RLS

Gambhira Collective Farming Society:

Successful Management of Common Pool Resources 1
1.1. Historical Background and Formation of the Society

The villages of Gambhira, Kothiakhad, Nani-Serdi and Bilpad are located on the banks of
Mahisagar river, which divides the districts of Anand (separated from the former Kheda District)
and Vadodara (formerly known as Baroda), in the State of Gujarat, India. The river bed had
some fertile land near these villages which was partly owned by the government and partly by
small and marginal farmers. The Government auctioned its portion of land to the highest bidders
who, in turn, either cultivated on their own or leased the plots of land to small farmers on crop-
share basis.

The Mahisagar river takes a sharp curve at these villages and sometimes alters its course.
Flood-induced inundation caused the river to destroy some fertile lands on the riverbed in 1927
and later in 1941. Then the heavy floods of 1949 washed the top fertile soil and deposited a
near 20-feet deep layer of sand. The inundated land was not suitable for cultivation and the
farmers became landless overnight. Thus, many small and marginal farmers of these villages
lost their only source of livelihood.

Moved by such widespread desolation, Chhaganbhai Patel of Gambhira village approached the
government requesting it to distribute government land on the riverbed to farmers who had lost
their lands. While part of this government land had been auctioned earlier the other part was a
wasteland. In view of the farmers' plight, the government in 1951, distributed its 201 acres of
land on the riverbed to 176 farmers individually.

Chhaganbhai Patel was a freedom fighter and a social worker. He was also the Sarpanch 2 of
the Gambhira village. He also knew the then Chief Minister of Bombay State, Morarji Desai,
having shared the same jail during India's independence struggle. This fact also helped
Chhanganbhai to acquire land for the farmers.

Farmers found that their condition remained unchanged after cultivating the distributed land
individually for one year. Unable to buy implements and bullocks, the poor farmers had to
depend on others for carrying out agricultural operations. Some of the land distributed was salt-
affected and wasteland, hence production was low. Reclaiming the salt-affected land and
wasteland was difficult, given the financial condition of farmers. Some farmers borrowed water
from large farmers with pump sets in the vicinity and paid 50 per cent of their crop production
towards water rent. The profit from farming was so low that some farmers were unable to pay
land tax. Uneconomical holdings and the fanners' poor financial status could not improve their
situation significantly.

This time Chhaganbhai suggested the fanners to form a collective and cultivate the land
collectively so as to achieve the economies of scale and solve problems related to resource
constraint. All the farmers accepted vesting their individual land ownership rights and cultivation

1
Large proportion of the write-up is drawn from Naidu, TNS (2012) Cooperative Farming: Case of Gambhira
Collective Farming Society, IRMA Working paper No. 229. This is meant for class discussion only
2
Sarpanch is the nomenclature for the Chairman of local self governments (calied Gram Panchayats in India)

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rights with the collective. The government accepted the proposal of forming the collective
farming society to cultivate the land distributed by it. Thus, the collective was registered under
the Co-operative Societies Act with The Registrar, Cooperative Societies, Bombay State 3 , on
October 14, 1953. The government accepted the proposal for the formation of a collective
farming society on condition that the land be returned to it should the society be dissolved. The
collective was registered as Mahisagar Bhatha Samlldhayik Sahakari Kheti Mandali Limited with
village Gambhira as its location. The collective is popularly known as Gambhira Collective
Farming Society or Gambhira Cooperative Society.

Society members stated cultivating collectively since the 1953 kharif 4 season before formally
registering the society in October 1953. During this period, based on the advice of the
Mamalaldar 5 and Land Evaluation Officer, an ad-hoc committee comprising representatives of
the four aforementioned villages was formed to look after the collective fanning operations. The
terms and conditions for cultivation of the common land laid down for the ad-hoc committee
were as follows:

a) Only the distressed farmers who are on the government's approved list can become the
members of the society.

b) Members will cultivate the land on group basis. Each group will select its own leader who
will be responsible for cultivation of the land allotted to the group.

c) Each group will provide 50 per cent of their produce to the society while the remaining
50 per cent will be distributed among the members of the group (Kumbhar 2007).

The society was formed with 176 members and 201 acres of land. It included another 84
members from the government-approved list in 1958-59, increasing the number of members to
260. Further, with the government's allotment of 160.75 acres in 1961-62, the society came to
include 31 landless laborers of Kothiakhad village augmenting the membership to 291. The
society’s land increased to 526 acres with the purchase of 67 acres of land for Rs. 25,00,000/-
along with the reclamation and retrieval of some washed out and damaged land.

1.2 Organizational Structure and Management

Organization structure of society is shown in figure 1. The society consists of the Managing
Committee, employees and the general members (farmers). The President and Managing
Committee manage it with the help of employees and group leaders.

1.2.1 Managing Committee

The Managing Committee has eight members including one government representative. The
stipulated term of the Managing Committee is three years and all seven members of the
committee (except for the government nominee) are elected in a general body meeting. In
practice, however, starting with the committee's inception, all its members have been selected

3
Gujarat State was carved out of Bombay State in 1960

4
Cultivation season starting from June-July and ending in September-October is referred as
Kharif season

5
Local Officer of Revenue Department

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unanimously with no elections ever being held for any post. Members of the Managing
Committee are not entitled to any salary or honorarium from the society.

The duties and responsibilities of the Managing Committee include decisions about the
induction of new members into society; buying and storage of inputs (seeds, pesticides,
fertilizers); selling of farm produce; approval of loans and collection or recovery of unpaid loans;
loan requirements and deposits of society; sale or donation of assets of the society; construction
works to be taken up; and purchase of land in consultation with District Registrar. The Managing
Committee is also responsible for the recruitment and termination of the society's employees
(except Manager), deciding the latter's salary and incentives, checking accounts, preparation
and presentation of annual reports, and sanctioning funds for purchase of inputs. Managing
Committee also recruits the society’s Manager in consultation with the District Registrar.

Figure 1: Organizational Structure of Gambhira Collective Farming Society

1.2.2 President

The Managing Committee members elect the President of the society from amongst
themselves. The President is required to preside for a term of three years without being paid a
salary or honorarium. The President also chairs all the meetings of the Managing Committee. If
the President is unable to attend a meeting, another member of the Managing Committee may
be selected by the members to act as the President of the meeting. The President oversees the
work of the Manager, visits the fields, and guides group leaders and the Managing Committee
members.

Society members selected Chhaganbhai Patel as their President in 1953 based on his service
to the society in the form of obtaining land from the government and initiating collective farming,
along with his leadership skills and education. A seventh standard school drop-out, he was
continuously selected by society members as their President right up to his death in 1992. This
was because of his guidance and service to society rendered sans economic interests.

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Chhaganbhai was not a member of any group and he neither received share of the produce nor
a salary. Members respected Chhaganbhai and continued to select him as their President.

After his death, society members decided to select as President only members from
Chhaganbhai' s family. This is because they believe that the family members of Chhaganbhai
work altruistically for the betterment and sustenance of the society. The family member who is
both a President and a trustee does not belong to any of the society's 30 groups and hence
discharges his duties impartially without favoring any group. Group leaders, on the other hand,
are likely to patronize their own groups if elected as President.

Madhubhai Patel, son of Chhaganbhai Patel, was selected President in 1992 after his father's
death and he continued in this role till 1996. In 1996, Pankajbhai Patel, son of Madhubhai Patel
was selected President and he continued to be so till he moved to the United States in 2010.
Dipakbhai Patel, brother of Pankajbhai Patel, has been serving as the society's President since
2010. Dipakbhai Patel lives in Vadodara, a neighboring city, visits the society and farm once
every week. It appears that the decision-making processes are fairly institutionalized and do not
require the presence of president to look after day-to-day affairs.

1.2.3 Employees of the Society

The society has made provisions for employing a manager, supervisors, tube well operators,
tractor driver, clerk, and peon. The Manager of the society is appointed by the Managing
Committee in consultation with the District Registrar. All other employees are appointed by the
Managing Committee. According to one of the Managing Committee member, the criteria for
appointment in the society are attitude, behavior and trust and not higher qualifications.
Presently, the society has one manager, three supervisors, one clerk, three tube well operators,
one peon and one tractor driver.

1.2.4 The Manager

The society's Manager is appointed by members of the Managing Committee in consultation

with District Registrar. The Manager implements the decisions of the President and the
Managing Committee. The role and responsibilities of the Manager include calling general body
and Managing Committee meetings, recording the minutes of meetings, and preparing the
accounts (expenditure account, sales account, annual budget etc). He is also responsible for
cash withdrawal from the bank decided by the Managing Committee, recovery of loans from
members, and allocation and monitoring of employees' work.

1.2.5 Supervisors

Supervisors report directly to the Manager of the society. The former's duties include reporting
day-to-day progress of work and crop condition to the President and Manager, providing
guidance to group leaders, overseeing the working of groups, distributing inputs (seeds,
fertilizers and pesticides) to group leaders under the Manager's guidance, and monitoring all
agricultural activities of the society.

1.2.6. Meetings

1.2.6.1. General Body Meeting

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The general body meetings held annually are attended by all society members. In these
meetings are discussed details of the previous year's activities as well as incomes and
expenditures of the society. Annual reports are circulated and forthcoming year's plans'
deliberated. Members of the Managing Committee are also elected or selected in the general
body. The signatures of all the members present in the general body are obtained for record.
The document of minutes of the general body meeting prepared by the Manager is signed by
the President of the meeting. If required, members can change the rules of the society with 2/3rd
quorum and communicate these changes to the District Registrar. The changes become
legitimate upon the Registrar's acceptance.

1.2. 6. 2. Monthly Meetings

The Managing Committee usually meets once a month to take stock of the expenses of the
previous month, discuss the activities to be taken up during the month, solve problems if any.
Decisions regarding crop mix, purchase of inputs (seeds, fertilizers, pesticides, equipment, etc),
storage of inputs and produce, and the sale of produce are all taken up during monthly meetings
of the Managing Committee. The Manager convenes the monthly meetings presided by the
President.

1.2.7. Conditions for Membership: Entry, Termination and Succession

Only the distressed farmers (with destroyed lands) interested in cultivating collectively are
considered for society membership, with membership and share fees amounting to Rs.1 and
Rs.10 respectively. A membership may be terminated by committee members with 2/3rd quorum
in consultation with the District Registrar. In case of death, the deceased member's income is
passed on to the nominee or legal heir. The membership is transferred to the nominee or the
legal heir on payment of Rs.0.25.

During a meeting held on June 3, 1960 which was attended by the then Deputy Minister of Co-
operation, Government of Gujarat, and Officials of the District and Taluka level, it was decided
that the society's memberships will not be open to new members till the average size of land per
member crosses three acres (Mahisagar Bhatha Samudhayik Sahakari Kheti Society 2010).
The limit was fixed to maintain the economic viability of the farm per member.

Should a deceased member have more than one son, the society transfers the membership to
the one nominated by the family. It is the responsibility of the family of the deceased to
nominate the person to whom the membership has to be transferred. In actual practice,
however, the membership (in many cases) is rotated amongst sons or legal heirs of the
deceased member on a consensual basis. Up to the present time the society has not met with
any conflict in this context.

Situations warranting members moving out of the village, inability to contribute labour,
childlessness or paucity of legal succession with regard to transfer of membership et aI, are
dealt with by having the member nominate any other person on his behalf to contribute labour.
The society distributes the income of that membership equally between the member who has
membership and his nominee who has contributed the labour.

6. ASSETS OF THE SOCIETY

The society has invested in assets required for cultivation, storage and administration. The
society has constructed a godown with 30 rooms (one for each group) for storage of tobacco

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and other produce, two tractors, six bore wells, 4500 m pipeline, one multi-utility vehicle
(Mahindra Xylo) worth Rs.700,000. It has also constructed a building over a farm for the storage
of inputs, ploughs and other small instruments. As on April 2011, the society had a reserve fund
of about Rs. 85,00,000/-.

The society, which has been operating out of a rented building, set aside house funds from its
share in 2009-10 for the construction of an office building in Gambhira village.

2. WORKING OF THE SOCIETY

2.1. Group Formation

All members of the society have been divided into 30 working groups for operational
convenience. Each group has eight to 14 members who choose their group leader from
amongst themselves. Each group is allocated a land of 13 to 24 acres (average 17 acres). Land
with varying fertility levels is allocated to each group at different places to maintain equitable
distribution among groups. The land per group is allocated based on the quality and number of
members in the group so that income per member remains constant, should all the groups
complete the agricultural operations punctually and timely. The society has allotted the land to
all groups along the riverbed so that all the groups loose or gain the land more or less equally
due to floods or change in the river course. Groups are responsible for all farming operations in
the land allocated to them under the guidance of their group leader.

It is found that the members have not changed the groups formed at inception. In other words,
the same members have been continuing to function within their groups. The third generation
children / legal heirs too, are continuing to function in the same groups formed by their
forefathers.

Group leaders are accountable to group members, President and the Managing Committee.
Group leaders may be selected and changed by members of the group at any time. However, in
practice, no group has changed its leader since inception. In case of death or retirement of a
group leader due to aging, the practice is to nominate his nominee or legal heir as group leader.

2.2. Crop Production

a) Planning of Cropping Pattern: The Managing Committee decides during its meetings
the crops to be grown during a particular year. This is done after taking into account
rainfall and river flow conditions. Supervisors and group leaders also attend these
meetings to decide on the crops to be cultivated. Since the threat of crop-damaging
floods looms large during the kharij season, maximum cultivation of land is encouraged
during the rabi 6 and summer seasons. Based on the decision of the Managing
Committee group leaders take care of cultivation under the Manager's guidance. Crops
cultivated during the kharij season are usually: paddy, bajra and tobacco and during the
rabi season they are: wheat, jowar and tobacco.

In 2009-10, tobacco was cultivated in about 400 acres and in the remaining 100 acres,
paddy was cultivated during the kharij and wheat during the rabi seasons. Thus, the
cropping intensity in 2009-10 was 120 per cent.

6
Cultivation season starting in October-November and ending in March-April

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The society has been cultivating tobacco over a bulk of its area since its inception. The
area under other crops covers only about 100 acres. This is because tobacco needs
minimum protection there being no danger of animals (except monkeys) eating the crop.
The location of the farm and soil type is highly suitable for the tobacco crop and needs
no irrigation. Also, labour requirement for tobacco cultivation is relatively low while the
returns are high. That is the reason society has been cultivating the same crop for years.

b) Primary Tillage: The society looks after the primary tillage of the entire land. Its tractors
are used for ploughing (primary tillage), the expenses of which are borne by the society.

c) Sowing: Seeds are purchased in bulk by the society based on the decision of the
Managing Committee. The Managing Committee takes decisions on the place, time, and
quantum of purchase. Seeds for paddy, jowar and bajra are usually purchased from
government agencies. Tobacco seeds, on the other hand, are usually purchased from
the Anand Agricultural University, an agricultural university famous for tobacco research,
which is located 45 km away from the Gambhira village. Similarly, the Managing
Committee takes decisions on other inputs like farm yard manure and pesticides
purchased by the society. Seeds and manure were purchased at Rs.257,575 and
Rs.887,355 respectively in 2009-10.

Supervisors distribute the seeds to group leaders based on the decision of the Managing
Committee. Group leaders take care of the sowing operations on the land allocated to
them by distributing the work equally amongst group members.

d) Irrigation: Irrigation is not provided to tobacco crop as it is cultivated on riverbed which,

owing to soil type and river flow, provides sufficient moisture to the crop. Paddy and
bajra cultivated during the kharif too are not irrigated for the same reason. Only crops
like wheat and jowar cultivated during the rabi season are irrigated. The society has six
tube wells with high powered motors (up to 40 hp), and 4500 m pipelines sufficient to
irrigate the crops within a short span of time.

e) Intercultural Operations: The group leaders and supervisors monitor the crop daily and
accordingly take decisions on intercultural operations like weeding. The group leaders
allocate the work equally amongst their group members.

f) Crop Monitoring: The supervisors report crop condition to the President and Manager.
The Managing Committee members also visit the fields frequently. Group leaders report
to the society in case of any attack of pests or diseases or any other crop-related
problem. As far as the tobacco crop is concerned, based on requirement, scientists from
Anand Agricultural University visit the field and provide guidance about pesticides and
insecticides to be used and measures to be followed.

g) Surveillance: To protect the tobacco crop from monkeys and other crops like paddy,
wheat, jowar and bajra from other animals, group members patrol their fields usually on
a rotational basis. Each group has formulated its own rules for patrolling.

The distance of each farm varies from village to village. After completing the day's work,
all members of the group return almost at the same time from the farm. This fact carries
with it the advantage of mutual monitoring with regard to carrying any produce or
material illegally from the farm.

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h) Harvest and Post-harvest Operations: The groups individually harvest the crop and
complete post harvest operations like threshing and cleaning. Finally, the produce is
handed over to the society.

2.3. Marketing of Produce

2.3.1. Tobacco:

Groups store the harvested tobacco in godowns 7 allocated to them. The society then auctions
the tobacco in the vicinity of their godowns. The Managing Committee decides the time and
fixes the minimum price for the sale of tobacco. Based on the Committee's decision, the
Manager sends out letters to more than 50 tobacco business agents in Gujarat indicating the
date, time and place of auction or, conversely, circulates this information through a vernacular
newspaper advertisement. On the day of the auction, the society displays the produce in five
lots. Each lot is formed by combining tobacco from six groups based on quality. The agents and
traders check the quality of tobacco displayed in heaps while interested traders quote their price
for the lots they are interested in and submit the details in sealed covers. The lots are sold to
traders with the highest bid price. The minimum quantity that a trader can buy in auction is one
lot. The society does not sell tobacco if the price quoted by traders is less than the minimum
price fixed by the Managing Committee. Auction stops when that happens. The society repeats
the auction process a few days later, based on the decision of the Managing Committee.

Traders take possession of the tobacco within 15 days of auction by paying 65 per cent of the
amount. The remaining 35 per cent of the amount is paid out within three months of the auction,
the deadline issued by the society. Traders pay a higher price for the society's tobacco and they
pay up entire amount within three months. Farmers selling individually get a lower price and it
also takes a longer duration, sometimes over a year, to receive the entire amount. Society
influences the terms of trade in their favour due to the power achieved through economics of
integration.

The society dictates the terms of trade in tobacco sales due to the bargaining power achieved
through the quantity and quality of tobacco produced. The society produces a large quantity of
tobacco (over 400 acres) of superior and uniform quality as required by traders. Society
members believe that the superior quality tobacco is owed to factors such as cultivation on the
riverbed without irrigation, the use of farm yard manure, and the eschewal of artificial fertilizers.
According to employees of the society, many traders deploy the society's tobacco price as a
benchmark. Traders also mix the society's tobacco with other tobacco to fetch higher profits.

2.3.2. Paddy, Wheat, Bajra and Jowar:

In case of paddy, wheat, jowar and bajra, society sell its share of produce (30 per cent in 2009-
10) to farmer members at market price or sometimes at subsidized prices, The remaining
produce is given to respective groups who distribute it amongst themselves in proportion to their
labour contribution.

2.4. Sharing of Risk, Produce and Profit

7
Godown is a warehouse or a storage room

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Given this kind of arrangement both the production and marketing risks are borne by members.
This makes their purpose aligned with that of the society.

The entire fodder from crop production is shared equally amongst members of the producer
groups. The society or group leaders do not pay labour charges to members for their work.
Instead, the produce and profit from cultivation is shared group-wise at the end. Earlier, the
society would retain 50 per cent of the crop production (in case of paddy, wheat, jowar, and
bajra) of each group and return the remaining 50 per cent to the respective groups. This ratio
has changed lately. In 2009-10 it stood at 30:70 for the society and groups, respectively. In the
case of tobacco, the society retained 50 per cent of sale revenue and paid the remaining 50 per
cent to the groups. This ratio was also changed gradually and in 2009-10 it stood at 35:65 for
the society and groups respectively.

The society, after having met all its expenditures covering land tax, cost of seeds, fertilizers,
pesticides, electricity, use of tractors and administrative expenses retains a reserve fund from
the revenue share and pays towards the education fund and village development fund with the
rest. The amount that remains after having met the aforementioned expenses and overheads is
distributed amongst employees and groups as bonus. The bonus paid out to groups is in
proportion to their revenue contribution. The bonus share, varying from group to group, is
distributed amongst group members equitably by group leaders. In 2009-10, the society paid out
1.5 per cent of the produce for paddy and wheat and 1.5 per cent of revenue from the sale of
tobacco to respective group leaders for their contribution. The remaining produce and amount
were shared out amongst the society and groups. With respect to paddy and wheat, the society
retained 30 per cent of each group's produce and returned the remaining 70 per cent to the
respective groups.

The society paid the same price (the average price of five lots) for the tobacco produce of all the
groups even though the tobacco of 30 groups is sold in five lots at different prices. With respect
to tobacco, the society retained 35 per cent of revenue from the sale of tobacco of each group
while the remaining 65 per cent was given over to respective groups. The group leaders, in turn,
shared the revenue equitably amongst the members of the group. Deductions were made in the
total amount payable to group members who hadn't contributed to the work on any given day
(by being absent). The amount deducted was equal to the number of days of absence multiplied
by the prevailing wage rate in that area at the time. Thus, the revenue from crop production was
distributed to members in proportion to their labour contribution.

The revenue shared by the society in 2009-10 is shown below ill the form of equations.

2.4.1. Revenue Sharing in Tobacco

Total Revenue = 1.5 % to group leader + ±

± = 35% to society + 65% to group

35% to Society = Expenditure (for inputs, administration etc) + ²

² = Society’s reserve fund (20%) + ³

³ = Education fund (1.5%) + δ

δ = Bonus to groups (70%) + Village development fund(20%)

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+ House fund (10%)

Similarly, in the case of paddy and wheat, after having paid 1.5 per cent of produce as incentive
to group leaders, 30 per cent of the remaining produce was retained by the society while the
rest was paid out to groups. Once again, after having met all the expenses, the society divided
the balance under various heads as shown above.

Details of the amount allocated under reserve fund, education fund, bonus and village
development fund from the share of the society from 2000-2001 are depicted in Table 1.

Table 1: Allocation of Society's Share under Various Heads

Reserve Education Dividend Bonus Village

Year Fund (Rs) Fund (Rs) (Rs) (Rs) Development
Fund(Rs)
2002-03 180501 13537 261 495745 141641
2003-04 695577 52168 261 1910916 545976
2004-05 208505 15638 261 572686 163324
2005-06 141164 10540 261 552392 157826
2006-07 75510 5663 261 207282 59223
2007-08 533329 39999 261 146513 418611
2008-09 905447 90545 261 3528043 1008012
2009-10 1177987 78532 174 4617590 1319311

3. WORKING OF GROUPS: RULES, WORK DISTRIBUTION, MONITORING AND

SANCTIONS

3.1. Members

It is the responsibility of groups to take care of production in the land allocated to them. Each
group has its own informal norms and rules with regard to work. The operational rules of the
groups, formed by the group members themselves, may be changed by them at any given time.
The society does not have a role in the rule formation of any group.

Group leaders, who also happen to be group members, contribute to the work equally. It is the
responsibility of group leaders to allocate work uniformly amongst group members and to
monitor it. With respect to operations like weeding or harvesting, a group leader allocates an
equal number of rows or the same width of area to each member and it is the responsibility of
that member to complete the work allotted to him or her. A group leader might assign any other
work to its members by ensuring that member contributions remains more or less equal.

With each member having to compulsorily fulfill all the work conditions laid down by the society
and groups there is no scope for free riding within the groups. Group leaders, while working with
their groups, continuously monitor the work of members who, in turn, are able to observe the
work of one another. The fact of small group units (with 8 to 14 members) and limited land area
per group renders monitoring easy on the part of group leaders.

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According to the rules formed by groups, children are not allowed to work instead of adult
members. The groups do not have restrictions, however, regarding upper age limit of members
with the distance between fields and villages and the nature of work distribution becoming fait
accompli. This is because older group members or their family members incapable of working
are not able to cover long distances to reach their plot and return.

Violation of rules on the part of group members incurs a fine, which is collected by group
leaders. The group members are required to report to work at predetermined time, decided
upon and accepted by member consensus. Any delay in reporting to work attracts a fine that is
duly collected by the group leader. It is up to the group to decide on how to spend or distribute
the fines collected. Usually, groups organize parties with the fines collected.

Group leaders maintain records with regard to the labour contribution of each group member.
The society pays out the share from sale of produce to the groups and the group leaders, in
turn, share the amount amongst their group members in proportion to their labour contribution.
Bonuses received by group leaders are paid out to the members in a similar fashion.

Owing to residential proximity and mutual monitoring there is no room for shirking or
opportunism. What this means is that members cannot absent themselves from work and
indulge in monetarily gainful activities privately. This interlocking or reciprocal incanting
behaviour eliminates free riding. On the other hand, members who remain absent from work
due to genuine causes like marriage in the family, ill health et at are given due consideration.

In view of the tobacco consuming habits of some members including chewing of tobacco
powder, the society has adopted the strategy of distributing four to five kilograms of tobacco to
each member. Should members' domesticated animals consume or destroy crops accidentally
the members, subsequent to assessing the quantum of damage, voluntarily pay the fine for it.
The society received Rs.12,400 from such fines in 2009-10.

3.2. Groups and Group Leaders

Supervisors monitor the working of groups and report the same to the President and Manager.
Supervisors also provide guidance to group leaders. The President and Managing Committee
members visit the farm and observe the progress of work. Group leaders are accountable to
members of the group.

As recognition to group leaders' contribution an incentive of about 1.5 per cent from the sale of
group's produce has been in place since 1953. This incentive acts as a motivator for improving
the group's work and monitoring process. The incentive received by group leaders in 2009-10
varied between Rs.11,280 and 27,531.

3.3. Conflict Resolution Mechanisms

The society has delegated its responsibilities to group leaders in the context of managing its
members by forming groups. Conflicts within groups are resolved by their group leaders; any
unresolved problems are sought to be resolved by the President and the Managing Committee.
The easy accessibility of group leaders, the Managing Committee members, and President
leads to immediate conflict resolution.

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A Manager working in the society for the last 47 years and a group leader cum Managing
Committee member, who has been working for the last 25 years in the society, when
interviewed for the study, revealed that they have not come across any conflicts in the society.

4. IMPACTS

4.1. At Household Level

The land holdings of individual farmers were small and uneconomical experience of individual
farming was able to solve many of the problems individual farmers had faced earlier. The
income obtained by each member whose labour contribution amounted to only 150-180 days
per year was significantly higher compared to what they would have achieved by cultivating
individually. On average, each member received about Rs.90,000 (including bonus) from the
average holdings of 1.76 acres and labour contribution in 2009-10. Income generated from the
society has helped the members in multiple ways. They have constructed houses or upgraded
their previous ones. Some members have brought lands outside the society. Since its inception
the society, under the leadership of Chhanganbhai, has emphasized the importance of child
education and contributed to the cause by providing assistance to students and funds for
construction of school buildings in all the four villages under it. As a result the children of most
families belonging to the society are educated and employed in various government
departments and private firms.

Over 90 per cent of the society's members belong to the Baria caste, one of the socially and
economically backward castes (Kumbhar 2007; Sarker and Itoh, 1995). The current perception
of society members is that their social status has improved with improvement in standard of
living.

Table 2: Allocation to Four Villages under Village Development Fund

(in Rupees)

Year Gambhira Kothiakhad Nani Bilpad Total

Sherdi
2001-02 68100 60940 26900 3295 159197
2002-03 60552 54168 23912 2928 141641
2003-04 233368 200784 92218 11292 545976
2004-05 69936 62604 27636 3384 163624
2005-06 67456 60384 25656 3264 157826
2006-07 25296 22644 9996 1224 59223
2007-08 178932 160173 70707 8658 418611
2008-09 430900 385725 17275 20850 1008012
2009-10 564076 504939 222901 27294 1319210

4.2. At Community Level

The society has been contributing constantly to various developmental projects in all the four
villages since the former's inception. It has provided funds for drinking water schemes,
construction of temples, repair of roads and other public welfare works in villages. Of late, the

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society has been donating the amount (Table 2) in the name of village development fund to
Gram Panchayats without being directly involved it. Members of the society also believe that
adjacent farmers are getting a good price for their tobacco owing to dissemination of price
information.

It needs to be emphasized, however, that ever since its inception the society has not received
any funds, subsidies or loans from any government department. The working capital
requirements were initially fulfilled by the share amount and later by society-generated revenue.
Practicing self-reliance the society has been trying to restrain itself from approaching the
Government for economic benefits. Presidents and members of the society, exercising caution,
have not allowed any political party to influence the society.

5. POINTS TO PONDER

Majority of the progeny of the present generation society members are educated and employed
in government and private organizations. This trend is likely to continue in future. With lifestyle
patterns changing, however, the younger generation may not evince a preference for manual
labour on farms opting, instead, for more upgraded sources of income. The availability of labour
contributing members is likely to decline in future because of these factors.
In such scenario, what could be option for the society? How could members alternative cropping
pattern requiring less labour? How could society face new challenges in terms of production,
marketing and income sustenance?

6. CONCLUSIONS

Factors responsible for sustenance of the Gambhira collective over the last 60 years include its
unique group formation approach, marketing of produce, sharing of work and profits,
institutionalization of rules, norms and values by the founding leaders and members, proper
utilization of resources, efficient mechanisms for monitoring and sanctioning and, finally,
superior economic returns.

The Gambhira experiment has proved that collectives can overcome problems faced by farmers
who cultivate individually. The collective has, rather admirably, overcome the problems of
resource constraint and escaped the vicious cycle of low investment-low productivity-low return.
Gambhira has proved that the co-operative approach can turn farming into a viable and
profitable proposition. Collective farming is a suitable alternative to private farming and
corporate farming as it has the advantage of overcoming constraints posed by private farming,
increasing farmers' incomes, and reducing poverty. Collective farming also counters the
critiques of inclusive growth associated with corporate farming. It is high time policy makers
seriously considered and promoted co-operative farming to meet the growing requirements of
food production and help farmers to cope up vulnerability situation better. In addition to
encouraging cooperative farming amongst existing farmers, governments might consider
forming collectives of the landless and allocate land to these collectives instead of distributing
land to individuals.

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