SOIL Report 2008 - ACCESS Development Services

Chapter VIAaharam Traditional Crop Producers’ Company Limited (ATCPL): The Aaharam (Food) programmewas conceptualised with the aim of creating a sustainable market for local produce to achievefood security and nutrition at an affordable cost for the villagers. CCD observed that most of the farmproduce was sent to cities due to lack of capital and storage and processing facilities in the farminggroups. This produce was repacked and sold in villages at almost four times the farm gate price. HenceATCL, anchored by the Mahakalasam, was set up as a producer company 7 promoted and owned by thepromoters to procure, process and market products produced locally. It operates through retail outlets,grocery shops and finally a doorstep delivery system. Select products made by SHG members and productsfrom other CBOs in Tamil Nadu are also included in the product range. Aaharam has now enteredinto an agreement with Parle Agro in Mumbai and the Nedukkara Company in Kerala for bulk supplyof mangoes procured locally. About 600 mango growers and 3,000 paddy and cotton growers are linkedto Aaharam. The total turnover is Rs 2 crore with a growth rate of 20 per cent each year.Energy: Adharam Energy Limited is a partnership between the Indian Institute of Science, BritishPetroleum (BP) and Adharam for developing energy-efficient prototypes of cooking stoves, whichare sold in nine districts of south Tamil Nadu and five districts of Maharashtra. Nearly 1,000 stovesare sold every month by community resource persons. The bio fuel pellets for the stove are presentlymanufactured from farm residue of tamarind and ground nut in Tamil Nadu and sugar cane bagasse inMaharashtra. The Mahakalasam has taken working capital from banks for the manufacture of the pellets,which are then sold to BP and on behalf of BP, Adharam markets the stove and pellets. The turnoverin 2007-08 was Rs 2 crore.Business Development Service (BDS) and Common Facility Centre (CFC): The BDS locatedin Mahakalasam offices provides services to about 4,000 medicinal plant gatherers and cultivators andethnic food preparers and 1,000 traditional artisans. Its services include effecting linkages with financialinstitutions, technical and entrepreneurial training and market promotion. The CFC supports about 9,000farmers and primary producers through seed and input supply, agro services, provision of toolkits andother equipment etc.ChallengesNGOs areexpected toinvest in theinitial negotiations,developprototypes andeven at the timeof scale-up,can only expectreimbursementof thecosts. Venturefunding forsuch socialenterprises is inshort supply.Bridging the gap between the corporate entity and the CSO is a critical requirement for forging sustainablepartnerships. Grant funding is usually not available for such initiatives since donors feel that benefitsaccrue to the corporate sector. NGOs are expected to invest in the initial negotiations, develop prototypesand even at the time of scale-up, can only expect reimbursement of the costs. Venture funding for suchsocial enterprises is in short supply. Again, technology and infrastructure for small enterprises is a criticalgap. Strengthening the governance structure in community institutions is another major challenge.Case Study 4Mulkanoor Cooperative Rural Bank and Marketing Society 8Managing complex operations and multiple activities is not easy under the cooperative form but theMulkanoor Cooperative Rural Bank and Marketing Society is an exception. Started in 1956 under theleadership of visionary Shri.Vishwanatha Reddy, the cooperative has been deepening its work in 14 villagesin drought-prone Karimnagar district, Andhra Pradesh. With 6,420 members (5,773 men and 647women), share capital and reserves of Rs 37 crore and a strong asset base, it is a vibrant cooperativesociety.1387Being a company also provides the scope for expanding commercial activity through Kalasam initiatives such as inter state exchange of goods andraw materials.8Case developed by Girija Srinivasan. Sincere thanks to Mr. Laxma Reddy, General Manager of MCRMS, for sparing his time and material for thispaper.