When Mr. S.K. Paramasivan, veteran Cooperator & ex-Member of Parliament established the Erode Agricultural Producers Co-operative Marketing Society Limited (EAPCMS) in 1960, few could have imagined the profound impact it would have on thousands of farming families and consumers across the region by 2025.
For the farmers of Erode district, known for its GI-tagged turmeric, the cooperative has eliminated the exploitation previously faced at the hands of middlemen. Today, over 16,000 farmer members enjoy the security of fair prices through a transparent e-tender system that puts them in control. Farmers now receive instant SMS notifications of bids, can view offers on LED screens, and have the freedom to either accept the current market price or wait for better opportunities—a choice previously unavailable to them.
“Before the e-tender system, we never knew if we were getting a fair price,” explains a turmeric farmer from the region. “Now, with traders competing openly, we see higher returns for our produce.” This transparency has resulted in farmers receiving up to 151% more value for their crops compared to pandemic-era prices.
The cooperative hasn’t just improved selling conditions—it has also provided crucial financial security. Members can store their produce free of charge for three months with complimentary fumigation and insurance, eliminating the pressure of immediate sales during harvest gluts. When farmers need immediate funds, they can access loans at very low rates of interest while their produce remains safely stored, protecting them from predatory lenders who previously charged exorbitant rates.
For farming families facing financial emergencies, the society offers jewel loans at an affordable interest rate, well below market rates. This service has become increasingly vital to the community, with nearly three times more farmers accessing these loans in 2024-2025 compared to the previous year.
The cooperative’s influence extends beyond the farm gate. Local consumers now enjoy access to guaranteed pure turmeric and spice products under the “Mangalam” brand, free from the adulterants often found in commercial products. The transition to value-added processing means that both the economic benefits and employment opportunities remain within the community rather than flowing to distant processing centers.
“The quality is what keeps me coming back,” notes a regular customer at the society’s retail outlet. “Knowing these products come directly from local farmers makes a difference.” This farm-to-consumer connection has been further strengthened through the development of a user-friendly mobile app, making authentic cooperative products accessible to a wider audience.
Women from farming families have found employment opportunities in the society’s processing units, where traditional knowledge of spice preparation has been incorporated into commercial production. What began as a turmeric powder unit has diversified into producing everyday essentials like sambar powder, rasam mix, and various masalas that preserve authentic local flavors.
The cooperative’s commitment to returning profits to its members through a consistent 14% dividend since 1990 has provided a reliable source of supplementary income for farming families, helping fund education, healthcare, and farm improvements. Even during challenging years, when profits temporarily declined, this commitment to member welfare remained unshaken.
Perhaps most significantly, the society has preserved the agricultural heritage of the region. By ensuring that turmeric cultivation remains financially viable, the cooperative has stemmed the tide of rural-urban migration.
This cooperative model has demonstrated that when farmers unite, communities thrive. The true measure of EAPCMS’s success isn’t found in balance sheets but in the thousands of farming families who continue to prosper on their ancestral lands, secure in the knowledge that their cooperative works for them.
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