SmrutiSmitaMohapatra and J.B. Prajapati
VergheseKurien Centre of Excellence, Institute of Rural Management Anand, Gujarat
Cooperative is a farm, business, or organization which is owned and run jointly by its members, who share the profits or benefits.The Union Ministry of Cooperationis a ministry under the Government of India which was formed in July 2021. The ministry provides a separate administrative, legal and policy framework for strengthening the cooperative movement in India. The ministry’s creation was announced on 6 July 2021 along with its vision statement of “Sahkar se samriddhi” (Prosperity through cooperation). This was earlier under the Ministry of Agriculture. The same was initially announced by Finance Minister MrsNirmalaSitharaman while presenting the 2021 Union budget. The objective of the ministryis to realize the vision of “Sahkar se Samriddhi” (prosperity through cooperation), to streamline processes for ‘’Ease of doing business’’ for co-operatives and enable development of Multi-State Co-operatives (MSCS), to provide a separate administrative, legal and policy framework for strengthening the cooperative movements in India and to deepen the cooperative as a true people-based movement reaching up to the grass root level.Different types of cooperatives have been formed for sugar, oilseeds, textiles, fruits and vegetables, dairy, poultry, fishery, handlooms, tribal and housings.
The Process of adoption ofthe Small Holder Poultry Prototype
The best practice in the poultry industry is large-scale poultry farming, supported by backward and forward linkages which include the necessary vertical integration such as parent farm and hatchery.It reduces the cost of production. Production on a large scale helps to establish monopoly in the market for better price realization.Decentralized production infrastructure of 400-500 birds in the backyard of the family fits into the daily lives of poultry farmers. Ensuring production efficiency with rigorous training of producers, intensive production support and quality on-call referral veterinary services are inclusive. Cost effectiveness with collective procurement of inputs and sale of birds to achieve economies of scale and backward and forward integration is there.This creates a system to address the volatile nature of market by delinking production efficiency from enterprise efficiency and collectivization of operations involving market interface. Customized financial and Management Information System softwareare done for decentralized operations. Growing charges are fashioned to create incentive for efficiency and paravet charges are linked to production parameters. Capacity building facilitates the transition from a wage earner to an entrepreneur. Participatory assessment of business performance and internalization of best practices at the individual producer level are done.
How to form a successful home-based broiler poultry unit?
The minimum requirement is one cent of land (500 sqft), either owned by an individual or taken on lease. A farmer can earn between Rs 15,000-20,000 a year which works out to Rs 75-100 a day for 200 days of engagement. This income, available to her in a regular stream of cash flows on a continuous basis, helps her to meet the need of cash expenses and capital formation in the family. This income strengthens the woman to negotiate a better deal for herself within her family and the larger society. Income from the activity equivalent to 200 wage days reduces migration and helps the family invest on existing resources, most notably the arable land thereby further augmenting the sufficiency in a deficit household.
Requirements of a Poultry Cooperative Model
The poultry cooperative model works on three fronts – organization of production, access to input-output markets and financial systems. Women from poor families are organized into cooperatives with each woman rearing broilers in modern poultry-farms built in her backyard. A mature cooperative typically has 300-500 members with 25-30 farmers in a village. High quality production services are built around a community-based supervisor, who provides round-the-clock production management and farm-support, and trained veterinarians. Remuneration is structured to optimize production efficiency and insulate farmers from price fluctuations and supply uncertainties of the market. The cooperative engages a professional manager trained in veterinary or management sciences as its chief functionary responsible for day-to-day management and operational business decisions. A Poultry Management System based on the Quality Assurance Systems approach provides a detailed systems and procedure template for business decisions and helps in compliance and monitoring. Cooperatives across a state or region form a federation. This enables members to attain economies of scale in procuring inputs, improve compliance and access to professional and technical support, while providing a platform for sharing knowledge and process among member cooperatives and building solidarity. The federation ensures that cooperatives remain competitive, adapting and responding to techno-commercial changes in the industry. Apart from this, all the poultry cooperative societies have a feed mixing plant. They procure maize and soyabean de-oiled cakes from the market and 15 per cent concentrate from the federation and prepare the complete feed. The state poultry federation manages a feed mill at different districts where 15% concentrate (mineral mixure) is prepared and supplied to the cooperative societies. The medicines and equipment are purchased collectively, which gives a high bargaining power to the cooperatives. The major consumptions of the products are in the local markets. The federation is responsible for retail marketing of the products under their own brand. Retail marketing gives way to the value chain development and further means of livelihood to the women.
Marketing of Poultry Cooperative Societies under StateFederation
The forward linkage of collective marketing is restricted to wholesellingwhich needs branding and retailing, just as Fresco Chicken (Jharkhand) andSukhtawa (Madhya Pradesh). The hawker system for retailing, with customized and home delivery services to the consumers is important for the promotion of the brand. The next stage includes opening retail counters for the brand which imparts larger benefits to the small producers and an identity in the market.
Developmental Impacts of Poultry Cooperatives and Impact on Environment
Poultry cooperatives strengthen livelihood activities of poor women SHG families directly, with an expected incremental cash income of atleastRs 15,000 per annum for the members. They create opportunities of growth in the small scale poultry sector in the state. They are a boost to the local economy while building confidence in village women to replicate models for the whole state.Poultry farming is a sustainable means of livelihood, in terms of the cash income and environmentally. It only requires a cent of land easily available in the village, with no need to cut trees. The litter from the poultry farm works as an organic manure for the agricultural land and increases its productivity. Poultry cooperative farming reduces migration. The members can also take care of agriculture and the forests in the village.
Financial Support for Poultry Cooperatives in India
Poultry is a very important subsidiary activity in rural areas particularly for the landless and weaker sections of the rural community. With a view to develop poultry farming in cooperative sector,National Cooperative Development Corporation has been extending its assistance to poultry Cooperatives since 1974-75. Its YuvaSahakar scheme in 117 aspirational districts of NITI Aayog have largely benefitted the rural youth.
NABARD sanctions support to the poultry activities in districts under UPNRM (Umbrella Project for Natural Resource Management). They sanction funds for procurement of equipment and working capital for poultry activities involving a certain number of beneficiaries in different districts of the state. NABARD sanctions support to poultry activities in tribal districts under Tribal Development Fund Programme for the tribal beneficiaries in the districts. The grant is sanctioned for the construction of poultry sheds.SwarnajayantiGram SwarozgarYojana (SGSY) is a programme of the Government of India.
Way Forward
The poultry industry in India can develop sustainably through the cooperative model while strengthening small farmers, workers, retailers and consumers. The success of poultry cooperatives can guarantee food security, markets to perishable food products and women empowerment in rural India.