The Company Of Farmers-Should farmers corporatize ?

The Company Of Farmers

They are sons of the soil and they engage in individual pursuits. Yet, there is good reason for farmers to band into a company. A district in Tamil Nadu shows how.


1. C Boopathy, Secretary, at the company outlet where inputs are sold below MRP. 2. PM Chinnasamy, President, claims the highest yield in brinjal in India in 2006. 3. Mahendran, a banana grower, managed to make a profit of Rs 3.5 lakh. 4. By embracing precision farming, 166 farmers in Dharmapuri have profited. Pic Credit -

Even as the country reels under a severe drought, in a dry corner of Tamil Nadu, a collective of 166 farmers is counting returns that will make local moneylenders turn green with envy. These 166 farmers of Dharmapuri district are reaping it rich for two reasons. One, they embraced advanced farming practices. Two, in a move whose impact is still playing out, they came together to form a company. So, they embraced business structures and business practices typical of a registered company—equity capital, shareholders, management, board of directors, financial reporting and audit of accounts, among other things.

It is working wonders. They have eliminated middlemen from the input side of the equation and are working on doing the same on the output side. Crop yields have risen 50-200%. Several farmers who were mired in debt have since become debt-free. And for each of the last two years, they have earned a super-normal 40% return on their investment in the company. Dharmapuri is a revelatory tale of why, and how, farmers should band into a company. Read the rest of the article

Also read – Bad Company -When the company model didn’t work for farmers.

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