Farmers can produce jaggery without having unit, thanks to CFC under ODOP scheme

A Common Facility Center (CFC) is being built in Muzaffarnagar district of Uttar Pradesh at a cost of Rs 5.10 crore. For this, the state government is giving 90 per cent subsidy. The remaining 10 per cent is being contributed by the shareholders. A semi-automatic jaggery factory is being set up in this CFC, which will have a production capacity of 450 quintals per day. Its speciality is that any farmer can bring his sugarcane here and make jaggery and sell it in the market. They do not need to set up a separate factory to make jaggery.

This CFC in Muzaffarnagar is being built under the “One District One Product (ODOP)” scheme. Muzaffarnagar district has been selected for jaggery production under ODOP. The first CFC of the district is coming up at Saidpur Kalan, 17 km from the district headquarters, where jaggery production is likely to start from January next year.

It is being set up by Badhaai Agribusiness Producer Company Limited. It is like an FPO (Farmer Producer Organisation). Chairman of Badhaai Agribusiness, Arvind Malik told Rural Voice, “125 farmers from seven nearby villages, including Badhaai Kalan and Saidpur Kalan villages in Muzaffarnagar district, are members of Badhaai Agribusiness Producer Company Limited. It has 21 shareholders. It's not that just a jaggery factory is being set up in this CFC, but facilities for packaging, grading and lab testing will also be made available here.

Apart from the member farmers, any farmer can bring his sugarcane here and make jaggery out of it, get it packaged and sell it in the market under his own brand name. In return, farmers will have to pay fees. This fee will be decided by board members and the Deputy Commissioner of the District Industry and Enterprise Promotion Center.

He said, “Chemical free jaggery will be produced in this CFC. The main focus will be on gradually making organic jaggery. Some farmers in the district grow organic sugarcane. First priority will be given to organic farmers. If farmers want to market and export their jaggery, then for this we have registered a separate company named Badhaai Foods. Through this also they can sell their jaggery. Looking at the way people are paying attention to eating jaggery instead of sugar from the point of view of health, there is a lot of potential for the jaggery market to grow and export.”

Malik said, “It will be our responsibility to operate and maintain the CFC. In the first four and a half years from the beginning, the state government will monitor it through the District Industry and Enterprise Promotion Center. After that it will be handed over to us. Out of the income generated through this, the profit after operation and maintenance expenses will be distributed among the shareholders. No shareholder has been given more than 5 per cent shares."

The announcement to develop CFCs under the “One District One Product” scheme was made in the year 2018 by the state government. Under this, a SPV (Special Purpose Vehicle) has to be responsible for the establishment, operation and maintenance of the CFC. Self Help Groups, Cooperative Societies, Producer Company, Private Limited Company, Limited Company or Limited Liability Partnership can have a SPV under the conditions of ODOP. Any organisation should have minimum 20 members and minimum two-thirds of the total members should be related to ODOP product.

The association should be registered and no member of the association should hold more than 10% of the shares of the association. Projects up to a maximum investment of Rs 15 crore can be set up as CFCs. In this, the government gives 90 per cent of the amount. Projects above Rs 15 crore can also be set up, but in such projects Rs 12.75 crore or the remaining cost after deducting the cost of land from the project cost, whichever is less, will be given by the government.

Detailed information for establishment of CFC under One District One Product Scheme can be obtained from District Industry and Enterprise Promotion Center.