Date:23/02/2007 URL: http://www.thehindubusinessline.com/2007/02/23/stories/2007022303911200.htm

Back Mango growers join hands to gain more value

K.V. Kurmanath

CORPORATE INTEREST

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Hyderabad Feb.22 With the upcoming mango season being the first one after the branching out of big retail chains across the country, mango growers are gearing up for the huge opportunity to get more value for their produce and have formed `commodity groups'.

Mango growers in Chittoor district, who have been getting direct and indirect queries from Coke, Reliance and Suphala, have formed six exclusive mutually aided cooperative societies (MACS) this year.

To begin with, Coca Cola India, which already has a manufacturing unit in Chittoor has, in principle, agreed to procure fruit to part meet its annual requirement of 25,000 tonnes of pulp. "We have targeted to supply 4,000-5,000 tonnes of fruit (Tothapuri, which is used for making pulp) this year," Mr P. Chengal Reddy, Honorary Chairman of Federation of Farmers' Associations (FFA), told Business Line.

The National Dairy Development Board (NDDB) and Reliance too have shown interest in procuring the fruit variety (Banginapally).

AgriTerra of the Netherlands, through the FAO, FFA and Horticulture Department of Andhra Pradesh, has initiated this project, helping the farmers to develop these cooperatives.

Direct linkage

The cooperatives are expected to result in an additional value of up to 20 per cent to the growers as they cut second-rung traders from the supply chain by providing a direct interface between the buyer and the seller. Besides making it easier for companies to enter into agreements, these MACS are expected to strengthen the hands of mango growers.

"The idea is to strengthen the supply chain and facilitate a direct linkage between the corporate buyers and the farmers," Mr N Vijay Kumar, Project Director of (FFA), said.

"We have identified mango growers in five mandals of Chittoor district and organised them into the cooperative societies," he said.

The tie-ups would result in saving of transportation charges and market cess. Yet another advantage would be that there would be no `loss' of weight in transportation.

On its part, the FFA would give training to the farmers on issues such as use of pesticides and improving soil quality.