1. C Boopathy, Secretary, at the company outlet where inputs are sold below MRP. 2.

PM Chinnasamy, President, claims

the highest yield in brinjal in India in 2006. 3. Mahendran, a banana grower, managed to make a profit of Rs 3.5 lakh. 4. By
embracing precision farming, 166 farmers in Dharmapuri have profited.
FARMING

The Company Of Farmers

They are sons of the soil and they engage in individual pursuits. Yet, there is good reason for farmers to band into a
company. A district in Tamil Nadu shows how.
JOHN SAMUEL RAJA D

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IN THIS STORY:
Bad Company
When the company model didn’t work for farmers.

E ven as the country reels under a severe drought, in a dry corner of Tamil Nadu, a collective of 166
farmers is counting returns that will make local moneylenders turn green with envy. These 166 farmers of
Dharmapuri district are reaping it rich for two reasons. One, they embraced advanced farming practices.
Two, in a move whose impact is still playing out, they came together to form a company. So, they
embraced business structures and business practices typical of a registered company—equity capital,
shareholders, management, board of directors, financial reporting and audit of accounts, among other
things.
It is working wonders. They have eliminated middlemen from the input side of the equation and are
working on doing the same on the output side. Crop yields have risen 50-200%. Several farmers who
were mired in debt have since become debt-free. And for each of the last two years, they have earned a
super-normal 40% return on their investment in the company. Dharmapuri is a revelatory tale of why, and
how, farmers should band into a company.
Farmer Inc
This move to a corporate structure was born out of an association with the Tamil Nadu Agricultural
University (TNAU). Dharmapuri, about 120 km south of Bangalore, is a water-deficient district. It averages
an annual rainfall of 90 cm—about 25% below the national average. Hence, farmers here used to sow
only one crop a year, often keeping vast tracts of their land barren.
This drew a team of three professors from TNAU, led by Professor E Vadivel, to the district in 2006. They
spent two years with the farmers, and introduced them to precision farming—a more healthy and efficient
way of cultivation. At the heart of precision farming is drip irrigation where, instead of flooding the field
over-ground, a mixture of water and soluble bio-fertilisers is fed through a network of pipes below the
ground. The effect is two-fold: the water contact is directly with the root, the part of a plant that needs it
the most, and results in 66% less consumption of water.
TNAU, along with the state government, identified 300 farmers for a pilot project in precision farming, over
a period of three years (100 farmers annually). The state gave them a cash subsidy of 80-100% to buy
drip-irrigation kits for one hectare of their land holding. A majority of them saw their yields rise 50-200% in
the first year itself. “My yields jumped,” says Mahendran, a banana farmer. He made a profit of Rs 3.5
lakh in the first season, and used it to repay debt, build a house and even buy shares worth Rs 2 lakh
from the stock exchange!

But one thing troubled the farmers.

The fertilisers and pesticides they
The
166
sourced from local dealers were
sha
often spurious and inferior. Vadivel
reh
and team examined the inputs, and
old
agreed with the reading of the farmers. Their solution: stop buying from them.
er-
Vadivel advised the farmers to come together to float a company that would sell these key inputs. Of the
far
me
300 farmers who were part of the pilot project, 166 bought the idea. They formed a public limited
rs
company, Dharmapuri Precision Farmers Agro Services (DPFAS). Each farmer subscribed Rs 10,000 to
hav
the company’s equity, and became a shareholder. The company collected Rs 16.6 lakh as equity capital.
e
From
eli that sum, DPFAS set up a retail outlet in Dharmapuri. The 400 sq ft outlet procures agricultural
goods
min and inputs— fertilisers, pesticides, seeds, equipment— directly from companies. This ensures
ate
quality. “The quality of the fertilisers and pesticides sold by DPFAS is better than what the dealers sold,”
d
says Mahendran.
mid
Farmers also got better prices. Unlike local dealers, who charged maximum retail price (MRP), the retail
dle
outlet sold goods at a nominal mark-up to cost price. Farmers buy goods at 3-25% below MRP, improving
me
n
their margins further. Perhaps, the finest example of the benefits of precision farming and corporatisation
fro
in procurement is that of PM Chinnasamy, President of DPFAS. Chinnasamy claims to have generated
m
the highest yield in brinjal in India in 2006 (172 tonnes in his field of 1.15 acres, against the normal yield
the
of 40 tonnes per acre). “I made a profit of Rs 5 lakh in a season and repaid my entire debt,” he says,
inp
showing
ut off the one feet long brinjals in his field.
sid
Democracy At Work
e of
What has worked for DPFAS is its truly democratic structure. Everyone involved in the company’s working
the
is either a shareholder-farmer or an employee approved by them. And the company is completely
equ
oriented towards the needs of the farmers.
atio
n
This
and structuring has helped it stand apart from cooperatives, the traditional farmer collective model.
Cooperatives
are have had successes, notably Amul. However, more often than not, they are plagued by
political interference and corruption, at the expense of farmers. It was such overtures that led to farmers
wor
in Krishnagiri district, just 40 km from Dharmapuri, getting cold feet on setting up a company along the
kin
same lines as DPFAS.
g
on
By
doi comparison, faith in the corporate structure is growing in Dharmapuri. DPFAS has stayed insulated
from
ng outside interference or conflicting interests. The retail outlet easily gained acceptance, not just with
shareholder-farmers,
the but also with non-shareholder farmers, who can access the shop on the same terms
as shareholders.
sa
me
The
on key people manning the company—president, secretary and treasurer—are shareholders. Other
employees
the are handpicked TNAU graduates. Information and knowledge flow easily among farmers.
out
put
sid
e.
While we were in Dharmapuri, a farmer came to the DPFAS outlet with an infected root. The employees,
with agricultural degrees, promptly identified the infection and suggested a pesticide, free of charge.
In 2007-08, its first full year, DPFAS recorded sales of Rs 1.5 crore—on capital employed of Rs 16 lakh.
“Only the initial investment is tough. Working capital can be managed easily,” says C Boopathy,
Secretary, DPFAS. Such an operation doesn’t need much working capital, as farmers tend to pay in cash,
while companies give goods on credit. Turnover of DPFAS rose to Rs 3.5 crore in 2008-09, of which, Rs
1.5 crore came from the sale and installation of drip-irrigation kits (zero in the first year).
In each of those two years, the company declared a dividend of 40%. So, each shareholder got Rs 4,000
each year on an investment of Rs 10,000. “To keep farmers interested in the company, we have no option
but to declare high dividends,” says Boopathy, who owns 55 acres. Yet, even after a high payout, DPFAS
has cash to spare.
Forward Linkages
It’s putting this cash to good use. “We are talking to farmers in at least six districts to invest in similar
companies promoted by them,” says DPFAS President Chinnasamy. DPFAS wants to buy 20% of the
equity of these companies. In Erode, it will invest Rs 1 lakh in a company planned by 40 farmers, with an
initial contribution of Rs 10,000 each. Boopathy is also talking to farmers in four other districts: Madurai,
Trichy, Salem and Ramanathapuram; he hopes to seal these deals in the next nine months. These six
retail outlets will give DPFAS access to most of Tamil Nadu.
These linkages will help it maximise gains for farmers on the other link in the chain where farmers face a
squeeze from middlemen: sales. Rather than sell their produce to middlemen, DPFAS wants to set up a
retail outlet to sell directly to consumers and companies. It is planning a Rs 4 crore unit in Dharmapuri
that will have a sorting-cum-storage facility and a fleet of vehicles to transport products to cities.
The target date is January. “We’ve asked the government for an interest-free loan. Even if it’s not given,
we will go ahead,” said Chinnasamy. About 1,000 farmers have expressed interest. The linkages with five
other collectives will give DPFAS enough economies of scale to bargain for better prices. And everything
will be accountable.
DPFAS farmers have become brand ambassadors of precision farming and corporate structures in Tamil
Nadu. The state government has extended the precision farming project to all districts, with a 50%
subsidy on drip-irrigation kits. Interested farmers participate in a two-day training programme conducted
by Dharmapuri farmers, most of them DPFAS shareholders. About 12,000 farmers have received training
and implemented precision farming techniques so far. While they are there, they are also introduced to
the corporate model. It’s only a matter of time before the Dharmapuri model is replicated.

Alberta Farmers' Market

Vendor and Consumer
Profile and Economic Impact
Study
Sign up for our
E-Newsletter
Farmers'
markets in
Alberta
have a
proud
history
and are
steeped in
tradition.
They
provide a
direct
marketing
link
between
the farmer
and the
consumer
and
provide
multiple
benefits to
the
communit
y. The
primary
advantage
for the
farmer is
the ability
to sell
products
in small
volumes
outside
traditional
distributio
n outlets,
thus
saving on
assembly,
transporta
tion,
marketing
and
packaging
costs. The
farmers’
market
provides
vendors a
source of
suppleme
ntary
revenue,
and in
urban and
medium
sized
markets, a
predictabl
e and
sustainabl
e source
of income.
The
farmers’
market is
also a
"gathering
place" an
opportunit
y to
socialize
with
friends
and
family, a
destinatio
n where
individuals
can shop
for a
range of
food and
nonfood
items, and
exchange
news or
just be
caught up
in the
market
ambiance.
.
The
communit
y and local
businesse
s also
profit from
their
proximity
to the
market
place. It
draws
people
who would
not
otherwise
have a
reason to
be there.
It adds
economica
lly through
direct
sales, as
well as
indirectly
by
supporting
businesse
s.
Farmers’
markets
can be
effectively
used as a
promotion
al tool by
the
communit
y to create
a general
level of
awareness
, interest,
and
potential
desire to
travel
there. An
important
value
underlying
the
farmer’s
market is
that
people
want to
support
local
business
by
investing
in
owner/ope
rators who
in turn
spend
their
money in
the
communit
y. In
Alberta,
many
communiti
es with
medium to
large sized
markets
have
derived
varying
degrees of
benefit
from
successful
ly
marketing
these
goals and
vision.

Moreover,
farmers’
markets
are
incubators
for new
business
providing
an
opportunit
y to test
consumer
acceptanc
e of new
products
in
scrapping
a venue
that offers
reduced
risk at a
minimal
cost.
Particularl
y in urban
areas,
demand
for quality
grown
organic
food and
vegetable
s with
farming
practices
that are
sustainabl
e and
environme
ntally
friendly
has been
a
significant
draw for
customers
who
otherwise
frequent
large
retail
outlets
and big
box
stores.

A positive
interperso
nal
interaction
between
vendors
and
customers
is the
essence of
a
successful
market, it
conveys
an
impressio
n of
freshness,
energy
and
vitality.
Many
aspects of
our lives
have
become
anonymou
s and
impersona
l, and
since
ancient
times the
market
place has
provided
an
occasion
for people
to visit
and
gather.
However,
local
politics,
weak
managem
ent,
negative
vendor-
consumer
interaction
s or overly
competitiv
e settings,
all or
singly, can
conspire
to
undermine
its
success.

Markets
throughou
t the
continent
are
constantly
being
challenge
d to be
relevant
to
consumer
s and
compliant
with
health and
operating
regulation
s.
Research
has
reaffirmed
that
farmers’
market
managers
play a
critical
role in the
success or
failure of
their
marketpla
ce. The
manager’s
personae
and
leadership
skills help
to craft in
the eyes
of the
vendors
and
consumer
s the
character
of the
market
and its
relationshi
p to the
communit
y. A
recurring
issue with
market
boards is
the ability
to attract,
compensa
te, and
retain
their
manager.
Volunteer
managers
seem to
be the
norm;
however,
generally
speaking,
paid
managers
are more
committed
and
resourcefu
l in
attracting
vendors
and
developin
g a viable
and
sustainabl
e
marketpla
ce.

For the
customers
, markets
provide
the
benefits of
fresh
produce of
exception
al quality
that is
often
delivered
the same
day, at a
perceived
cost
saving,
since
there is no
middlema
n.
Consumer
s actively
seek out
markets
where
they can
support
the farmer
in an
energizing
, safe
environme
nt that
offers
reliable
products,
current
retailing
methods,
and an
adequate
mix of
products
and
vendors.

The
Canadian
marketing
system
supports
and
promotes
the direct
market
process
such as
found in
Alberta
Approved
Farmers'
Markets;
yet, there
is a need
to
examine
its nature
and
economics
, and its
processes,
with a
view to
strengthe
ning and
reshaping
it to better
serve the
industry
and
consumer
s.
Throughou
t this
report we
will give
emphasis
to
uncoverin
g those
factors
that
contribute
to making
the
market a
marketpla
ce, for the
success of
the
experienc
e exists in
the eye of
the
consumer.

For the full

study
results
contact:
Alberta
Farmers'
Market
Associatio
n
Executive
Director
Room 106,
J. G.
O'Donogh
ue
Building
7000 113
St NW
Edmonton
AB T6H
5T6
 Business

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Business

Organised retailing benefits farmers — study

Special Correspondent

There is no evidence of a decline in overall employment in the unorganised sector

No real threat to neighbourhood ‘kirana’ stores from modern retail chains

The study does not deal with the impact of FDI on small retailers

NEW DELHI: The growth of organised retail in India is benefiting low-income cons
farmers, says a study conducted by the Indian Council for Research on Internatio
Economic Relations (ICRIER). It also says that there is “no evidence of a decline i
employment in the unorganised sector as a result of the entry of organised retaile
The study titled “Impact of big retail on neighbourhood stores,” which was submi
Department of Industrial Policy and Promotion here, says that the farmers are be
significantly from direct sales to organised retailers. “Profit realisation for farmers
directly to organised retailers is about 60 per cent higher than that received from
the mandi,” it adds.
Pointing out that the consumers are also at an advantage due to opening of big r
stores, the study further says: “While all income groups saved through the entry
organised retail purchases, lower income consumers saved more.”
It also says that there is no real threat to neighbourhood ‘kirana’ stores from mod
chains. However, it points out that initially, mom-and-pop stores, in the vicinity o
malls, saw drop in their sales and profit, but the impact would disappear in the lo

HIMACHAL PRADESH STATE ELECTRICITY BOARD

Schedule of Tariff
And
Schedule of General & Service Charges
[Applicable w.e.f. 1.4.2007]
CONTENTS
SECTION – 1
 Schedule of Tariffs:

S.No. Description Page

1. General Conditions and definitions 1-8

2. Tariff for Domestic Consumers (DS) 9-10

3. Tariff for Non-Domestic Non-Commercial Consumers 11-12

(NDNC)

4. Tariff for Commercial Consumers (CS) 13-14

5. Tariff for Small & Medium Industrial Supply (SMS) 15-17

6. Tariff for Large Industrial Power Supply (LS) 18-19

7. Tariff for Power Intensive Units (PIU) 20-22

8. Tariff for Water Pumping Supply Consumers (WPS) 23-24

9. Tariff for Agriculture & Allied Activities Supply (AAAS) 25-27

10. Tariff for Bulk Supply Consumers (BS) 28-29

11. Tariff for Street Lighting Consumers (SLS) 30-31

12. Tariff for Temporary Supply Consumers (TMS) 32-33

SECTION – 2
Schedule of General & Service Charges:
1. Meter Inspection and Testing Charges
34

2. Changing position of meter at Consumer’s request

35

3. Resealing Charges
35-36

4. Monthly meter/equipment Rentals

36

5. Reconnection of Supply
36

6. Fuse Replacement Charges

36
 7. Consumer’s Installation Testing Charges
36

8. Replacement of Meter card

36

9. Replacement of Broken Meter Glass

36

10. Supply of Duplicate copies of Bills/ review of bills Charges

37

11. Attendant Charges for Functions

37

12. Application & Agreement Form and Wiring Contractor’s

37
Test report Form Charges

13. Processing Fee for PLE and for Change in Contract

37
Demand

Good Evening Mam, myself Shikha Mohan student of MBA 2nd Year is sending you
some information regarding my topic -----Sick units.

Mam I was unable to get required information regarding Small Scale Industries i.e
sick industries is only one or two.

But mam I will get good information on the topic i.e.

"SCRAPPING OF THE ELECTRICITY BOARD"

OBJECTIVES:

1) To know Reasons behind the losses of the Electricity Board.

2) To know Impact of Tariff on Consumers and HPSEB.

3) To Know revenue Assessment and Realization.

4) To Suggest ways and means to Curtail Losses.