Farmers Producers Companies in quandary sans funds

Anantapur: The concept of Farmers Producers Companies (FPCs) which have caught up very well with the farmers in the district are beset with teething problems including inordinate delay in financial government intervention, which is now a de-motivating factor for the birthing of FPCs.

Already 209 FPCs, a record number in the district are in different stages of establishment. The objective of the FPCs is collective marketing intervention by the farmers themselves.

The Departments of Horticulture and Agriculture have together been organising farmers in the district for the express purpose of establishing Farmers Producers Organisations (FPOs) and Mutually Aided Cooperative Societies(MACS) and also into a Farmers Multi-Produce Marketing Company (FMPMC) to play a proactive role in the farming and marketing dynamics including seed and fertilisers supply, marketing of farm produce and providing all assistance to the farmers, who will form part of the FPO.

The Chief Minister is asking farmers in the entire state to organise themselves into FPCs. A record number of 209 FPCs and MACS had been registered and more in the pipeline if the experiment is proved practical and successful.

The grouse of the farmers against the government is that it has failed to release the promised incentive of Rs 12 lakh to the FPC per year for three years. That means every FPC will get Rs 36 lakh at the rate of Rs 12 lakh a year.

The Rs 12 lakh incentive to FPC is meant for running the company hassle-free including company maintenance, payment of staff salaries and investing in marketing initiatives of the farmers produce. There are 8 FPCs which have started operations and are facing initial teething problems due to the government's delay in releasing the promised Rs 12 lakh to FPCs.

The Rs 12 lakh is supposed to serve as an oxygen for the newly started FPC but even after 7 months of the company establishment, the promised financial grant has not arrived, and the farmers are in a quandary unable to coup up with the financial problems.

Zeckriah, director of Anjaneya Farmers Producers Private Limited told ‘The Hans India’ that for four months salaries were not paid to the staff and there was no funds flow in the company paralysing day-to-day operations. He said that a delegation from his company met the Horticulture Commissioner and apprised the later of the problems being faced by the young FPCs.

As many as 8 FPCs are functioning against all odds. Each FPC has 500 to 1,000 members, who have invested with a share capital from Rs 100 to Rs 1,000. Basically, the company provides services to the farmers on two fronts, one is supply of all agriculture inputs including quality seeds, pesticides and chemicals at the lowest manufacturing rate and secondly marketing their produce. The FPOs are expected to revolutionise the farming sector.

Deputy Director of Horticulture Subbarayudu told ‘The Hans India’ that farmers had been advised them to first form themselves into MACS societies with 20 members or so, and in turn form into a federation of the societies.

The federation will play the role of an FPO which is farmers own private limited company catering to multiple needs of farmers. Another farmer Bhaskar stated the company also entered into agreements with corporate shopping malls including Walmart, Reliance, More and other international players. These corporate firms are offering the best price for their produce.

Andhra Pradesh Minor Irrigation Corporation Project Director M Venkateshwarlu told ‘The Hans India’ that the tomato farmers are raising tomato plantations in 13,000 acres and are divided into 13 clusters. The FPCs would dictate terms to the market forces, he added.

By Ravi P Benjamin