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Coconut Producer Companies for Positive Transition in Coconut sector

Coconut Development Board, Coconut Development Board, KeraKera BhavanBhavan , Kochi, Kochi

Potential & Potential & Prospects of Farmer Prospects of Farmer

Producer Producer OrganisationsOrganisations

((FPOsFPOs) in ) in Andhra PradeshAndhra Pradesh

Shri. K.S.Sebastian, Assistant Director(Mkg)

HEARTY WELCOME


CONTENTCONTENT1. Rationale and Genesis, of FPOs.

2. Concept of FPOs in coconut sector –

» Coconut Producers Societies (CPS)

» Coconut Producers Federations (CPF)

» Coconut Producer Companies (CPC)

3. Status of formation of FPOs in the country

4. Potential of FPOs in Andhra Pradesh

5. Prospects of FPOs in Andhra Pradesh

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RATIONALE BEHIND FPOs

• Organising the small and marginal coconut farmers

• Group approach in production, pest & disease management, post harvest handling, processing and marketing

• Collective purchase of inputs, farm implements, labour bank of FOCTs, Neera Technicians etc.

• Aggregation of produce, increased bargaining power and better remunerative prices

• Processing and product diversification, Production of Neera and its value added products

3

FARMER PRODUCER ORGANISATIONS (FPO)

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Genesis of Genesis of FPOsFPOsYear FPO formation

2009-10 CDB initiated formation of CPS, 112 CPS formed

2011-12 Scaling up of CPS formation to all districts of Ker ala1158 CPS established as on 31.3.2012

2012-13 Scaling up of CPS formation in Tamilnadu, Karnataka and Andhra PradeshIntegration of CPS to form CPF in Kerala

CPS established as on 31.3.2013 - 2253 in Kerala, 62 in Karnataka, 1 in Andhra Pradesh and 28 in Tamilnadu

CPF established as on 31.3.2013 - 103 in Kerala and 18 in Karnataka

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Genesis of Genesis of FPOsFPOsYear FPO formation

2013-14 Initiated formation of Coconut Producer Companies.17 Coconut Producer Companies established – 12 in Keral a, 4 in Karnataka and 1 in Andhra Pradesh

2014-15 Scaling up of CPS formation in non-traditional state s of Assam, Odisha, Maharashtra, and West Bengal.

CPS-6644 in Kerala,Tamilnadu-317, AP-590, Karnataka-3 68, Odisha-02 and WB-96

CPF-387 in Kerala, TN-50, AP-36, Karnataka-112

36 Coconut Producer Companies established – 21 in Keral a, 6 in Karnataka, 6 in Tamil nadu and 3 in Andhra Prades h

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Farmer s

Producer

Organization

FPO concept – the three tier structure

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� Grass root level farmer organisation

� 40-100 coconut farmers in a contiguous area organised into a group

� Around 4000-6000 yielding palms in the catchmentarea, ideal to initiate group activity

� Farmer should possess a minimum of 10 bearing palms to become a member.

� Registered under Charitable Societies Act and furth er registration with the Board.

� Common byelaw for all the societies .

FPOsFPOs –– Tier 1 Tier 1 –– Coconut Producer Society Coconut Producer Society (CPS) (CPS) –– the Foundation the Foundation

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8

Coconut Producer Society (CPS) – the Foundation

8888

Coconut Producer Companies for Positive Transition in Coconut sector 9999

Nursery

CPS – activities undertaken

Organic Manure Unit Coconut point

Copra(Milling & Ball production Tender nut and mature nut marketing


Coconut Producers Federation (CPF) – the intermediate tier

10101010

Undertake pooling and

collective marketing of the produce

of the CPS

CPF

Ensure integrated

socio economic advancement of

the member CPSs

Disseminate latest technologies

in production, procurement, processing

and marketing ofcoconut

Make available good quality seedling to

CPSs


Coconut Producers Federation (CPF) – the intermediate tier

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Group membership for obtaining credit facilities

at low or even zero rate of interest through Central

or State government schemes like the Kisan

Credit Card (KCC)

CPF


CPF - Activities to be undertaken

Aggregation Retail chain Minimal processing

Coconut chips

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CPF - Activities to be undertaken

Copra production

Coir


IMPORTANT ACTIVITIES TO BE IMPORTANT ACTIVITIES TO BE

UNDERTAKEN BY THE UNDERTAKEN BY THE CPFsCPFs• Programmes to make the members of CPF

active • Convene monthly meeting of the Committee

members• Identify potential FoCT and traditional neera

tappers trainees and arrange training• Popularize Kissan Credit Card (KCC) and

“JANDHAN YOJANA ” of Govt. of India.• Networking with various State department

/NABARD schemes • Initiate activities to form Coconut Producers

Company14141414


IMPORTANT ACTIVITIES TO BE IMPORTANT ACTIVITIES TO BE UNDERTAKEN BY THE UNDERTAKEN BY THE CPFsCPFs

• Procure all necessary inputs like fertilizers, pesticides etc. and undertake all farm operations jointly to reduce cost of cultivation.

• Install modern copra driers/ball copra units for th e production of quality copra.

• Procurement / primary level processing/marketing of the coconut and products of intercrops.

• Procurement of husk for the production of coir fibre and coir pith with the necessary assistance of Coir Board.

• Promoting marketing of tender coconuts and other coconut byproducts by installing ‘coconut points’.

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Producer Company registered under section 581 B of Indian

Companies Act 1956

COCONUT PRODUCER COMPANY(CPC)

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Producer CompanyProducer CompanyProducer Companies (PC) are legal entities, registe red under the Companies Act 1956 as amended in 2002.

In a Producer Company, only persons engaged in an a ctivity connected with, or related to, primary produce can participate in the ownership.

A producer company is a hybrid between a private li mited company and a cooperative society.

It combines the benefits of a cooperative enterpris e and the vibrancy and efficiency of a company.

The members of the Company are the shareholders and the primary beneficiaries.

The business operations are run professionally thro ugh the appointed Board, CEO and office bearers.

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Capital formation in Coconut Producer Company

Capital formation

in a Producer Company with 10 Federations

is Rs.8 cr

Each farmer contributes one nut/Each farmer contributes one nut/palm/ harvest Capital formation in one palm/ harvest Capital formation in one CPS with 5000 palms is Rs.4 CPS with 5000 palms is Rs.4 lakhslakhs

Capital formation in a Federation with 20 CPS and one lakhpalms is Rs.80 lakhs

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Activities to be taken up by the Activities to be taken up by the CPCsCPCs

• Take urgent steps to coordinate and strengthen the activities of member CPS and CPFs of the company.

– Conduct monthly review of the Federations and sugges t corrective measures where necessary.

– Impart leadership training to the key persons of CPF/C PS.

• Bring more CPFs and CPSs into the membership of the company so as to augment the capital base of th e company.

– Distribute share to farmers at the rate of 8 coconuts per palm through CPS(at the rate of 1 coconut per palm for 8 harve st in a year) fixing the face value of one coconut at R s.10/-.

– Companies registered with an authorised capital less t han Rs.5 crores should raise the same to at least Rs.5 crores .

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Activities to be taken up by the Activities to be taken up by the CPCsCPCs –– contdcontd ……

– Activities for procuring produce and primary processing

– Commence combined harvesting in member CPS/CPF of the company to collect raw nuts and set up defibring units to separate fibre from coconut husk.

– Supply export quality coconuts to recognized exporters or enter into the export market directly.

– Set up modern copra dryer to produce high quality copra and engage in the production of copra. Utilise coconut wat er to produce vinegar, coconut soda etc. Tender coconuts may also be harvested along with mature coconuts and arrangements may be made for this marketing.

• Training Programmes.

– Undertake training programme of Friends of Coconut Tree (FoCT).

– Undertake training programme of Neera Technicians

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Activities to be taken up by the Activities to be taken up by the CPCsCPCs –– contdcontd ……

• Work in conjunction with other similar producer companies with the twin objective securing maximum benefit from the Government side and expand busines s of the company to new horizon.

• Keep constant and cordial relationship with peoples representatives and utilize them to obtain equity participation

• Ensure that the benefit of the various Schemes of the Grama/Block/District Panchayath is channelized to farmers who are members of the company through CPS/CPF.

• Since producer companies are governed by the Company Law, ensure its strict compliance by puttin g in place suitable system in the functioning of the pro ducer company.

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StatesStates CPSCPS CPFCPF CPCCPC

KeralaKerala 67726772 403403 2424

KarnatakaKarnataka 368368 112112 66

Tamil Tamil NaduNadu 317317 5050 66

Andhra PradeshAndhra Pradesh 664664 5050 33

OdishaOdisha 22 00 00

West BengalWest Bengal 9696 00 00

TotalTotal 82198219 614614 3939

STATUS OF FORMATION OF FPOS AS ON STATUS OF FORMATION OF FPOS AS ON 31.08.201531.08.2015

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ANDHRA PRADESH – COCONUT MAP

23232323

23

t

Kurnool

Ananthapur


SlSlNoNo DistrictsDistricts

Area Area (Ha)(Ha)

Production Production ((LakhLakh Nuts)Nuts)

YieldYield(Nuts/Ha)(Nuts/Ha)

1 East Godavari 50285 7208.95 143362 West Godavari 21561 4489.03 20820

3 Srikakulam 14480 2498.59 172554 Visakapatanam 6796 767.21 11289

5 Chittoor 3563 198.47 55706 Vizianagaram 2711 435.92 16080

7 Krishna 2116 340.28 16081

8 Anantapur 717 39.69 55369 SPSR Nellore 560 90.00 1607110 YSR Cudappah 117 6.47 5530

11 Guntur 114 18.40 16140

12 Prakasam 40 6.46 16150

13 Kurnool 11 0.58 5273State 103071 16100.05 15620

Source : DES, Andhra pradesh

Area and Production – Coconut-Andhra Pradesh

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STATUS OF STATUS OF FPOsFPOs in ANDHRA PRADESHin ANDHRA PRADESHAS ON 31.08.2015AS ON 31.08.2015

S. No

Name of districtNo. of CPS

No. of CPF

No. of CPCs

1. Vizianagaram 18 1 -

2. West Godavari 121 7 -

3. East Godavari 404 32 2

4. Srikakulam 110 10 1

5. Vishakapatnam 11 0 -

Total 664 50 3

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POTENTIAL FOR FPOS IN ANDHRA PRADESHPOTENTIAL FOR FPOS IN ANDHRA PRADESH

S.

No

District Area

(ha)CPS formed

CPSs

Targeted

CPF

formed

CPFs

Targeted

CPC

Formed

CPCs

Targeted

1. E Godavari 50285 404 1000 32 60 2 6

2 W Godavari 21561 121 425 7 30 - 3

3 Srikakulam 14480 110 280 10 20 1 2

4 Vizag 6796 11 135 0 10 - 1

5 Chittoor 3563 - 70 - 5 - -

6 V.Nagaram 2711 18 50 1 3 - -

7 Krishna 2116 - 40 - 2 - -

Total 664 2000 50 130 03 12

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CHICACOLE CPC – SRIKAKULAM - Activities

� Sixth CPC in the country and First CPC from Andhra Pradesh with 109 CPSs,10 CPFs, 4959 farmers and 10.00 lakh palms.

� Registered during April 2014 with authorized capita l of Rs.5.00 crore and paid up capital of Rs.3.00 crores .

� The CPC is based at Kavity Srikakulam , Andhra Pradesh .

� Implemented the CDB ’s LoDP programme having outlay of Rs.3.72 crores during 2013-15.

� CPC initiated to promote cultivation of dwarf varie ties of coconut for which taken 37500 seedlings from DSP farm Vegiwada and Kondagaon by linking under AEP scheme of the Board.

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CHICACOLE CPC – SRIKAKULAM - Activities – contd….

� Preparing data bank of mother palms for establishin g coconut nurseries to meet the demand of seedlings.

� Proposed to take up production and marketing of neera and its value added products.

� Coordinating FoCT training programme for the unemployed youths of the CPCs.

� Setting up of integrated coconut processing unit wi th the assistance under TMoC scheme of Board.

� CPC plans to introduce bore wells with solar pump sets under NHM scheme.

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NOVEEAL CPC-EAST GODAVARI - Activities

�Proposed to have a market yard in each CPF for aggregation of nuts.

�Each CPF is propose to have a primary processing unit for ball copra with capacity to process 10-15 lakhnuts annually .

�Proposed to establish Seed garden and coconut nursery by acquiring 30 acres of land on lease.

�Targeting to convert 25% of coconut palm population to dwarf varieties within five years.

�Coordinating FoCT training programme for the unemployed youths of the CPCs

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DIFFERENT ACTIVITIES DIFFERENT ACTIVITIES UNDERTAKEN BYUNDERTAKEN BY

FPOFPO’’S S IN OTHER STATESIN OTHER STATES

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Coconut point established by Coconut point established by CPCsCPCs

Palakkad CPC

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Palakkad CPC

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Tejaswini CPC



Thirukochi CPC

40404040


Coconut point of Vadakara CPC

41414141



Vadakara CPC

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Kottayam CPC

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Kaipuzha CPC

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KaipuzhaKaipuzha CPC CPC

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WayanadWayanad--MananthavadyMananthavady CPF CPF

46464646



Onattukara CPC

47474747



Thirukochi CPC

48484848



Palakkad Coconut Producer Company Ltd.

49494949



Palakkad Coconut Producer Company Ltd.50505050



51515151




52525252



Coconut Point of Onattukara CPC

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KarappuramKarappuram CPC CPC –– Inauguration of Inauguration of NeeraNeera PlantPlant

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HonHon ’’bleble CM of CM of KeralaKerala visits visits NeeraNeera Plant of Plant of KuttiadyKuttiady CPCCPC

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Kozhikode CPC Kozhikode CPC -- Value added products of Value added products of NeeraNeera and Coconutand Coconut

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NEERA PROCESSING UNIT OF KOZHIKKODE CPCNEERA PROCESSING UNIT OF KOZHIKKODE CPC

58585858


WEEKLY MONITORING OF WEEKLY MONITORING OF COCONUT PRODUCER COCONUT PRODUCER

COMPANIESCOMPANIES

59595959


60606060


61616161


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Financial & Policy Support to Financial & Policy Support to FPOsFPOs

• Financial support to processing activities.• Equity grant from State Governments• Opportunities to act as the implementing

agencies of the State/Central Government Schemes.

• Can act as the procurement agencies during MSP operations

• Neera extraction licenses were given only to FPOs

• Special support is provided from SFAC, NABARD and RBI.

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