About VAPCL

YRA has promoted and registered a Farmer’s Producer Company called as the **Vidarbha Agriculture Producer Company Ltd. (VAPCL)**. VAPCL was registered on **16 September 2010**, under the Company Act 2002. VAPCL is primarily a producer company focused on **organic producers**.

Working in a group ensures involvement in business activity. Decentralization of business activity and authority is key to equity, transparency, and accountability, providing space for democracy. In its journey, VAPCL completed all legal compliances and started with procuring soya pulses, initiating a processing unit for tur (pigeon pea), and collaborating with SFAC, NAFED, and Mother Dairy. This development was planned under the **INSAP project** supported by Swiss-Aid to evolve people’s institutions.

Basic Purpose

The core purpose is to collectivize small and marginalized farmers for both backward and forward linkages to achieve sustainable livelihood and collective bargaining power.

• Backward Linkage: Inputs like seeds, fertilizers, credit, insurance, knowledge, and extension services.
• Forward Linkage: Collective marketing, processing, and market-led agriculture production.

Desi Cotton Promotion

VAPCL actively promotes Desi Cotton. It supplies processed seeds to farmers, buys the raw Desi cotton, carries out ginning, and establishes tie-ups with traders to ensure a reliable market for the sale of the product.

Key Actions and Impact

• YRA has been involved in organic agriculture since 2002.
• YRA was invited by Zurich University, Switzerland, to present its concept of organic agriculture.
• YRA developed a package of practices for 6 crops (Cotton, Wheat, Soybean, Tur, Jowar, Chana) and 10 techniques of sustainable agriculture.
• VAPCL established with 537 shareholders and a share capital of Rs. 11 lakh, achieving a turnover of Rs. 1.5 crore. The latest shareholder count is 1,537.
• Procurement through SFAC: Tur and Chana worth Rs. 16.5 crores were procured from 1,693 farmers, generating an approximate premium of Rs. 84.65 lakhs for them.
• Formed 200 Participatory Guarantee System (PGS) groups (1,000 farmers) to promote and certify organic farming.
• 3,000 farmers were certified as organic farmers and market-linked for organic cotton.
• Promoted two small Dal mills (in 2006 & 2010) under VAPCL, successfully running and processing 7 to 8 tons of Dal yearly.
• In 2013-14, VAPCL purchased Tur worth Rs. 11.50 Cr. using credit provided by Micrograma for purchase and processing.
• VAPCL purchased a total of 161.31 quintals of Desi cotton from 30 farmers.
• 500 farmers from Washim district started organic farming and registered under the organic certification of the Participatory Guaranty Scheme of the Central Government.

BUSINESS ACTIVITIES UNDERTAKEN UNDER VAPCL

• Procurement of raw tur, chana and its processing and marketing:

  VAPCL procures Chana and Tur from member farmers, processes it into Dal, and sells it in the market. It also offers job work for shareholders. This activity accounts for around 60% of the company's total business and has great potential, though it is currently limited by a lack of capital.

• Sale and Purchase of Soybean:

  The initial trading activity for soya was stopped as the company had to pay sales tax, and the profit margin was less than the tax amount, resulting in a negative experience.

• Dal mill Set up:

  VAPCL owns a small Dal mill in Dhanaj village, Washim district (Karanja taluka), which is central to pulse-growing farmers (tur, chana, mung, urad).

• SFAC Procurement:

  VAPCL procured Tur and Chana worth Rs. 11.5 crore for SFAC in the 2013-14 season, earning Rs. 11.5 lakh as commission.

• Trading:

  Recently, VAPCL engaged in trading 20 tons of Chana dal.

Current No. of Shareholders: 1,537

VAPCL PLANS IN VIDARBHA

VAPCL is planning to establish several processing units across Vidarbha, including:

• Cotton Ginning in Buldhana (VAPCL is applying for Collateral security from SFAC).
• Turmeric and Chilli processing units in Washim.
• Herbal processing unit in Buldhana.
• New Dal mills planned for Wardha, Amrawati, and Akola.
• Purchase and sale of agricultural produce in Ramtek.
• **Mahua seeds processing unit in Bhandara.
• Strengthening the existing Dal mill unit and increasing its business volume.

Ramsagar Farmers Producer Company Ltd, Ramtek, Dist-Nagpur

• FPO registered under the Company Act.
• Currently has 260 Small & Marginal farmers** from 18 villages of Ramtek block of Nagpur dist. as shareholders.
• Total Share capital is Rs. 5,20,000/-.
• Major commodities handled are **Rice, Chana, Vegetable, and Goatery**.
• Input & Mandi Licenses are in process.
• Conducted **13 institutional building trainings and 2 capacity building trainings for the Board of Directors, involving 10 BODs and 175 shareholders.
• Preparation of the business plan for the FPO is in process.
• **17 FPG groups have been formed based on common commodities and are registered with ATMA.
• Constructed 26 Diversion-based irrigation units in 13 villages, covering 260 farmers and 869 acres of rain-fed land. This led to a 50% increase in yield and an increased income of Rs. 15,000 to Rs. 40,000 per farmer over the last three years.