NABARD to revolutionise agri sector

The National Agriculture Bank for Rural Development (NABARD) is launching an initiative to establish agricultural companies based on single or multiple agro-products under the companies act. Through the initiative, NABARD aims to revolutionise the scale of farm operations and usher in a commercially inspired market revolution besides improving the quality of the products and making them export worthy. NABARD assistant general manager AV Bhavani Sankar is the moving force behind the execution of the project in the district.

10 companies for various farm produce including chillies, maize, turmeric, dairy, fish and shrimp products, vegetables, flowers and pottery products are in the process of establishment as a legal entity under the companies act. Very soon as many as 10 companies represented by an average of 5,000 farmers will don the role of company share holders, board of directors and chief executives besides their primary role as producers of the product.

The company in turn would take care of marketing of the product through appointing of dealers, processing and packaging the products transformation into export worthy product strictly adhering to all export stipulations. Guntur district is known for commercial crops including chillies, cotton, turmeric and tobacco. Despite the popularity of the commercial crops, products like chillies known for its pungent nature were being rejected by the export market due to high fertiliser and pesticide residues.

The farmers producer companies will hereafter take care of the export concerns by strictly adhering to stipulated norms right from the seedling and cultivation stage to harvesting by using scientific and hygenic methods at every stage of handling the products. As soon as NABARD broached the idea and concept of triggering in establishment of farm product companies, there was exciting response from the farmers and NGO's over the very idea of corporatising of the agro-products.

Speaking about response to the proposal, NABARD AGM Bhavani Sankar says that they have received 30 proposals from stake holders, of which 21 were considered and 16 were recomended while actually seven projects were sanctioned. “Of the seven projects, two are fishery project proposed at Dachepalle and Repalli, two are chilly companies, one product company is maize at Kokumanu, a turmeric company at Pollipara and the other is a dairy company at Machavaram. Vegetable, flowers and pottery projects are also in the pipeline.

Presently an awareness campaign is on among the stake holders on the ways and means of running a company. Also the process of company registrations is on progress. NABARD is giving a grant of nine lakh rupees for each company for taking care of the establishment, besides organising loan facility for running the companies as per requirement. NABARD has sanctioned 75 such companies at the state level and 2,000 companies at a national scale. The concept of farmer producers companies is expected to revolutionise the farm sector and make farming a profitable proposition.

By Ravi P Benjamin