Farmer producer company bridges consumers and farmers during lockdown
With no transportation, farmers had unsold produce and consumers had no vegetables. With special permission and a mobile app for placing orders, an innovative FPC has fulfilled both needs
COVID-19 has inspired
hundreds of ordinary citizens across the country to come forward and respond to
this crisis. All of them, irrespective of caste, class, gender and religion
have come forward to contribute in their own ways, to overcome the unprecedented
situation that the country is experiencing.
Farmers in Chambal –
the region known for wrong reasons such as lawlessness and dacoity in the past
– of Madhya Pradesh are now showing the state how the region and its farmers
can be a lighthouse in these difficult times.
While farmers had
produce that they could not sell because of the lockdown, consumers could not
buy vegetables. A farmer producer company (FPC) took it upon itself to connect
its member farmers as well as consumers to resolve the issues of both.
Chambal’s farmers
Similar to other parts
of the country, COVID-19 stopped the daily life of residents of the city of
Gwalior in Madhya Pradesh. Local vegetable market and other grocery shops were
closed in the city. People were confined to their home; they started facing shortage
of essential supplies for their daily needs.
While the city
residents had to remain indoors, just about 40 km from the city, another group
of citizens, namely farmers, began to realize a tricky situation they had to
face.
Sale of fresh vegetables
became almost impossible due to unavailability of transport and restrictions
imposed by police in movement from villages to towns. Some farmers were forced
to dump their vegetables as a result of the lockdown.
Connecting consumers and farmers
Two farmer members and
directors of Chambal Agro Farmers
Producer Company Limited (CAFPCL), Narendra Tomar and Manoj Parmar living
in Gwalior had a different idea. They could not allow their own farmers to face
this desperate situation. They felt that something had to be done.
Tomar and Parmar contacted
Yogesh Dwivedi, CEO of Madhyabharat Consortium of FPCs, which is the federation
of all farmer producer companies in Madhya Pradesh. They sought advice for the proposed
intervention of connecting consumers and farmers.
In their telephone
conversation, it was decided to begin procurement of vegetables and also arrange
for distribution of the same. It was a good opportunity to serve both residents
in the city as well as the farmers in nearby villages.
Door delivery
Chambal Agro Farmers
Producer Company Limited (CAFPCL) is a newly established producer company,
formed in September 2019. The initiative could also help the new organization to
establish its credibility in these challenging times.
Narendra, one of the directors
of CAFPCL, formed a WhatsApp group of customers in Gwalior and neighboring
localities. He began listing the requirement of people.
The next step was to
contact the local police station and to arrange for curfew passes for himself
and two of his colleagues. They hired a Tata Magic (a mini transport) vehicle on
a daily basis for collection and distribution of the vegetables.
Simultaneously, they
began contacting farmers, noting the availability of vegetables. The plan that
was emerging was explained to them. The farmers gave their consent
unconditionally as they had problem in transport and sale of vegetables due to
restriction on movement.
Persisting through
apprehensions
When the Chambal Agro
FPC team discussed this plan with family members, they were not supportive,
obviously due to fear of possibility of contracting coronavirus. The team
members addressed their concerns by strictly adhering to protective measures
such as wearing masks and gloves, maintaining distance, etc.
Initially some of the
consumers dismissed this idea as they thought that this task of delivering
vegetables cannot be done by a small team of two or three persons of Chambal
Agro FPC. The team members persisted in spite of the lukewarm response.
Increasing
reach
Initially, the number
of customers reached daily was 75, which gradually increased to 300. Cumulatively the FPC has reached 4,800 families so far. The FPC has
been procuring about 3.5 tons of vegetables every day from about 20 farmers.
Farmers from Akbarpur,
Bhaupura and Saujana participate in the procurement. The nearest of the three
villages is 14 km from Gwalior city and the farthest is 42 km away. Vegetables that are not available with farmers in
these three villages are procured from the local market and sold to customers.
On an average, the
sale volume per day was initially Rs 85,000 and on some days it peaked to Rs 1
lakh. The FPC initially had one vehicle to transport, then added two more as the
volume of produce increased.
The farmers who participated in this novel experience found it very
encouraging.Deepesh Lodhi of Akbarpur
village and Durg Singh Kushwah of Bhaupura village said,“The FPC is a godsend,
as our entire produce would have rotten. There were no buyers in the village.”
Administrative support
The district
administration came to know about CAFPCL’s work. The CEO of the Zila Panchayat
deputed few staff of the District Rural Livelihood Mission team to help this
initiative. Now the district administration has made a mobile application (app)
known as SG, for Serve Gwalior.
The residents of
Gwalior order vegetables through this app. This has expanded the reach of
Chambal Agro FPC. Earlier they were supplying 70-90 families, which has now
increased up to 300 families per day.
The district
administration has provided a government building for packing, storing and distribution
of vegetables and other food items.
After seeing the
success of this initiative, the district administration has replicated this
experiment in other administrative blocks of Gwalior, in partnership with other
organizations. The Chambal FPC team is now recognized as COVID-19 Warriors.
The new normal
As the country embraces the
extension of lockdown till 3 May, as announced by the prime minister today, we
do not want to speculate on what would be the scenario after the lockdown is
lifted.
However, the Chambal Agro
FPC experience certainly shows that things will not be the same again and there
will be a NEW NORMAL, a situation better than the earlier one, where new opportunities
to connect farmers and consumers in cities will emerge.
There would hopefully be many innovation alternatives that will challenge the often talked about non-transparent and exploitative supply chains that are against the interest of the producers of food in our country. In that alternative scenario, experiments like Chambal Agro FPC hold promise for a new normal that we all look forward to.
Yogesh Dwivedi is CEO of Madhyabharat Consortium of Farmer Producer Companies, Bhopal.
Ajit Kanitkar is a senior advisor at Vikasanvesh
Foundation, Pune. Prior to this, he worked at Ford Foundation and Swiss Agency
for Development and Cooperation, both in New Delhi. He has also taught at
Institute of Rural Management, Anand.