Kadamba Marketing Souharda Sahakari Niyamita

Background of the Promoter:

Kadamba Marketing Souharda Sahakari Niyamita (KMSSN) is a co-operative society registered under the Karnataka Souharda Cooperatives Act, 1997. It is started with a unique ideological background in 2005.

  • The thinking of giving value to the valuable economic and natural resources of Uttara Kannada gave birth to the institution. Uttara Kannada is a store house of a series of crops like areca, spices, cashew, cocoa, paddy, coconut and fruits. Along with these, there are non-timber forest products such as Uppage (Garcinia gummigatta), Kokam (Garcinia indica), Shikakai, Jackfruit, Cinnamon, Amla, etc.
  • It was established to fulfill the long aspiration of hundreds of farmers to have an organized and farmer oriented marketing establishment for these minor economic crops, under the license of APMC and other concerned departments, which was hitherto exclusively in the hands of private merchants and mafia.  Kadamba procures any and all the products, however small the quantity may be (even 20 gms).
  • Kadamba has been regularly arranging Grafting-Training to interested farmers for raising nursery of best quality saplings of various fruit crops.
  • A visionary program, Sasya-Sante (Saplings-fair) has been launched and being regularly held every year in the premises of the institution to provide a good market to the plants raised by trained-grafters and to enable the selling of quality plants.
  • Kadamba has been distributing bio-fertilizers, bio-pesticides and manures, such as Metarhizium, Neem-Cake, Vermi-compost, Trichoderma, Pseudomonas, etc. to farmers, procured from UAS, Dharwad and UHS, Bagalkot.
  • Kadamba has successfully established a reliable market for major horticultural, agricultural and forest products of this region. It is helping the farmers who grow subsidiary products along with their main crop. It may be jackfruit, vanilla, honey, nutmeg or cashew nut, grown at home or collected, the products will always find their place in Kadamba; Turmeric, Cardamom, Pepper, Joni-Jaggery, Kokum, Coconut, Cocoa, Clove, Shikakai, Soapnut, Coffee, Nutmeg, Nut-Mace, Banana Papads, Banana Chips, Jackfruit Papads And Chips, Dried Banana, Red Rice Etc. are purchased with an immediate payment of right price to the farmers.
  • The market of Coconut, which was hitherto in the hands of private merchants, is now being controlled by Kadamba in this region.  The farmers were paid after one or two months, but the entry of Kadamba has changed that trend.  Kadamba procures even if the farmer brings a single coconut on the basis of its weight and sells it with a mere margin of Rs.2/=.  Now, even the private merchants have started procuring coconut from Kadamba.  Coconut is also cut and dried in the unique drier established with 100% grant by NABARD under Farmers Technology Transfer Fund. Coconut oil is extracted from the dried copra and is also being marketed.
  • Market has also been established (since 2011) to sell raw-arecanut under tender system.  This is a unique, unparallel effort in the State and has helped in stabilizing the prices of Areca crop-contracting. Now, the farmers, who cannot harvest and process their arecanut, sell them to the crop contractors on the basis of the rate fixed in Kadamba.  Cashew and spices also are provided market facilities under tender system apart from direct purchase.
  • A spice trading (auction) center has been established in the premises of the society from 18-11-2015, to provide market to all the spices. All other spice trading centers in the State carryout marketing of cardamom only. For the first time, in the history of Karnataka, a center for auctioning most of the spices has been established.
  • Market is also established to raw-jack-fruit.  During 2015-16 1nd 2016-17, 127.84 tons of raw-jack-fruit, which was not at all harvested or wasted, has been sold to a well-known food processor in Pune.  This has fetched good subsidiary revenue to the farmers. Kadamba has been organizing “Jackfruit festival” every year, since 2008 to promote value addition and sales of jackfruit products in collaboration with the Department of Horticulture, Govt of Karnataka as well as UHS, Bagalkot and UAS, Bangalore.
  • Kadamba operated as NGO Partner to UAS Bangalore to implement its Value Chain of Jackfruit and its Value Added Products.  Under this scheme of Directorate of Biotechnology, Govt. of India, training is provided to the women of this region as well as of North-Eastern States during 2013-15.  Driers have been provided to SHGs under this scheme.
  • Joni-Bella” (Liquid Jaggery akin to fruit-jams), is a unique product of this region.  There was no organized market for this.  Since 2009, Kadamba has been procuring Joni-Bella from the farmers and marketing the same under the Kadamba brand in user required quantity jars. Kadamba has also organized training to farmers in proper production of “Joni-Bella” with the help of UAS, Dharwad in 2014.
  • “Aalemane” (Sugarcane crushing and Jaggery Production) is becoming rare due to the scarcity of skilled labor and the difficulties in conducting this.  Kadamba has been establishing Aalemane Habba (Fest) to promote this process as a tourist attraction as well as to facilitate local people to taste the sugarcane juice of different combinations as well as unique dishes like Todedevu (paper-thin sweet dish).
  • Another unique market is the marketing of the different local breeds of rice. At present 11 local rice breeds have been covered and in the coming days more will be added.
  • The cooperative, since its inception, has been encouraging organic farming. Efforts are being made by grouping the interested farmers of different regions of the district by creating awareness about organic farming.
  • Kadamba has been providing certification facility for organic products by international agencies which are accredited by APEDA.  More than 400 farmers have got organic certificates and it is planned to bring many other farmers to the fold of organic farming.
  • It has been monitoring more than 800 farmers who have been strictly following organic farming, covering more than 600 hectares of agricultural lands of this region.  The cooperative has been working to get good price to their organic products. Organic Farming Transformation Scheme is being implemented with the help of Department of Agriculture.
  • Now an Organic Super Market has been established in the premises of the society, to promote sales of organic value added products of the farmers and self-help groups and women’s groups.  It has become an attraction for tourists as well as the locals and the daily sales is more than Rs.50,000/=.  More than 70 value added products are being marketed under the Kadamba brand in attractive packing and 60 more products of other brands produced by women’s groups and SHGs are also being marketed here.  They are being supplied to five states and are being exported also.
  • The cooperative is boosting its market by participating in various agro-fairs conducted in and out of the state as well as abroad.
  • The cooperative is also encouraging bee-keeping which is on the decline at present. With the cooperation of University of Agricultural Sciences Bangalore, the tribal and landless laborers are trained in scientific harvesting (without disturbing the life of bees) and processing.  The scientists from Honey Bee Research Centre, Pune have provided demonstration and training to tribal regarding sustained harvesting of honey during day time. The Honey produced or gathered by the tribal and others is being collected, processed in the centre established under NAIP-ICAR Project at Yellapur and marketed under Kadamba brand name.
  • The society has been the agent of CAMPCO for procurement and processing of Cocoa.  The cocoa beans are systematically dried in the ASTRA Model Drier funded by National Horticulture Mission.
  • Sambara-Mela” (Spices-Fest) is being organized annually since 2015 in collaboration with Spices Development Board, Karnataka to create awareness among the farmers regarding latest trends and technologies in cultivation, harvesting, processing and marketing of spices and their value added products.

Our mission :

Promotion of value added agri-products through branding, packing and marketing.
Creation of awareness regarding remunerative, subsidiary crops as well as regarding value addition to agricultural produce.
Provision of training in proper cultivation, harvesting and processing.
Linking credit with marketing.

Our vision :

Well developed and prosperous farming community with lucrative crops flourishing in their farms and new techniques and technologies adding value to their produce.

Aims & Objectives of the Promoter :

  • To develop infrastructural facilities for the uplifting farmer’s needs.
  • To develop a commercial attitude among the farmers about their minor products, providing a flat-form through different fairs.
  • To train farmers in crop production, value addition and packaging along with the strategy for marketing to reach these products into globalized markets.
  • To arrange infrastructural facilities for the members for pooling, packing and grading of agricultural produces.
  • To give value based price for minor forest produces.
  • To conserve the fruits and plants of the region.

Business Model Of The Organisation :

  • Uttara Kannada is a store house of numerous crops like Areca, spices, cocoa, paddy coconut and fruits. Along with these, there are non-wood forest products (NWFP) such as Garcinia, Shikakai, Jackfruit, Amla, Honey, etc.  Kadamba has created a platform for processing of these produces in tune with market demands, packing, establishing brand name and marketing.  Kadamba has also established processing of NWFP’s and other subsidiary garden crops.  It is working to reduce the cost of marketing and secure the best possible market price for member’s products.  One of its priorities is to conserve the fruits and medicinal plants of this region.
  • Outright purchase: Kadamba purchases the agricultural produces from the farmers, even a minimum quantity of 20 gms, by making them payments immediately.  Produce and products are procured from all the share and nominal members who are also from the proposed cluster.
  • Standardization and Grading: The farmers are motivated to raise the quality of their produce and products, which fetch them, better remunerative returns.
  • Supply of inputs to agriculture: The members are provided with the necessary inputs essential for cultivation, such as organic micro-nutrients as well as quality seedlings and saplings.
  • Kadamba has auction facility for Spices, Raw-Arecanut, Cashew & Coffee. Farmers and Entrepreneurs bring their produce or products to Kadamba centers.  As per the desire of the farmers, it will be purchased by Kadamba or put for auction.  The amount will be paid by Cash or credited to their accounts in Kadamba or their accounts in PACs (Primary Agricultural Cooperatives).

Marketing Facility to Various Agri-products

Coconut Market

The institution has successfully established a reliable market to coconut. Coconut market being in the firm grip of private merchants, the growers could not get proper price. The institution with its unique system of purchasing coconut by weighing has facilitated the farmers to get fair price. The institution purchases raw, dried coconuts. The coconuts are marketed in other states as well.

Green (wet) Areca Tender

The scarcity of labourers had forced many areca growers to sell their produce on contract basis. Kadamba is the institution which has systematized the unsystematic contract basis. Since two years, this pro-farmer marketing has been working successfully. It is a matter of pride to the institution as this system is only of Kadamba in the whole state.

Cocoa Market

Another crop that the institution has given importance is cocoa. Though the crop had international demand there were no proper market, and the farmers could not get good price. Realizing the situation the Kadamba Cooperative has been purchasing the crop directly from the farmers. Highly technologically sophisticated dryers have been installed to process the seeds scientifically to get better price to the farmers. Even solar dryer has been installed. Processed seeds are supplied to the prestigious CAMPCO Limited for the preparations of chocolates.

Cashew and Coffee Tender

The cooperative, since four years, has arranged for tender to cashew and coffee and bidders come even from out side the state. Thus the farmers are getting good price though these crops are not dominant in the region.

Jaggery

Jaggary a unique product of sugar cane is a specialized product in the villages of this region. It is the part of the breakfast for almost all people of this region. More than 2000 containers (tins) of jaggery have been purchased and marketed in the present years. The special ‘Joni Jaggery’ is sold 1.3, 3 and 6 kg tins in the brand name of Kadamba. The product is gaining popularity even outside the district.

Market for Spices

The cooperative has made the room for the marketing of spice products like turmeric, pepper, cardamom, nutmeg and cinnamon. Efforts are on to get good price for the products of organic farming.

Non-timber Forest Products Market

The cooperative feels proud of the facilities provided to the farmers for value added minor forest products which had not definite market. The purchased products are processed adding value and marketed in attractive packs outside the district and states. These steps have boosted the confidence of the farmers.

Honey Processing Center

The cooperative has established the singular, systematic honey processing center of the district at Yallpur with cooperation of University of Agricultural Sciences Bangalore. It is one of the finger count centers of the state. Honey collected by the farmers is processed and sold in the brand name of Kadamba. It is one of the largest sold brands of the state.

Workshop on Cashew Processing

The cooperative, with the cooperation of Directorate of Cocoa and Cashew Development had arranged workshops at Yallapur, Sirsi, Siddapur and Joida on value addition and processing of the said products. The participants were made aware of the opportunities of cashew value addition.

Encouragement of Organic Farming

The cooperative, since inception has been encouraging organic farming. Efforts are being made by grouping the interested farmers of different regions of the district by creating awareness on organic farming through Kadamba Organic Farmers’ Family and Organic Farmers’ Union. Kadamba has provided certification facility for organic products by international agencies like Apof Organic Certification Agency Banglore. It has been monitoring six organic groups including more than 600 farmers which covers more than 500 hectares of agriculture land of this region. The cooperative has been working to get good price to the produces of the organic farmers. Already, Yallapur and Hebbatti, Ramapur, Harsikatta-Bidrakan village farmers’ groups have completely turned in to organic farming. Organic Farming Transformation Scheme has been picked up at Chipagi Somanalli villages with the help of Agriculture Department. More than 400 farmers have got organic certificate and has been designed to bring other farmers to organic farming. A district level meet of organic farmers was successfully convened at Yallapur in 2008.
The produces grown by organic farmers are sold in the brand name of Kadamba. The cooperative is boosting its market by participating in various agri-fairs conducted in and out of the district and also in the fairs outside the state.

Encouragement to Bee keeping

Along with organic farming, the cooperative is also encouraging bee-keeping which is on the decline. With the help of progressive bee-keepers, other farmers of the villages are trained. Honey brought by these farmers is processed and marketing is done by the cooperative.

Sasya Sante (selling of grafted plants)

A visionary programme, Sasya Sante has been launched in the premises of the institution to provide a good market to the grafter and to enable the selling of qualitative plants. The programme has been started without any eye on profit and the farmer can sell the plants of quality are available at true value. The programme has been welcomed with appreciation by the farmers.

Major Spice and Horticulture Products Marketing During 2015-16 by Promoter

Sl No Product Purchase                  Qty. (Kg) Total Purchase Amt. (`) Avg. purchase rate per Kg (`)
1 White Pepper 15583 11290774 725
2 Cocoa Beans 214242 10712102 50
3 Coconut 707136 10334148 15
4 Dry Ginger 27000 3535000 131
5 Black Pepper 6674 3008599 451
6 Turmeric Finger 36716 1828186 50
7 Clove 946 897571 948
8 Cardamom 1299 778458 599
9 Coconut Oil 5731 494810 86
10 Nutmeg 1047 420004 401
11 Cashew Kernel 336 186851 557
12 Rice 2740 149286 54
13 Birds Eye Chilly 272 111758 411
14 Cinnamon 380 95280 251
15 Nut Mace 107 92545 866

 

Major Value Added Products Marketed During 2015-16 by Promoter

Sl No Product Purchase                  Qty. (Kg) Total Purchase Amt. (`) Avg. purchase rate per Kg (`)
1 Jaggery 3802 3286496 865
2 Turmeric Powder 49 303916 6253
3 Jack Fruit Papad 151834 295072 2
4 Chips (Jack Fruit) 1186 252904 213
5 Banana Chips 837 172510 206
6 Dried Banana 476 121390 255
7 Honey Jam 1426 87024 61
8 Kashya Powder 260 85097 328
9 Chavanprash 949 60425 64
10 Kokum Jam 335 35386 106
11 Banana Papad 23193 34758 1

Major NWFPs Marketed During 2015-16 by Promoter

Sl No Product Purchase                  Qty. (Kg) Total Purchase Amt. (`) Avg. purchase rate per Kg (`)
1 Honey 13403 1597952 119
2 Kokum  (Garcinia indica) Rind 8745 583050 67
3 Artocarpus lakoocha 5591 510112 91
4 Amla (wild variety) 3809 305449 80
5 Soapnut 952 184026 10
6 Shikakai 1813 59816 33
7 Kokum (Garciniaindica) seed 1430 22210 16

Management:

We have a strong group of fourteen members who have special knowledge in different aspects as Board of Directors. Under this, a Chief Executive Officer, four assistants, five technical staff, three staff for marketing outlets and four workers are striving to realize the aims and objects of this cooperative.  Further, there is an advisory committee consisting of Horticulture Scientists, Veterinary Doctors, Environmentalists, Entrepreneurs and Progressive Farmers.

Major Impacts of Activities by Kadamba : 

Economic impacts:

1) Collection of Honey from the forests was auctioned to private contractors by the Dept of Forests.  They used to procure the same from tribals and forest dwellers at a throw-away price of Rs.100/= per Kg and even that amount was being paid after 3-4 months.  However, after the entry of Kadamba, honey is being purchased from them at a premium price of Rs.160/= per Kg and the amount is paid on spot.  Further, VFCs are involved in this process.  Kadamba has given training to honey-collectors in scientific method of harvesting to sustain this.

2) The control of Coconut market was in the hands of private merchants.  They used to procure coconut from the farmers and pay them the money after 1-2 months deducting the cost of nuts damaged over that period.  However, after the entry of Kadamba, the daily price of Coconut in this region is being decided by the price that prevails in Kadamba.  Any farmer can walk in with even a single nut and sell his produce at the prevailing price and get payment instantly.  Even the merchants have started purchasing coconut from Kadamba as the margin is mere Rs.2/= per Kg and they get the required quantity at any moment.

3)  Kadamba started auction facility for raw Arecanut in 2011, as small and marginal farmers were finding it difficult to harvest and process the same due to scarcity of labour.  The private contractors, who used to hire the crop were quoting Rs.800/= per quintal.  However, when this tender was started, the price rose to around Rs.1250/= per quintal and more than 1500 quintals were auctioned through Kadamba.  The quantity is gradually increasing over the years and during 2015-16, totally 6000 quintals were sold through auction.  The price at Kadamba created awareness among the farmers regarding the price of raw Areca and even those who gave their entire crop to private groups started selling their produce at the price in Kadamba.  Thus, it made a tremondous impact on farmers economy and prevented farmers from being cheated.

4) Similarly, the prices of spice like Pepper, Turmeric, Ginger, Nutmeg, Mace, Bird-Chilli, Kokum, etc. have increased due to the presence of Kadamba, its marketing strategies, auction facility, value addition by processing, packing, branding and marketing.

5) Hitherto, the auction facility was avaialable only for Pepper and Cardamom.  Kadamba has started this facility for all the spices during 2015.  This was the first of its kind in Karnataka State.

Social Impacts:

Due to the establishment of proper marketing set-up, farmers have started cultivating these crops. Besides, farmers, SHGs and rural women are increasingly engaged in value addition activities and have started micro enterprises involving NWFPs. It is worth mentioning here that a single jackfruit tree can generate nearly Rs.1500/- annually, excluding its timber value. Till now 24 SHG’s with nearly 600 people especially women are involved in value addition and 6-7 products have found their presence in the commercial market with a total turnover of nearly 2 crores during 2014-15.

The small and marginal farmers, who are the major producer/collectors of NWFP, are getting a sustained additional income. So, Kadamba is proud to say that it has been able to successfully develop a market based mechanism for conserving & sustainable utilization of important NWFPs of Western Ghats.

Ecological Impacts: 

Hitherto, NWFP were auctioned and some contractor would collect them by cutting the branches of the trees, unmindful of their sustenance.  The entry of Kadamba has created awareness among the community regarding their commercial as well as ecological importance.  Now, the farmers and tribals have been shifting from exploitation to cultivation.  Further, Kadamba has been distributing quality saplings of various varieties for the preservation and promotion of their diversity.

Similarly, majority of the tribals, who harvested bee-hives, were following unscientific methods.  Kadamba provided them training with the help of University of Agricultural Sciences Bangalore and provided them with certificates, tools and implements.  Now, they care for their long-term sustainability and procure the honey in a scientific manner and the same is procured and marketed by Kadamba.  SHGs are being formed among farmers and tribals for collection, harvesting, processing of NWFPs.

Details of Implemented/ongoing Projects/ Programs by Kadamba

Sl No Name of the project / program Supporting/Funding /Collaborating Agency For the period of
1 A Value Chain for Jack Fruit and Its Value Added Products Department of Biotechnology, Ministry of Science and Technology, GoI through UAS Bangalore November -2012 – 2014
2 Organic village project (Savayava Bhagya Scheme)  : Sirsi & Yellapur Department of Agriculture , Govt. of Karnataka 2011- 2017
3 Organic village project: Siddapur Department of Horticulture, under NHM 2010 – 2013
4 Biofuel Development Program Karnataka State Biofuel Development Board, Govt. of Karnataka 2012-2014
5 Value addition of Coconut and Jack fruit NABARD under FTTF program 2013
6 Value Chain on Honey Processing ICAR, NAIP –UAS Bangalore 2011-2013
7 Paramparagata Krishi Vikas Yojane(PKVY) in three clusters of Sirsi Department of Agriculture GoK 2016 –