In 2015, members from an NGO visited the picturesque village of Shadab Karewa located across the burbling Ramibara stream, some 10 km from Shopian town, and met over an odd dozen farmers in the village.
The NGO acquainted the farmers with the concept of the Farmer Producer Organisation (FPO).
Under FPO, the farmers who are the producers of agricultural products come together to form groups and register themselves as companies under the Indian Companies Act.
The main aim of the FPOs is to augment productivity, reduce ballooning input costs and ensure profit-oriented farming.
Nadeem Majeed Sheikh, a young farmer from the village took the initiative to form such a group in his village, comprising around 25,00 households.
” Initially, I formed a group of six farmers, and then we began visiting different Mohallas in our village and embolden the farmers to join us”, said Sheikh.
The group received an overwhelming response from the fellow farmers and within a couple of weeks, the number of members soared up to sixty.
The group finally formed Abshar Potato Seed Producers Company Ltd.
According to Sheikh, the newly formed company was registered within a year by the Ministry of Corporate Affairs. ” Today we have around 150 members”, said Shiekh, who works as the CEO of the company.
The company, since its inception also received a fund of Rs 6 lakh from National Bank for Agriculture and Rural Development ( NABARAD) under Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organisations (FPOs)
In 2016, the farmers for the first time sold their produce–potato seeds–through the company and reaped the rich dividends.
“We sold per quintal of potato seeds at Rs 3200 as against Rs 1500 to Rs1800”, said Shiekh adding that the company sold the entire production to a private organisation that saved the transportation costs.
The company in the very first year also made a profit of over Rs 35,000.
Besides cutting the farming costs, the FPO helped the farmers to do away with the commission agents and middlemen. “A lion’s share of our hard work used to go into the coffers of middlemen”, said a farmer member.
A group of member farmers also received training from Centre Potato Research Institute, Shimla.
“At least 10 members went to the institute and learned the modern agriculture practices, which helped them to enhance the production”, said Sheikh.
Department of Agriculture in Shopian also provided technical support to the farmers and helped them in understanding the modern farming techniques. “The department facilitated multiple exposure tours for us and we got a chance to interact with other farmers and learn from each other’s experience”, Sheikh said.
Mohammad Aslam, technical officer to Chief Agriculture Officer, Shopian told Greater Kashmir that the FPOs were helping farmers in a big way in the area.
” It saves not only the input costs of farmers but also helps them to sell their produce in bulk at better prices”, Aslam said.
He said that another FPO would soon come up in Nadigam village.
“At least 100 farmers have come together in this village to form an FPO”, Aslam added.