Proagro felicitates cotton seed farmers for not employing child labour

Hyderabad, March 12, 2006: “Progressive farmers, in cotton seed production, should focus on higher yields and also strive to set a social example by proactively avoiding the use of child labor in cotton seed production,” said Mr T.Srinivas Rao, one of the farmers’ from Kurnool district felicitated by Proagro, a company of Bayer CropScience, for not employing child labour while producing cotton hybrid seed. The Farmers’ Felicitation Programme, held at Gadwala on Sunday, is a significant feature of the company’s comprehensive Corporate Social Responsibility programme to encourage growers to refrain from employing children in cotton seed production.

“Proagro’s Harvest of Happiness Project with its system of Incentives and Sanctions for farmers is encouraging many growers to improve their productivity and profitability. In addition, the ‘Revitalizing Education’ initiative by setting up Creative Learning Centres (CLCs) in association with Naandi Foundation for integrating child labourers from cotton seed farms, to the formal mainstream educational system and improvement of school infrastructure in cotton seed villages is helping many children,” said Mr P. K. Rudrappa, another farmer who also received this unique felicitation.




In addition, six women growers Indiramma, K Mahadevamma, H Bhanu, Sheik Anbi, Maremma and Y Lakshmi from Velugu, a Government of Andhra Pradesh Project involving "women self-help groups", producing cotton seed for Proagro were also felicitated on the occasion for their cooperation in child labour elimination.

Proagro’s Harvest of Happiness Project was implemented in the Villages which have cotton seed production fields under contract with Proagro in 2005.

Incentives & Sanctions
Says Clive Pegg, Managing Director of Progro, “Under the Project Harvest of Happiness, Proagro pays the farmers a 5 percent bonus on the procurement price if they discontinue the use of child labour. In case of breaches of the contract the bonuses are cancelled and the procurement price cut by 10%. In very grave breaches the contract will be cancelled and the seed refused. Proagro is committed to eradication of child labour in cotton seed fields under contract to the company”.

A Working Group, consisting of company representatives and NGOs, called the Child Labor Elimination Group (CLEG) under the aegis of Association of Seed Industry, actively monitors cotton seed farms. Based on the observations of the monitoring team,
Proagro decides on disbursement of rewards and application of sanctions. A sophisticated system has been developed to ensure collection and analysis of data related to child labour use in cotton seed farms.

Micro-credit scheme
As part of Proagro’s comprehensive initiative to eradicate child labour, the company has signed a Memorandum of Understanding with the State Bank of India, to provide seed growers, including cotton seed growers, with access to lower interest rate credit, instead of the high rates charged by the local money lenders.

Says Clive Pegg "Child labour in cottonseed production is a deep-rooted, socio-economic problem that has developed in the last three decades in this industry. The financial distress of many rural families has contributed a great deal in intensifying this problem. This micro credit program, for seed growers, will provide timely and organized financial support and significantly reduce grower borrowing costs. We believe that this scheme can help improve cotton seed grower profitability and further encourage seed growers to discontinue the use of child labour."

Revitalizing Education
Proagro’s intiative - Creative Learning Centres (CLCs)- were established in association with Naandi Foundation in 20 ‘Preferred Villages’ across the state is showing positive impact. The CLCs integrate child labourers from cotton seed farms and other under-privileged children into the formal mainstream educational system and have been successful in enrolling about 700 children as on end of February 2006. Supporting education and scientific advancement are two key elements of the global social responsibility program of Bayer CropScience.

Improving school infrastructure
Proagro is strongly committed to improving educational infrastructure in selected villages, which proactively cooperate in the implementation of the child labor eradication project and comply with ‘no child labor norm’ of the company.

To begin with, Proagro has announced its plans to improve school infrastructure in the Jammichedu village for its cooperation during the 2005 season.

Adds Clive Pegg, “We have decided to improve school infrastructure in five villages in total in Kurnool and Mehboobnagar. The criteria for selection of a particular village depends on the vast majority of farmers complying with the ‘no child labour’ policy. In 2006, we are aiming to further bring down child labour in Proagro farms and plan to be even more stringent in monitoring child labour and applying sanctions if this policy is not complied with.”

About Proagro – Brief Corporate profile
Proagro is part of the Bayer CropScience Group and is located in Hyderabad, India. Proagro is engaged in research, development, production and marketing of high quality hybrid seeds. To cater for the specific needs of farmers, Proagro offers a wide product range covering Rice, Cotton, Pearl Millet, Corn, Grain Sorghum, Sunflower and Mustard.