Paddy Cooperatives

Paddy is the main crop in Andhra Pradesh. Farmers have been applying new methods, techniques and using hybrid seeds for cultivation and getting better yields. The habit of retaining some of the paddies of one harvest as seed for the next crop still continues in some places. However, this type of seed generally yields less produce. Another aggravating factor was the sale practices, indulged in by some private companies, by purchasing paddy at a low cost from the farmers and selling it as seed through dealers for their own benefits.

PSGCs

were formed in 1999-2000 in Karimnagar and Warangal districts with a view to provide quality seeds to farmers, reduce the cost and gain more through collective production, processing, and marketing, Sahavikasa extended financial assistance from its CRF for infrastructure development, storage, and processing. It has also extended financial assistance to meet its working capital needs for the purchase of seeds from members.

The cooperatives were able to pay better returns to members to the tune of Rs 30 more than the market price (per quintal) by providing good seed to them and purchasing back the foundation seed. As the cooperatives took care to maintain the quality of seed by checking germination rate, even the other farmers in the open market opted for purchasing seeds produced by the cooperatives. In addition, the cooperatives also paid bonuses to members equitably from the surplus generated at the end of the year.

The Mulukanoor Cooperative Rural Bank (MCRB), which earned its credibility because of the uncompromising stance it took in the production, processing, quality maintenance, and marketing of paddy seed, was taken as the model by these four cooperatives which incorporated similar methods and practices in their working also. There was still scope for improving their marketing technique.

Assistance to PSGCs

Sahavikasa assists PSGCs in framing bylaws for registration under the Macs Act, gives guidance in the construction of new godowns, and in the erection of seed processing plants. Sahavikasa regularly participates in the PSGCs committee meetings giving suggestions on maintenance of accounts, assets and also helps in stock verification and management of the cooperative. Sahavikasa also conducts training programs on quality seed maintenance in all PSGCs.