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Coconut Producers' Company websites
Short Concept Note on FPOs Concept Note on FPOs
Model Memorandum of Association for CPCs Model Articles of Association for CPCs
Guidelines for establishment of coconut points Activities to be taken up by CPCs

Progress of Coconut Producers' Society, Federation and Company formation as on 14-Mar-2017



Area under coconut ('000 ha) Coconut Production (million nuts) CPS in formation process CPS registered with CDB CPF in formation process

CPF registered with CDB

CPC registered

1 Kerala 649.85 4896.61 7537 7152 468 459 29
2 Tamil Nadu 465.11 6917.46 566 546 80 60 17
3 Karnataka 515.03 5141.15 455 397 148 125 12
4 Andhra Pradesh 105.99 1463.56 1060 1005 95 84 8
5 Odisha 50.68 324.89 22 19 5    
6 West Bengal 29.41 372.23 200 187 9    
7 Maharashtra 28.10 187.44 20 1      
8 Gujarat 31.63 295.03 20 4      
9 Assam 21.14 237.49 29 21      
  Total     9919 9332 805 728 66


The Board has initiated the formation of Coconut Producer Societies (CPS) by associating 40-100 coconut growers in a contiguous area with a consolidated minimum of 4000-5000 palms. The objective is socio economic upliftment of the farmers through productivity improvement, cost reduction, efficient collective marketing and processing and product diversification. A farmer equity contribution is also proposed to be mobilized. A matching equity contribution will be sought from the state Government as a one time assistance for making the CPS effective.

CPS - the concept
A non subsidized knowledge based, farmer centered approach in organizing farmers - Total inclusive growth of the farmers - Facilitation, handholding, nurturing empowering and finally leading to sustainability - Group Approach - Development of Infrastructure - Reduction of wastages - Disintermediation of the supply chain - Product diversification and value addition - Enhanced production, productivity - Market expansion.

CPS – the methodology
Organization of farmer in a contiguous area 40-100 farmers - Minimum of 10 bearing palms for a member - Legal status by registration under Charitable Societies Act - Registration with the Board - Common byelaw for all the societies

CPS - the activity
Regular meetings and discussion of activities - Collective purchase of all inputs - Effective pooling of resources like labour - Production planning and marketing plan for CPS - Integration of activities in production and marketing - Synchronizing of harvesting - Small scale processing at CPS level - Networking of CPS to an apex body - Better bye-product utilization - Effective logistics - Generation of rural employment - Enhanced and sustained returns to the farmer.

Rationale of FPOs
Farmer Producer Organization is formed with the main objective of socio economic development of farmers through productivity improvement, cost reduction, efficient aggregation, processing for value addition, better by-product utilization and efficient marketing of the produce. It aims at providing a fair, steady and reasonable income to farmers by organizing the unorganized coconut sector through farmer collectives.
True empowerment happens only when farmers are involved in all stages of value addition supply chain, such as, production, aggregation, processing, marketing, distribution and sales. Only when farmers starts an enterprise of their own, they will learn to plan, collaborate, work in a team, take decisions and risks, interact with people from other spheres and sectors, thus learning and growing with the enterprise. This helps in inducing self confidence within the farmers thus enabling their overall development.

The name ‘Producer Company’ is provided in order to indicate that the members have to necessarily be a primary producer. A new Part IXA, sections 581(A) to 581(ZT) of Indian Companies Act 1956 provide the features of a Producer Company. It is a hybrid between a Private limited Company and a Cooperative society as it minimizes interference from other external bodies thus ensuring that the real power rests with members of the company itself. Such a company functions like any other private limited company with only difference being that the profit incurred flows back to farmers who own the company.

The Coconut Farmers Producer Organizations thus formed have a three tier structure consisting of Coconut Producers Society (CPS), Coconut Producers Federation (CPF) and Coconut Producers Company (CPC).

Coconut Producers Society (CPS)
CPS is formed by associating 40-100 coconut growers in a contiguous area with range of 4000-6000 yielding palms. Farmers with a minimum of 10 palms are only eligible to be a part of this society. Once the society is formed, it is registered under charitable societies act and also with Coconut Development Board. All the societies have a common bye - law.

Coconut Producers Federation (CPF)
CPF is formed by combining 8-10 CPS. A CPF would have around 1,00,000 palms under it. CPF is also registered as a charitable society and further registered with CDB.

Coconut Producers Company (CPC)
8-10 CPFs would join together to form a CPC. A CPC would consist of around 10,00,000 yielding palms. This company would be registered under section 581B of Indian Companies Act of 1956. The Producer Company is wholly and fully owned by the farmers.


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