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Contract Farming  |  Partnering with SSA  |  IDEI

Investing in the Community

GMCL MembersAt Himalaya we believe that by giving the poor a source of stable income, we can help transform them from passive recipients to more active participants in the creation of wealth for the country.

In pursuit of its social goal of promoting economic empowerment of marginalized farmers, Himalaya has outsourced collection of some medicinal herbs to rural farming communities in Karnataka. The contract-farming project initiated in 2003 through Gram Mooligai Corporation Ltd. (GMCL), a company working with rural communities in Southern parts of India, aims at building sustainable livelihoods for small and marginal farmers.

Women ParticipationAs per the arrangement, Himalaya procures a substantial proportion of its requirement of Eclipta Alba and Phyllanthus Amarus herbs, used in its animal health products, from GMCL. GMCL in-turn buys this produce from small and marginal farmers at a fair market determined price. This helps eliminate middlemen, ensures higher returns to rural farmers and guarantees a stable source of income.

Over the past two years, Himalaya has significantly increased the quantity of herbs procured through this arrangement.

The main problem facing Indian farmers is the absence of direct linkages with the market, which results in heavy dependence on intermediaries. Exploitation by middlemen is rampant, considerably eroding profit margins of cultivators. Himalaya is working towards eliminating this crucial market barrier by providing market information to farmers, entering into buy-back agreements with small farmers and imparting technical training. This has helped reduce transactions costs and generate stable income for the farmers.

   
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