Reliance Foundation-backed Jasdan FPC’s turnover zooms in Kharif 2017

Rajkot, Nov 28 (IANS) Reliance Foundation (RF) backed Farmer Producer Company (FPC) at Jasdan in Rajkot district has achieved a 128 per cent growth in turnover in Kharif 2017.

According to the foundation, the FPC was set up in August 2016 and has touched the current business milestone in its second season of operation.

"Establishment of FPCs is one of the key interventions under the rural transformation programme of Reliance Foundation," it said in a statement on Tuesday.

"The FPCs are part of RF's effort to strengthen the value chain of farm produce, enhance its marketability, help the marginal farmers and livestock owners realise better prices and thus, achieve income security for themselves."

"Reliance Foundation helps train farmers to independently manage these companies in the long-term. Since its inception in 2010, RF has so far formed 19 FPCs -- better known as producer companies (PCs) -- to empower farmers across the country, benefitting over 21,000 families," the statement said.

All 19 companies, taken together, have transacted over 4,500 metric tonnes of farm and non-farm produce till the end of last season, raising farmers' incomes significantly "and augmenting the farmers' ability to govern their own institutions effectively".

"However, this season has been special. In Kharif 2017, the turnover of this (Jasdan) FPC alone has more than doubled from Rs 7 crore (2016-17) to Rs 16 crore (2017-18)," the statement said.

The foundation pointed out that compared to the open market, where the farmers have been compelled to sell groundnut at Rs 3,450-3,500 per quintal, the company was successful in fetching the farmers an extra margin of Rs 1,000 per quintal.

The Jasdan FPC managed to get the extra margin to farmers by getting them registered in the government system, sourcing groundnut from them as per quality norms and depositing to government-designated warehouses at an MSP (minimum support price) of Rs 4,450 and a bonus of Rs 50 announced by Gujarat state government.

"The surplus added to the village economy by the FPC's business went up from Rs 1.5 crore (2016-17), to more than Rs 3.5 crore (2017-18), as the quantity of groundnut handled by Jasdan FPC till November 20 this year stood at 35,733 quintals, a rapid increase of 14,885 quintals over the previous week," the statement said.

The Jasdan FPC has been transacting on behalf of Jasdan farmers in collaboration with Gujarat State Co-Operative Cotton Federation Limited (GUJCOT).

RF has been recognised for its outstanding contribution in the field of building FPCs across the country.

Recently, Union Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal felicitated RF with the Krishi Pragati Award instituted by the National Commodities Derivatives Exchange (NCDEX) for its "Outstanding Contribution as a Resource Institution for Promoting FPCs" while the Jamwa Ramgarh FPC (Rajasthan) was recognised as "Most Promising Producers' Company".

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