Final PPT for College

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5/22/12 KIIT School Of Rural

DEEPAK FOUNDATION

Presentation By:Manjeet Kumar & Sanjeev Kumar Suman

KIIT School of Rural ManagementKIIT University, Bhubaneswar

Orissa

Promoting Co-operative marketing of Agro-produce through tribal farmer

group(Kawant block of Vadodara, Gujrat)

Faculty guide: Prof. Tapas Mandal

5/22/12 11KIIT School Of Rural




Flow of Presentation•

Introduction• Objectives

• Methodology

•

Process of Farmers Representative Committee• Status of FRC given by the organization

• Comparative Study of FRC

• Transaction cost analysis

• Findings• Recommendations

5/22/12 KIIT School Of Rural 22




Introduction

About Deepak Foundation:

• Deepak Foundation, a registered non-governmental organizationwas established in 1982 as part of the corporate socialresponsibility of Deepak Group of Companies (Deepak

Fertilizers and Petrochemicals Corporation Limited and Deepak Nitrite Limited).

• The Foundation has initiated Kawant Livelihood Project (KALP)under the Vanbandhu Kalyan Yojana of the Government of

Gujarat, in the Kawant block of Vadodara district.





Hor ticultur e

Improved Agric ult ure

Watershed

Dairy Development

Focus sectorsunder RKVY,Kawant

Rastriya Krishi Vikash Yojna

44

Our Project fall under the Rastriya Krishi Vikash Yojna.It has four major areas-




• Farmers Representative committee is a group of 12farmers which represents the whole farmers of thevillage.

•

It has been formed by the gram Sabha and select itsmembers from different parts (Falia) of the village.

• The members collect their agro-produces into a huband sell it into the market.

•

The main idea of FRC is that small farmers can alsosell their agro-produces at the high price.

Farmers RepresentativeCommittee




Objective of the study

• Studying the scope of promoting the marketing of agro- produces at block level of FRC.

• To cover 21 villages and 360 beneficiaries under this project.

• To identify any operational issues in smooth functioning of all21 FRCs.

• To update the MIS of this project already adopted by Deepak Foundation.

• Audit and update register of existing as well as proposed FRCs

in 21 villages.





Methodology

Primary Research:• Interview with farmers (20) and APMC brokers (5)

• Interview with local and big traders (5)

• Collection of sales data by the farmers at APMC-Bodeli

• Feed back meetings

Secondary Data

• From FRC registers.

• Commodity prices of different markets from internet

(agmarknet.com).





Process Flow-FRC:

5/22/12 88




1. Gram Sabha in village•

Through the Gram Sabha we addressed thefarmers about the FRC.





Rational behind the Gram Sabha..

• Selling of agro-produces at high price due tofuture pricing information

• Reduction in transportation Cost due to costsharing

• Accuracy in weighing by the use of electronicweighing machine

• Less brokerage charge than the normal market

rate due to bulk sales• Save on time and travel expenses of individual

farmer







Cont…

• Elected 12 members; taken 1-2 farmers fromevery falia (area) of the village

• Elected a President, a Secretary and a Cashier

from the elected members• Framed bylaws and passed a resolution based

on common consensus of the FRC members.





3. Meeting with themembers for marketing

To know the quantity of their agro-produce which are readyfor sale.





Cont….

• Suggested the date of selling and other market

related information (opening and closing of market, etc)





4. Visit to the APMC and set abroker at lowest commission

• Made regular communication with brokers for selling• At APMC-Bodeli fixed brokers at lowest commission (Rs 1.10 perRs 100; normal rate is Rs. 1.90 per Rs 100)







6. Selling at APMC

Through biding, millers fix the prices with brokers





Cont….

• Weigh the loaded vehicle before entered into

the mill• Unload the vehicle and check the stock • Again weigh the unloaded vehicle

•

Broker pay the total price





7. Maintain the register

After every transaction in the FRC, Selling register is updated





Cont….

• Every transaction has been recorded• Individual data of the farmers and the number

of farmers participated has been recorded• Done calculation of gross selling price,

transportation cost, brokerage, labor cost andnet income





8. Feedback meeting





Cont….

• These meetings were organized to sensitizefarmers about the benefits after selling throughthe FRC

• Farmers, who sold their agro-produce,addressed to others about the benefits

• We took the estimate of quantity to be sold

next time and no. of new farmers to be added


Stat s of the FRC gi en b the Organisation




Sr.

No. VDP Village

Coming under

NABARD

Farmer

Group

Bank A/c

opened

Applied for status

of Agri-marketing

Water shade Formed Farmers Club started

1 BORDHA YES YES YES NO NO

2 UNDVA YES NO NO NO NO

3 MANKODI YES YES YES YES NO

4 NARUKOT YES YES YES NO NO

5 BALATGAM YES YES YES NO NO

6 ATHADUNGRI YES YES YES NO

7 MOTISAKAL NO NO NO NO

8 KHANDIBARA NO NO NO NO9 GELESAR YES YES YES NO

10 KAKANPUR YES NO NO NO

11 JULWANIA NO NO NO NO

12 JAMLI NO NO NO NO

Other Villages

1 RAJAWAT YES YES YES NO

2 JAMBA YES YES YES YES

3 MOTIKADAI YES YES YES NO

4 ARATIA YES YES YES NO

5 DEVAT YES YES YES YES

6 BILDHA YES YES YES NO

7 SEDIVASAN YES YES YES NO

8 GAJLAVAT YES YES YES NO

9 CHIPAN YES YES YES NO

Status of the FRC given by the Organisation




Establishment of NewFRC

S No Name of theCluster

Name of the villages Status of marketing

1 Sadivasan Kakanpur Yes

2 Gojariya Jambli Yes3 Athadungri Bekhadiya Yes

4 Gojaria Undwa Yes

5 Athadungri Motisakal Yes

6 Athadungri Khandibara Yes

Source: PrimaryData

B k t i




Bank account opening


S No Name of the

Cluster

Name of the villages Status of

marketing

1 Gojaria Undwa Yes

2 Athadungri Motisakal Yes

3 Athadungri Khandibara Yes

4 Sadivasan Kakanpur Yes5 Sadivasan Julwaniya Yes

6 Gojaria Jamli Yes

Requirements:•Certified copy of Bylaws of FRC•Resolution of the FRC•List of members of FRC•Address proof of the President, Secretary and treasurer of FRC

Source: PrimaryData




S N FRC Name 2009-10 2010-11

ProductQuantity

(in Qtl)

Total sellingprice (in Rs)

ProductQuantity

(in Qtl)

Total sellingprice (in Rs)

1 Motikadai 223.8 4,81,630 307.19 14,09,216

2 Aratiya 46.6 1,47,302 50.8 1,67,072

3 Rajawat 81.48 2,56,391 71.25 2,33,399

4 Jamba 272.2 2,34,808 350.53 18,77,896

5 Chipan 74.4 46,746 160.34 5,62,763

6 Devat 54.2 1,78,095 44.3 1,68,103

7 Gelesar 51.2 76,840 83.2 2,72,2588 Bilda 40.4 50,189 70.64 3,05,259

9 Sadivasan 0 0 68.60 1,26,454

10 Khandibara 0 0 60.95 2,33,213


Comparative agri-MarketingStudy of FRC

Source: Primary & Secondary Data



5/22/12 KIIT School Of Rural5/22/12 KIIT School Of Rural 2727

S N FRC Name 2009-10 2010-11

Product

Quantity

Total selling

price (in Rs)

Product

Quantity (

in Qtl)*

Total selling

price (in Rs)*

11 Bordha & Undwa 0 0 24 1,12,800

12 Mankodi 0 0 18 84600

13 Narukot 0 0 16 7520014 Athadungri 0 0 12 56,400

15 Motisakal 0 0 20 94000

16 Julwaniya 0 0 24 1,12,800

17 Gajlawat 0 0 8 37,600

18 Jamli 0 0 30 1,41,000

19 Balatgam 0 0 20 1,02,000

20 Kakanpur 0 0 39 1,98,135

Total 844.45 20,93,214 1477 63,35,869

Cont….

Source: Primary & Secondary

Data




Comparative Study of FRC

Crop Amount sold (in Rs) Total quantity sold

(in qntl)

No of Farmers

2009-2010 2010-2011 2009-2010 2010-2011 2009-2010 2010-2011

Cotton 17,81,994 60,03,508 551.85 1279.20 120 232

Maize 3,11,220 68,057 292.5 74.44 37 4

Soy

bean

0 2,64,304 0 123.4 0 15

Total 20,93,214 63,35,869 844.45 1477 157 251

+ Rs 42,42,655 +632.55 qntl +94





Amount sold (in Rs)

Through FRC

cotton maize soy bean

2009-10 17,81,994 3,11,220 0

2010-11 60,03,508 68,057 2,64,304


0

1

2

3

45

6

7

8

9

10

Rs




Total quantity sold(in qntl)

cotton maize soy bean

2009-10 551.85 292.5 0

2010-11 1279.02 74.44 123.4


0

2

4

6

8

10

Qntl




No of Farmers

participation

cottonmaize

soybean

2009-10 120 37 0

2010-11 232 4 15


0

1

2

3

4

5

6

7

8

910

No of farmers




Market through a casestudy

S. NO. Name of the Farmers Quantity of Cotton

1 Ramjibhai govind bhai 2.00 quintal

2 Kamurbhai dalmukh bhai 15.20 quintal

3 Ramanbhai govind bhai 1.20 quintal

4 Kanchanbhai jagat bhai 2.60 quintal

5 Vivekbhai govind bhai 0.20 quintal


Village: Motikadai, Sadivasan

Cont




S no. Particulars Bodeli Kawant

1 Quantity of sale 107 mann = 21.4 qntl = 2,140 kg 107 mann = 21.4 qntl = 2,140kg

2 Selling price Price per mann = Rs 882

Price per quintal = Rs 4,412

Price per kg = Rs 44.12

Total = 2,140 * 44.12= Rs 94,416.8

Price per mann = Rs 780

Price per quintal = Rs 3,900

Price per kg = Rs 39.00

Total= 2,140 * 39.00 = Rs 83,460

3 Transportation

cost

Rs 1400 (tractor rent) Rs 10 per mann = Rs 1,070

4 Broker’scommission

Rs 1.10 in Rs 100Total broker charged = Rs 1,038.86

Rs 1.75 in Rs 100Total broker charged = Rs

1460.55

5 Total expenses Tractor fare + Broker charge +

labor charge

= 1400 + 1,038.86 + 160= Rs 2,598.86

Tractor fare + Broker charge +

labor charge

= 1,070 + 1460.55 + 150= Rs 2680.55

6 Income = Rs 94,416.8 – Rs 2,598.86

= Rs 91,817.94

For 20 kg = Rs 858.11

For 1 kg = Rs 42.90

For 1 qntl= Rs 4,290

= Rs 83,460 – Rs 2,680.55

= Rs 80,779.45

For 20 kg = Rs 754.94

For 1 kg = Rs 37.74

For 1 qntl= Rs 3,7745/22/12 3333

…




Profit maximization from Bodeli market

Farmers Prices at Bodeli Prices at Kawant Profit (Rs)

Ramjibhai govind

bhai

200 kg @ Rs 42.90

= Rs 8,580/-

200 kg @ Rs 38.00 = Rs

7,600/-

Rs 980.00

Kamurbhai

dalmukh bhai

1520 kg @ Rs 42.90

= Rs 65,208/-

1520 kg @ Rs 38.00 = Rs

57,760/-

Rs 7,448

Ramanbhai

govind bhai

120 kg @ Rs 42.90

= Rs 5,148/-

120 kg @ Rs 38.00 = Rs

4,560/-

Rs 588

Kanchanbhai

jagat bhai

260 kg @ Rs 42.90

= Rs 11,154/-

260 kg @ Rs 38.00 = Rs

9,880/-

Rs 1,274

Vivekbhai govind

bhai

20 kg @ Rs 42.90

= Rs 858/-

20 kg @ Rs 38.00 = Rs

760/-

Rs 98





ideal condition for cotton inBodeli market

• Total Quantity = 2600 kg

• Rate = Rs 44 per kg

• Total amount = Rs 1,14,400

• Tractor rent = Rs 1400,• Brokerage charge = Rs 1,258

• Labour = Rs 150

• VRP charges = Rs 78

• Total transaction cost is Rs1.09 per kg

Transaction cost/kg

Cost Amount (RS)

Brokerage Rs 0.53

Transportation Rs 0.48

Labor Rs 0.05

VRP Rs 0.03

Total Rs 1.09

Cost per kg





Findings• At the time of selling, local traders at Kawant do not take the

exact weight of commodities. (EX.10.5kg=9.5kg)• Due to emotional attachment with the brokers or age-old

relationship with the traders, at time villagers sold their agro- produce at high commission charge, as they don’t want to break

their relationship. (Ex. of Chipan)• At APMC Bodeli brokers have divided their areas according to

their links, but villagers think that the allotment of the areasamong brokers is legal as per APMC norms.





•

All brokers in APMC Bodeli have reduced commission chargesfrom Rs 1.90/- to Rs 1.60/- per Rs 100, due to FRC activities

• In case of soybean and maize, brokers have taken pre fixedhigher price even if actual market price falls on day of selling.(Ex .Naswadi Case)

• Some brokers have also started contacting to Deepak Foundation staff directly to take produce at ever lesser commission and better terms


Cont…




• In every FRC meeting apart from the members, other farmershave also started coming to attend the meeting.

• Sarpanches and farmers from neighbouring villages of Kawant block are approaching DF for FRC formation in their village.

(Ex. Buffa village, Naswari )• All APMC officials and brokers have started offering royal

treatment, whenever our staff visit APMC

• Video Shows of FRC made a great effect in villagers mind


Cont…




Recommendation•

Regular monthly meeting of FRCs• VRPs have to organize regular meetings of FRC and he has to be

present at the time of weighing of agro-produce.

• VRP has to maintain the register of the FRC because farmers aremore comfort with VRP then treasurer.

• The VRP charge from FRC should be on time.

• Reduce the gap between villagers and organization during threemonths (July to early September)

• Regular video shows of FRC can make big effects in peoples mind.




Video

• Video of FRC – For Video Show in village


http://var/www/apps/conversion/current/tmp/scratch31152/New%20FRC%20Video_0001.wmv

http://var/www/apps/conversion/current/tmp/scratch31152/New%20FRC%20Video_0001.wmv



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