Ensuring Food Security to small farmers through their own agri business company RUDI
This entry has been selected as a finalist in the
Cultivating Innovation: Solutions for Rural Communities competition.
The main occupation of 65% of Self Employed Women’s Association (SEWA) members is agriculture still the farmer remains hungry. Following the Gandhian ideology of building self-reliant villages, SGMH has set-up farmers own company RUDI to link the small farmers to the end consumers and develop the supply chain. Thereby ensuring fair returns and food security.
About You
Location
Project Street Address
Navrang Colony, Besides Kashmira Chambers, Navrangpura
Project City
Ahmedabad
Project Province/State
Gujarat
Project Postal/Zip Code
380009
Project Country
India
Your idea
Country your work focuses on:
India
Website URL
YouTube Upload
What stage is your project in?
Operating for 1-5 years
What is the average monthly household income in your target community, in US Dollars?
<$100
Name Your Project
Ensuring Food Security to small farmers through their own agri business company RUDI
Describe Your Idea
The main occupation of 65% of Self Employed Women’s Association (SEWA) members is agriculture still the farmer remains hungry. Following the Gandhian ideology of building self-reliant villages, SGMH has set-up farmers own company RUDI to link the small farmers to the end consumers and develop the supply chain. Thereby ensuring fair returns and food security.
Innovation
Describe your idea in fewer than 50 words.
The main occupation of 65% of Self Employed Women’s Association (SEWA) members is agriculture still the farmer remains hungry. Following the Gandhian ideology of building self-reliant villages, SGMH has set-up farmers own company RUDI to link the small farmers to the end consumers and develop the supply chain. Thereby ensuring fair returns and food security.
What makes your idea unique?
RUDI is unique in the sense that the owners and managers of the company are 2,65,000 small and marginal farmers themselves. RUDI has built a robust rural distribution network that strengthens the entire commodity supply chain and links the farmer directly to the end consumer. Thereby the small farmer becomes the owner, manager, producer and supplier of the entire distribution network. As a result of this the farmers get fair returns for the produce, the rural poor households have access to food security and it generates employment opportunities for the rural poor.
SEWA and SEWA Gram Mahila Haat (SGMH), an apex marketing organization, builds the capacity of the farmers by giving them trainings and other agri inputs.
RUDI’s core values are based on the Gandhian philosophy that scarce rural capital should strengthen the village economy by rotating within the village itself. By creating a platform by which goods from rural farmers can be processed by rural workers and then consumed by rural consumers, RUDI is unique in the sense that it involves procuring, processing, packaging, and distribution of food grains. Processing generates employment and increases income.
So far 36,758 small and marginal farmers have been organized into farmers collectives under RUDI and 1500 women work as rural procurement and sales managers called RUDIbens for the Rural Distribution Network generating an income of Rs. 3500 – 4000 p.m. and total a turnover of Rs. 7,62,40,305
What is your area of work? (Please check as many as apply.)
What impact have you had?
RUDI helps farmers get fair prices and increased income (eg. In case of sale of castor the farmers earlier got Rs. 365-370 for their produce but due to RUDI initiative, they now get Rs. 470 per tonne.) RUDI is helping rural villages keep their scarce resources within the village while helping the Indian economy take a significant step in the direction of truly “inclusive growth”.
RUDI promoted by SEWA and SGMH started on a pilot baisis in 1 district in Gujarat with 175 RUDI ben covering 125 villages. Gradually, RUDI has spread to 14 districts of Gujarat and in 6 states of India and has 1500 RUDI ben. RUDI is also present in Afghanistan. Today this pilot has grown into a for profit company with 2,65,000 farmers as shareholders and therefore owners and managers of the company.
RUDI procures the food grains from the small and marginal farmers locally. This process gives the farmers better prices and negotiation leverage and direct access to market at their doorstep thereby eliminating the exploitative traders and middlemen. In order to increase the collective strength and the bargaining power of small & marginal farmers, RUDI also provides them with access to daily prices of the commodities through Mobile text messages.
1500 RUDI saleswomen were developed and they earn an income of about Rs. 3,000 – 3500 per month. Thus ensuring inclusive growth by promoting participation of small farmers and poor women in the agriculture trade.
Describe the primary problem(s) that your project is addressing.
? Why does a farmer remain hungry
? How to ensure food security & livelihood security to small & marginal farmers and rural poor households.
? Inspite of toiling hard and cultivating commodities, the farmers do not have bargaining power, market access, holding capacity and is therefore compelled to do distress sale and therefore he is exploited by traders and middle men.
? How can Rural Distribution Network address this issue by developing a robust supply chain that looks in procurement, processing, grading, packaging and marketing.
Describe the steps that your organization is taking to make your project successful.
In order to ensure the success of the initiative, the farmers at the local level are organized into farmers collectives and educated on their role as shareholders of the company – the owners. The entire village is involved in setting-up Rural Distribution Network and therefore there is a strong sense of ownership and RUDI becomes villagers own brand. The entire process of setting-up RDN also generates employment opportunities and increased income for the small and marginal farmers, for the households involved in processing, procurement & packaging and for the rural women in marketing as Rudiben. Thus the process generates employment and livelihood opportunities for the village communities.
Backward linkages were also provided to the members. This included trainings from production to marketing, purchase & supply of inputs, credit availability,
Impact
What will it take for your project to be successful over the next three years? Success in Year 1:
In the initial 2 years, investment needs to be made at the village level in organizing the farmers and building their capacities the farmers will have to be educated and made aware will have to generated among the farmers on their role as owners and managers of their agri business company.
Following the success of the pilot phase, 18,462 of members are now associated with the activities. In view of this robust Distribution Network that is set-up more trainings will have to be given to the groups.
Success in Year 2:
As the members themselves are the owners and managers of the Company, the capacities of the members will have to be built as grass roots managers so that they can prepare the business plan, undertake cost-benefit analysis, break even point and can manage the revolving fund to undertake the activities. Revolving fund will also be needed by the farmers groups to carry on the operations on an increased scale. The farmers will also have to be trained in the procurement systems and the processes. This will enable the farmers to undertake operations on an increased scale.
Success in Year 3:
With a view to reaching more than 35,000 farmers through the distribution network the number of RUDIbens will have to be increased to 12000. Thus capacity building trainings will have to be provided to the RUDIbens. A cadre of rural sales and marketing agents will have to be developed. Also RUDI will have to develop its own robust Management Information System which will be user friendly and can be used by the grass root level workers.
Do you have a business plan or strategic plan? (yes/no)
Yes the organization has a business plan
What are the three most important actions needed to grow your initiative or organization? STEP 1:
Educate the farmer members of the organization on their role as shareholders of the company with a view to making the Distribution Network viable and sustainable. The total sales of RUDi at the end of the first year will be Rs. 145.2 lakhs and 4,000 RUDIben and involving 26,500 farmers.
What are the three most important actions needed to grow your initiative or organization? STEP 2:
Strengthen the role of the RUDI sales women in the villages to market the RUDI brand products in the villages. Also to involve the entire village communities in the process so that the villagers see RUDI as their own brand. The total sales of RUDi at the end of the second year will be Rs. 267.8 lakhs and 7,500 RUDiben and involving 30,000 farmers.
What are the three most important actions needed to grow your initiative or organization? STEP 3:
To set-up a centre for excellence in agriculture management and undertake mass education among the communities. The total sales of RUDi at the end of the third year will be Rs. 418 lakhs and 12000 RUDiben and involving 35,000 farmers.
Describe the expected results of these actions.
As a result of RUDI, nearly 90% of the sales are ploughed back into the village economy and thus rural money circulates within the rural area and contributes to the strengthening of the rural economy. Since the focus remains on procuring locally, RUDI eliminates the need for middlemen, thus lowering incidental expenses. The RUDI processing centre creates alternate employment opportunities at the village level.
The communities will have access to good quality, pure farm and non-farm products at fair and affordable prices. When the poor are able to sell their produce as well as buy food for consumption at fair prices, their income as well as food security is ensured
What was the defining moment that led you to this innovation?
SEWA, from its experience of organizing small and marginal farmers, realized that small farmers and rural households lack access to markets, especially towards their daily consumption needs. This invariably resulted in health problems and malnutrition. Often the farmers couldn’t consume what they produced because of insufficient storage space at their homes. The price fluctuations in the market were high. While they faced reduced prices during the harvesting season because of a glut in the market, the prices were higher when they had to buy grains at other times. Further, SEWA’s rural members often had the need to buy produce on credit, as their incoming cash flows didn’t coincide with their consumption patterns. All this resulted in starvation and compulsory migration of the communities in search of work and livelihood.
Out of this need, and out of SEWA’s strong belief in the Gandhian vision of a self reliant village, came the Rudi initiative in 2001.
Tell us about the social innovator behind this idea.
Reema Nanavaty : Having succeeded in joining the coveted Indian Administrative Services, Reema stepped out for a year to come and directly work with the poor women members of the SEWA. As a manager, she developed the regional rural water supply scheme of Government of Gujarat and SEWA into an integrated water project, and made women central to water decisions. She stayed on with SEWA and expanded the project into an ongoing Women, Water and Work campaign of 1,00,000 women.
When elected by 2,84,000 members of SEWA as their General Secretary in the year 1999, Reema has expanded SEWA membership to new heights of 5,30,000 making SEWA the single largest union of informal sector workers in India. Reema currently manages US$ 6 million strong economic activities of SEWA through a federation of 100 cooperatives, nine district associations of artisans, salt farmers, and forestry workers, and a direct outlet of 12000 artisans.
Reema pioneered in initiating the RUDI initiative and forming a for profit company, the first ever business organization of SEWA to help small rural farmers get fair prices for their goods, creates food processing and sales jobs for disadvantaged rural women, and provides high quality agricultural and household products to rural and urban consumers.
Reeema is currently leading women’s economic rehabilitation programme Bagey Khazana where more than 1000 war affected poor widows are being provided vocational training to ensure livelihood security.
How did you first hear about Changemakers?
Through email from the organizers.
This Entry is about (Issues)
Sustainability
What would prevent your project from being a success?
The districts in which SEWA works are prone to natural disasters like flood, famine, cyclone, earthquake. The success of the project depends to a certain extent on the occurrence of these natural calamities.
Financing source
If yes, provide organization name.
RUDI has partnerships with SEWA and SGMH. The initiative is connected to All India Federation of Women in Agriculture. This is a network which involves 14 states of India. The experience will be replicated in these states.
How long has this organization been operating? (i.e. less than a year; 1-5 years; more than 5 years)
SEWA the parent organization was found and registered as a trade union in 1972, thus it is operational for more than 35 years. SGMH was established in 1999 with the help of Commissionerate of Rural Development; Govt. of Gujarat and SEWA.
Does your organization have a Board of Directors or an Advisory Board?
SEWA has an elected Executive Committee. RUDI and SGMH has its own BOD and Advisory Board.
Does your organization have any non-monetary partnerships with NGOs? (yes/no)
Yes
Does your organization have any non-monetary partnerships with businesses? (yes/no)
Yes
The Story
Does your organization have any non-monetary partnerships with government? (yes/no)
Yes
Please tell us more about how these partnerships are critical to the success of your innovation.
With the growth of RUDI it needs to strengthen its operations through professionalism and partnership with key institution. In order to protect and promote livelihood security to 265,000 women, SGMH needs to enter into partnerships with market and public institutions. These partnerships are broadly of two types: partnership with the Government, and private sector partnerships. These partnerships can also be multipartite partnerships.
The main purpose of these partnerships is to provide sustainable livelihood security to SEWA’s members. SEWA has had partnerships with private sectors for bring in cost effectiveness, human resource development, market linkages, and capacity building in the above mentioned market institutions.
How many people will your project serve annually?
More than 10,000
What is the total number of employees and total number of volunteers at your organization?
Employees – 5
Volunteers - 146
What is your organization's business classification?
Non-profit/NGO/citizen sector organization
Have you received funding from any of the following groups? (Please check as many as apply.)
 | 201 weeks ago Fran Holuba said: On July 10, 2009 the judges reviewed the entries for the Changemakers “Cultivating Innovations: Solutions for Rural ... about this Competition Entry. - read more > |
| 208 weeks ago Amelia Forrest Kaye updated this Competition Entry. |
| 208 weeks ago Ensuring Food Security to small farmers through their own agri business company RUDI has been chosen as a finalist in Cultivating Innovation: Solutions for Rural Communities. |
