Socio-Economic Impact of Seeds Input Supply on Farmers of Gadhvi Village, Dang

Village community works are planned, implemented and maintained with the close participation of GVM (Gram Vikas Mandal) of respective village. The GVM in Gadhvi village of Ahwa block was formed during year 2015 and has a member from almost every family of the village. Among several, input supply of seeds for agricultural activities is one. GVM – Gadhvi started procuring the seeds from year 2016 and has procured for two consecutive years.

Procurement Process: GVM collects the village demand for seeds. The demand should be minimum 5 kg per farmer/individual. AKRSP (I) with village leaders finalises the party for supplying the party. The finalisation of the vendor is done using the bid system. The notion of bulk procuring through viable bidder is better quality with minimum price at right time. The payment to party is done through GVM. AKRSP (I) along with GVM play a role of facilitator for benefit of farmers and ensuring maximum benefit to them. The lowest bidding party deliveries seeds to the nearest AKRSP (I) office. AKRSP (I) team ensures quality of every seed packet and vendor also feels pressure to supply quality seed.  The respective extension volunteer (EV) amasses seeds from the office and supplies to the farmers based on their pre-demand basis. The EV charges a small amount for conveyance as decided by the GVM. The impression of using the EV for the drive is to avoid confusion and proper management.

Study Methodology:  Based on the input data from the local team, it was decided to conduct a study on the small initiative of involving village institution. Stratified sampling method was adopted depending on the strata of farmers who procured from the bidding system and those who decided to procure on their own for “n” possible reasons.  From each of the two possible groups, two random farmers where interviewed. The interview data was later triangulated with the local staff and other members of GVM. Gadhvi GVM started procuring the seeds from year 2016 and has procured for two consecutive years, which forms the basis of the study.

Study Findings: Farmers grow a number of crops ranging from rice, finger millet, white millet, sorghum, groundnut etc. Rice is the main crop of the village and is cultivated in more than 70 per cent area of the agricultural land. Farmers prefer buying certified hybrid varieties of rice seeds from the market and prefer mainly suruchi variety, as the variety requires less water. The other variety under US group requires assured irrigation and is mainly preferred by the farmers who have farms near the seasonal streams, the number of whom in study village is very low.

The fact that large number of farmers grows suruchi variety of rice and the bulk procurement started since 2016 lands us to the fact that each farmer who has procured the seeds from GVM has earned a fair profit of ₹ 50 per kg during year 2017 while ₹ 55 per kg for year 2016.

Table1. Year-wise Net Profit Analysis (per kg) in cost of suruchi variety of rice seed when procured in individual capacity vs. GVM from different market

The EV charged ₹ 5 per kg in 2017 while ₹ 10 per kg in 2016 as decided by the GVM as conveyance allowance. On the other hand, farmers who bought the seeds from the local market spend approximately ₹ 60 as conveyance charge. This factor leaves the above analysis incomplete and thus another variable, transportation cost, was taken into account.  

During the interview session it was also deduced keeping in mind the small farmers that a minimum of 5 kg of seed request was expected from each farmer. Thus, the above data was studied under the purview of transportation cost for 5 kg seeds. The analysis revealed that each farmer who has procured the seeds from GVM has earned a fair profit of ₹ 285 per 5 kg during year 2017 while ₹ 275 per 5 kg for year 2016, meaning a minimum of ₹ 285 during year 2017 and ₹ 275 for year 2016 was saved by each farmer, the following seasonal calendars.

Table2. Year-wise Net Profit Analysis (per 5 kg) including the transportation cost in cost of suruchi variety of rice seed when procured in individual capacity vs. GVM from different market

Going through the net profit data trend, it can be well deduced that “even a small farmer who has procured just 5 kg rice seeds through GVM has saved ₹ 460 over a period of two years”.

With respect to village community, if we assume at least a minimum of 50 farmers gained through bulk procurement of GVM, saved outflow of  ₹ 14,250 during year 2017 while ₹ 13,750 during year 2016 from their village which might have or will be used in other economic, social and cultural activities.

The one to one interview done divulged us to the deeper facts and findings revolving around the different notion of farmers to procure seeds from GVM.

Apart from monetary aspect, there are some social aspects which might proof building element to the success of the initiative in the long run. During local procurement, the farmer prefers motor bike for buying the seeds. The nearest market is at approximately 18 km distance from village. The person is usually accompanied by one another individual of the family. If procured through bulk system, the drudgery of going to market and the time is saved. In addition, the farmer is always assured of the right quality and safeguard against absurd pricing in market at peak period.

The involvement of village institution GVM in such processes further strengthens it and ensures its smooth functioning for the other related works in the village.