Think cooperative society and we think of a building with an office space, meeting space and perhaps space to stock up farmer produce.
A glimpse at TSS Totgars Cooperative Society Ltd, Sirsi attracts adjectives like splendor, sophistication, abundance, all-inclusive, etc.
The TSS has redefined cooperative society operations and scope. Their establishment is truly worthy of visits, case studies, appreciation and applause.
Please give us a brief introduction about yourself, the TSS and about your current projects
I work for a TSS – a marketing cooperative society at Sirisi, Uttar Kannada. We deal with arecanuts, pepper and cardamom. The main crop in our region is arecanut. We have around 25,000 farmer members in our society. We act as a marketing platform for the produce grown by these members. The produce is displayed on the floor and it is auctioned every day. The traders who are registered with APMC, come here and bid for the produce. The highest bidder wins the produce. We provide credit to the purchaser/trader. The product of purchase is to be kept as collateral. We settle funds with the farmer using TSS funds. Whenever the trader wants the produce for trading purposes, he needs to pay up to take away the produce. This is the system we follow. In time, to keep the price in check and to make sure that traders don't take advantage of the adverse situations in the market, we also bid in the process. We buy certain arecanuts, grade it ourselves and sell it throughout India under the brand name Tiger. This way, we can:
keep a tab on price fluctuations
command a certain premium in the market because of the consistent supply of good quality produce
award farmers with a better price
Farmers have the option of either selling their produce immediately or stocking it in our godowns. Farmers can pledge their stock and take loans as well. On the average sales that a farmer has done in the society, he can even take the production run up to 70% of the value of the produce he has sold. We have another dimension to it. While providing loan to farmers, after they sell their produce, they can buy all the commodities they require for their agricultural activities - machinery, fertilizers, pesticides, cattle feed, organic manure, etc. from TSS. They can also purchase household requisites like grocery, electronic and electrical items, clothes, gold jewelry, etc. We also provide services like mobile recharges, electricity bill payments, etc. Recently, we have even included sale of house building materials like cement, TMT bars, tiling materials, etc. We also facilitate services from planning engineers, supervisors for house building, farm houses etc. We, at TSS, award farmers with incentives from the profit the institution makes, by the year end. Plus, for whatever they purchase they purchase incentives as well. We also have insurances for farmers and their laborers. Certain amount for this is contributed by farmers and an equal amount is contributed by the society. We also have Arogya Suraksha Yojana wherein for a similar amount contributed they can avail reimbursement for the treatments his family members undergo as well.
Are these agro-products under the minimum support price or below that?
It is much higher than the minimum support price. For arecanut, for instance, minimum support price is around Rs 12,000/- whereas the ruling price is around Rs 22000 to 32000.
Is your organization open about supporting other smaller FPOs?
Definitely! We can provide the marketing support they would need to form an FPO. We can also give them insightful suggestions around working out the policies, etc.
Do you supply your products to other places if other FPOs are interested?
Yes, of course.
What are the challenges that you face and how do you overcome them?
At the organization level; for example, cooperative laws are governed by the cooperative society's act. These laws change with every new government that gets formed. That is a problem. Despite us not having any government share, we have to follow the rules in terms of recruitment, etc. There are lot many restrictions. At the product level, The Government assumes arecanut to be a cancer-causing product when there is no proper research to back this hypothesis. The arecanut depends on the Panmasala industry, where 80% of the produce goes to. The rest of 20% is shared among the sweet supari industry and pan chewers. The matter is now at Supreme Court and we have to prove that arecanut is not injurious to health. We cooperatives are fighting this case in a unified manner. Among commercial crops, this is the crop that generates the best income. In Karanataka, almost 17 districts grow arecanuts. Pepper and cardamom is an intercrop with that. The per acre yield of arecanuts is about 10-12 quintal which fetches around Rs. 3 lakh.
Does your farmer members seek help in terms of farming from the society?
We have recruited 4 agri-consultants, who are agriculture graduates. They visit the fields if farmers report any problems in terms of cultivation, pests, diseases etc. The agri-consultants advocate methods to help farmers protect their crop. We manufacture organic manure and areca-specific fertilizers as well.
What is your suggestion for farmers to increase their income which can cease tragic death cases we see among farmers?
There should be a sustainable system of cash flow built to help farmers. Arecanut, for example, is a yearly crop, which can be harvested every 2-3 months. During that time, farmers will have to sell their produce. If the cooperative can provide financial support at that time, farmers can hold the produce until the market can offer a better price. Another thing is, with our intervention in the market, we can fetch better prices. They can also get better prices because of the quality and consistency of the product. We have calculated how much extra we have given to the farmers. For example, we sell around 2lakh quintals out of which 40% is brought by us. We have realised that we have been able to give the farmers at least 8-10 crores extra annually.
Does the society have warehouses?
Yes. We maintain the warehouse free of cost. Farmers can stock their produce at our warehouse. This way we help with pest control etc.
There are many people who have turned to organic farming and many who haven't. Is there any way to improve this situation?
Cooperatives need to develop organic manure and supply it to farmers. That will help convert farmers. Also, get agricultural consultants to advice farmers. The situation will change slowly because organic cultivation slightly decreases produce but the price it fetches you sets off the difference. The demand for organic food is on the high. So, in time, farmers will convert to organic farming. Another idea is, existing organic farmers can suggest other farmers to give their land on lease to them. That way the existing organic farmers can convert the land into organic farming and the owner of the land is also benefited. When the owner-farmer sees profit coming in, from the coming year chances are that he will tend to continue with organic farming.
Very enriching information and innovative ideas. Mr. Hegde, would you have anything else to share before we wrap up the call?
One thing I would like to say is, the model we have in terms of marketing platform have been set up to supply farmers with all his needs. This gives us an edge for any variation in the market. We earn from the farmer as an outcome of around 7-8 businesses. We give them loans, sell their produce, market their produce under our brand name, supply them with household items etc. It is a multifaceted income scheme from the farmer. In my opinion, this model should come up in every district and it can be modelled for all produces. The government feels it is enough if it supplies farmers with low interest loans - it is not. Farmers need more support than that. They need support in growing and marketing their crop. This is a major gap. That is where an FPO can step in to make a major difference. With an efficient FPO support, in my opinion, very less government intervention is required.
Contact-
SHRI RAVEESH HEGDE
GENERAL MANAGER
THE TOTGARS' CO-OPERATIVE SALE SOCIETY LIMITED, SIRSI (U.K)
NEW MARKET YARD,
SIRSI (UTTARA KANNADA)
KARNATAKA - 581402
MOBILE. 9008231123
EMAIL: tss@tssindia.in
A glimpse at TSS Totgars Cooperative Society Ltd, Sirsi attracts adjectives like splendor, sophistication, abundance, all-inclusive, etc.
The TSS has redefined cooperative society operations and scope. Their establishment is truly worthy of visits, case studies, appreciation and applause.
Please give us a brief introduction about yourself, the TSS and about your current projects
I work for a TSS – a marketing cooperative society at Sirisi, Uttar Kannada. We deal with arecanuts, pepper and cardamom. The main crop in our region is arecanut. We have around 25,000 farmer members in our society. We act as a marketing platform for the produce grown by these members. The produce is displayed on the floor and it is auctioned every day. The traders who are registered with APMC, come here and bid for the produce. The highest bidder wins the produce. We provide credit to the purchaser/trader. The product of purchase is to be kept as collateral. We settle funds with the farmer using TSS funds. Whenever the trader wants the produce for trading purposes, he needs to pay up to take away the produce. This is the system we follow. In time, to keep the price in check and to make sure that traders don't take advantage of the adverse situations in the market, we also bid in the process. We buy certain arecanuts, grade it ourselves and sell it throughout India under the brand name Tiger. This way, we can:
keep a tab on price fluctuations
command a certain premium in the market because of the consistent supply of good quality produce
award farmers with a better price
Farmers have the option of either selling their produce immediately or stocking it in our godowns. Farmers can pledge their stock and take loans as well. On the average sales that a farmer has done in the society, he can even take the production run up to 70% of the value of the produce he has sold. We have another dimension to it. While providing loan to farmers, after they sell their produce, they can buy all the commodities they require for their agricultural activities - machinery, fertilizers, pesticides, cattle feed, organic manure, etc. from TSS. They can also purchase household requisites like grocery, electronic and electrical items, clothes, gold jewelry, etc. We also provide services like mobile recharges, electricity bill payments, etc. Recently, we have even included sale of house building materials like cement, TMT bars, tiling materials, etc. We also facilitate services from planning engineers, supervisors for house building, farm houses etc. We, at TSS, award farmers with incentives from the profit the institution makes, by the year end. Plus, for whatever they purchase they purchase incentives as well. We also have insurances for farmers and their laborers. Certain amount for this is contributed by farmers and an equal amount is contributed by the society. We also have Arogya Suraksha Yojana wherein for a similar amount contributed they can avail reimbursement for the treatments his family members undergo as well.
Are these agro-products under the minimum support price or below that?
It is much higher than the minimum support price. For arecanut, for instance, minimum support price is around Rs 12,000/- whereas the ruling price is around Rs 22000 to 32000.
Is your organization open about supporting other smaller FPOs?
Definitely! We can provide the marketing support they would need to form an FPO. We can also give them insightful suggestions around working out the policies, etc.
Do you supply your products to other places if other FPOs are interested?
Yes, of course.
What are the challenges that you face and how do you overcome them?
At the organization level; for example, cooperative laws are governed by the cooperative society's act. These laws change with every new government that gets formed. That is a problem. Despite us not having any government share, we have to follow the rules in terms of recruitment, etc. There are lot many restrictions. At the product level, The Government assumes arecanut to be a cancer-causing product when there is no proper research to back this hypothesis. The arecanut depends on the Panmasala industry, where 80% of the produce goes to. The rest of 20% is shared among the sweet supari industry and pan chewers. The matter is now at Supreme Court and we have to prove that arecanut is not injurious to health. We cooperatives are fighting this case in a unified manner. Among commercial crops, this is the crop that generates the best income. In Karanataka, almost 17 districts grow arecanuts. Pepper and cardamom is an intercrop with that. The per acre yield of arecanuts is about 10-12 quintal which fetches around Rs. 3 lakh.
Does your farmer members seek help in terms of farming from the society?
We have recruited 4 agri-consultants, who are agriculture graduates. They visit the fields if farmers report any problems in terms of cultivation, pests, diseases etc. The agri-consultants advocate methods to help farmers protect their crop. We manufacture organic manure and areca-specific fertilizers as well.
What is your suggestion for farmers to increase their income which can cease tragic death cases we see among farmers?
There should be a sustainable system of cash flow built to help farmers. Arecanut, for example, is a yearly crop, which can be harvested every 2-3 months. During that time, farmers will have to sell their produce. If the cooperative can provide financial support at that time, farmers can hold the produce until the market can offer a better price. Another thing is, with our intervention in the market, we can fetch better prices. They can also get better prices because of the quality and consistency of the product. We have calculated how much extra we have given to the farmers. For example, we sell around 2lakh quintals out of which 40% is brought by us. We have realised that we have been able to give the farmers at least 8-10 crores extra annually.
Does the society have warehouses?
Yes. We maintain the warehouse free of cost. Farmers can stock their produce at our warehouse. This way we help with pest control etc.
There are many people who have turned to organic farming and many who haven't. Is there any way to improve this situation?
Cooperatives need to develop organic manure and supply it to farmers. That will help convert farmers. Also, get agricultural consultants to advice farmers. The situation will change slowly because organic cultivation slightly decreases produce but the price it fetches you sets off the difference. The demand for organic food is on the high. So, in time, farmers will convert to organic farming. Another idea is, existing organic farmers can suggest other farmers to give their land on lease to them. That way the existing organic farmers can convert the land into organic farming and the owner of the land is also benefited. When the owner-farmer sees profit coming in, from the coming year chances are that he will tend to continue with organic farming.
Very enriching information and innovative ideas. Mr. Hegde, would you have anything else to share before we wrap up the call?
One thing I would like to say is, the model we have in terms of marketing platform have been set up to supply farmers with all his needs. This gives us an edge for any variation in the market. We earn from the farmer as an outcome of around 7-8 businesses. We give them loans, sell their produce, market their produce under our brand name, supply them with household items etc. It is a multifaceted income scheme from the farmer. In my opinion, this model should come up in every district and it can be modelled for all produces. The government feels it is enough if it supplies farmers with low interest loans - it is not. Farmers need more support than that. They need support in growing and marketing their crop. This is a major gap. That is where an FPO can step in to make a major difference. With an efficient FPO support, in my opinion, very less government intervention is required.
Contact-
SHRI RAVEESH HEGDE
GENERAL MANAGER
THE TOTGARS' CO-OPERATIVE SALE SOCIETY LIMITED, SIRSI (U.K)
NEW MARKET YARD,
SIRSI (UTTARA KANNADA)
KARNATAKA - 581402
MOBILE. 9008231123
EMAIL: tss@tssindia.in
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