Travancore Rural Development Producer Company Ltd, Adoor

ding to cope with the changing scenario. To mitigate the short falls in the co-operative sector a committee headed by Dr. Y K Alagh, the then Vice Chairman of the planning commission was formed. His findings were mainly:-

State co-operative societies control the co-operative sector and they cannot manage with the developmental activities envisaged by the liberalization policies
Most of the societies lack professionalism and technological updation. Conventional co-operative societies are a failure and that is the main reason for the tardy growth in agriculture and small scale sector. A reorientation in co operative sector is highly warranted to revamp the sector
Dr. Y .K. Alagh stressed—a countries socio economic growth depends on the faster removal of poverty and in the process, co-operatives play a vital role. Under the new economic setup, without any reservations, New Co-operative Societies should emerge and they should compete with similar organizations and private sector with full support of technology and professionalism. He also recommended an integrated approach to co-operative credit and emphasized the need for viable credit co-operative societies, by expanding their area operation, encouraging rural savings and diversifying business. The primary objective of the organization is uplifting the social and financial status of its members by inculcating saving habits amongst them through the spirit of co-operatives and providing technical and financial support. Under this situation, New Age Co-operatives known as PRODUCER COMPANIES evolved. As such, Indian Companies Act was amended in2002 under article PART IX A of the ACT. Accordingly producer companies were implemented in India through a gazette notification dated 6th February 2003. On the basis of this provision ours is the second producer company registered in Kerala under the companies Act. Travancore Rural Development Producer Company Ltd (TRAVANCO) was established on 10th December 2004, initially for the needs of rubber growers to save from the clutches of middle men and other big traders in the market. The farmers were forced to sell their latex to these middle men without getting a fair price. At that time TRAVANCO was able to fix a bargaining basic price for latex and collect it in bulk. On the strength an M O U with the public sector undertaking Kerala Rehabilitation Plantation of Kerala Ltd, we were able to supply latex to them. There by our members were able to get a better price for the latex. Lack of financial support from the public sector funding agencies and the assured share holding participation of the central government in producer companies, as envisaged in the Act were not forthcoming. We had to incure heavy losses and to curtail the losses we stopped collection of latex from farmers. However, we continue to extend financial support to agriculture and allied agricultural activities of famers.