Yuva Rural Association (YRA), Nagpur, Promoted
VIDARBHA AGRICULTURE PRODUCER COMPANY LTD.
YRA has promoted and registered a Farmer’s Producer Company called as the Vidarbha Agriculture Producer Company Ltd. (VAPCL). VAPCL was registered on 16 September 2010, under the company Act 2002.VAPCL is a producer company mainly organic producer involves in it. When we are working in group, each one will involve in business activity. Decentralization of business activity and authority is a good sign of equity. These processes maintain transparency and accountability also gives a space for democracy. In last six years of its journey, VAPCL completed all its legal compliances and started its business of procuring soya pulses at initial stage along with the initiation of processing unit for tur (pigeon pea) and done procurement with SFAC, NAFED and Mother dairy. Under INSAP project supported by Swiss-Aid it was already planned to evolve people’s institutions and people’s organization.
The basic purpose of the Producer Company is to collectivize small and marginalized farmers or producers for backward linkage for inputs like seeds, fertilizers, credit, insurance, knowledge and extension services and forward linkages such as collective marketing, processing, market-led agriculture production etc. This effort is primarily directed towards gaining a collective bargaining power for small farmers/ producers for their sustainable livelihood.
VAPCL is promoting Desi Cotton within its farmers, under which we supply processed Desi cotton seeds to farmers, we buy the raw Desi cotton from farmers and carry out the ginning of this cotton. VAPCL has also tie-ups with traders who are in need of Desi Cotton, thus providing a market for the sale.
According to contract VAPCL purchased the cotton during 15th January to 29th February; 2016. YRA facilitated to farmers to complete the marketing process.
Key actions
- YRA involved in organic agriculture since 2002.
- YRA invited by Zurich University, Switzerland to present the concept of organic agril 3. YRA developed package of practices for 6 crops (Cotton, Wheat, Soybean, Tur, Jowar, Chana) & also developed 10 techniques of sustainable agriculture
- YRA established a farmer’s producer company having a share capital of Rs. 11 lakh with 537 shareholders and a turnover of Rs. 1.5 crore.
- Through this company, Tur and Chana worth Rs. 16.5 crores were procured from 1693 farmers through SFAC which helped them to get a premium of Rs. 84.65 lakhs approximately. 6. 200 participatory Guarantee System groups of 1000 farmers have been formed to promote and certify organic farming.
- 3000 farmers were certified as organic farmers and market linked for organic cotton. 8. Under VAPCL we promoted two small Dal mills in 2006 & in 2010 which are running successfully and processing is 7 to 8-ton Dal yearly.
- In 2013-14 VAPCL purchased Tur of Rs.11.50 Cr. from farmers for which that Micro grama has given the credit for purchase & process on Tur.
- VAPCL purchased total 161.31 qtl desi cotton of 30 farmers.
- 500 farmers from Washim district started doing organic farming and registered under organic certification of Participatory Guaranty Scheme of Central Government.
BUSINESS ACTIVITIES UNDERTAKEN UNDER VAPCL
- Procurement of raw tur, chana and its processing and marketing: VAPCL is engaged in procurement of Chana and tur from member farmers and process in to dal and sale in the market. VAPCL also provide job work for the shareholders and charge them processing fees. Around 60% of total business of the company is done under this activity. There is great potentiality in this business activity since most of the farmers are producing pulses, especially tur and chana the raw material is available. But due to lack of capital VAPCL could not increase this activity beyond limit.
- Sale and Purchase of Soybean: VAPCL in the beginning-initiated sale and purchase (trading) of soya but it was not good experience. In fact, company had to pay sale tax on the sale and the margin was less than the tax amount. So company stopped this activity.
- Dal mill Set up: VAPCL has its own small dal mill situated in Dhanaj village in Washim district (taluka Karanja) where maximum farmers grow pulses- tur, chana, mung urad etc.
- SFAC Procurement: VAPCL procured tur and chana worth Rs. 11.5 crore for SFAC in the season of 2013-14. VAPCL earned Rs. 11.5 lakh as commission.
- Trading: Recently VAPCL did trading of 20 tons Chana dal
- OF SHARES
No. of Shareholders – 1537
VAPCL PLANS IN VIDARBHA
VAPCL is planning to establish processing units in Vidarbha which namely includes –
- Cotton Ginning in Buldhana. VAPCL is going to apply for Collateral security from SFAC. 2. Turmeric and chilli processing units in Washim
- Herbal processing unit in Buldhana
- Dal mill at Wardha
- Dal mill at Amrawati and Akola
- Purchase and sale of agricultural produce in Ramtek
- Mahua seeds processing unit in Bhandara
- Strengthening the existing Dal mill unit and increasing the business