Producer-Controlled Cooperatives: Giving Farmers the Reins

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Source: Business Standard

Context

Economist Nitin Desai says that Indian agriculture should be led by farmers’ cooperatives instead of government bureaucracy. He cites the success of the Amul model and suggests using the same approach for Agrivoltaics (Agri-PV) under the PM-KUSUM scheme.

Why is this issue important?

  • India spends huge money on subsidies for paddy and wheat, but these crops have grown slowly.
  • At the same time, sectors like milk, fruits, and vegetables, which are mainly managed by farmers themselves, have grown much faster.
Growth in Agriculture (FY2012–FY2024)
  • Paddy & Wheat → 27%
  • Fruits & Vegetables → 52%
  • Milk → 85%

Lesson:

  • Producer-led sectors performed much better than subsidy-driven sectors.
  • Milk is now more valuable than cereals.
  • Government Support
    • Fertiliser + Food Subsidy → ₹4 trillion
    • More than 80 crore people receive free food grains under PMGKAY.

The Amul Model

What is Amul?
  • Started in 1946 at Anand, Gujarat.
  • Full form: Anand Milk Union Limited (AMUL).
  • Founded by Tribhuvandas Patel.
  • Led by Dr. Verghese Kurien, known as the Father of the White Revolution.
Why is Amul successful?
  • Farmers own the cooperative.
  • Farmers manage the cooperative.
  • Profits go directly to farmers.
  • No middlemen.

National Dairy Development Board (NDDB)

  • Established in 1965.
  • Founded by Dr. Verghese Kurien.
  • Supported by Prime Minister Lal Bahadur Shastri.
Objective
  • Promote dairy cooperatives across India.
Operation Flood
  • Started in 1970.
  • Also called the White Revolution.
  • Helped India become the world’s largest milk producer.

What is Agrivoltaics (Agri-PV)?

Agrivoltaics means growing crops and generating solar power on the same land.

  • Solar panels are installed above crops.
  • Crops grow below the panels.
  • Farmers earn from both farming and electricity.
Benefits of Agri-PV
  • Higher farmer income.
  • Better use of land.
  • Saves irrigation water.
  • Produces clean energy.
  • Helps fight climate change.

PM-KUSUM Scheme

  • Full Form
    • Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan
  • Launched: 2019
  • Ministry: Ministry of New and Renewable Energy (MNRE)

Components

  • Component A: Grid-connected solar plants.
  • Component B: Standalone solar pumps.
  • Component C: Solarisation of existing pumps.
  • Also supports Agrivoltaics (Agri-PV).
Why are Cooperatives Needed?
  • Average farm size in India is only 1.08 hectares.
  • Small farmers cannot afford expensive Agri-PV projects individually.

Cooperatives help by:

  • Combining land.
  • Sharing investment.
  • Getting bank loans easily.
  • Sharing profits.
  • Managing projects efficiently.

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