SOIL Report 2008 - ACCESS Development Services

Civil Society InitiativesThe cooperative provides its members a wide variety of needs-based services outlined below. Servicescan be broadly classified into financial services, input supply and extension services, produce marketingservices, consumer services and welfare services. The success of the Mulkanoor cooperative lies not inthe new businesses it has started but in ruthlessly closing down the businesses their members were nolonger interested in such as oil mills, marketing of citrus fruits, scaling down of poultry, managementof fair price shops etc. It has implemented vertical integration in the value chain from producer to theconsumer and has achieved the objective of eliminating middlemen. Assets have been created and putto optimum use 9 for developing the value chain.Some key initiatives:Financial Services: The cooperative lends for a variety of purposes – crops, medium-term loans fordiversified purposes and personal loans. Members have access to 18 types of term loans 10 . Thus unlikemany other cooperatives who lend predominantly for short-term crop loans, the farmers access loansfor a wide variety of purposes including for diversification of income sources which makes farming aviable enterprise. The loans and advances outstanding were Rs 29 crore as on March 31, 2008. In 2008-09, Rs 40 crore has been disbursed of which 39 per cent is for crop loans, 12 per cent for term loans andthe rest for personal loans. The cooperative also enables the members to avail of various governmentsubsidised loan schemes. Members also have access to a variety of savings products – voluntary, fixeddeposits and self-imposed thrift. The cooperative utilises these savings for lending and also for workingcapital for non-credit activities. Members get attractive rates of interest and for the society it is cheapersource of funds as compared to loans from banks.In-put Supply Services: These include agri-inputs as well as technical advice and trainings. The cooperativeproduces certified high quality seeds in up to 1,600 hectares spread across about 60 villages. Ithas two seed-processing plants with a capacity to process 64 tonne of seeds in one day; at peak time,the cooperative also rents processing plants. It produces about eight million tonnes of paddy seeds thatare sold across the country. The buyers of Mulkanoor’s seeds get doorstep delivery, with the cooperativemeeting transportation charges. The annual turnover of the seeds business is about Rs 8 crore with profitstouching Rs 80 lakh. Additionally, the cooperative also leases out agricultural machinery to members aswell as advances loans for outright purchase of equipment. During 2007-08, Rs 13 crore worth of inputshad been supplied by the cooperative.Unlikemany othercooperativeswho lendpredominantlyfor short-termcrop loans, thefarmers accessloans for awide varietyof purposesincluding fordiversificationof incomesources.Marketing Services: While the supply of credit and other inputs helps members increase production,it is only through value addition in terms of processing and marketing of their produce that a significantincrease in income can be expected. The produce from the members is purchased at a higher rate thanthe market and either partly or fully adjusted to the loan outstanding of the member. The society hasadequate infrastructure for marketing activities 11 and members are paid a bonus on the prevailing marketprice for their produce 12 . In 2007-08, the sale of produce was to the tune of Rs 41 crore.Welfare activities: The cooperative undertakes a number of welfare activities like health and veterinarycamps for the benefit of the 14 villages and in particular for the members. The society has takeninsurance cover from its own funds for the members under the Government of India’s Jana Shri BimaYojana and others. The society also insures the assets purchased by members out of the term loans. Itlays a lot of emphasis on education − scholarships have been initiated for school children; junior and9All 14 villages have two godowns and the co operative is planning to construct a third godown in some of villages. (Unlike in many co operativesin the country which have a single godown which is not put to use).10For deepening of wells, pumpsets, laying of pipelines, poultry, dairy, sericulture, orchards, power tillers, sprinklers, drip irrigation, solar lampsetc.,11The society owns a raw rice mill plant and a par boiled rice mill plant for processing activities. It also has more than 32,000 metric tones of storagespace, a fleet of 6 trucks and 1 tractor, 2 modernized seed processing plants with a capacity of four tones each and a cotton ginning plant. Most ofthis infrastructure have been built with the assistance of NCDC.12The bonus is given at Rs 45 per quintal on Paddy, Rs 50 per quintal on paddy seed and Rs 100 per quintal on cotton.139