Unnao’s Peanut Farmers Finally Earn What They Deserve, Thanks to This Startup

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In the heart of India’s fertile plains, a silent struggle unfolds. Farmers, the backbone of the nation’s food security, toil tirelessly, yet often reap meager rewards. The cycle of poverty, perpetuated by exploitative middlemen and inadequate support systems, casts a long shadow over rural communities.

Despite growing peanuts for several decades, 65-year-old Ram Khilawan is often left with poor yields due to a lack of resources and access to quality seeds. “We buy seeds from the market, but the quality is poor, so the peanuts don’t grow well,” he shares. “The price we get for them is dismal.”

Amidst this agrarian gloom, a 29-year-old entrepreneur from Unnao, Aman Kumar, armed with a ‘nutty’ idea and a relentless spirit, has emerged as a beacon of hope.

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With a computer applications degree in hand, Aman graduated in 2016, ready to embark on his professional journey. However, unsure of his next steps, he ventured into the global market, taking on freelance web design and development projects.

“This exposed me to the workings of the business world, and soon, that bug of entrepreneurship was set in my mind,” he tells The Better India.

He set his sights on an MBA, preparing diligently for the CAT exam. “I got into Symbiosis College in Pune, but the fee was too high, so I had to look for other options. That’s when I came across the ‘Social Entrepreneurship’ programme at Tata Institute of Social Sciences (TISS),” he shares.

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At TISS, Aman’s perspective shifted dramatically. He was exposed to groundbreaking social enterprises and the pressing challenges faced by rural farmers, particularly in his hometown of Unnao, Uttar Pradesh. This newfound awareness, coupled with his entrepreneurial spirit, ignited a spark within him. The result? ‘Nutty Village’ — a venture dedicated to empowering local farmers and providing consumers with high-quality, homegrown products.

Humble beginnings​


Before embarking on his journey at in 2018, Aman had already dipped his toes into entrepreneurship. He launched ‘Fresh-ily’, a farm-to-door delivery service, where customers could place orders online for fresh produce. Aman would then source these products directly from local farmers and markets, delivering them promptly to customers’ doorsteps.

“I built my own website and didn’t require any capital or infrastructure to do this business. People would pay me the night before, and I would do the work the very next day,” he says. But this venture, while convenient and low-cost, faced significant challenges in scaling up due to competition from larger market players.

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Simultaneously, Aman explored other avenues, including selling fresh juice made with a family-owned cold press machine and experimenting with small-scale hydroponic farming. However, these ventures did not grow beyond a certain point.

A farmer holds a peanut, showcasing the harvest in his hand

A farmer holds a peanut, showcasing the harvest in his hand

Inspired by the potential of social entrepreneurship and motivated by the challenges faced by farmers in his home region, Aman took a significant leap. He decided to dedicate himself full-time to this cause, collaborating with local farmers in Unnao.

“More than anything else, I saw businesses like Phool, a Kanpur-based brand that was just starting out at the time, doing great work. That gave me the confidence to believe that if someone from my part of the world could create something like that, so could I,” he shares.

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Recognising the peanut crisis​


During an internship in Maharashtra, Aman had gained firsthand insights into the systemic issues plaguing the agricultural sector. In Unnao, he and Nutty Village co-founder, Sushant Berma, noticed the exceptional quality of locally grown peanuts. This sparked their curiosity, leading them to delve deeper into the challenges faced by peanut farmers in the region.

“One day, while sitting at home and eating peanuts, we started talking about their great quality. So, we decided to go out and do some research to see what was happening on the ground,” says Sushant.

But one major challenge faced by Unnao’s groundnut farmers was the extremely low prices they received for their produce. These farmers were forced to sell their groundnuts for a mere Rs 30 to Rs 40 per kilogram, without any government support or insurance.

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The lack of recognition in agricultural surveys lists further exacerbated the issue. As a result, these farmers were deprived of essential support programmes, hindering their ability to earn a fair price for their hard work.

Aman’s research unveiled a potential solution: empowering farmers to undertake primary processing themselves. By handling tasks like shelling, sorting, and grading, farmers could significantly increase their earnings by 50-60%. To realise this vision, Aman submitted a proposal to the Uttar Pradesh State Rural Livelihood Mission (UPSRLM) seeking support for establishing a producer group dedicated to primary processing.

In response to Aman’s proposal, the Government provided a grant that allowed farmers to set up facilities for shelling, sorting, and grading groundnuts. This primary processing would enable farmers to retain a higher portion of the profits. By working collectively, the farmers could improve the quality of their produce and access better prices.

What started as a fresh produce delivery service in 2020 evolved into Nutty Village in 2022. With a vision to empower farmers, Nutty Village aims to help them establish their own processing units, directly sourcing high-quality produce at fair prices. “We champion both the exceptional products these farmers create and the growing demand for , particularly through our peanut butters,” says Aman.

Uplifting rural communities​


Once the farmers had set up their primary processing units, Aman started purchasing the processed groundnuts at Rs 100-120 per kilogram, depending on the quality, much higher than the previous prices they were getting. “Because the primary processing is now done by these farmers, they also have their own seeds to put back into harvesting the crop for the next season,” Aman explains.

“We first met Aman when he wanted to discuss how we could all work together for better profits. He brought us seeds and we worked on figuring out the best farming methods,” says Manish Singh, a 36-year-old farmer from Unnao. “Before, we didn’t get our soil tested. I didn’t even know that was something you’re supposed to do. Checking and regulating the pH levels, nitrogen phosphate, and carbon 16 levels — we didn’t do any of that,” he adds.

To gain scientific perspective, Aman connected them with Dr Kishan Chandra, a scientist specialising in organic farming, waste management, and bio-fertiliser production. “We learnt how to make a decomposer solution — which is a mixture with water and essential nutrients that helps kill pests,” Manish explains.

Aman Kumar and his co-founder pose with farmers at their primary processing space.

Aman Kumar and his co-founder pose with farmers at their primary processing space

“We make that solution in 200 liters of water. The results have been quite good. The yield has improved, the , and the pH of our soil, which was 8.5, is now down to 7.5. We’re all working very hard to make it even better,” he adds.

Once the primary processing infrastructure was established, Aman envisioned a future beyond mere raw material supply. “I started secondary processing because I wanted to take this enterprise to newer heights,” he explains. Recognising the growing demand for clean, preservative-free peanut butter in urban areas, he embarked on developing his own unique product. After months of experimentation, he formulated a healthy peanut butter that would appeal to health-conscious consumers.

With the support of a grant from the Uttar Pradesh Government and a contribution of Rs 1.5 lakh from Anuj Sharma, a professor at TISS, Aman was able to purchase the necessary machinery and start producing peanut butter. “We are promoting the local peanut variety, food security, and transparency in our ingredients,” Aman says.

But Nutty Village’s commitment to empowering rural communities didn’t stop there. To further enhance women’s participation, they collaborated with the National Rural Livelihood Mission to form Self-Help Groups (SHGs). These SHGs provided women with access to peanut shelling machines, training them in the necessary skills to contribute to the secondary processing of groundnuts.

Chandkali, a 60-year-old member of the self-help group, reflects on how her life has changed through their collective efforts. “Before, I mostly worked at home. The societal structure didn’t allow women to be out earning, and many like me didn’t even have a phone,” she shares. However, the opportunity to work with Nutty Village and being involved in secondary processing, has empowered her in unexpected ways. “Whenever Aman calls us for work with peanuts, we go, and we earn a good amount. The group I am in feels like a community, like a union. When we get work, we all benefit,” she says.

While many have to travel to nearby towns for higher wages, Chandkali is content to stay close to home. “We make 300 rupees per day here. If I had to go far for work, being a woman, I wouldn’t have been able to,” she adds.

Conquering the hurdles to success​


Aman and his team’s journey was not without challenges. From persuading farmers to embrace new agricultural techniques to navigating complex bureaucratic processes, they encountered numerous obstacles. One significant hurdle was securing an electricity connection for their machinery unit, which involved navigating a labyrinth of bureaucratic red tape.

“We now have electricity connection, license, quality control, but a lot of it is because I am CSIR incubated. I made a lot of connections back in college and when I was working for Fresh-ily, But the farmers can’t do that for themselves. Even if they do want to start or scale their business, they can’t pay Rs 60,000 just to get an electricity connection. This needs to change at a policy level,” Aman says.

“With us too, we won a lot of grants, but it would take seven to eight months for the other installments to come in. As a founder, I can stretch out a few months but I can’t expect my team of farmers to just wait for funding that was promised to us,” says Aman, reflecting on the stress of managing cash flow during the early stages of the business.

A farmer harvests peanuts from the ground, carefully pulling the plants to collect the fresh crop

A farmer harvests peanuts from the ground, carefully pulling the plants to collect the fresh crop

But despite these hurdles, Nutty Village has witnessed remarkable growth in recent years. Revenue surged from Rs 60,000 in 2022 to Rs 2.5 lakh in 2023, and is projected to reach Rs 13-15 lakh in 2024.

This transformation is a testament to the power of collaboration and innovative solutions. “By getting better prices for each kilogram of peanuts we sell, we are able to see a real improvement in our seasonal income,” Aditya Sengar, a 26-year-old farmer from Unnao, says. “Working with people who have seen the world, and studied these things has also helped us bring in fresh ideas to farming, learn about modern techniques, and open up new opportunities.”

To further expand their impact, Nutty Village is collaborating with the Chief Development Officer to map 500 hectares of land for a proposed peanut farming cluster. This initiative will not only provide farmers with recognition but also offer crucial support services. Once recognised as a cluster, farmers will gain better access to markets, strengthening their position and enabling them to achieve greater prosperity. Currently, the producer group comprises 50 farmers, but the ambitious cluster development plan aims to unite 2,000 farmers, creating a powerful collective force.

“The biggest issue we see around the world is that farmers aren’t getting a . And it’s not just about peanuts — whatever they grow, they don’t get a fair price. This has been one of the biggest pain points we’ve observed. We’re not claiming that we’ve fixed the problem, but within our capacity, we are helping farmers mobilise, create clusters, and secure the incentives that are put in place for them,” says Sushant.

Edited by Arunava Banerjee, Image courtesy Aman Kumar
 
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