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| Nadukkara Agro Processing Company, Avoli, near Muvattupuzha, Ernakulam. |
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The Vazhakkulam village has shown that farmers can create value addition to their products and intervene successfully in the market to stabilize the price of agricultural products. Nadukkara Agro Processing Company at Avoli, near Muvattupuzha, which started as a venture by 110 farmers in 1998 to stabilize the selling price of pineapple has now grown into a collective of 252 farmers from 18 panchayats that markets international standard pineapple products.
The Company has already made a mark for itself. It has entered into an agreement with the farmers whereby the latter cultivate pineapple in at least ½ acres of land are assured a minimum price of Rs.4 per kg for the fruit. It is an agri-business started by the farmers for themselves. Besides it is a model for intervention in the market. Its 70% shareholders are farmers, and 7 out of 10 board members are representatives of farmers.
The company has estimated that a shareholder will cultivate 10 tons of pineapple in a year. And looking at an ultimate shareholder capacity of 1100, it has installed a13500 ton processing plant. And this rural plant has already been certified for ISO 9002 and HACCP, which enables it to compete internationally.
4 products are marketed by the company under the brand name, Jive. Pineapple juice in tetra pack, ‘Splash’, a mixture of pineapple and mango are the major ones. According to Baby John, Chairman of the unit and himself a farmer, the major impact of the company has been in stabilizing the price of pineapple. He points out that since 1999, the market price of pineapple has never gone down below Rs.4 a kg. And this benefit accrues to even those who are not shareholders.
Courtesy: James, Karshakan, January 2003
Contributed by: Administrator
