Co-Operatives And Rural Marketing

Assignment on: Indian Farmers Fertiliser Co-operative Limited (IFFCO)

Introduction to the Co-Operative

Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of the Multistate Co-operative Societies act 1984 & 2002, the Society is deemed to be registered as a Multistate Co-operative Society. The Society is primarily engaged in production and distribution of fertilisers. The byelaws of the Society provide a broad frame work for the activities of IFFCO as a Co-operative Society. IFFCO set up an Ammonia-Urea complex at Kalol and the NPK/DAP plant at Kandla both in the state of Gujarat in 1975. Another Ammonia-Urea complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The Ammonia-Urea unit at Aonla was started in 1988. The distribution of IFFCO's fertiliser is undertaken through over 40000 Cooperative Societies. In addition, essential agro-inputs for crop production are made available to the farmers through a chain of 158 Farmers Service Centre (FSC). IFFCO has promoted several institutions and organisations to work for the welfare of farmers, strengthening cooperative movement, improve Indian agriculture. IFFCO, to day, is a leading player in India's fertiliser industry and is making substantial contribution to the efforts of Indian Government to increase food grain production in the country.

Reasons for the incorporation of the Co Operative

During mid- sixties the Co-operative sector in India was responsible for distribution of 70 per cent of fertilisers consumed in the country. This sector had adequate infrastructure to distribute fertilisers but had no production facilities of its own and hence dependent on public/private sectors for supplies. To overcome this problem and to bridge the demand supply gap in the country, a new cooperative society was conceived to specifically cater to the requirements of farmers. It was a unique venture in which the farmers of the country through their own Co-operative Societies created this new institution to safeguard their interests. IFFCO's mission is "to enable Indian farmers to prosper through timely supply of reliable, high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activities to improve their welfare " Objectives of IFFCO are: To provide to farmers high quality fertilizers in right time and in adequate quantities with an objective to increase crop productivity. To make plants energy efficient and continually review various schemes to conserve energy. Commitment to health, safety, environment and forestry development to enrich the quality of community life. To acquire, assimilate and adopt reliable, efficient and cost effective technologies. Sourcing raw materials for production of phosphatic fertilisers at economical cost by entering into Joint Ventures outside India.

 To ensure growth in core and non-core sectors.

Working of the Co-Operative

Strengthening of Primary Cooperatives
Primary Agricultural Credit Cooperatives [PACS] is the foundation of the cooperative system. They are meeting the development needs of the farmers by providing credit, inputs, storage and processing and marketing facilities. The basic issues in PACS development are: -Increasing member participation in PACS -Business, management and expand capital base -Improving managerial and operational efficiency in business and services -Diversification in business and promotion of professionalization in cooperatives -Encouraging larger participation of women in the society -Overcoming difficulties arising from over-regulatory system in the cooperative sector. COOPERATIVE DEVELOPMENT RESOURCE CENTRES [CDRC] To help solve the basic problems of PACS, IFFCO has developed the concept of Cooperative Development Resource Centre [CDRC]. The objective of the CDRC is to develop PACS into a self-sustaining multipurpose viable unit. There is a need to strengthen and assist them by way of: -Cooperative business diversification. -Upgradation of managerial skills. -On-the-job consultancy and guidance for maintenance of accounts. -Compliance of various legal/statutory requirements. -Creation of necessary infrastructure. -Financial assistance for development of business.

The CDRC Units are expected to provide technical support to agricultural cooperatives, local community groups, self-help groups, farmer unions or associations, and interested non-governmental organizations. Programmes are also conducted through Area/State/Zonal offices under able guidance of agricultural scientists. Programmes undertaken are: Balanced Fertilisation programmes Adoption of villages for all round socio-economic development Farmers visit to various agricultural institutes and research farms Farmers Meetings, Field Days and Crop Seminars Static/Mobile Soil Testing Laboratories with Audio-visual aids Distribution of fertilisers mainly through the Cooperative System: State level Apex Cooperative Marketing Federation acts as wholesaler Direct supplies to Societies in some States IFFCO-NCDC Cooperative Societies Small quantities to institutional agencies like Agro Industries Corporation etc 158 IFFCO Farmers Service Centres Warehousing Federations & Cooperative Godowns Central Warehousing Corporation (CWC) State Warehousing Corporation (SWC) Sankat Haran Bima Yojana (By IFFCO-Tokio General Insurance) Applicable on purchase of each bag of IFFCO/IPL fertiliser from a Cooperative Society/FSC.

 Maximum liability limited to Rs. 1 lakh irrespective of the number of bags purchased Cash receipt is evidence of insurance cover Policy provided insurance cover to 93.2 lakh farmers Insurance Products of IFFCO-Tokio General Insurance Apart from meeting general insurance requirements of rural area like policies for Home, Shops, Tractors, two Wheelers etc., ITGI has also launched: Barish Bima Yojna Mausam Bima Yojna Kisan Suvidha Bima Yojna Mahila Suraksha Bima Yojna Janta Bima Yojna Jansuraksha Bima Yojna Sankat Haran Bima Yojna

Suggestions for the Co-Operative

Indian Farmers Fertiliser Co-operative Limited (IFFCO) has been highly successful in setting up the infrastructure for the production of Fertilizers which was non-existent before. Through various joint ventures IFFCO has shown expansion and diversification. Providing Insurance to Farmers through IFFCO-Tokio General Insurance is an attempt made to cover the agricultural risks. Suggestions for the Co-Operative To increase joint ventures within the country to facilitate economic growth. Working with other co-operatives and providing guidance to them. Education programmes for the Rural Sector.