Business Opportunities in Agriculture: 150 Field Interviews (Book)

DDS Sangham Organics - Empowers farmers with entrepreneurship

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Empowers farmers with entrepreneurship. Ownership held with 2200 women farmers as shareholders across 70 villages in Telangana



Admittedly small farmers are also entrepreneurs and would be happy with a market that respects the values and principles on which their agriculture is fashioned. They would appreciate even more if they can control this market and define its terms of trade. Based on this concept Hyderabad based Deccan Development Society (DDS) enables farmers to sell chemical free agricultural commodities directly to the end consumer through DDS Sangham Organics, located at Pastapur village, Medak district, Telangana.


Mr. P V Satheesh, Director, Deccan Development Society (DDS) and National Convenor, Millet Network of India (MINI) shares the details on prerequisites for the farmers to supply their produce to DDS Sangham Organics, formation of sangham (farmer groups), PGS organic certification system, price structuring, response of urban consumers and future plans. Excerpt:
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Deccan Development Society’s initiative DDS Sangham Organics is owned by 2200 women farmers as shareholders belonging to 70 villages in 6 mandals of Sangareddy district of Telangana. All the members supplying the commodities to DDS Sangham Organics are grouped together. Each group represents one Sangham. On an average there is one sangham per village. In case the members in one sangham are more then there may be even two sanghams in one village.


The Sanghams are entirely owned and managed by women. But as far as the agriculture produce is concerned it’s a product of family labour and therefore men have an equal production of it. Women may not necessarily be the land owners but they make crucial decisions regarding the kind of seeds they use, the crops they grow and methods in which they are grown. Each sangham is scrutinized under PGS organic certification system then after they are permitted to supply their farm produce.

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PGS is a democratic system of organic certification that involves farmers to monitor one another’s farm. They check on the kind of instruments used for soil amendments, pests control, soil fertility and various other things. It ensures that their group is completely organic. This group monitoring is the basis for DDS Sangham Organics. It is different from the commonly found organic certifying agencies.


The usual organic certifying agencies are basically the 3rd party certification system. They charge exorbitant fees of around Rs. 12000/- per acre for their certification and which is most of the time found so inaccurate because their inspection is one time and only dependent on records maintained by the farmers. This procedure excludes the illiterate farmers who cannot maintain their records.
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Conversely in PGS, as there is a close proximity of the farmers from the farm of other farmers the use of any chemicals in any of the farm is immediately identified and the user farmer is suspended from the group. If a group/sangham decides to “cheat” the procedure, then DDS which takes the responsibility for overall supervision suspends the entire group. This kind of strict monitoring ensures that the commodities produced and supplied are strictly organic and no duckpins takes place.


DDS Sangham Organics purchases all the commodities in bulk quantity from every sangham associated with us. Then after, the packing is done at the millet complex in Pastapur village after a thorough cleaning and grading.


The price of each commodity is dependent upon the market price. DDS offers a 10% addition to the market price respecting the organic methods of production by the farmers. The payments were made in cash till now but after the new restrictions the women have been paid in cheques.


The selling price of the products is democratic decision made by the producers themselves in an annual meeting. The bottom line is that 10% more than the prevailing market price. The consumers getting at a 30% premium and get it at a price much lesser than the other organic sellers.
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The products are sold at all the DDS Sangham Organic outlets in Zaheerabad, Sangareddy and Hyderabad. Besides a mobile van door delivers these products to consumers both in Zaheerabad and Sangareddy as well as the villages where the DDS works. We are not open to any franchisees as yet and we are not thinking of selling it in other cities other than Hyderabad.


The response of the buyers is overwhelming. The demand of all the products is higher than the supply. The total sale of Sangham Organics’ products is close to Rs. 6 million rupees now which is 30 times more than the volume it sold in its first year. Women farmers, associated with us through their respective sangham are elated to have the ownership of this market are very positive.


In time to come precisely by 2020 we want to reach Rs. 120 million turnover by including organic vegetables, organic manures as well as increasing the quantity of commodities.


I want to sign off by saying that if any market can work towards strengthening and empowering the local small farmers, allow itself to be participatory and its agenda set by the farmers, that market can be envisaged as the basis for the development of small farmers. It shall be the true development of our nation and its economy!


(As told to Mamatha S R)


Contact details:

Deccan Development Society (DDS)

101 Kishan Residency, Street No 5, Begumpet, Hyderabad - 500016. Telangana, India.

Tel :+91-40-27764577 / 27764744

Email: ddspastapur@gmail.com, jayasri.dds@gmail.com

Web : www.ddsindia.com; www.milletindia.org
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

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