Social Innovations in Organic Foods in Rainfed India: The Case of Dharani FaM Coop Ltd

Abstract

Reversing the deleterious effects of natural degradation in drought-prone regions requires collective action at different levels. While lessons on conservation of resources are aplenty there are few cases of collective enterprises that are both ecologically sound and economically viable at the same time. Managing the triple bottom lines often involves significant social innovations. This case on the Dharani Farming and Marketing (FaM) Coop Ltd. in Anantapur district of India demonstrates the potential of collective entrepreneurship for sustainable development while outlining the social innovations that are required by promoting organizations to deal with the whole value chain in agricultural commodities like millets. The case shows that cooperatives need to constantly innovate to create better value for its members across the value chain. The declining and vicious cycle of poor agricultural productivity, lack of social capital and their inability to make a dent in existing marketing chains by poor producers cannot be reversed by the conventional logic of aggregation of produce alone. Cooperatives today need to co-create newer value chains that can ensure better returns for its members. Investing in enhancing the collective experimentation capacity of producers is often a neglected element in creating sustainable futures that are good for members and the planet alike. Cooperatives are better positioned to simultaneously address many of the sustainable development goals and need to be seen as social enterprises that combine the dual logic of purpose and profit.