Athvas Horti Fed Producer Company

Limited

CHAPTER 1: INTRODUCTION
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GENERAL PROFILE OF FPO
S.No Particulars Details
1 Name of the FPO Athvas Horti Fed Producer Company Limited

2 Legal Status Registered

3 Registration Act Society Act
4 Registration Number and Date U01100JK2021PTC012231
26-01-2021
5 Place of Registration KUPWARA (FPO office at BUMHAMA)
6 Address of registration Athvas Horti Fed Producer Company Limited
Bumhama, Kupwara
7 Contact Details Asiya Nazir: 8393837837
8 Board of Directors 10
9 Name of CEO And Contact Asiya Nazir
number 8393837837
10 Number of employees on payroll 02
11 Share capital (Rs Lakhs) As on 100000
Authorized paid up
12 Number of shareholders 100

Farmer members 757 members enrolled in 6 FIGs

Institutional members
SHGs 5
JLGs
Farmer clubs
Non shareholder farmers
Total
13 Bank Account Acct No: 0012011110000034
Jammu & Kashmir Bank Kupwara (MAIN)
Bank and branch • Account IFSC Code: JAKA0FOREST
number • IFSC
14 Funding Agency NAFED

Name
Sanction date
15 Area of Operation Kupwara

District Kupwara

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 Blocks Sogam, Villgam, Drugmulla, Kupwara, Zirhama,
Natnusa

Panchayats Sogam, Villgam, Bumhama, Kupwara, Zirhama,

Natnusa
Sogam, Villgam, Zirhama, Kupwara, Bumhama,
Villages Batergam, Heeri, Vodhpora, Drugmulla

Markets Kupwara

16 Sectors in which the FPO is Walnut, Honey

working
17 Key commodities and core Walnut whole, Kernals, Vacumm Kernals. Packed
Activities Honey
18 Proposed commodity(s) and value
chain
Activities
19 Licenses obtained FSSAI has been taken
• Fertilizer
• Pesticide/Insecticide
• Seed
• FSSAI 21022251000324
20 Infrastructure available with FPO Enclose Annexure(if necessary)

• Office room
21 Business Turnover achieved Rs
22 Profit Rs
23 Major risks faced Mobilizing farmer is the big task
24 Good practices promoted by FPO Schemes for SHGs and for other intrested farmers
25 Major markets and distances 2 km (Kupwara is the biggest Market)
26 Major banks and distances 2 Kms
ABOUT PRODUCER COMPANY
Ahvas Horti Fed Producer Company Limited has been created in Bumhama District of Kupwara by ISAP
(Indian Society of Agri Professionals) under the FPO Scheme as introduced by GOI. The FPC is managed a
team of experienced local professionals with mentoring and guided by the ISAP team. The FPC currently has
757 members and will work with traditional walnut in the aggregation and trading of walnut.

The project will utilize the existing network of 757 FPO members, which will material to the units for
processing and further selling.

BLOCK INDEX MAP

The district has a total area of 2379 km², 47.3 km² is urban and 2331.7 km² is rural. Out of the total population
of Kupwara, 870354 are in the district, 104729 are in urban areas, and 765625 are in rural area. According to

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census 2011 8.70 lakh of which 87% live in rural areas. The literacy rate stood at 64.51% in 2011, which is
expected to increase significantly in the next census. The Kupwara district is divided into 5 Sub Divisions, 16
Tehsils and 24 blocks. The district is famous for walnuts, Red Rice of karnah and the Honey. About 68,500Ha
of land is under agriculture and horticulture plantations in the district. Also known as walnut district, it produces
over 50,000 tonnes of walnut annually in addition to contributing almost 3 lakh tones of apples every year.

SWOT ANALYSIS FOR THE PROPOSED BUSINESS OF THE FPO

Strengths
 There is a good production and business
of walnuts in
Kupwara. Department of horticulture have developed
high density walnut nursery in Kupwara.
 Geographical conditions are suitable for Walnut
plantation.
 Growing demand for walnut products in the market
Opportunities
 Sustainable livelihood promotion with an integrated
approach
 Possibility of increase in the supply of walnut to meet
market demands.
Weakness
 Lack of market awareness in the farmers.
 Low-quality equipment used due to lack of
availability.
 Lack of established market network.
 Lack of infrastructural development to
strengthen the development activities.
Threats
 Natural calamities may affect achieving the
demand of walnut.
 Seasonal failures: there are chances for the
seasonal failure of walnut fruit.

CHAPTER 2: BUSINESS IDEA AND BUSINESS OPPORTUNITY – VALUE

CHAIN

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VALUE CHAIN
Value chain of Walnut

The Kupwara district is famous for walnuts, Red Rice of karnah and the Honey. About 68,500Ha of
land is under agriculture and horticulture plantations in the district. Also known as walnut district, it produces
over 50,000 tonnes of walnut annually in addition to contributing almost 3 lakh tones of apples every year.
There is a good production and business of walnuts in Kupwara. Department of horticulture have developed
high density walnut nursery in Kupwara. Of late it has been recognized that it has the potential to develop as a
prime agri-horticultural. Walnut production is a lucrative business and it generates employment.

In modernized channel, processor appears as one of the important functionaries between

producers and consumers. Processors either purchase kernels directly or purchase nuts and then they
convert it to the kernels in systematic manner to confirm global demand of kernels and dispose it to
the global markets.

(A) VALUE ADDITION FOR EXPORT WHEN PROCURED AS NUT AND

EXPORTED AS KERNEL BY PROCESSOR
In these channels, processors purchase walnuts as nuts from trader or directly from farmers.
Processor pay them as per grades of walnut. For the fixation of price of the produce, processors
categorize procured quantity of walnut into three grades (Table 3). Processors invest a huge amount
on value of addition of walnut and make it available in export market as kernels of different
grades. Although processor categorize kernel into 5 grades, however, price spread for grade viz.
Light halves, Light broken, and Light amber halves has been averaged and presented in Table
below

Table: Description of walnut grading (nuts as well as of kernels

For nut grading

Grade Cod Nut size

name e
Apple 111 33-38 mm
Pear 555 30-33 mm
Cherry 999 27-30 mm

For kernel grading

Grade name Grade

Extra light half 1st
Light halves Second
Light broken Third
Light amber halves Fourth 4|P a g e
Light amber broken Fifth
 It is observed that farmer’s net return increased significantly in channel where he is able to sell his
produce directly to processor. It is found that all the functionaries that appear before processor
also realized better absolute margins than traditional channels. In proportionate terms, the
costs as well as returns to processor would be much high, though his margin was maximum in
grade I and lower toward grade III. It implies that the return to each rupee invested as value
addition including grading (a proxy of quality improvement) was more.

(B) VALUE ADDITION FOR EXPORT WHEN PROCURED AS KERNEL AND

EXPORTED BY PROCESSOR
In this case processor purchased better quality kernels either from trader or directly from farmer.
The channel perused for export of kernels has been deputed in Table 5. In these channels either
trader or farmers spend on conversion of nuts to kernels and bear the cost of refuse in such
conversion. Net return to farmer was better in channel where he is able to sell his produce to
processor directly even when his costs were more. In similar manner, margins of trader were
more when he sold walnuts as kernel than nuts. Although in these channels the proportionate
margin of processor was relatively less than earlier (when he purchased nuts and bear cost of
conversion into kernels) but his margin were better than any other functionary in absolute
terms. To sum up, net return to farmers were maximum in absolute term in modernized
channels. Farmer’s returns were relatively more when they sell their produce directly to
processor. Further it was observed that farmer per rupee invested on value addition added
to the dividends of investor.
Marketing efficiency and margins in different channels were estimated while accounting
for marketing loss and margins and are presented in Table 6. Farmer’s net returns were higher in
absolute and proportionate terms when they sell kernels directly to the processor. Accordingly,
marketing efficiency was found more in channels II when the processor purchase nuts and same
results are found in channel II when processor purchase kernels from the producer. The
marketing margins were more when processors acted as the main functionaries in the channel.

ECONOMIES OF VALUE ADDITION

In modernized channel, more marketing cost was incurred by processor which adds value to
the produce and reduces the loss in kernels processing. Despite, more marketing cost in
modernized channel processor’s margins were seemed to be less which in turn is favourable for
the producer to sale its produce through modernized channel. Marketing efficiency was also
seen more in case of modernized channel, which emphasized upon the need for grading and
scientific manipulation of surplus. Through value addition, integration of walnut production
with export marketing would help in harnessing the potential of this crop in domestic and
global trade.
The whole chain from procurement to export of walnut is best with number of problems which
requires immediate attention by Government. The very important problems reported by the
exporters were insufficient availability of raw material for value addition, Despite huge
demand of walnut at National and International markets, the production is much less as
reflected by processor, which creates supply-demand gaps, poor role of Government
agencies and due to this, the respondents have shown serious concerns regarding poor
performance of Government in conduct of trainings and human resource development of
walnut growers.

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GAPS IN VALUE CHAIN
Production

 Production is usually in small quantities by individual farmers to set up processing plants

Post-harvest

 Lack of standardization and maintenance of quality standards

 Lack of quality planting material.
 Lack of appropriate packaging.

Marketing

 Lack of access to market and pricing.

 Lack of appropriate storage and packaging material, which makes small farmers dependent on
middlemen or big processing companies.
 Different buyers have different quality standards

CHAPTER 3: ORGANIZATIONAL & MANAGEMENT PLAN

ORGANOGRAM

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