A CASE ANALYSIS OF FARMERS ASSOCIATION TO INCREASE THE PROFIT OF FARMERS

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1 A CASE ANALYSIS OF FARMERS ASSOCIATION TO INCREASE THE PROFIT OF FARMERS Dr.M.Shanthasheela, Dr.P.Balaji S.Kumaresan ABSTRACT In India about 50 per cent of the population depends on agriculture, majority are small land holding farmers. Agriculture is reeling under uncertainties around the world in terms of land shrinkage, water scarcity, new outbreaks in crops, technology invention etc. Indian farmers are encountering many problems, marketing difficulties such as higher transportation, intermediaries cost in selling the produce, less value for their produce, no proper storage facility and inadequate access to institutional finance aids and climatic factors prevalent. Different approaches developed for uplifting rural people. In 60s, Integrated Area Development program (IADP) came into practice to make agriculture more towards increasing the production to meet the growing population. In 80s, extension system proved effective transfer of technology. Key words : Farmer, Association, Approach, Extension, ICT, Remunerative price Introduction In India about 50 per cent of the population depends on agriculture, majority are small land holding farmers. Agriculture is reeling under uncertainties around the world in terms of land shrinkage, water scarcity, new outbreaks in crops, technology invention etc. Indian farmers are encountering many problems, notably less awareness and knowledge about new technologies in production, harvesting problems, marketing difficulties such as higher transportation, intermediaries cost in selling the produce, less value for their produce, no proper storage facility and inadequate access to institutional finance aids and climatic factors prevalent. National Sample Survey Organization (NSSO) reported that given the choice, 40 per cent of the farmers, wish to leave agriculture (Murray, 2009). Non-remunerative price that has been realized by the primary producers has been one among the prime reasons. There has also been no surplus produce for value addition due to low productivity influenced by poor knowledge base towards production technology, access to credit, input, market and obviously the below-par adoption behaviour. The number of intermediaries in the structure of agricultural market limits the price realized by the primary producers to the lowest possible in the supply chain. At a time, when the country has been witnessing all-round economic growth, naturally the farmers aspire for prosperity from agriculture in the similar lines (Venkatakumar and Sontakki, 2012). Science Explore 1

2 Importance of different approaches to increase the profitability of farmers Transformation of the Extension system in Tamilnadu since Independence The present system of Agricultural extension underwent transformation over the past six decades. During 50s and 60s the Community Development Program (CDP) was in existence. This aimed at the overall development of the community since agriculture was the basic profession for livelihood of most of the population. In 60s, Integrated Area Development program (IADP) came into practice to make agriculture more towards increasing the production to meet the growing population. First Green Revolution In the late 60s, the High Yielding Varieties program (HYVP) was launched owing to the advancement of the agricultural research. During that period the FIRST GREEN REVOLUTION was achieved. This success was attributed to the High Yielding Varieties. In 70s, various agronomic and cultural practices were evolved owing to the intensive research program. This has increased the production level of various crops and made the state marginally sufficient. The Training and Visit System (T&V) In 80s, the need for the dissemination of the research findings directly to the farmers was felt. Hence the World Bank assisted T&V was launched. This paved way for dissemination of technology to the farming community through the Secondary Innovators i.e., the Agricultural Extension workers. In this system, the periodical visits to the villages, contacting a set of progressive farmers who in turn will disseminate the information to other farmers were actively involved. This system proved its success and the transfer of technology took place very actively. The production level has increased substantially and the state marched towards self sufficiency level. The production led technologies, cultural practices, integrated pest management and integrated nutrient management technologies played a vital role in the technology transfer. Tamil Nadu Agricultural Development Project (TNADP) In 90s, TNADP was implemented and funded by World Bank. This project integrated various activities of farming like, dairying, poultry, fisheries, piggery, sericulture, horticulture, etc., so as to broaden the scope of agriculture. This was called the Broad Based Extension System (BBE). During the early 21 st Century the system of systematic extension system slowly taken up a change. The prime activity was the implementation of schemes, sale of inputs, etc., Later the transformation takes place and the farmer participation approach came into existence. Role of Agricultural Extension system Agricultural Extension system plays the facilitator role in disseminating the knowledge to the farming community at the right time. The Role of Innovators The success of the whole of the extension system is in its effectiveness of how it transfers the information without any distortion by the innovators. The Scientists are the primary innovators. They find some newer varieties or technologies for the state as a whole or for a region or so. They organize multi-location trials to test the characteristics and adaptability as a whole before they release the technology. The Extension workers are the secondary innovators. They will adapt the technology to their local condition within the jurisdiction of the farmers and test its adaptability to that area. Once they test and convinced, they try to Science Explore 2

3 convince the farmers of their area with the technology. Farmers are the tertiary innovators and hence they will first listen, clarify and then convinced. They will adopt the technology in a smaller area and then expand the same to a larger area once they get fully convinced. This is the proven model of Agricultural Extension system in the past. But since the extension delivery mechanism is paralyzed during the period from 2008 to till date there is an urgent need to invigorate the extension system today. Uzhavar Peruvizha A month long mass village level has been organized in all the revenue villages during the month of April Wherein the farmers were contacted in person by the Agriculture and its line departments. During the campaign the officials campaigned the whole day in a single village. Demonstrations, Sharing of success stories among farmers, highlighting of successful farmers, technical lectures, Collection of farmer database, soil sample collection and analysis, issue of FIHB card, Lunch, Cultural Program and a function to distribute inputs under the chairmanship of elected representatives. By intensifying the collection of farmer database and soil sampling it was continued during and by the end of about 72 Lakh farm families database collected and 68 lakh soil sample test results uploaded in the website. FIHB issued to 45 lakhs farmers during Crop Plan Development During Farm Crop Management System (FCMS) was implemented in 6 pilot districts viz., Vellore, Virudhunagar, Trichy, Tiruvarur, Coimbatore and Erode. All the villages were classified into zones by duly taking into account the Soil type, Irrigation source, rainfall status and as many possible combinations of cropping options are developed in consultation with the farmers and provided in the module. Based on the provisions given the field level worker visits each farmer before the start of the season and in consultation with them individual under participatory mode they developed Crop Plans. Farmer database and soil test results mapped to the farm are essential to develop crops plans. This crop plan will suggest the farmer the basic resources available with him, the crop that he proposed to take up in the three seasons of the ensuing year, crop variety, method of cultivation, quantify of seeds required, quantify of bio and chemical fertilizers required, the yield gap that exists in his previous crop, constraints encountered in obtaining the yield, suitable interventions proposed by the field level functionaries by dovetailing the welfare scheme benefits under various schemes. Continuous crop Health Monitoring After developing the crop plan using the Tablet PCs supplied to the field level functionaries, they will visit the villages periodically and observe the date of application of weedicides, fertilizers, Pest and disease incidence, Bio Metric Observations, Yield monitoring Use of ICT gadgets in Extension 74 Nos. of PICO mini projectors and 85 nos. of Touch screen kiosks are deployed for use at the village level in the districts of Coimbatore, Erode, Thiruvarur and Trichy.. PICO mini projector is a film projection tool for a small gathering of 30 farmers. About 409 short films produced by the TANU on various crop related technologies have been loaded in the PICO projectors and it is being used for dissemination of technologies by the field level functionaries while visiting the villages. Likewise, Touch Screen Kiosks are loaded with Crop Doctor produced by TNAU and deployed at the block headquarters for use by the farmers. Through which the farmers Science Explore 3

4 themselves may visit touch screen kiosks and seek remedial measures for the pest and diseases as the case may be. Due to the transformation of agricultural extension system many changes takes place. Production and productivity increased. But they didn t get remunerative prices for their produces. To overcome these problems farming community at many parts of India started farmers association to benefit and uplift their life. Farmers associations concept is one of the options available for the farmers to get organized themselves to move up in the valuechain and have business ownership. Farmers associations are the aggregations of producers to share the scale of economies and provide service in terms of knowledge, agro-advisory, supply of input, credit, procurement, processing, marketing and distribution etc. Such associations amplify the political voice of shareholders, reduce the input, transaction and transport costs, provide platform for sharing information, coordination of common activities and involve in collective decision making. They are registered under Tamil Nadu Societies Registrations Act, They are expected to provide access to risk-bearing capital, manage risk through product diversification, set market standards and provide marketing conditions like removing intermediaries, practicing new innovations, and provide economic democracy at gross-root level. Based on the above aspect, the farmers organized themselves and started associations for their own effort to fulfill their needs and wants like mitigate the production and marketing problems, remove the intermediaries, reduce transportation costs, increase productivity by sharing technologies and information. There are many farmers associations functioning in various parts of Tamil Nadu for different commodities. Some of them are; Ø Theni District Banana Growers Association, Theni Ø Covai Pandal Vegetables Growers Association, Coimbatore Ø Ayakudi Guava Growers Association, Dindigul Ø Tamil Nadu Flower Producers Association, Sathyamangalam Ø Tamil Nadu Mango Growers Federation, Krishnagiri Ø Women Rosemary Growers Association, Bargur Ø Cumbam Valley Grape Producers Association, Theni Case Study A study on farmers preferences towards the Covai pandal vegetable growers association Covai pandal vegetables growers association was started at 2004 in Vettaikkaranpudur of Anaimalai Taluk. At the time of establishment of the association only 50 farmers joined as members. It was registered as an association in 2008(Regd. no. 195/2008). Now the association has 500 farmers as members throughout the Coimbatore district. The head office is located at Anaimalai. Reason for Farming Association The pandal vegetable growers sold their vegetables to the traders of Kerala market. The traders fixed the price for the produce once in 6 months. So the farmers did not get reasonable price for their produce. Traders fixed the price based on the number of vegetables. For example the price of snake gourd was fixed based on the number of vegetable. The traders sold the vegetables with high marginal price in the market. So the farmers decided to regulate the price of the vegetables for their produce. Hence they started the Covai Pandal Vegetables Growers Association. When the association was started, there were 50 farmers joined as member. Later, pandal vegetable growing Science Explore 4

5 farmers around the Coimbatore district were joined as member of the association. Activities of the Association The main activity of the association is fixing price for the vegetables. The price was fixed based on the previous days price and various vegetable market prices and it was fixed once in every fifteen days. The price was sent through the mobile SMS to the farmers. The price information was transparent to all farmers and traders. It can help to avoid the price malfunction by the traders or farmers. The farmers sold their vegetables to the traders at the price fixed by the association. The traders also procure the vegetable for the same price. The market price in Kerala was fixed based on the price fixed by the Covai Pandal Vegetable Growers Association. The association also arranged training to the farmers about new technologies, Production methods, etc, with the help of agriculture department, scientists from agricultural university and executives from agriculture input companies. Every fifteen days once the association meeting was conducted and the farmers were discussed about new technology, farming method, new variety of vegetable, problems faced while production etc. From February, 2014, the association was converted into Kovai Farmers Producers Company. In that they sold agricultural inputs like fertilizers, pesticide, insecticides etc. to the farmers. General Characteristics of Sample Farmers Majority of the sample farmers (40.83 per cent) belonged to the age group of years and most of the farmers had completed their higher secondary education (30.83 per cent). Comparatively more Anaimalai block farmers (35 per cent) had completed their higher secondary education than Madukkarai block (32 per cent). Majority of the sample farmers had agriculture as their sole occupation (86.66 per cent). About 49 per cent of sample farmers were large farmers. Among the sample farmers, most of them (37.50 per cent) had years of experience in farming and 54 per cent of the farmers had 6-10 years experience in pandal vegetable cultivation. Farmers Preferences towards the Covai Pandal Vegetables Growers Association The farmers preference for of association s one service attribute relative to all other attributes was assessed using the conjoint study. Part-Worth estimates for three attributes (Production oriented services, Pricing and providing information on farm inputs) assessed in the conjoint analysis are presented in the table 1. Table.1. Part-Worth Utility Estimates of Conjoint analysis for Covai Pandal Vegetables Growers Association Attributes Science Explore 5

6 Each attribute level had a unique estimate of Part-Worth that indicate the attribute level s contribution to overall utility when contained within a product service profile. The attribute level s part-worth direction, as well as the magnitude relative to other levels of the same attribute, provided an indication of its effect on overall utility. The analysis found positive utility for preference of provided technology for pandal (0.545) and provided technology for drip irrigation cum fertigation (0.069). Hence, it could be concluded that with respect to the production oriented service, the farmers preferred technology for pandal method of production followed by drip irrigation cum fertigation. Most of the farmers did not preferred the mulching method in production. The price oriented service attribute was included to provide an assessment of farmers preference of the association s price information. The price attribute levels of the association were value for the produce, better price at farm gate, price information through SMS and price fixed every fortnight. Of these various attribute levels, farmers mostly preferred price fixed at every fortnight by the association (0.584), followed by price information through SMS (0.241), and wholesale price at farm gate (0.148). Conjoint analysis estimation results for the farm inputs attribute indicated that farmers preferred the farm input information from the association. This relative information provided in Fig.1 reflected how each of the attributes influenced the overall preference of the farmers towards the services of the Covai Pandal Vegetables Growers Association. The Production oriented services was the most preferred followed price information and farm input information. Relative Importance for Each Attribute in Preference towards the Covai Pandal vegetables Growers Association Science Explore 6

7 Farmers Preference towards the Covai Pandal Vegetables Growers Association Conjoint analysis was used to analyze the farmers preferences towards services of the association. With respect to type of production oriented services, the farmers preferred the providing technology for pandal (0.545) followed by provided technology for Drip irrigation cum fertigation (0.069). Most of the farmers did not prefer the mulching method in production. The price parameter attribute was included to provide an assessment of farmers preference of the association about the pricing information. Among various attribute levels, farmers mostly preferred price fixed at every fortnight (0.584), followed by price information through SMS (0.241) and wholesale price at farm gate (0.148). Farmers mostly preferred the association for the price fixed at every fortnight for the vegetables. Conjoint analysis estimation results for the farm inputs attribute indicated that farmers preferred the farm input information from the association. Conclusion per cent of the population depends on agriculture, majority are small land holding farmers. Agriculture is reeling under uncertainties around the world in terms of land shrinkage, water scarcity, new outbreaks in crops, technology invention etc. Indian farmers are encountering many problems, marketing difficulties such as higher transportation, intermediaries cost in selling the produce, less value for their produce, no proper storage facility and inadequate access to institutional finance aids and climatic factors prevalent. Different approaches developed for uplifting rural people. In 60s, Integrated Area Development program (IADP) came into practice to make agriculture more towards increasing the production to meet the growing population. In 80s, extension system proved effective transfer of technology. The production level has increased substantially and the state marched towards self sufficiency level. The production led technologies, cultural practices, integrated pest management and integrated nutrient management technologies played a vital role in the technology transfer. So the farmers produce sufficient produce but the price for their produce fetch less price. The number of intermediaries in the structure of agricultural market limits the price realized by the primary producers to the lowest possible in the supply chain. Farmers associations concept is one of the options available for the farmers to get organized themselves to move up in the valuechain and have business ownership. A case study on A study on farmers preferences towards the Covai pandal vegetable growers association and the result shows that the farmers get reasonable price for their produce. The association provided various services like training to the farmers about new technologies, production technologies with the help of agriculture department, scientists from agricultural university and executives from agriculture input companies, every fifteen days once the association meeting was conducted and the farmers were discussed about new technology, farming method, new variety of vegetable, problems faced while production. Of the above services farmers mostly preferred price fixed at every fortnight by the association (0.584), followed by price information through SMS (0.241), and wholesale price at farm gate (0.148). Science Explore 7