THE FORD FOUNDATION

Grant Reporting Instructions

The Ford Foundation requires narrative and financial reports from all grantees based on a schedule
specified in the Grant Notification Letter. The Foundation recommends that the narrative portion of the
report be between 3-8 pages long. The Foundation prefers to receive reports by e-mail to
secretary@fordfound.org, whenever possible. If you do not have access to e-mail, you may submit the
reports in hard copy by mail or fax. Please note that if you submit reports by e-mail, you should not also
submit a hard copy.
Grantee Name:

Reporting Period:

Covenant Centre for Development (CCD)

23/02/2008

to

Grant Number:

1065-0345
(2006)

22/02/2009

Narrative Report
Reflections
Please reflect on lessons learned, events that have been significant to your work, changes that you
believe may result within the next year or so as a result of the work conducted under the grant, ways in
which you believe that the work performed will help the organization achieve its long-term goals, and/or
challenges or surprises you have encountered during the most recent reporting period.
Farmers livelihood support (FLS) project was aimed at improving farmers food & income
security of 1,800 (one thousand eight hundred) farmers using organic techniques, value
addition at source & innovative marketing techniques. At the end of the 3 year project, CCD
not only succeeded in achieving this for 1,500 (one & half thousand) farmers but also has
new business units started- Mango pulp factory, Coir exports, & medicinal plants trade
expanding to new area. The federations of self-help groups (SHG) are becoming
economically independent & operating agriculture, renewable energy & heath businesses.
Viability of this business models has attracted reputed donors such as FAO of United Nations,
Tata Trust & America India Foundation to extend this approach to other under-developed
regions in the country such as Madhya Pradesh & Orissa.

Activities/Issues Addressed
For project support grants, please comment on the work done in regard to the proposed activities. For
general support grants, please comment on developments on the issues addressed in the proposal.
Activities/Issues proposed
Landscape management to improve water and fodder security
Ensure adequate availability of seeds, organic inputs, including biopesticides
Establish organic farmers association to secure organic certification
Establish Business Development Centre (BDS) to train farmers/ artisans
Develop market linkages with like minded partners for low cost exchange
Activities/Issues Addressed
Landscape management to improve water and fodder security- Over
1,800 (one thousand eight hundred) Farmers were trained in organic
farming techniques. These include land preparations without burning agriresidue, planting of fodder trees on farm bunds, livestock rearing, vermicomposting & botanical-inputs, using trenching, farm pond & community
tank for irrigation. This has linked farmers groups to tank de-silting
program of the government, besides achieving the above activities in

Natahm, Sevayur & Suranam federations.

Ensure adequate availability of seeds, organic inputs, including biopesticides- Farmers in have not only started their own seed banks but their
mastery in it is recognized & rewarded by reputed international agency
ICRISAT (International Centre for Research in Semi-Arid Tropics) in
Hyderabad. It has engaged Sevayur federation to produce quality seeds
of ground nut that ICRISAT is buying & selling to other farmers. Farmers
are trained in preparing & using organic inputs i.e. growth promoters from
cow-dung, cow-urine & pest-disease controlling botanical remedies such
as Neem tree seed oil. This has reduced farming cost by over 30% by
avoiding the purchase of costly chemical fertilizers & pesticides. Organic
techniques require 50% more human power or labor cost, hence though
input cost is reduced by 70%, total cost saving is only 50-70%.

Establish organic farmers association to secure organic/ non-chemical

certificationTwo new federations were registered by farmers in the year 2007-8: Mango
farmers in Natham belt, comprising 600 members from 42 groups in 21
villages & another one consisting of 170 organic cotton farmers in 11 groups I
single village of Thirumangalam.
CCD has also helped Mango farmers federation obtain Fair trade (FT) label to
seek premium price, for no non-pesticides use, no child labor & equal wages
to women.
Establish Business Development Centre (BDS) to train farmers/ artisansCCD has established BDS as well as Common Facility Centre (CFC) for both
mango & cotton farmers groups at Natham & Suranam federation resp. as
well as paddy & groundnut farmers in Sevayur federation. BDS & CFC unit for
Madurai urban federation has taken the responsibility of procuring &
processing farm produce its marketing through womens SHG federations in
the other 3 regions& has sold goods worth Rs. 6 million in the year 2008-09. A
Mango pulp factory was operated on lease in 2008 summer & is now fully
owned, renovated & will be used in 2009 summer by Aharam producer co. set
up by CCD, where farmers & women SHG federations are shareholders.
Develop market linkages with like minded partners for low cost exchange
The farming & womens federations exchanged CCD Tamarind, Chilly,
Coriander, Onion etc. has helped Mango farmers federation to sell 781 ton of
Mango & 150 ton of pulp together worth Rs. 5.6 million in the year 2008,
mainly to Nadukkar co. from Kerala, owned by farmer groups. Organic cotton
farmers have also exported under Rs. 1 million worth balls. A yarn making
unit will be set up in 2009 with the help of Upasana co. in Auroville & a textile
factory may be set up in collaboration with Gandhigram University later. CCD
has helped 300 farmers to sell 600 ton agri-residue to Adharm energy
company, earning them Rs. 0.3 million (Rs. 1,000/- each) at the rate of Rs.
0.50 pr kg. This is used to make fuel pellets for the smokeless stove, thereby
reducing kitchen smoke, improving, womens health & reduced global
warming & climate change.
CCD has also helped women SHG federation so sell processed agri-produce
worth Rs. 1 million with Just change Produce Co. in Kerala. CCD is also
founder member of the Shop for Change marketing network initiated by
International Resource for Fair Trade (IRFT) in 2008. CCD is partnering with 3
NGOs in 3 states of northern India to promote organic exchnge: MaharashtraOrganic Farming Federation (MOFF), Sanjog in Orissa & Udyogini in Madhya
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Pradesh. Sir Dorabaji Tata Trust (SDTT) has supported this initiative beginning
2009, after seeing the success of the CCD-Ford Foundation project work
results near Madurai. This is a certificate of success of the project. Similarly,
Food & Agriculture organization (FAO) of the United Nations has engaged CCD
in 2008 to replicate the rural business model in Balangir district of Orissa
state, infamous for draught, poverty & emigration. America India Foundation
(AIF) also asked CCD in 2008 to replicate it in the dacoit affected dry, povertyridden Chambal valley in Seopur district of Madhya Pradesh. CCD will try to
promote exchange of material & information between all these backward
areas for their progress.

Indicators of Success
Please compare the original proposed indicators of success with the results achieved to date.
Comment on any variances you feel require explanation.
Indicators of Success Identified in Proposal
Reduced farmers out-migration owing to reduced costs and enhanced
income
Group certification of farmers as organic/ low-chemical type
Improved local capacity to manage the supply chain
Financial sustainability of the marketing operations
Actual Results to Date
Reduced farmers out-migration owing to reduced costs and enhanced
income
About 1,500 beneficiary farming families have 25% more income & 30% less
cost, resulting in 50% more purchasing power than before the project in 2005.
Of the 25% more earning, half is due to avoiding the cheating in weight by
the traders, and balance half due to better product quality due t usage of
organic methods & improved post-harvest management (PHM). This is even
recognized by FAO while engaging CCD in food & income security project in
poverty-struck area in Orissa state. The farming families have about 100 parttime jobs near home in agri-enterprises such as Mango pulp factory, Tamarind
& Spices (Chilly, Coriander, Onion) better . Adharam energy co. has also
generated part-time jobs for about 150 women in fule pellet (from agriresidue) sales to about 7,000 customers of stove. Aharam co. grocery
business has employed nearly 75 women, 50 for sales to 2,000 customers on
monthly basis & another 25 women in processing on seasonal basis. Thus,
nearly 325 jobs were created, preventing total emigration of those families.
This is about 20% of the number of farming families.

Group certification of farmers as organic/ low-chemical type

CCD is a founder member of the non-pesticide management (NPM) group

convened by the Ford Foundation. CCD is also founder member of the
Participatory Guarantee Scheme (PGS) initiative of 10 NGOs across the
country for low cost organic certification. CCD has received code A-20 & the
status of multi-state regional agency due to its work in Orissa & MP besides
Tamilnadu. CCD also helped export of cotton certified by ETC co. of Europe.

Improved local capacity to manage the supply chain

Grocery sales through Aharam co. include processed pulses (i.e. dhal in vernacular), oil
& spices (chilly & coriander powder etc.). All the 4 federations have CFC & BDS units for
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this purpose that engage about 75 women as explained above to sell these goods to
about 2,000 customer families, who are member of the SHG & the SHG assures
repayment from them for goods sold on 1 months credit to compete with local shops that
supply poor quality goods. About 150 women also work s Adharam co. fuel sales agents.
Logistics (weighing, packing, transport, sales) is stabilized for both supply chains. Hence,
local marketing ability is built by this project benefiting 325 additional families, besides
1,500 farming families, only few being common. For, the former are from landless class.
Successful running of leased Mango Pulp making factory in 2008 & its owning &
renovation in 2009 indicates good supply chain management ability.
Financial sustainability of the marketing operations
Aharam co. posted 3% profit in 07-08 & a bit more in 08-09, with sales
exceeding Rs. 10million/ year. farmer & women federations as shareholders.
NABARD schemes have lent loans to some group enterprises indicating their
viability & sustainability.

Goals
Please help us understand what you achieved with this grant in relationship to the larger goals you
hoped to achieve.
Expected Goals to be Achieved
CCD has the goals similar to that of the Ford Foundation in these development efforts1. Assets- Build community property or tenure rights to natural resources
2. Livelihoods- Enhance & secured long term income
3. Institutions- Build community institutions for long term management of natural
resources & community welfare
4. Partnership- like minded government & voluntary agencies collaborate for
conservation & community welfare.
5. Policy relevance- demonstrate these efforts to influence policy at all levels.
Goals Achieved to Date
1. Assets- Common facility centers (CFC) for value addition are owned & managed by
the local community at 4 sites & Mango pulp factory are significant achievements.
2. Livelihoods- Local value addition & profitable market access is being sought at all
sites for improved livelihoods of about 1,800 families at the 4 sites.
3. Institution- Aharam traditional crop producer co. ltd. is found profitable in the lst 3
years of audited reports of accounts. Self-help group (SHG) federations of farmers &
women processors are its shareholders & beneficiaries. Activities such as group
insurance, health camps, kitchen health gardens & education are also initiated by the
federations in parallel for community welfare.
4. Partnership- Closer association has been established with the government agencies
such as NABARD, inter-national agencies such as FAO & ICRISAT, & industry
(Nadukkra co., Parle Agro co.). Nationally, CCD is member of NPM & PGS in organic
farming context & on the other hand, next work of Fair trade organizations.
5. Policy relevance- CCDs business model comprises low cost, sustainable farming,
local value addition & fair trade. This is recognized as worth replicating by domestic &
global agencies such as SDTT, FAO, AIF, United Nations Small Grants Program
(SGP) under Global Environment Facility (GEF) asking CCD to replicate it elsewhere
to help other backward regions.

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Organizational/Environmental Changes
Please describe any significant organizational or environmental changes that have had an impact on
your work during the most recent reporting period. Include a description of how you have responded to
those changes and how your plans may change as a result.
1. The project lead to organization change by dividing its work-force into 3 business
teams- agriculture, health & energy. The staff was accordingly shifted from NGO to 3
companies, first by obtaining 25%, then 50% & now 75% salary from business. This
has lead to better accountability & better income for the staff & the community.
2. Producer co. model is failing in many places as it cannot source equity or even debt
as it lacks collateral deposits. Several organizations have suggested the government
to change the companies act to permit producer co. to raise capital from nonproducers, at least as non-voting investors or treat debt as equity. CCD has been
cleverly converted dormant grants as working capital & overcome capital crunch.
3. Climate change is reducing agri-productivity & yet, organic farming is able to reduce
its impact. Hence, CCD has suggested with Oxfam & other NGOs to the climate
change task force of Govt. of India to include organic farming in its action plan to
combat climate change & protect vulnerable communities.
4. Globalization has often caused market crash in the last decade. Hence, local
marketing needs to be strengthened & imports be curbed or tax levied on them to
protect local producers. There is also need to support producers for marketing.

Organizational or Management Challenges

Please review any significant organizational or management issues you have experienced during the
most recent reporting period (such as significant changes in your staff or board composition or other
factors that could hinder the organizations ability to gather and interpret financial or program-related
data). Please also highlight any outstanding needs for organizational strengthening.
No change was experienced in 2008 regarding organization or management.

Diversity
Please describe any changes in the forms of diversity (e.g., gender, racial, cultural, religious,
immigrant/refugee background, linguistic, etc.) to the Board or staff composition over the reporting
period. If your organization has had any recent diversity challenges, please comment on these as well.
No change was experienced in 2008 regarding diversity.

Certification
Please type your initials in the box next to the following certification if it is accurate. If you are unable to do
so, please contact your Grants Administrator before submitting this report.
By submission of this report we hereby certify that the individual submitting this report is
authorized to submit it on behalf of the organization and that we are in compliance with the
requirements of the grant letter and that any funds expended have been expended in
accordance with the purposes of the grant.
Name and title:
Mr. N. Muthu Velayudham
Email address:
mdu_ccd@sancharnet.in
Phone number:
(+91)94433-14300/452-2307762

NMV

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