Telangana: FPC, SHGs make ‘red hot’ profits

Hyderabad: Generating nearly Rs.40 crore turnover in just 50 days could be a challenging task even for established businesses but not for Sirivennela, a Farmer Producer Company (FPC) from Khammam district. A group of women members from different mandals in Khammam district has left many awestruck when they earned a profit of Rs.98 lakh as […]

Hyderabad: Generating nearly Rs.40 crore turnover in just 50 days could be a challenging task even for established businesses but not for Sirivennela, a Farmer Producer Company (FPC) from Khammam district.

A group of women members from different mandals in Khammam district has left many awestruck when they earned a profit of Rs.98 lakh as commission through sale of chillies this season.

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There are nearly 2,200 members in the FPC and in the last couple of months, the company managed to sell 2,148 metric tonnes of premium variety Teja chillies, which are predominantly cultivated in Khammam and Mahabubabad districts.

All this was not simple for the women. They had to do a lot of travelling, meet top officials in the district and convince the farmers to sell their produce.

To begin with, the women approached a corporate company, which was interested in buying the Teja variety chillies. After getting assurance from the company, the women explained to the farmers about the company’s requirements in terms of quantity and quality.

The farmers were also assured about the best price for their stocks and payment within two days. Initially, they were skeptical but eventually they got confidence, FPC president Swarna Krishnaveni said.

“This year the target is to generate Rs.100 crore turnover. We plan to procure turmeric, maize, red gram and others crops,” she said.

Why do farmers sell their produce to FPC members

There were multiple advantages for farmers. First, they would not have to transport their stocks to agents’ shops for sale as the Sirivennela members procure the stocks either at the market or at their fields.

This apart, agents tend to underweight the stocks at their shops. For instance, if the total weight of the stocks is about 45.5 kgs, agents calculate the weight as 45 kgs. But our women weigh the stocks perfectly and include the 500 grams in the total weight. This would fetch more money to farmers, said Swarna Krishnaveni.

Though not on par with Sirivennela, other FPCs, SHGs and FPOs have earned good profits this season.

A Farmer Producer Organisation (FPO) from Nagarkurnool has earned a profit of Rs.1 lakh through sale of mangoes and Rs.1.16 lakh through vegetable sales. There are 433 members in the 39 groups under the FPO.

“This season, we sold 55 metric tonnes of mangoes and Rs.43 lakh worth vegetables. After deducting operational and transport charges, we managed good profits,” FPO president Rajeshwari said, adding “We are prepared to supply top quality Black gram to Flipkart”