The story of Kollama, a woman farmer, living in Andhra Pradesh, a southern Indian state, is typical of poor farmers across the country. Kollama recently took a loan of Rs 3000 ( US $ 68), to repair her home. Her farm income was not enough to pay off her loan and the interest was mounting. Struggling to pay off the loan, her husband took on a second job, working as an agricultural 'labourer' on land belonging to other farmers.

With only small, fragmented farms that generate limited income, lack of alternate employment opportunities, burden of debt, poor access to proper health or education- farmers like Kollama find themselves trapped in a vicious cycle of poverty.

One of the major problems faced by farmers in India is the absence of direct market linkages. Most of them depend on agents to sell their farm produce and these intermediaries are usually exploitative. In order to improve their economic condition, farmers need access to the market, fair price for their produce and information and technical assistance on farming technology.

As part of our community development initiative, Himalaya has partnered IDEI, an NGO providing low cost irrigation technologies to small and marginal farmers. The purpose of this partnership is to create effective trade linkages for farmers like Kollama. By connecting the farmer on the field to the procurement department at Himalaya, IDEI plays the role of a facilitator.

The project involves sourcing medicinal herbs from small farmers at a fair market price. Since Himalaya needs huge quantities of these herbs on a regular basis, the farmers are guaranteed an extra income. By entering into a direct contract with the farmer, we are able to bypass middlemen and provide farmers with a reliable source of income.

Using IDEI's network on the ground, Himalaya has started sourcing neem dried leaves, a herb used in our products like Neem face wash and Neem capsules, from small and marginal farmers in certain village areas of AP. The farmers provide us with high-quality neem leaves, organically grown, which meet our stringent international standard. This reinforces the fact that with adequate training, it is possible to build skills and capacities of the local farming community. Skill enhancement also strengthens the farmer's bargaining position vis-à-vis other suppliers.

Nearly 50 farmers are involved in this project, including 20 women, Kollama being one of them. "With the additional income I get from collecting neem leaves, I have been able to pay off my loan. This is a huge burden off my shoulders. I am also happy that this is a regular source of income for my family," says Kollama.

Himalaya believes that the first step towards building sustainability for poor farmers is to create extra income generating opportunities. This needs to be followed with other forms of engagement like health camps, training, and education. Over the next year, we will extend the reach of this 'circle of trade', by involving a larger number of small and marginal farming communities in the sourcing of herbs for our products.