Profile

Vegetable and Fruit Promotion Council Keralam (VFPCK) is an ISO 9001-2000 certified company registered under section 25 of
Indian Companies Act 1956 and has been established to bring about overall development of fruit and vegetable sector in Kerala.
Established in 2001 as the successor organization of Kerala Horticulture Development Programme (KHDP), VFPCK is managed by a result
oriented multidisciplinary team of professionals. Needless to say, KHDP, funded by European Union, was one of the most successful
agricultural development projects ever undertaken in the country. KHDP could effectively introduce several agricultural developmental
policies and redress long-standing problems that plagued the agricultural sector. The Self Help Groups (SHGs) conceptualised by the
Council form the base units for all the interventions like Extension, Rural Credit, Group Marketing, Participatory Technology Development
(PTD), Value Additions and Exports.
VFPCK is a company with majority stake of farmers and the Government and financial institutions as the other major shareholders. Self
Help Groups of farmers constitutes 50% of shares, Government of Kerala has 30% and other related institutions hold 20% of VFPCK’s
shares.
The Director Board with 11 members is chaired by the Minister for Agriculture, Government of Kerala and acts as the governing body of
the Council. The board members include senior Government officials like Agricultural Production Commissioner, Secretary (Finance),
Chief Executive Officer of VFPCK, four persons including a woman to be elected from the SHGs and one representative each from
participating banks, national agency in horticulture and European Union.

 Vision:
To mould VFPCK as a centre of excellence in the domain of horticulture

 Mission:
To introduce and implement schemes in the field of horticulture which will benefit the farmers and to create attitudinal change
towards farming activities among all class of people.

 Objective:
The Primary objective of the Council is to improve the livelihood of vegetable and fruit farmers by empowering them to carry
on vegetable and fruit production, value addition and marketing as a profitable venture in a sustainable way. It also aims to
continue the successful activities initiated by Kerala Horticulture Development Programme.

Concepts
The council aims to attain the objectives through the principle of
“Self Help, Participation and Prosperity”.

Major innovative concepts developed and implemented by VFPCK are as follows Self Help
Groups

Self Help Groups (SHGs) are the backbone of VFPCK.

SHGs are groups of farmers with identified common objectives, tasks, group identities and
neighbourhood. It is a system where all members work together to address problems and utilize
opportunities through participatory action after co-operative decision making for the overall
development of members. The Council is moulding the SHGs as the basic local institutional units
for introducing innovative interventions in horticulture. At present Council have nearly 5800 SHGs
and about 111000 farmers.
   Features of VFPCK Self Help Groups

 Voluntary group of 15-20 commercial fruit and vegetable cultivators.

 Formed based on neighbourhood principle.
 Function observing a set of mutually agreed norms.
 Have regular meetings, discussions and common decisions.
   SHG is a basic platform for

o Increased social interaction

o Collective bargaining
o Quality input sourcing
o Advanced production technology and production planning
o Micro finance.
o Development of farmer market.
o Problem solving.
o Total empowerment of farmers. Master Farmers

Unlike the traditional system of agricultural extension, in

VFPCK, the dissemination of information is routed through Master Farmers. Three farmer
 leaders called Master Farmers (MFs) are selected in each SHG and are trained for leading
each group. They lead farmers in the areas of production, credit and marketing. SHG
membership enables farmers access to credit, training and to technical advice from the
Council staff, but benefits have gone beyond production related aspects.  Office-less
extension
The extension approach of VFPCK is unique with features like office less extension,
frequent farm and home visits, and mass awareness programmes like campaigns and
demonstrations. The extension officers of VFPCK are regularly visiting the farmers’ fields as
per fixed schedule and give necessary technical advice and other leadership support.

 Group Marketing

The Council has developed a unique group marketing concept

which is production center oriented and farmer participatory. A group of 7 to 15 neighbouring
SHGs will constitute a Field Centre (FC) wherein the SHG farmers bring their produce to a common
place for marketing. Traders are coming to the Field Centers and this will increase the bargaining
power of the farmers. To give additional support for bargaining the VFPCK Market Information
Centre (MIC) make available the daily market prices of banana and all other vegetables collected
from different markets in Kerala and even outside. VFPCK provides account books and platform
weighing scale to Field Centers initially. After evaluating the performance at different stages FCs
are elevated to Swasraya Karshaka Samithis (SKS) and are provided with various other supports
like additional platform weighing scale, furniture, telephone, major expense reimbursement for a
year, land and building. Some of these markets have achieved an annual turnover of more than
one crore.  Participatory Credit
The credit package of VFPCK is unique and has given due importance for easy access, sufficient
and timely credit to farmers. This innovative credit package was designed in such a manner so as
to extend credit support to leased land farmers too. A MoU was signed between VFPCK and 11
banks in the state for disbursement of credit to farmers. The SHG assess the credit worthiness and
credit requirements of its members through a participatory credit planning session.

 Participatory Technology Development

The Council is trying out the concept of Participatory Technology Development (PTD), a novel
methodology for technology development and refinement with farmer participation. The
experimental capacities of the farmers are enhanced through this participatory approach and
farmers learn to solve their problems by themselves.

KHDP -The Parent Organisation

Kerala Horticulture Development Programme (KHDP) was initiated

in the year 1993 with the financial support of the European Union and Government of Kerala, with
a financial outlay of Rs. 130 crores for promoting fruits and vegetable production in Kerala and
also to study the feasibility of introducing SHG in agricultural sector.

Activities were first launched in the districts of Thiruvananthapuram, Ernakulam and Kottayam.
Over the years, the programme has spread to other districts. KHDP had experimented and refined
several agricultural practices, and were able to effectively address the hard felt needs of the
farmers. This farmer friendly project has empowered farmers to rise up to the new and emerging
challenges in the horticulture sector. As envisaged in the guidelines of the project, the activities of
KHDP, after its completion was taken over by the new farmer led company known as Vegetable
and Fruit Promotion Council Keralam.

Impact of KHDP

 The fruit and vegetable production of SHGs was substantially increased to 86%. The area
increase was a result of modern agricultural practices and increased risk taking ability of
farmers because of the motivation and assistance from KHDP.
 Agricultural income was increased by 20-80% among most of the SHGs.
 The innovative credit package of VFPCK doubled the credit availability and utilisation.
 Simplified the credit norms and easy access to credit availability was ensured. The credit
repayment of the farmers is remarkably noteworthy.
 The innovative marketing system promoted by KHDP by establishing Swashraya Karshaka
Samithis had encouraged the farmers to take full control over the marketing of the
produce.

    (Source: Excerpts from the study by XLRI, Jamshedpur)

Team VFPCK

CHAIRMAN
Shri. K.P.Mohanan
Hon. Minister for Agriculture,
Government of Kerala.
Portfolio: Agriculture,
Soil Conservation,
Soil Survey,
Agricultural University, and
Warehousing Corporation

Chief Executive Officer

Shri.N Vijayan

Director board members:

 Shri. K.P.Mohanan, Hon Minister for Agriculture, Government of Kerala.
 Shri. K Jayakumar IAS, Addl. Chief Secretary & Agricultural Production Commissioner,
Government of Kerala.
 Dr. A Jayathilak IAS, Director of Agriculture , Government of Kerala.
 Shri. N Vijayan, Chief Executive Officer, VFPCK.
 Shri. Girees Kumar IAS, Officer on special duty , Finance resources , Govt. secreteriat ,
Trivandrum .
 Shri. Surendra Kumar, Deputy General Manager, State Bank of India, Rural Business Unit,
Trivandrum.
 Shri. P Vasudevan
 Smt. Sarasakshiyamma
 Shri. Hari T T
 Shri. C L George
Functional Directors:
 Shri. Sivanandan A.K(Director - Projects-1)
 Shri. Satheesa Kumar K (Director – Administration & Finance)
 Shri. Jose Joseph (Director - Projects-2)
Auditors:
 M/s. Rangamani & Co. ,Chartered Accountants,Kochi-682016
Company Secretary:
 Shri. P.P Zibi Jose,Practising Company Secretary, Kochi-682018
Bankers:
 State Bank of India
 State Bank of Travancore
 Union Bank of India
 Exports

VFPCK has started export promotion activities as part its

market intervention and service diversification with an objective of promoting exports of fruits and
vegetables from the State. The cell provides the necessary institutional framework and assistance to
the farmers for marketing their produce outside the country by direct exporting and acting as a nodal
agency. So far VFPCK has exported 480 MT of fresh fruits and vegetables valuing Rs.1 crore. The cell
operates from the headquarters of VFPCK.

The main objectives of export activities are:

 To avoid market glut during peek seasons.

 Ensure a premium price for produce.
 Popularize Kerala fruits and vegetables in the international market

The Council has exported fruits and vegetables and regularly supplies to various exporters. The Export
Promotion Cell of VFPCK now serves as an exporter, supplier, advisor and facilitator in the field of fruit
and vegetable export. Council has also given special thrust to R&D activities, experimental and trial
consignments, brand promotion through participation in fairs and exhibitions, market study,
promotional supports to other exporters/buyers etc.

Product coverage
The products include fresh and value added fruits and vegetables covering vegetables like snakegourd,
cowpea, bittergourd, brinjal, ashgourd, cucumber, pumpkin, ginger, bottlegourd, ridgegourd, tapioca,
colocasia, coleus, yams, littlegourd, drumstick, bhindi, banana stem, banana flower, and fruits like
pineapple, mango and different varieties of banana. The Council also exports banana chips under the
brand name ‘ Vefco Frys’ to Gulf countries.
 
Farmer Markets(Swasraya Karshaka Samithi)

The concept of group marketing was developed with focus on

empowering and facilitating the farmers to take more effective decisions for marketing of their produce. The
concept of group marketing thereby provides SHG farmers better access to markets and therefore a greater
share in the consumer’s rupee. Under group marketing, 10-15 Self Help Groups (SHGs), numbering about 250-
300 farmers, come together under the banner of Swasarya Karshaka Samithi (SKS) and trade their produce
collectively. This helps the farmers to have a good volume thereby being in a better position to negotiate with
the wholesalers in order to 'optimise their returns'. Large volumes induce traders to buy from the Swasarya
Karshaka Samithis. This helps them to reduce transportation expenses and save time. Weighing is done by
farmers and is transparent and accurate. The loading/unloading of produce is done by the farmers themselves
ensuring careful handling of the produce. Prompt payment within the prescribed period is guaranteed as there
is a collective effort in recovery from among debtor traders. The SKS thus facilitates trading between farmers
and traders and improves their bargaining power through better access with markets and traders.

The major highlights of Swasraya Karshaka Samithis are:

 Production centre oriented marketing system
 A market fully owned and managed by farmers
 Well trained management committee
 Market information and management support from VFPCK
 Transparent accounting system and regular auditing
 Better bargaining power for farmers.
 Reduced size of marketing chain.

Infrastructural Supports from VFPCK

VFPCK facilitates the farmers to establish, manage and develop these Samithis. Well defined milestones are
used to assess the performance of a Karshaka Samithi in a participatory manner. In order to achieve
satisfactory levels of growth, each and every proposal for a new Samithi is strictly evaluated. Master Farmers
are facilitated systematically. Adequate and timely training is ensured for the Marketing Master Farmer
committee members

Stage of
Farmer Supports from VFPCK Time of Support
Market

Phase I One Platform balance, Date of initiating

(Bulking phase) One set of account books. bulking point

Telephone,
Furniture
1 table,
1 Almirah,
II. Phase II 10 plastic chairs
(After up Reimbursement of After the first audit
gradation) Audit fees,
Rent,
Secretary’s
salary (for 1
year)

Phase III.
(Minimum sales
turnover of
Land and building for
Rs.15 lakhs/ After one year.
markets.
annum and
other eligibility
norms)

At present 205 VFPCK Swasraya Karshaka Samithis are functioning in across Kerala. About 70500 MT
of produce worth Rs.70 crores were traded by these SKS during the financial year 2006-07 and the
construction of as many as 52 permanent buildings for Samithis have already been completed and the
construction of 18 more buildings are fast progressing.