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A Case Study on Millets Value Addition

Summary

Increasingly corporate trend has created a concern that many midsize family-owned business has disappeared. Many rural areas faced with declining numbers of farm jobs. Considering an alternative as a source of potential income and employment growth the food processing sector at rural level has significant importance. By adding value to farm products, this food processing sector is seen by some analysts as a key element for rural growth, as well as a way to enhance farm income and provide rural jobs.

Farmers of local communities are looking for solutions to their local economic problems. If rural areas cannot find ways to attract or create jobs requiring the skills of highly educated people, they may lose the group most likely to be the catalyst for improving local conditions. However, any gains by rural areas probably will have to come about through intense competition with older, more-established industries in many metropolitan areas.

Background information

Name of the farmer : Mr Sivakumar
Village: Thathampatty
Accommodation: Own house
Social and economic factors: Middle Class educated
Family and supports: family women & interested farmers supported activity
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Assessment

Declining Rural Economy

Steady declines in the number of farms and growth in average acreage per farm have occurred for a number of years in the recent. The pattern of economic growth in farm-dependent rural families, depended on either being an active trade center for a much larger region or having a concentration of food processing activity. Value-added product development provides excellent opportunities to stimulate economic development, as the following case study demonstrates.

Plan

We plan to develop different types of cookies using a combination of minor millet flour and natural sugar. The activity has been delegated to an interested farm group headed by Mr. Sivakumar who is having prior experience in biscuit industry. Raw materials are being arranged from the VMFPCL processing centre and natural sugar organized from another FIG in the district.

Capital Investment loan from Viruthai Millets FPCL: 500000/-

Intervention

From the farmer side: with the help of VMFPCL support regarding financial, technical, raw material mobilization and capacity building I have developed a micro food processing industry for millets cookies production and through this venture I have been able to provide job opportunity for the 5 to 6 members directly in the village and can be able to support indirect job opportunity for more than 15 members those who are not directly connected to the production process I used the loan amount for machinery purchase regarding the production of millet cookies.

The information below describes why I feel satisfied about product value addition is important for us.

Per day production capacity : 200 Kg
Price : 150 per Kg
Total value of production per day: 150 x 200 = 30000.00
Total value of production per month: 30000 x 30 = 900000.00

Other important benefits:


  • Technology for Value addition methods training to the farmers group.
  • Increased income level of the farmers.
  • More job opportunity at rural level for higher educated peoples.
  • Employment to rural uneducated women.
  • Improved social status of the family and rural society.