rice and semolina at the company owned 2MT per hour plant. The procured maize and wheat would be traded as commodity in the market to processors and feed manufacturers. The PC would also explore wheat milling at the third-party processing center to capture the higher margins offered by retail packs.

Rajnandgaon and Kabirdham Producer Company

Bengal Gram
Soyabean
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About the Project

District: Rajnandgaon | State: Chhattisgarh

Commodities: Soyabean, Bengal Gram

Activities: Aggregation, Trading, Processing, Marketing

Status: Approved

The proposed PC would be in the business of procuring Soybean and Chana from its member-owners at the prevailing market prices. The Chana will be stored at a central warehouse/Mill and after processing would be sold to the major consumption centers of India like Bihar, Jharkhand, Uttar Pradesh, Odisha etc. The procured soybean would be simply cleaned and then traded as per business parity. Producer Company will bypass village level aggregator, Brokers/ Commission Agent, Mandi Trader, and the Processors and undertake the value chain activities like aggregation, procurement, storage/warehousing, primary processing (cleaning and grading) and secondary processing. Based on the first years’ experience the PC will set up its own processing unit to operate from 2nd year to process Chana into filtered Chana, Chana Dal and Besan which will be further marketed to wholesalers.

In the first year, the PC would start operations from the Chhuikhadan block of Rajnandgaon district and in the second year, the PC would expand its business to Khairagarh block of Rajnandgaon district and in the third year, expand to Sahaspur Lohara block of Kabirdham district. In the first year, it would target 2079 members in 42 villages to procure 624 MT of Chana and 208 MT of Soybean. By 3rd year, the membership is targeted to increase to 15825 members in 290 villages to procure 7912 MT of Chana and 3165 MT of Soybean. As per proposed business plan processing of procured commodities will start from 2nd year onwards. The processing unit will be of 40 MT/ day capacity.

Dhindori and Mandla

Red Lentils
Minor Millets
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About the Project

District: Chhindwada | State: Madhya Pradesh

Commodities: Minor Millet, Red Lintels

Activities: Aggregation, Trading, Branding, Processing, Marketing and Sales

Status: Approved

Project Brief

Mandla & Dindori are considered the minor millet bowl of MP. They contribute around 42% of the state’s production and around 8% of India’s kodo and kutki production. Both the districts have the worst poverty HCR in MP and are home of the poorest of poor of MP. The existing market system in the district are not very conducive to the minor millet production as the farmers neither get prices that incentivize them to produce more nor they have enough marketable surplus to carry it to the nearest AMPC mandi. This sizable minor millet production along with the existing market failure in the region makes it a perfect candidate for a community owned value chain intervention.   

The approved PC would organize around 20000 women farmers from around 500 villages of six blocks of Mandla & Dindori during the project period. The remaining six blocks of the two districts would be cover post the project period. The PC would procure Minor millet in Kharif and Red lentils in Rabi from 165 D3C established during the project period. 

The procured millet would be processed into millet rice and semolina at the company owned 6MT per hour millet processing plant. The procured red lentils would be processed into dal at the third-party processing center. The majority of the value-added products of the PC would be sold in bulk in the initial years but with an eye on the branded consumer market. The PC would be investing in the development of brands and channel to reach the consumer market from the very beginning.

Morena Producer Company

Mustard
Pearl Millet(Bajra)
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About the Project

District: Morena | State: Madhya Pradesh

Commodities: Mustard, Pearl Millet(Bajra)

Activities: Aggregation, Trading, Processing, Marketing and Sales

Status: Approved

Project Brief

The approved PC at Morena will be covering Ambah, Porsa, Morena, Pahadgarh and Joura Blocks during the project period ie first three years of its operation. Subsequently it will be expanded to other blocks of Kailaras and Sabalgarh. The Company will be owned by the farmers as shareholders and will deal in Bajra and Mustard which are the two main crops of the district. During the project period the PC will directly benefit around 19000 families from 234 villages in the District. Under the proposed project the PC would engage in procuring bajra and mustard from its member-shareholders from 79 D3C. The procured Bajra would be cleaned and packed into PP bags and sold to the processers such as feed manufacturers, flour manufactures and other value adding players in the bajra value chain. The procured mustard would be milled in a third party processing centres for kacchi ghani oil and mustard cake. A significant part of the processed product ie kacchi ghani oil and mustard cake would be sold in the bulk yet to capture the larger wallet share of the consumer a part of Kachhi Ghani oil would be branded, packed in consumer packs and marketed to the consumers across the kachhi ghani consuming markets in the country.

The reasons of identifying these two commodities were fourfold. One, the district has significant production of the two commodities. It contributes 63% of states Bajra production  and 25% of Mustard production. Two, a very large part of both these commodities is sold in the Mandi where the price discovery is not always fair to the farmer. Three, the district has significant marketable surplus of both the identified commodity. And last but not the least with one crop in each season, the PC not only hedges its business risk but also utilizes its fixed cost round the year.

Jhansi and Mahoba Producer Company

Groundnut
Black Lentil
Bengal Gram
Peas
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About the Project

District: Jhansi and Mahoba | State: Uttar Pradesh

Commodities: Groundnut, Black Lentil, Peas and Bengal Gram

Activities: Aggregation, Trading, Processing, Marketing

Status: Submitted

Project Brief

The district Jhansi and Mahoba comes under Bundelkhand Agri climatic Zone of Uttar Pradesh. Black gram, groundnut, sesame are major crops grown in kharif season while wheat, barley, chickpea, vegetable pea, lentil, mustard and linseed are grown during rabi season.

It is being proposed that for Chana, the PE would undertake activity of aggregating commodity, trading, milling and further sale of finished goods (dal and besan) in open market, whereas in case of urad and matar, the PE would undertake activity of aggregating, cleaning and trading only. Also, a nut extraction unit for groundnut is proposed to be able to grade the nuts and fetch a higher price for it according to the buyer needs. The PE will create a brand in the B2B and B2C segment, and have revenues through both bulk and consumer pack sales. The PE will try to increase its consumer pack sales over the years by building its brand and quality, to gain higher operating margins.

In the first year, the PE would start operations from the Gursarai block of Jhansi and Panwari block of Mahoba district. In the first year, it would target 2,067 members in 36 villages to procure 2,010 Qtl of Chana, 2,417 Qtl of Matar, 495 Qtl of Groundnut and 858 Qtl of Urad. From 2nd year this figure would go on increasing reaching to the size of 9833members and in 3rd year to 25553 members. The processing unit will be of 40MT/ day capacity for Chana.

Projects Pending Approval

Aizawl Champhai Producer Company

Ginger
Mizo Chilli
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About the Project

District: Aizawl, Champhai, Kolasib, Serchhip, Lunglei | State: Mizoram

Commodities: Ginger, Mizo Chilli

Activities: Aggregation, Trading, Processing, Marketing

Status: To be Submitted

Project Brief

Spice is a major source of cash income for the farmers of Mizoram. The proposed Producer Company will procure Ginger, Mizo Chili and Turmeric from its member farmers through its network of village level collection centers. It will bypass multiple traders, commission agents and processors to undertake the value chain activities like procurement, aggregation, warehousing, primary and secondary processing for the commodities. Processing will happen at the Producer Company owned Central processing unit. Ginger will be traded in fresh after primary processing (washing/cleaning/surface water removal) and also sold as dried flakes and powder in bulk and through retail channels. Dried Mizo Chili will mainly be traded in bulk through a lesser quantity will also be sold in retail packs. Turmeric will be processed to turmeric powder and sold in retail packs. By ensuring timely delivery of spices as per required standards and quantities by virtue of its strong backward integration and efficient operations leveraging the economies of scale, the PC will develop sustainable market linkages with the industry and institutional buyers. Farmers will have assured market linkage and better price realization as a bigger share of the final consumer price will be passed on to them.

Within the first three years, the producer company envisages to bring to its fold 7809 farming households from 117 villages of 14 blocks in
5 districts of the state. The districts to be covered are Champhai, Aizawl, Kolasib, Serchhip and Lunglei. Reduced transaction costs
farmers, transparent and better pricing and patronage benefits will contribute to increased income of the member farmers.