Farmer Producer Company: Unlocking the Potential of Your Business

The agricultural industry has always been the backbone of our society, providing us with the essential food and resources we need to survive. However, in recent years, farmers have faced numerous challenges such as climate change, rising costs, and labor shortages. In order to overcome these obstacles and ensure the sustainability of our food production, a new concept has emerged Farmer producer company to help out the farmer in getting high prices for their crop.

On such foundation is Navanant Farmer Producer Company was formed by Rakesh Mankar the president, while Bhushan Mankar, Harshalata Ghatol, Chetan Ghatol, Kamlakar Kambli were the directors in 2018 with 253 farmers of the locality took shares of Rs 1000 each. A quarter of a lakh of rupees capital was gather from it.

When it comes to selling orchards, farmers often choose to bypass the middlemen and sell directly to traders. These traders then take the extracted goods through a grading and processing phase before sending them off to the market. This approach allows farmers to reap more benefits from their produce. In the case of oranges, the initial step involves grading and waxing, which not only enhances the fruits’ appearance but also prolongs their shelf life. In recent years, Morshi and Warud areas of Amravati district have witnessed the establishment of twelve such projects. Moreover, companies with extensive retail chains are also flocking to purchase these goods. The intense competition among these companies has resulted in a price surge, ultimately favoring the horticulturists. Interestingly, Nagpur district, famously known as the ‘Orange City’, lacks a dedicated processing center. Despite the long-standing demand, even the Kalmana market committee has failed to materialize this center. However, Rakesh Mankar has taken the lead through his company, Navanant, by setting up the first grading and waxing unit in Nagpur district.

In project setup bold step was taken by ramesh mankar to establish a processing center shed on 12,500 square feet. The whole cost of factory setup cost him around 1 crore 35 lakh rupees and  38 lakhs for the internal grading, coating and waxing system.

In Ambia season oranges make their grand entrance in August, all the way from the Patrwada area. However, the delightful orange fruits in Kalameshwar area don’t make their appearance until November. Simultaneously, the Mosambi variety also arrives from Jalalkheda and Bharsingi. These oranges bring in a whopping turnover of three to four crore rupees during their season. If a farmer desires it, their agricultural produce can undergo grading, coating, and waxing for a nominal fee of Rs 1.25 paise per kg. Once processed, these top-notch oranges are distributed to various parts of the country. The majority of exports are sent to Kolkata and then onward to Bangladesh. In Mrig Bahar, Kalameshwar becomes a hub for orange fruits from the Kondhali area. During this time, the farmers’ goods are skillfully processed as well. Fixed rates are established for unloading, grading, processing, and reloading the goods onto trucks. Once processed, the farmer producer company supplies these goods to esteemed companies like Reliance and Big Basket. Rakesh Mankar proudly stated that since these companies cover the aforementioned expenses, the burden is lifted off the hardworking farmers.

Under the PFME (Prime Minister’s Micro Food Processing Industries) scheme, a proposal has been put forward to the Agriculture Department for the establishment of precooling chambers and cold storages. The anticipated expenditure for this project is Rs 1 crore 75 lakh, and a loan proposal has been presented to the bank. Farmers will be eligible for a 35 percent subsidy from the Agriculture Department. Furthermore, there are plans to extract juice from second and third grade oranges and transform it into powder. A proposal has been submitted to install a system for this purpose. The pharmaceutical companies have a high demand for these juices and powders, which means that farmers can expect a good price for their fruits, even if they are of slightly lower quality.

Rakesh Mankar, 9970079257

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