Food Producers: Farmers cut bumper profits

Farmers in Adilabad district of Telangana have written a success story that could serve as a ready-made template to embrace the country. The four food producers (FPOs) promoted by the Rice Foundation have used new-age digital technology to overcome their limitations, significantly increasing their collective income.

Farmers in Asifabad, Untur, Inderveli and Gudihathanur in Adilabad faced a number of post-harvest challenges, including lack of access to financial resources, storage problems and confusion over when and with whom to sell. As the liquidity crisis affected their activities, there was a threat to agricultural productivity in the region.

To discourage, however, farmers in this region of Telangana, led by women, as well as people from the ST, SC and OBC communities, have resorted to technology to break the stereotyped selling pattern of agricultural products. First, thanks to the digital warehouses offered by Agritech startup’s integrated services, farmers were able to store their farm produce in an intelligent ecosystem that offered real-time monitoring, including cotton and pulses. These farm products can be used as collateral for loan consideration, enabling farmers to gain access to financial services, perhaps in many cases for the first time.

For example, members of the UNR Farmers Producers Company have trained themselves in scientific storage and accessed financial solutions to increase their revenue from 90 9 million to 2 1.2 million. Similarly, the BBWS Farmers producer company has earned an additional Rs 90 lakh due to access to storage solutions and debt against the product. Equipped with state-of-the-art digital technologies such as AI, ML and IoT, farmers have been able to access multiple benefits ranging from warehousing facilities to access to finance and trade services.

Grouped under the umbrella of DNT Farmers Producers Company, small farmers in the region have been able to increase their collective income from Rs 1.4 crore in 2019-20 to Rs 2 crore in 2020-21 and Rs 7 crore in 2021-22. As an Indervelly FPC, it has used the platform to sell cotton bales, with this year’s turnover reaching over Rs 14 crore from over 4,100 bales sold.

Regarding the experience of selling on the platform, M Tanubai, Chairman, Undervalley FPO, said, “Last year, we sold 300 cotton bales independently. We received advance payment for 100 bales but for the remaining 200 bales, there was GST deduction which we did not know before. When working with the Aryan platform, we receive full advance payment without any deductions. There is transparency in trade and complete documentation with buyers. “

Chitru Patel, Chairman, UNR Farmers Producers Company, added: It has helped us build strong relationships with them because they know the company is working for their well-being and they are not fighting for cash to meet their needs. “

The model of agricultural production-based digital credit has helped achieve financial inclusion. Also, farmers, who previously relied on traditional channels for trade and money, have been able to access services with complete transparency. Through’s digital transaction model, their loan requests are processed in a short time. From the threat to their livelihoods to the almost four-fold increase in their combined income, how the application of digital technology in the agrichen domain has affected their lives. As Chattanathan Debrajan, co-founder of, puts it: “Technology, through all its biases and prejudices, ends up benefiting the end-user. The story of the transformation of the farming community in Adilabad highlights the difference that new-age agritech farms led by digital technology can make a difference in the sector. In fact, the relevance of such players is more than just a mediator or facilitator, because they are driven by the goal of empowerment. “

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