In the heart of rural Maharashtra, a quiet revolution is unfolding, one that promises to reshape the future of Indian agriculture. The Krushak Swaraj Farmer Producer Company, based in the Rajura region, has emerged as a beacon of hope and innovation for small and marginal farmers, offering a replicable model for sustainable, profitable, and organized farming across the country.
A Sector in Crisis
India, despite being an agrarian nation with over 70% of its population residing in villages, continues to grapple with deep-rooted challenges in its agricultural sector. While technological advances and policy reforms have increased productivity since independence, the sector remains mired in poverty, debt, and uncertainty. According to the 2011 census, more than half of India’s population depends on agriculture, yet the sector contributes just 17% to the national GDP. The Economic Survey of India 2016 paints a grim picture: the average annual income of farmer families in 17 states is a mere ₹20,000, while NABARD’s 2019 data reveals an average debt of ₹104,000 per farmer.
The plight of small and marginal farmers is particularly acute. Over 83% of Indian farmers own less than two hectares of land, and most practice rainfed agriculture, which is highly vulnerable to erratic weather and market fluctuations. The rising cost of agricultural inputs, lack of access to quality seeds and fertilizers, and the absence of reliable market linkages have left many farmers trapped in a cycle of low productivity and diminishing returns. Post-harvest losses remain high, and farmers often receive just a fraction of the final market price for their produce. Tragically, these pressures have led to over 350,000 farmer suicides between 1995 and 2020.
The Krushak Swaraj Approach
Against this backdrop, Krushak Swaraj Farmer Producer Company has crafted a unique, farmer-centric model that combines collective action with professional management. The company’s vision is clear: to create prosperous farmers, a balanced environment, and healthy consumers. Its mission is to make agriculture sustainable, profitable, and affordable through the Farmer Producer Company framework.
Krushak Swaraj’s core values justice, equality, transparency, consistency, freedom, and quality are not just words but are reflected in every initiative the company undertakes. By organizing farmers into a cooperative structure, the company empowers them to negotiate better prices, access modern technologies, and benefit from economies of scale.
Focus on Chili: A Case Study in Value Addition
One of the standout features of the Krushak Swaraj model is its targeted focus on chili cultivation. A crop that is both a staple and a cash crop in the region. Unlike cotton and soybean, which enjoys government backed minimum support prices and established market systems, chili farmers have long struggled with price volatility and lack of assured buyers. Recognizing this gap, Krushak Swaraj decided to build an end-to-end value chain for chili, ensuring that farmers receive a fair share of the market value.
The company’s goal is ambitious: to help chili farmers earn a minimum net profit of ₹300,000 to ₹350,000 per acre, with yields reaching at least 30 quintals per acre and production costs kept below ₹150,000. By securing a minimum price of ₹15,000 per quintal, farmers can expect stable and substantial incomes.
Comprehensive Farmer Services
Krushak Swaraj’s impact extends far beyond chili. The company has established a Farmer Facility Center that provides quality seeds, fertilizers, pesticides, and equipment at competitive prices. More than 3,300 farmers across 90 villages in Chandrapur district have benefited from these services, which also include research, training, and expert agricultural advice.
The company’s vegetable nursery produces robust, disease-resistant seedlings, while its organic and biological input unit manufactures affordable organic fertilizers and crop protection products. These initiatives not only reduce input costs but also promote sustainable farming practices.
Market linkages are another cornerstone of the Krushak Swaraj model. The company buys green and red chili directly from farmers, eliminating middlemen and ensuring prompt payment. It has also established relationships with institutional buyers like ITC and Aachi Masale, guaranteeing stable demand and better prices for farmers. Even lower-grade produce fetches a premium, with farmers receiving up to ₹10 more per kilogram compared to the prevailing market rate.
Embracing Technology and Modernization
Krushak Swaraj is at the forefront of technological adoption in Indian agriculture. The company offers drone spraying services, which save time and labor while ensuring precise application of fertilizers and pesticides. Its spice processing unit adds further value by converting raw chili into marketable spices, opening new revenue streams for farmers.
A notable innovation is the Residue-Free Chili Production Project, which helps farmers produce export-quality chili that meets stringent European standards. Through partnerships with companies in Ahmedabad, Warangal, Delhi, and Guntur, Krushak Swaraj provides year round support and ensures that farmers receive double the standard market price for their produce. The success of this initiative is evident: 150 tons of chili have already been exported under this program.
Digital services are also integral to the company’s operations. Farmers receive real-time updates on market prices, weather forecasts, and expert advice through digital platforms, enhancing their decision-making and resilience.
Training and Capacity Building
Recognizing that knowledge is as important as inputs, Krushak Swaraj conducts regular training sessions on modern farming techniques, management, and market trends. Over the past year alone, more than 4,000 farmers have participated in these programs, gaining skills that directly translate into increased productivity and income.
Financial Performance and Teamwork
Krushak Swaraj’s business model is not just socially impactful, it is financially robust too. The company has recorded a turnover of ₹13 crore over the past three years, with ₹7 crore achieved in the 2023–24 financial year. Its dedicated team of 21 professionals, each with specific project responsibilities, ensures that every initiative is executed efficiently and effectively.
Recognition and Awards
The company’s pioneering work has not gone unnoticed. Krushak Swaraj has received numerous accolades, including the Krishithon Ideal Farmer Producer Company Award 2023, the Excellent Farmer Producer Company Award from the Chandrapur District Agriculture Department, and the Most Promising FPO Award from Agrostar. Its success story has been featured by Vanamati, Nagpur, and it has been recognized by the Spice Board of India.
A Blueprint for the Future
The Krushak Swaraj model demonstrates that when farmers are organized, empowered, and equipped with the right tools and knowledge, they can overcome even the most daunting challenges. By focusing on value addition, market access, and sustainable practices, the company has created a blueprint that can be replicated across India.
As the nation searches for solutions to its agricultural crisis, Krushak Swaraj stands as a shining example of what is possible when innovation, professionalism, and farmer ownership come together. The journey of these farmers is not just a story of survival, but one of transformation and hope for the future of Indian agriculture
