Self-sustained development by organic food processing in Uttarakhand

Self-sustained development by organic food processing in Uttarakhand

The holy land of Uttarakhand has been the mother of valuable vegetation since inception of Himalayas, but has been particularly neglected due to difficult access, very low habitation and lack of infrastructure facilities. Uttarakhand is also known for growing very honest grower of organic grains, fruits and spices.

In last few years the Uttarakhand Government has now paid attention to the village level grown crops and established Uttarakhand Organic Commodity Board (UOCB) in 2003. This UOCB works as Nodal agency between farmers and buyers. In last few years UOCB has widely trained the farmers to grow appropriate organic food by correct soil testing, treating and certifying the organic product for ultimate buyers. The state has also established Uttarakhand State Organic Certification Agency (USOCA) to provide quality control through certification locally thereby bringing down the certification costs. UOCB has also channelized the marketing of products through its kiosks in big cities thus built a trust between growers and buyers. Therefore, there is no scarcity of pure organic food in Uttarakhand and if food processing sector is also developed within Uttarakhand, it will be a boon to people of Uttarakhand.

To be specific on development of food-processing sector, we will concentrate on the various possibilities in this area, which can also boost the employment, education, living standards and health, if economic condition of the people is improved. For this, we have done a Model Study at Uttarakhand Village and block level structure in respect of food produced which can be processed in to be established food-processing industries.

Assumption: This model is designed keeping in view of hill areas in Uttarakhand having water resources and have cultivated farm land.

Target Group: To make group of villages as cost centres generating income through establishment of Cooperative Society.

Main Objects of Model Study

  • Infrastructure development of rural area
  • To generate employment in rural area
  • To make rural people financially strong.
  • The farmer will be the seller of his farm products
  • To educate rural people and uplift their living standards
  • To educate and make rural children socially responsible
  • To create green and clean areas as a contribution to nature and environment
  • To transform villages as feasible and viable rural cities so that population movement should be from urban cities to rural cities.
  • To save central & state Government’s development costs.
  • To take giant stride in development of rural sector in short span of time.
  • There is concept of establishment of food-park with the help of Ministry of food processing. This food park has all related facilities like, transportation, storage, fire-fighting, local markets proximity.

Current Situation of rural sector in Uttarakhand

  • The farming land is shrinking and people leaving farming as they are not earning much from agriculture.
  • The population living in villages either doing labour work in nearest cities or dependent on their children working in big cities or opened some basic shops to run their livelihood.
  • The people of villages have now become downtrodden crowd for urban people.
  • There is substantial growth in rural population movement towards urban cities due to lack of employment and urban type facilities and entertainment in villages.
  • As the rural growth rate is very much low, rural people feel insecure in villages.
  • The current state of employment in rural area is only agricultural labour, but due to low productivity in agriculture, rural people even don’t hire labour.

Organising and infrastructure development in rural areas

  • Construction of roads and low cost housing, toilets and schools.
  • Kissan centre, vocational training, digital help centre and video conferencing centre.
  • Construction of low cost hydro-electric projects with grant from Min. of New & Renewable energy.
  • Advanced irrigation of farming land by solar irrigation pumps with grant from Min. of New & Renewable energy.
  • Build 5-10 bed hospitals, vocational schools and storage for agriculture products.
  • Mini to small level no-pollution processing plants for ayurvedic medicines, mineral water.
  • Dairy farming, vermiculture and compost processing from house waste.
  • Sewage disposal and Gobar gas plants on social sharing basis.
  • Tourist lodges and tourism development centres.
  • Rehabilitation centres for sick people living in other parts of the world to fast recover from their disease.
  • Install food processing units with grant form Min. of Food processing.
  • Install bio-paper processing unit and waste disposal bags manufacturing unit.
  • Install solar panels for domestic lighting, charging of mobiles, running of computers and servers.
  • Buying advanced agricultural tools like mini tractors, mini loaders, harvesters etc.
  • Hydrant system for fire-fighting for schools, training centre, hospitals, tourist lodges.
  • Testing labs for food quality, milk and milk products quality, paper and waste bags quality checks.

Modus Operandi for re-organising of Cooperatives in Uttarakhand

  • The proposed project will require the establishment of Cooperative Societies.
  • This Cooperative Society will cover the area of 10-20 kms and each village in this 10-20 kms area will be covered under this society. This society will have members from all covered villages who have farming land. The farmers will get the benefit according to their share of land from total production in each crop cycle.
  • Villagers who have not farming land will also be part of society and will be directly hired on priority basis in several processing units under this Coop. The farmers having land can also be hired but on secondary basis, if on the same level of non-land villagers/farmers.
  • Highly educated people who belong to these villages can also join on higher position for the welfare of their village/area.
  • Young people will be trained vocationally and later to be employed in the processing units, farming land.


Glimpse of Viability & Feasibility of Cooperatives

Glimpse of Viability of Cooperative
  1. The price of the agri-products to be sold will have equilibrium with market retail rates if sold online by removing intermediator’s margin.
  2. The rates of raw crops to be shared with farmers will be over and above Govt rates lower than market rates. Therefore the Coop will be profitable.
  3. The processed foods will have better margin and sold at agency rates or retails rates.
  4. Mineral water, paper processing from dry leaves and grass, waste bag manufacturing will give good profit to this coop.
  5. The detailed viability analysis will give nearer to accurate results.
Glimpse of Feasibility of Cooperative
  1. The farmer will be the seller himself in this model, so farmers will be ready to adopt this model.
  2. Farmers will get instant payment from the Coop after delivery and storage.
  3. The Coop will have responsibility to sell the products. Therefore farmer will have no tension of storing and selling agri-products.
  4. There will be development in the region so the farmers will agree to go along with this model.
  5. Farmers and their children future will be secured therefore farmer will adopt this model.
  6. The detailed feasibility analysis will give nearer to accurate results.


Glimpse of SWOT Analysis of Cooperatives

Strengths [Helpful Factor] [Internal Factor]
  1. The model will be Govt Supported.
  2. Farmers will have confidence in the model due to surety of selling of products and good prices.
  3. Farmers will govern the Coop with the help of professional people.
  4. Will have many other strengths.
Weaknesses [Harmful Factor] [Internal Factor]
  1. May be opposed by high profile landlords.
  2. Small farmers might be threatened not to join.
  3. May affect the personal gains of stockpilers.
  4. May face some state Govt’s protest
  5. May face protest of middlemen who earn in the middle between farmers and final consumers
Opportunities [Helpful Factor] [External Factor]
  1. This model Will work as leader to other Coops.
  2. Will create immense employment opportunities.
  3. Will generate more educated and focused generation that will inclined to development.
  4. Will have many other opportunities.
Threats [Harmful Factor] [External Factor]
  1. The Govt depts may delay the process.
  2. The model may be hijacked or misappropriated in haste of implementation.
  3. The state Govt may be lethargic for implementation of this model
  4. Funding agencies or FIs may not show interest.


Other key- factors affecting establishment of cooperatives

Identification and pooling of Land
  1. Survey and identify of villages
  2. check if there is any Cooperative working there, if not then call panchayat and discuss with farmers having farming land.
  3. The farmers will contribute their land without change of ownership to farm in group with advance techniques and share profit.
  4. The cooperative society will in-turn develop this area from its own income resources and with the help of centre state Govt existing schemes and grants.
Core Work Area of Cooperatives
  1. Administration and management of agriculture land.
  2. Management and storage of crops, fruits, medicines and vegetables.
  3. Make a buy transaction of all farming products and credit the account of farmers according to their land ratio.
  4. Maintain cash-credit account at local Coop bank.
  5. Transfer the money into farmers bank account.
  6. Process the farming products. Either sell as raw to local market or further process them in food processing plants.
  7. Manufacturing of paper made of dry leaves fallen from trees. (to be used in manufacturing of waste disposal bags).
  8. Manufacturing of biodegradable bags made of grass or jute for waste disposal and selling in local or online.
  9. Administration and management of food processing units, storage, paper processing unit and waste bag mfg unit.
  10. Sell the products either in local market or online.
Services of Cooperatives
  1. Admin and Maintenance of Kissan centre, vocational training, digital help and video conferencing centre.
  2. Admin and Maintenance of storage.
  3. Admin and Maintenance of Hydro-electric Power plant.
  4. Admin, Supply and maintenance of electricity.
  5. Admin, Supply and maintenance of bio-gas (gobar gas).
  6. Admin and Maintenance of sewage treatment system.
  7. Admin and Maintenance of irrigation system.
  8. Admin and Maintenance of Hospital, schools.
  9. Admin and Maintenance of food processing, vermiculture, paper processing and waste bag processing units.
  10. Admin and Maintenance of dairy farming.
  11. Admin and Maintenance of rehab centres, tourist lodge.
  12. Promote people to open bank accounts as the remuneration will come only in banks.
  13. Give people benefit of group life insurance and group health insurance.
  14. Digital documentation of village records and villagers’ records.
Income generating sources of Cooperatives
  1. Organic farming and selling online, local and other parts of world.
  2. Horticulture - selling online, local and other parts of world.
  3. Income from processed ayurvedic medicines and selling online.
  4. Dairy farming - selling milk products and cow distilled urine.
  5. Income selling of products from food processing, paper processing and waste bag processing units.
  6. Electricity selling to social grid.
  7. Gobar Gas energy selling to local villagers at nominal rates.
  8. Income from tourists and rehab centres.
  9. Income from selling compost and manure from domestic waste.
Expenses of Cooperatives
  1. Salary & wages of all processing units.
  2. Salary & wages of agricultural land workers.
  3. Salary & wages of training, vocational & help centres.
  4. Electricity expenses.
  5. Telephone and stationery exp.
  6. Canteen expenses.
  7. Postage and courier expenses.
  8. Packing and transportation expenses.
  9. IT and computer maintenance expenses.
  10. Machinery maintenance expenses.
Technology for smooth running of Cooperatives
  1. Installation of free ERP system, to run all administrative, financial tasks
  2. Web based project management system for successful completion of tasks.
  3. Installation of local wifi networks in land area of cooperatives.
  4. Installation of walky-talky units for field workers in agricultural land and for security.
  5. Maximum use of solar energy.
  6. Use of advanced agricultural tools.
Financial responsibilities of Cooperatives
  1. Annual Audit of production process.
  2. Annual Audit of financial transactions.
  3. Annual social audit of villages & people.
  4. Digital documentation of land records of farmers.
Social responsibilities of Cooperatives
  1. Educate people for cleanliness and healthier life.
  2. Educate children for energy saving, cleanliness, and become tech-savvy
  3. Restrain people for use of plastic bags.
  4. Educate and train people for plantation and give dividend for plantation under Govt scheme.
  5. Educate people for no-waste-throw in water and air to protect environment.


What is social-Grid?

The term used here “social grid” and not used anywhere prior to here, belongs to participation in generation and consumption of electricity by Coop societies that will be established after successful implementation of first Coop Society.
This will work as follows:

  1. The Hydro-electric power plants will generate electricity under the flagship of Coop Society. The society and villages will use optimum electricity by also utilising the solar energy.
  2. The extra electricity will be feeded to Govt existing grid and in return the Govt will give the credit to the society.
  3. These credits can be traded between the societies, for example: A society in Uttarakhand is generating electricity and other society in Bundelkhand need electricity but have ample storage of wheat, cattle feed etc. So this society can send the products to Uttarakhand society and in turn take electricity in equivalent value from the Govt in its area.
  4. This concept can be more improved later after actual generation and consumption.


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