Arakunomics: An Integrated Economic Model Empowering Local Tribal Communities
| Case Code: LDEN220 Case Length: 6 Pages Period: 1998-2023 Pub Date: 2024 Teaching Note: Available |
Price: Rs.300 Organization : Araku Coffee Industry :Agriculture & Forestry Countries : India Themes: Social Entrepreneurship, Environmental Sustainability, Social Responsibility,Socially-responsible Business Practices |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Beginings of the Social Initiative
Naandi Foundation was started in 1998 by a group of eminent businessmen as a non-profit organization to provide government based public services such as sustainable agriculture, safe drinking water, maternal safety, early childhood development, and sanitation to the weaker sections of the society in India. Manoj became the CEO of Naandi Foundation in 2000 after a stint with the World Bank. He had earlier also worked with SIDBI, a bank for small scale industries in India. While he was at Naandi Foundation, Manoj got government projects to supply mid-day meals to school children in Rajasthan, Madhya Pradesh, Andhra Pradesh, and Odisha. Naandi Foundation also worked with the Andhra Pradesh government in irrigation projects with the help of farmers’ co-operatives along the Krishna and Tungabhadra rivers..
The Arakunomics Model
The Arakunomics model was an integrated economic model in which farmers were assured of profits and the consumers were assured of quality products through the use of regenerative agriculture. The three basic principles of Arakunomics were Terroir , Regenerative Agriculture, and Shared Value..
Impact of the Arakunomics Model
In August 2020, Naandi Foundation was awarded the Food Vision 2050 prize by The Rockefeller Foundation for its Arakunomics model.
As of 2019, the cooperative SAMTFMACS that Manoj had founded had 25,000 farmer members and was considered one of the largest fair-trade and organic certified coffee cooperatives across the world. Tribal farmers from 740 villages in Araku Valley cultivated coffee in 50,000 acres of land, which comprised over 10,000 individual farms. With an annual production of 100 tons per year, the cooperative had become the largest organic coffee plantation in the world.
Road Ahead
The success of the Arakunomics model in Araku Valley led to Naandi Foundation replicating the model in the Wardha district in Maharashtra and in the Urban area of New Delhi. Manoj had already forged an alliance with European companies to pay for carbon credits for the maintenance and upkeep of the trees planted in the Araku Valley region. There were plans to approach more such companies in the future to create a win-win economic framework wherein both the companies and tribal farmers would benefit..
Exhibits
Exhibit I: Situation of Tribal People in India
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