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Impact-Stories from the Field


Rice and Dal processing units in Orissa


Location: Kalahandi and Golamunda clusters in Kalahandi district, Orissaa
Co-operatives: Basumatha Cooperative and Mathrubhumi Cooperative
Paddy, millets and pulses are predominant rotational crops in the Orissa cotton cropping system. However, in Kalahandi district, limited processing facilities for the agriculture produce have meant that farmers were compelled to sell their agricultural produce at throw away prices.
As part of the Chetna Organic Cotton Intervention Program, Basumatha and Matrubhumi Cooperatives in Kalahandi districts, had already established their collective strength by successfully obtaining regulatory clearances for marketing their organic produce in the highly controlled and regulatory environment of Orissa. Consequently, these cooperatives were able to generate surplus from the Fair Trade Premiums and administration charges.
So far, Chetna too has been successful in establishing a supply chain from field to fashion. However, benefits reaped through this established chain of organic & fair trade cotton seemed incomplete without similar supply chains for rotational crops such as pulses, paddy and soy which ensure food security for the small and marginal farmers.
Stimulated by their own success and realizing this gap, Matrubhumi and Basumata cooperatives decided to establish a storage warehouse cum processing unit for Rice and Dall. Jackpot, a Netherlands based Organic garments brand and a Chetna partner, provided a portion of the fund as a revolving grant which was pooled in with the profits generated by the cooperative.
Rice Mill – Basumatha Cooperative
Impact 1
Dall Mill – Matrubhumi Cooperative
Impact 2
Chetna facilitated the formation of a subcommittee from among the Board of Directors of Matrubhumi and Basumatha cooperatives to steer the process. Chetna also helped out by providing relevant information required to prepare business plans, identify suitable machinery and oversee the establishment of Dal and rice mills. Both cooperatives coordinated the setting up of the warehouse and processing unit and contributed about 38% of the total cost of establishment.
Estimation of expenditure and income from this first lot of 500 quintals are projected as under:
Expenditure particulars Amount in INR Income Amount in INR
Cost of raw grams for 500 quintals 17 50 000.00 Realization from the sale (@ 6000 per quintal/350 quintals output after processing) 21,00,000
Processing expenditure 2 00 000.00



Total Expenditure 19,50,000 Total Income 21,00,000
Net Profit 150,000


Sales Strategy devised by the Matrubhumi Cooperative

Matrubhumi Cooperative is planning to take on the supply of Dall for the government run Mid Day Meal program in the Government Schools and Anganwadis (Pre-primary schools) in Bhavanipatna. Village committees procure the dall from Matrubhumi Cooperative for INR.60 per kilogram and sell it for INR.65 to the government department implementing the mid day meal program. The surplus of INR.5 per KG would be utilized to improve the facilities in schools.

Salient Features of the venture:

Impact 4Farmers would get a fair base price for their produce as against the current local markets operated by the middlemen and traders. This will enhance the income of the farmers. This Dall, being an organic product, would not contain any chemical residues. This is particularly nutritious for the children who consume it every day as part of their mid day meal program.
This might motivate farmers in the surrounding areas to take up organic farming, thus developing an organic culture in the region.
Success of this income generation venture would boost the morale of the co-operative and motivate them to diversify their activities towards further self-reliance. Besides, this would also increase the share value of each of the individual farmers.

Women in the Dal processing

Impact 3
Moreover, Matrubhumi plans to involve Rajbhima womens’ SHG of Mading village to process the Dal. The SHG would take up the responsibility by deputing three of its members to work in the Dal processing unit on a rotation basis. Each member would be paid INR.100 per day as wages, out of which they would contribute INR.20 towards the savings (corpus of the group) for undertaking other enterprises. A total of INR.180,000 is expected to be ploughed back into the village economy.
The Rice Mill established by Basumatha Cooperative in Golamunda is presently being hired out to the individual farmers to process their paddy and sell their finished produce in the local markets. Basumatha Cooperative charges a service fee from members for the processing.
Images From Matrubhumi Dal mill, Golamunda, Kalahandi, Odisha.


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