Commodity chain : Indian Rice

Background History of the Project

The Palakkad district is known as the "bowl of rice of Kerala" and is indeed the largest rice cultivated area in Kerala. Following immoderate usage of fertilisers, pesticides and herbicides, the soils and rivers of the region are very polluted, especially the downstream Backwaters. Fertility of the soils has been impacted and the environment has been threatened. Some producers even committed suicide due to the low productivity resulting from pollution.

The "Organic Safe Rice Project", implemented in 2005, has the objective to restore the ecosystem and the rural dynamism by means of bio-agriculture of a certain type of red rice which has been selected locally. Agreements were reached between Poabs and agricultural co-ops in the district of Alappuzha and then of Palakkad to make the endeavour a model project. Poabs committed to the supply of a technical assistance and to the purchase of rice at a guaranteed price, higher than the market price. Arcadie, its French partner, offered its assistance to sell the rice in Europe and launched a first Bio Equitable certification on the project. Non Basmati Indian rice was banned from exports from 2007 to 200. Poabs nevertheless continued to buy rice from the producers and to sell it on the local market. Arcadie, for its part, had to cease importing and selling Indian rice on the market. Following this break, Poabs continued to work with the producers in Palakkad. For the 2010 harvest, the produced quantity reached 60 tons. The initial growth rate has to be recovered, however, and imported quantities only reach that of one container (± 20t) each year, due to market capacities.

Local Partners

-Poabs: the Keralan family group, with a main activity in composting wastes of the city of Trivandrum, the capital of Kerala, is already engaged in the Bio Equitable approach in cooperation with Arcadie, thanks to its Nelliyampathy plantation, where tea, coffee and spices are grown.

-Amma Rice Mill / K&K Agrotech Pvt. Ltd, rice bran of Ernakulam.

-Local agricultural organisations members of a consultancy committee on the project.

Stakes

Restoration of the local ecosystem and of the downstream lands with biological agricultural. Support of the rural fabric, in spite of the difficulty to find local agricultural workers (in the vicinity of a small village), and with the assistance of a fair price to producers. Production of a high quality rice with a high demand from consumers.

Program Description

- Guarantee of a purchase price of paddy to the producers by Poabs, higher than the market price by at least 40%;

- Technical assistance of Poabs: selection of the technical approach, supply of industrial inputs, if need be, and of jute bags for conditioning, delivery of paddy to the co-op;

- Commercial assistance of Arcadie in Europe and payment of ESR control fees.

- 5% premium to the co-op on the amount of orders of rice, finished product: during our last visit, the suggestion was made to use this premium to reinforce the boarders of the pieces of land with environment-friendly materials to avoid having to rebuild them each year (waiting for approval by the members of the co-op).

Companies engaged in this Commodity Chain

ARCADIE (project manager), EURO-NAT (second buyer)