Agri firm run by farmers with turnover of Rs 1 cr raises hope for ‘dull’ sector

The company started in 2014-15 at Mittur under the State and Central government sponsored scheme, the firm has achieved a turnover of more than Rs 1 crore in just five years, according to the company’s chairman M Kuppusamy.

The company started to provide farm related services without middlemen is successfully being run by farmers with steady growth for the past five years. Talking about the success story, Kuppusamy says, “Under the scheme, we were told to join 1,000 farmers as members with a share capital of Rs 1,000 each. 

The farmers were initially hesitant to hand over their meagre cash to a company which had government links and we had a tough time during our initial days. It took us nearly a year to convince them that the company would be run by farmers.”

The company started its operation with the guidance of local NGO with the operating area as seven village panchayats in the neighbourhood.

The workforce helped by agriculture department convinced farmers and company share-holders that they could earn a profit by producing value added farm products and market them without brokers.

The company finally got a share capital of Rs 10 lakh following which the state and central governments chipped Rs 5 lakh each. Using the total sum, “The company first purchased two tractors which were rented out for farm work at rates lower than the charges received by private players,” says company director M Achidanandam. 

The success of tractor service soon helped the directors to set up a wooden ghani in the premises to manufacture ground nut oil and purchase 15 power tillers for the use of farmers.

The patronage of the company made the other farmers in the neighbourhood realise that the company was bona fide and as a result, famers started clamouring for additional services.

On the next course of action, G Sridhar, director said, “We went for Rs 12 lakh machinery to grind small grains and with the help of the central government we have planned for seed procurement facilities at an estimated Rs 65 lakh by which farmers get quality seeds at highly reduced costs.”

“We have planned to construct a 4500 square feet building for this project at a cost of Rs 60 lakh,” he added.  The company has purchased 1-acre land to provide additional amenities for the farmers, Kuppusamy added.

Stating that they are the only such venture in erstwhile Vellore district to make a profit in agriculture, Kuppusamy said, “The success has given responsibility to the company for ensuring continued success and profit.”