In times of debt, this farmer company paid advance tax

It is common for film stars and celebrities to pay advance tax, but ever heard of farmers doing so? Well, some farmers in Mysuru have done just that.

A company that is founded and run by farmers has paid ₹2 lakh as advance tax for 2017-18, after registering an impressive performance with an annual turnover of ₹7 crore and net profit of ₹25 lakh.

The Raitha Mitra Farmers Producers’ Company has achieved the unthinkable in a span of three years, growing from a modest membership strength of 200 to 1,200 to help farmers sustain their income and provide a market platform free of middlemen. More importantly, the company has resolved to distribute the profit among its farmer-members as dividend after a convention here soon.

“We want to send a message with our success, which according to us is remarkable. It is a model for fellow farmers at a time when crisis looms over the farming sector,” said company founder and farmers’ leader Kurubur Shanthakumar.

He told The Hindu that the profit could have been higher for a turnover of ₹7 crore but the company kept lower margins for the benefit of farmers. “Last month, we gave bonus to 151 vegetable growers. Believe it or not, even a farmer who received ₹300 from us for selling vegetables got a dividend of ₹500,” he said.

From vegetables to fertilizers to foodgrains to fruits, Raitha Mitra buys produce from farmers at reasonable prices (sometimes higher than what established markets offer) sans the commission and miscellaneous charges as noticed at APMCs. Mr. Shanthakumar said the company had announced minimum support price (MSP) for six vegetables to address the price crash.

Raitha Mitra has been supplying vegetables and fruits to Kerala since April last after buying them directly from growers. On average, 50 to 60 tonnes of vegetables, sourced from over 225 growers in Mysuru and Chamarajanagar districts, are supplied to Horticorp thrice a week after minimal processing.

With the support of the Central Food Technological Research Institute, Raitha Mitra has promoted the cultivation of chia and quinoa, the “superfoods” from South America, with a buyback offer. “Today, the cultivation is expanding, encouraging us to establish a chia processing unit,’ Mr. Shanthakumar said.

The company has been buying chia seeds from growers and selling them to entrepreneurs for marginal profit. Raitha Mitra will soon foray into the retail market, launching chia seeds for supermarkets.