From Buddha rice to zero-pesticide chana: How farmer-run companies are finding their edge

₹16 crore. So, what difference has the FPO made to the life of a small farmer like Karma? A lot, she said.Karma’s cultivation costs have halved as the FPO helped farmers switch from expensive chemical inputs to bio-nutrients and organic pest repellents. The farmer-run company now supplies staples like wheat, maize and pulses to a host of corporate buyers like ITC, AWL Agri Ltd (formerly Adani Wilmar) and Safe Harvest, among others.

Unlike individual farmers, who often sell their produce immediately after harvest, the FPO holds the produce for a better price, and also does primary processing (like converting wheat to flour and milling pulses), grading and packaging for food brands.“I no longer worry about low prices, which is the norm during the harvest season. We are not at the mercy of local traders,” Karma said. Her monthly groceries, from cereals and sugars to oils and soaps, are supplied by the FPO at lower than market rates.

“To grow an acre of wheat, I used to spend more than ₹10,000 in chemical inputs. This has come down to less than ₹4,000 with locally produced organic inputs,” Karma added.In addition, the largely women-run FPO has pushed its members into growing organic vegetables for home consumption. The result? Healthy soils and a more nutritious, diverse diet for her family.Beginning in 2011, India started promoting FPOs to harness the collective bargaining power of farmers, both as buyers of inputs and sellers of crops.

Farmers are usually price takers in both input and output markets—which means they cannot determine prices of either the seeds they buy or the harvested grains they sell. They buy inputs in retail and sell their harvest in the wholesale market. In both markets, they accept the price offered