Kurnool Farmer Producer Organisation closes its third harvest in the black

The mandate from day one was specific: aggregate groundnut and pigeon pea from member farmers, run primary processing inside the village, and negotiate directly with two large agri-buyers. No four-layer middleman chain. No project-bound aggregator contract. A Producer Company under the Companies Act, governed by its 1,800 farmer-shareholders.

What the year-end audit found

• 1,800 member farmers across 38 villages in Kurnool district
• 22% increase in net realisation per quintal across groundnut and pigeon pea
• Working capital of ₹50 lakh, sustained by member shares and retained earnings
• Custom hiring centre for tractors and threshers self-sustaining on user fees

“I used to sell my groundnut to whoever came to the village first. Now the FPO grades it, processes it, and sells it on my behalf — and I see the price difference in my own bank account.”— D Ramesh, Farmer-shareholder — Adoni mandal, Kurnool

The board itself is half-female with a rotating chairperson elected from the farmer-shareholders. The next year’s plan adds a third commodity — chickpea — and a primary-grading line that the membership voted on at last quarter’s general meeting.