Farmers’ Producer Company: An Achievement towards Doubling Farmers’ Income through High Tech Horticulture

The Nadia Krishi Vigyan Kendra had opened the path of success for the sustainable economic development in a co-operative approach by triggering the technology of high value protective cultivation with marketing support by the Farmer Producer Company.

From the Year - 2008 onwards, the Nadia KVK started their activity with the Nakashipara Farmer Producer Company Ltd. Primarily (the then farmer’s club), the KVK had uplifted 5 to 6 progressive farmers to focus and encourage the other farmers to adopt their technological and economical achievements. The KVK’s movement started in the fields of high value and protected crop cultivation along with other remunerative vegetables like Cole crops, chilli, brinjal, dolichos bean, fruits like banana and flowers like tuberose, marigold and chrysanthemum, etc.

The technical interventions were also made towards quality seedling production, varietal replacement (G-9), quality bunch production by use of bunch cover and high density planting of banana as well as the cultivation of green and colored capsicum under the different protected structures and open field. With all its fruitful efforts, the KVK had played the pivotal role behind the sustained economic growth of those progressive farmers and their success motivated the fellow farmers within the FPO umbrella for adopting such level of precision farming.

The FPO has been playing the role of negotiator between the producer and the wholesaler of the key business points, viz., Kolkata, Siliguri (North Bengal) and Guwahati (Assam). The business is operating by the bank transfer-from the wholesaler to FPC account and then FPC account to the individual farmer account. The FPC is charging 2% service charge from the farmer, which is subsequently used for PFC operations and subsidies for the farm inputs among the participatory members.

The presence of the FPC has led to the reduced market risk by sustained demand - supply relationship between the growers and the wholesalers. This led the farming turned into an entrepreneurship, which has yielded an average annual net return of rupees 3.64 Lakhs from 1,000 square meter high tech unit. The FPC operation model is:

Through this journey, not only the individual farmers benefited, as a whole the different business areas of operations, viz., wholesale and retailing of pesticides, seeds, poly packets, poly trays, bunch covers, poly packets for gerbera and Dendrobium packing, etc., had also been opened for the FPO. As a result, the FPC’s businesses turnover has now crossed Rs. 2.4 Crore per annum with a fixed capital of 24.6 Lakhs.

Now, some of the local people once again got involved in the agricultural profession. They are now accustomed with the cultivation of gerbera, green and colored capsicum, off-season leafy vegetables under the polyhouse and shade net. Their confidence level has geared-up to such a level that they are now daring to cultivate even the tropical orchids like Dendrobium.

The Nadia Krishi Vigyan Kendra has been actively involved with this FPC as one of the technical backbone towards guiding them in a scientific manner from time to time. The socio-economic scenario of the area has altered to a great extent with active association of the KVK. Within 2 years of formation, 98% farmers of the area have became active members of the FPC and return from the farm produces have been stabilized at more than double within this short span of time. The establishment of high value units increased by a tune of nearly 300% due to sustained and profitable return which is also depicted by 100% timely loan repayment by the farmers under this FPC. The key economics of the endeavor are

(Source: ICAR- Nadia Krishi Vigyan Kendra, West Bengal)