Rice and Dall processing units in Orissa

Location: Kalahandi and Golamunda clusters in Kalahandi district, Orissa

Cooperatives: Basumatha Cooperative and Mathrubhumi Cooperative

Paddy and Soy 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.

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.