Walmart helps link 8 lakh producers to markets; farm groups sceptical

TechnoServe, a non-profit organisation that operates in 30 countries, began its association with coffee farmers in the Araku Valley in Andhra Pradesh about six years ago. Their intervention helped farmers create and manage Farmer Producer Organisations (FPOs). Through eight such FPOs, the organisation claims, the farmers’ revenues have increased by over 500%.

TechnoServe, a non-profit organisation that operates in 30 countries, began its association with coffee farmers in the Araku Valley in Andhra Pradesh about six years ago. Their intervention helped farmers create and manage Farmer Producer Organisations (FPOs). Through eight such FPOs, the organisation claims, the farmers’ revenues have increased by over 500%.

Similarly, Digital Green, another non-profit that works among cashew farmers in the State, says a collective approach saw a 13% increase in cashew prices. Professional Assistance for Development Action (PRADAN), also a non-profit working to promote FPOs, says it helped women farmers cut out middlemen.

What connects these three with the FPOs is the global farm products giant, Walmart, which funds these projects through the Walmart Foundation, its philanthropy arm. The company has created a network that links farmers directly to the retail market. This enhances its own capacity to enter India’s retail market if and when it is allowed to, tapping into a retail industry that Boston Consulting Group last year pegged to reach approximately $2 trillion by 2032.

At least 500 organisations with 8 lakh farmers, across nine States — Andhra Pradesh, Uttar Pradesh, Telangana, Karnataka, Odisha, Jharkhand, West Bengal, Maharashtra, and Madhya Pradesh — are involved. Non-profits that implement the progamme are working among small and marginal farmers cultivating coffee, cashew, mint, mangoes, vegetables, wheat, and millet. But farmer lobbies still swear by the mandi system, and cooperatives are sceptical of the global giant.

Julie Gehrki, vice-president, Philanthropy, Walmart said, “We believe that this isn’t about giving Walmart or Flipkart [a subsidiary of Walmart] a competitive edge. This is about helping farmers thrive and we believe FPOs are strong. It really creates a stronger system.”

However, farmers’ organisations are viewing these steps with suspicion. Pavel Kussa, Coordinator of Bharatiya Kisan Union (Ekta Ugrahan) says that when Walmart is involved, it will be for profit maximisation. He also fears that FPOs controlled by Walmart will weaken cooperative societies which are administered by democratically elected office bearers.

Walmart is not new at promoting FPOs. In February 2020, the Centre had launched the ‘Formation and Promotion of 10,000 Farmer Producer Organisations’ scheme to push forward 10,000 new FPOs until 2027-28. The idea was to build the collective strength of small and marginal farmers — those with land holdings of less than 1.1 hectares.