The Hindu : Kerala News : First farmers' producer company launched

Online edition of India's National Newspaper
Thursday, Sep 23, 2004

Kerala

Kerala

First farmers' producer company launched

By Our Staff Reporter

KOCHI, SEPT. 22. The fledgling organic farming sector in the country is poised to explore new avenues of procurement and marketing with the forming of the first producer company at Aluva recently.

A five-member Board of Directors, including Joshy V. Cheriyan, a Coimbatore-based Malayali organic farmer, will head the company, named Indian Organic Farmers Producer Company Ltd. The company plans to issue 1,500 shares, raising a fund of Rs.15 lakhs. As many as 200 applications have been received so far, according to Mr. Cheriyan.

The producer company, introduced in the Companies Act through an amendment in 2003, is a hybrid of a cooperative society and a private limited company. The concept is introduced on the recommendations of an expert committee headed by Y.K. Alagh, economist.

The producer company will not have a managing director as in the case of ordinary companies, but a chief executive officer (CEO) will run the daily affairs of the company.

A meeting of stakeholders in organic farming from the South Indian States held at the YMCA camp site in Aluva in July this year had discussed the various aspects of the company.

Patronage of shares

The company will function on the concept of patronage of shares, Mr. Cheriyan said. The patronage of one share is fixed at Rs.40,000. The holder of one share could market his/her own organic products worth a maximum of Rs.40,000. Each individual could purchase more than one share, but will have only one vote, disregarding the number of shares he/she holds.

Mr. Cheriyan said the company would handle only rectified organic products; hence only producers with organic certification would be eligible for membership. Being an experimental project, there is need for some kind of control over the number of people who want to associate with it. Quality consistency, the most important aspect in agri-marketing, will be a major area of concern for the company.

The company plans to market organic products through a brand name.

The company would provide services to both the farmer and the consumer. While the farmer will benefit from the venues for marketing, the consumer could avail himself of healthier food.

`Healthy People, Wealthy Farmer, Healthy and Wealthy Nation' is the motto of the company, Mr. Cheriyan said.

The company will provide advice to farmers on scientific production methods. Mapping or assessing the resources (soil and water, mainly), enhancing the resources as well as sustainable resource utilisation will be of prime importance. There are also plans to provide counselling to farmers on the present scenario of overall crisis in the farming sector. Mr. Cheriyan said the company also planned to attract environmental funds from farmer-friendly groups abroad which are interested in supporting fair trade.

Printer friendly page
Send this article to Friends by E-Mail

Kerala

News Update

Stories in this Section