(1888PressRelease)
August 13, 2009 - AOFG India, a network organisation consisting of farmer associations and grass root development and community organisations, helped set up Zameen Organic in 2006 to improve access to markets for small and marginal farmers. Initially working with 300 farmers in the Vidarbha region of Maharashtra, an area renowned for its farmer suicide problem, and the tribal area of Adilabad, Andhra Pradesh Zameen is now co-owned by cotton farmers. AOFG supports the private limited company through farmer organisational and institutional development, as well as technical training in organic farming practices and on Fairtrade regulations.
Rabobank Foundation selected AOFG India in recognition of the inclusive ownership in Zameen’s business model, which reflects the bank’s cooperative principles. They were also impressed by the social and economic impacts for farmers and their wider communities achieved by linking up small-holders to large markets. Zameen also partners with fashion brands and textile mills within its supply chains, accessing a greater proportion of the value chain for its farmer shareholders.
The Rabobank Foundation’s support will be invested in capacity building and strengthening the grass root level farmer institutions. In addition, some of the funding will go towards the organic and Fairtrade certification costs. Organic certification adds considerable value to the farmers’ crops and the practice has also resulted in improved farmer health following the removal of all agrichemicals. Fairtrade certification provides a guaranteed fair and stable price and additional money set aside for community development, which the farmers democratically invest in their own projects.
The Rabobank Foundation and Rabo India Finance support projects that strengthen cooperatives and other primary producer-owned organisations that aim to achieve independent viability and sustainability. Rabobank Foundation has supported several agribusiness projects that work to increase Indian primary producer incomes and facilitate access to credit.
“Globally Rabobank is committed to improving the efficiency of agri-value chains and linking Indian farmers to high value markets. This investment aims at increasing the capacities of the small farmers through technical assistance to grow high quality organic cotton. This reaffirms Rabobank Group’s commitment to development of the agribusiness sector and support sustainable agriculture practices,” said Surojit Shome, Managing Director and CEO Rabo India Finance.
“Working with some of India’s poorest and most marginal farmers can be a challenging task, but witnessing Zameen farmers come together, organise and gain invaluable business skills such as book keeping has been an inspiring process. The Rabobank Foundations’ funding will empower the farmers further still with new skills and knowledge and help develop their organisational structures. With this support these farmers will be able to invest more of their Fairtrade premium monies into community development projects and can look forward to total independence and self-sufficiency for generations to come,” said E.M. Koshy Chairman AOFG India
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