Promoting FPOs and Federations in Natural Farming Practices

By Mr.K. C. Gummagolmath, Mr. Badiya Venkat Rao
The Green Revolution marked a significant milestone in Indian agriculture, transforming the country from a food-deficit nation to a food-surplus one. However, the intensive use of high yielding varieties (HYVs) and hybrids, responsive to heavy external inputs, led to several adverse consequences, including excessive use of fertilizers and pesticides, loss of biodiversity, over extraction of groundwater, and rising cultivation costs. Over time, the diminishing response of crops to high inputs resulted in stagnating or declining productivity, contributing to distress among the farming community.

To mitigate the negative impacts of the Green Revolution, organic farming emerged as a sustainable alternative. Organic farming gained traction due to increasing consumer demand for healthier and environmentally friendly food choices. It emphasizes natural processes such as crop rotation, composting, and biological pest control. According to the 2021 FiBL survey, India holds a unique position among 187 countries practicing organic agriculture, accounting for 30 per cent of the world’s organic producers and covering 2.30 million hectares of organic farmland.

In recent years, Natural Farming has emerged as another viable alternative to conventional and organic farming. It is a chemical-free, traditional farming approach that promotes agroecology by integrating crops, trees, and livestock with functional biodiversity. Natural Farming significantly reduces the cost of cultivation while improving soil health and enhancing soil organic carbon, thus contributing to sustainable agriculture with a reduced carbon footprint.

Several Indian states, including Andhra Pradesh, Chhattisgarh, Kerala, Gujarat, Himachal Pradesh, Jharkhand, Odisha, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Tamil Nadu, have adopted Natural Farming practices. Currently, 6.5 lakh hectares of farmland in India are under Natural Farming. This practice is promoted through the Bharatiya Prakritik Krishi Paddhati Programme (BPKP) under the centrally sponsored Paramparagat Krishi Vikas Yojana (PKVY). The adoption of Natural Farming typically begins on a small scale, gradually expanding based on farmers’ acceptance and positive results.

FPOs are expected to play a pivotal role in scaling Natural Farming due to their capacity to aggregate produce, facilitate branding and market access, and provide training and necessary resources. As of September 30, 2024, a total of 44,458 FPOs have been formed across India, according to the Tata Cornell Institute for Agriculture and Nutrition. However, only a few of these FPOs are actively engaged in promoting Organic/Natural Farming. A collective approach through FPOs can generate economies of scale across the value chain, making such practices more viable and impactful. This article highlights excerpts from success stories of FPOs practicing Natural Farming
Case studies of Farmer Producers Organizations under Natural Farming Practices Dev Bhumi Natural Products Producers Co. Ltd (DNPPCL)
Dev Bhumi Natural Products Producers Co. Ltd. (DNPPCL) is a community-owned Farmer Producer Company (FPC) that promotes Natural Farming practices across multiple sectors, including sericulture, organic honey, organic spices, and eco-tourism in remote villages of Uttarakhand. It serves as a successful agribusiness model, enabling the market-oriented growth of small farmers. DNPPCL collaborates closely with 8,500 primary producers, including 4,000 shareholders. The company has an annual turnover of ₹2.5 crore and a paid-up capital of ₹1.20 crore.

DNPPCL supports primary producers at various stages of the value chain by developing the necessary infrastructure to ensure that members do not remain confined to merely supplying raw produce. Farmers now receive better prices for their products, thanks to innovative measures such as establishing primary processing facilities for organic spices, honey production, and sericulture. The company markets its products under the brand name ‘DevBhumi,’ ensuring wider visibility and credibility for the farmers’ produce.

This holistic approach not only enhances farmers’ incomes but also promotes the conservation of natural resources. FPOs that share a similar vision should unite to form federations at appropriate levels and strategize collective actions to enhance their viability and impact.
Susag Millets Producer Company Ltd., Andhra Pradesh
Shri Sarada Valley Development Samithi (SVDS), a non-profit organization, has promoted this Farmer Producer Company (FPC) with the primary objective of advancing natural farming through millet cultivation and value chain development. To encourage more farmers to become shareholders, the FPC organizes village-level meetings and hosts biodiversity festivals to emphasize the role of millets in ensuring nutritional security. Additionally, the company supports the FPO in establishing market linkages.

With its well-trained staff, the FPC has successfully marketed its value-added millet products by setting up retail outlets near apartment complexes, local markets, and village shops. The produce and processed products of its members are marketed under a common brand name, ensuring better returns.

The company was incorporated with an authorized share capital of ₹30 lakh and a paid-up capital of ₹12.30 lakh. It has enrolled 960 women members (including 787 from tribal areas) across 53 villages, mobilizing ₹12.30 lakh as share capital. Since its inception, the company’s turnover has increased significantly from ₹7.25 lakh to ₹43.13 lakh. Scaling up such models, ideally through a federation approach, would further enhance their impact and sustainability.
Adhimalai Pazhanagudiyinar Producer Company Limited, Tamil Nadu
Adhimalai Pazhanagudiyinar Producer Company Limited (APPCL) was established in 2013 with the support of Keystone Foundation, an NGO, and is owned by the indigenous communities of the Nilgiri Biosphere Reserve (NBR) in Tamil Nadu. To ensure fair prices for farmers, mitigate market fluctuations, and establish an efficient marketing system, Keystone Foundation continues to provide active support to this FPO.

As of 2022-23, the company had 1,800 shareholders and extended marketing support to an additional 2,200 non-members. APPCL is engaged in the organic cultivation of coffee, pepper, silk cotton, millets, pulses, cereals, spices, and fruits. The members are also involved in collecting honey and harvesting non-timber forest produce such as amla, shikakai, soap nuts, berries, and phoenix leaves from the adjoining forests during the appropriate seasons.

Aadhimalai has partnered with The Indcoserve, India’s largest tea cooperative federation, and launched five food trucks in The Nilgiris, providing employment to 10 members from the Toda community. In 2022-23, the company reported a turnover of ₹2 crore with a paid-up capital of ₹50 lakh. One of the distinctive features of APPCL is its commitment to preserving indigenous practices and promoting traditional knowledge among the community.
Umang-Mahila Umang Producer Company
Umang Mahila Producer Company (UMPC) is a federation of 200 self-help women’s groups, established to create sustainable livelihoods for communities in the Ganges River basin. The company is deeply committed to empowering women by building their confidence and enhancing their participation in socio-political arenas. It also promotes ecological restoration by reviving traditional soil and moisture conservation methods.

Additionally, members are encouraged to plant and protect around 5,000 fruit tree saplings each year, contributing to improved nutrition and environmental sustainability. Umang markets the produce of its farmer members under the brand names Himkhadya and Kumaoni, retailing a variety of products such as millets, legumes, seeds, and fruit preserves. Around 600 women farmers across Uttarakhand sell their produce through Umang’s brands, ensuring better market access and fair prices.

UMANG has its flagship showroom in Naini village, located 10 km from Ranikhet town at an altitude of 6,000 feet. The company generates an annual revenue of ₹30 lakh, with its products retailed in 50 shops and hotels across the region.
Indian Organic Farmers Producer Company Ltd (IOFPCL) Kerala
Indian Organic Producers Company Limited (IOPCL) was established in 2004 by a group of farmers who were undergoing the organic certification process through INDOCERT, an organic certification agency based in Aluva, Kerala. To ensure better marketing of their organic produce, these farmers collectively formed the company under the Companies Act of 1956. Over the years, IOPCL has emerged as a comprehensive solution to address the challenges faced by its member farmers in production, processing, and marketing of organic produce.

The company specializes in marketing Organic and Fairtrade certified products in both domestic and international markets. IOPCL owns well-equipped processing units that produce a wide range of value-added products such as cocoa powder, cocoa butter, chocolates, cocoa nibs, dried cocoa beans, coconut oil, desiccated coconut powder, virgin coconut oil, spice powders, and coffee powder. The company is also actively involved in the export of these products, with more than 300 tonnes shipped to Europe and Canada.

In the financial year 2021-22, IOPCL recorded an impressive turnover of ₹536.18 crore, benefiting approximately 3,780 farmers and generating employment for around 2,827 people in rural areas. The remarkable success of the company can be attributed to its unwavering commitment to maintaining high quality standards, ensuring that farmers receive premium prices for their produce, and fostering a strong sense of ownership and recognition among its member farmers
Conclusion
The four case studies presented above clearly highlight that adopting a collective approach to natural farming practices benefits all stakeholders, creating a win-win situation. Promoting this concept among FPOs, with the support of federations that adopt a value chain-centric approach, can mitigate the risks associated with yield uncertainties. However, scaling up this model requires careful planning and caution to address the challenges involved in expanding this concept on a larger scale.

Currently, a significant proportion of existing FPOs (about 60 per cent) are small in size, making them non-viable due to low operational scale and inadequate working capital. To ensure sustainability and long-term growth of these smaller FPOs, aggregating them into Federations at appropriate level is recommended. Special incentives can be extended to FPOs that are exclusively promoting natural farming practices, including financial support to develop monitoring systems, value addition, and marketing of their produce.

Forming federations that bring together FPOs practicing natural farming at the State and National levels can significantly expand the reach of natural farming practices, encouraging the establishment of more FPOs engaged in this domain. These federations will not only unite various natural farming practices but also create a knowledge repository, leading to the standardization and formalization of such practices for future business models.

Additionally, federations can serve as large, consolidated entities that enhance branding efforts and unlock nationwide market prospects. By creating a unified front, they can also explore export opportunities, thereby boosting the income of shareholding FPOs and ultimately their member farmers. Overall, federations of FPOs involved in natural farming can play a transformative role in scaling up the movement, creating sustainable business models, and ensuring long-term growth.
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