Farmer Private Limited

1
Welcome
Farmer Private Limited Small and Marginal Farmer
Initiatives for Rural Prosperity
2
The Context

• Small and marginal farmers are progressively
  sidelined which is contributing to increase in
  rural poverty.
• Economic and social development in the rural
  areas are low and encouraging migration to cities
• Failure of cooperative movement in engaging small
  and marginal farmers in decision making,
  productivity and asset creation contributing to
  poverty.
• Farmer induced organized gainful agricultural
  activities reasonably de-linked from the clutches
  of middleman can reduce distress sales and income
  generation.
• Organizing, empowering and institutionalizing the
  small and marginal farmers through farmer
  limiteds with external support can result in
  ownership, dignity and decision making for self
  reliance.

3
The background
Since June 2006 AOFG India is promoting
farmer producer companies under private
limiteds. Cotton Amaravati and Adilabad
Zameen Organic Pvt. Ltd for production,
procurement, value addition and marketing
Coffee Spices Western Ghats Wayanadu,
Adimali and Kumily Apple Collection,
value addition marketing Jubbal, Himachal
Pradesh, Naogan, Uttrakhand
4
Farmer Company Private Limiteds the set up

• Farmer Groups 20 Members
• Farmer Cluster Committees 300 to 500 Farmers
• Regional Farmer Association 3000 to 5000
  farmers
• Joint management of FCC RFA for extension,
  input production, crop production, primary value
  addition and supply chain management for gainful
  marketing
• RFA FCC are members and setting up Farmer
  Limiteds. Professionals guided by Board of
  Directors (including farmers) are managing the
  company.

5
FPLs

• Apple Vegetables
• Mondole Organic Agro processing Pvt. Ltd
• Sari Organic Agro processing Pvt. Ltd
• 2. Coffee Spices
• Adimali Organic agricultural products
  processing Pvt. Ltd
• Kumily agricultural products processing Pvt.
  Ltd
• Wayandu agricultural products processing
  Marketing Pvt. Ltd
• Western Ghat Agricultural Products
  Processing Pvt. Ltd
• 3. Cotton
• Two FPL (1) Amaravaty (2) Adilabad
• Zammen Organic Pvt. Ltd
• SEVEN FPLs and TWO COORDINATED LIMITEDS

6
INVESTMENTS ADVISORY
AOFG India is on the process of linking up
the FPLs with potential investors, financial and
technical institutions to support the FPLs
AOFG India is a registered Trust (Act 1882)
(not for profit activities) FCC RFAs are
registered under Society Act XXI of 1860,
(not obtained 12 A u/s of IT) FPLs are
registered as Private Limited Companies and
equity shares are issued to farmers through FCC
RFA.

7
Points for comments
Farmer Producer Companies are for big farmers
who can invest from their own sources. That is
what the rules and regulations provides under
Company Act 1956 as amended 2002- 03. FPLs
need investors, FIs and professionals as Board of
Directors to build up farmer company. Farmers are
simply not professionals or managers, but deserve
to be part of a team. FPLs can be
converted to Limiteds and FPCs on a later stage
whenever the need arises.

8
Joint actions
AOFG India is working in partnership with
SHGW, The Netherlands Van Amerogen
b-Cat, Nl, Tiel (Technology, CA Fumigation
storage facilities KAN BIOSYS, Pune
(Organic farming) Bio refineries are being
set up with technical support and equipments from
Kan Biosys. Our Farmer Companies are
getting linked up with institutions for
technology, credit advisory.

9
Points for comments
AOFG India proposes that AFCL Mumbai can
prepare a functional guidelines on farmer
companies, support services and role of Dev.
institutions, NGOs and CSOs to facilitate the
setting up and operation of farmer limiteds.
Government / Planning Commission can advise
ATMA, KVKs, Dev. projects/ institutions in
association with NGOs and CSOs to set up farmer
companies at district levels. A pilot project may
be initiated during 2009. NABARD may come up with
direct credit funding.

10

THANKS FOR YOUR PATIENCE E.M. Koshy E-mail
aofgindia_at_rediffmail.com Mob [phone] /
011-22742592