Amul Cooperative was a response to the exploitation of marginal milk producers by traders. Inspired by the success that the milk cooperatives in Gujarat had, a number of cooperatives of dairy farmers and farmers sprung up to gain bargaining power and capitalize on economies of scale. It has, however, been very difficult to replicate the success that Amul achieved though there have been many pockets of excellence including Mulukanoor Women’s Cooperative Dairy in Andhra Pradesh.
Access Livelihood Consulting (ALC), our partner organisation head quartered in Hyderabad, has been working with rural communities to help set up profitable livelihood enterprises that communities can run and operate themselves.
One such enterprise that ALC has promoted is Kodangal Farmers Producer Company in Mahabubnagar district of Telangana. The company has more than 900 women farmers who own small plots of agricultural land. The Producer Company was set up in 2012 with the objective of providing essential services to the members at competitive prices, to reduce dependence on informal credit sources, and by reducing distress selling to ensure that the members receive fair prices for their harvest. Kodangal mandal where the producer company is located is well known for its red gram crop. Apart from Red Gram farmers also cultivate black gram, cotton etc. The producer company also intends to undertake value addition activity such as a dal processing mill in the future.
We are currently raising a loan amount of Rs 10 lakhs for the Kodangal Farmers Producer Company that would be utilised to purchase stocks of fertilisers and other input supplies that the farmers require. Through aggregation of demand the producer company would be able to procure stock at below market rates and thus ensure that the member farmers do not have to depend on the credit extended by fertilisers traders (which can be as high as 5% per month).
You can support to the women farmers of Kodangal Producer Company by investing in their loan requirement.