The Hindu Business Line : Paddy procurement: AP reaps gains, thanks to women SHGs

Agri-Biz & Commodities - Rice
Industry & Economy - Rural Development
States - Andhra Pradesh
Paddy procurement: AP reaps gains, thanks to women SHGs

K.V. Kurmanath

60 pc of total procurement made by SHGs

Adding their might
Just 189 SHGs in 883 mandals have taken part in this effort and on average each group earned Rs 30,000 as their fee in just one month.

Hyderabad , Jan. 12

When the idea of using women self-help groups (SHGs) for procuring food grains was first taken up last season, some people scoffed at it.

But in just one season the SHGs proved them wrong and emerged as the principal arm for the Andhra Pradesh Government in the procurement process, by contributing 60 per cent of the one lakh tonnes of paddy the State has procured so far.

SMALL NUMBERS

The number of SHGs involved in this process is not so big. Just 189 SHGs in 883 mandals have taken part in this effort and on average each group earned Rs 30,000 as their fee in just one month.

"They have emerged as a market at the doorstep for the farmers. They have collected produce worth Rs 38 crore. It is a win-win situation for the farmers, SHGs and the Government," Mr Adhar Sinha, Managing Director of Andhra Pradesh Civil Supplies Corporation, told Business Line.

Selling paddy locally was helping the farmers in saving time, transportation costs and other expenditure. They could also avoid the tedious process involved at the markets.

TRAINING

The SHGs were given training in technical issues such as moisture monitoring and weighing of the produce.

"Had the farmers sold it in the market, they would have received 25 per cent less. Upfront, they gained Rs 10 crore," he said.

Also, they received payments in post-dated cheques, with the guarantee of payments in one week after the procurement.

Hike in fee

For the SHGs, it proved to be additional income. Though the average gain was Rs 30,000, some SHGs even received a lakh or two as fee. For the Government, it resulted in reduction of pressure on the officials involved in the procurement process.

Impressed by the effort, the State has asked the Union Government to increase the commission paid to 2 per cent from the present 1.5 per cent.

"They said they would consider the proposal," Mr Sinha said.

GOOD RESPONSE

At present, procurement process is on in Karimnagar, Adilabad, Medak and Khammam. Seeing the huge response, the Civil Supplies Corporation is making arrangements to replicate the process in Coastal areas when the procurement process begins next.

"We are now thinking of how to expand this further. We may procure red gram through these groups," Mr Sinha said.

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