Arunuthumalai Framer Producer Company limited

Arrunuthumalai Framer Producer Company limited Synopsis:

Arunuthumalai, a tribal community in Salem district's Ayothiyapattinam block, faces socioeconomic challenges in a labor-intensive and small-scale farming economy. Red gram, tapioca, and millet are the primary crops in the region. The NIWAD Trust, in collaboration with NABARD, has played a pivotal role in establishing a Farmer Producer Organisation (FPO) to promote traditional millet seeds and empower local farmers, particularly women.

Over the past three years, tribal farmers in Arunuthumalai have successfully established a millet-based FPO. Comprising twelve female entrepreneurs in each group, these FPOs oversee the entire process, from millet cultivation to processing and value addition. Apart from elevating the economic status of these women farmers, this grassroots initiative contributes to the preservation of agricultural biodiversity in the area.

Salem, renowned as Tamil Nadu's steel city, houses a significant number of small and marginal farmers, constituting more farming population. Ayothiyapattinam and Vazhappadi blocks provide an ideal environment for promoting FPOs. The Arunuthumalai Farmer Producer Company Limited (AFPCL) was formally registered under the Producer Company Act, mobilizing 1000 farmers, with 450 enrolled members grouped into 23 clusters. Notably, the AFPCL has demonstrated impressive growth, achieving a third-year net surplus of Rs. 3,922,000 in profit.

The expansion of millet cultivation has not only increased the acreage under cultivation but has also introduced sustainable agricultural practices. This has led to a positive impact on the overall cultivation landscape, promoting environmentally friendly methods.

Consumption:

The increased availability of millets has influenced local consumption patterns positively. Millets, known for their nutritional benefits, are now more widely consumed within the community, contributing to improved dietary habits and health outcomes.

The AFPCL's efforts have resulted in a robust commercialisation framework. By purchasing small millets and vegetables from local farmers and selling them through local markets, the FPO has established a sustainable commercial model. Long-term initiatives, such as cold storage and value addition, further enhance the commercial viability of millet cultivation.

The AFPCL extends a variety of products and services to local farmers, including input supply, procurement, and marketing. Collaborating with the Forest Department, the FPO empowers villagers with skills to enhance their income. Additionally, the FPO engages in the purchase and sale of small millet and vegetables, while also undertaking long-term initiatives such as cold storage and value addition. The FPO's initiatives include the MEDP training program, benefitting 315 tribes in setting up community nursery units. Technical services related to small millet cultivation are also offered, contributing to the overall development of the tribal community.

Under the financial support of NABKISAN, the AFPCL received Rs. 10 lakhs as financial assistance and Rs. 12 lakhs as working capital, facilitating millet processing and value addition. The FPO's consistent net surpluses have resulted in dividends for individual shareholders. Beyond economic gains, the FPO provides crucial social services, generating income, creating employment opportunities, and preserving traditional knowledge.