Patna: The Bihar Rural Livelihoods Project (BRLP), called Jeevika, has inked an agreement with MSTC Limited for online marketing of maize produced by farmers in Bihar.

The maize producers' company that functions under the aegis of Jeevika will market farm products.

The state government is implementing BRLP, a World Bank-aided project, through the Bihar Rural Livelihoods Promotion Society, an autonomous body under the department of rural development. Around 7.5 lakh self-help groups have been formed in Bihar so far under this project.

MSTC Limited is a central government-owned Mini Rana company, which is engaged in domestic and international trading activities for over 50 years. "We inked the deal earlier this month and aim to provide one more platform to the maize producers' company to sell its stock at the best possible price," Jeevika chief executive officer (CEO) Balamurugan D. told The Telegraph.

The maize producers' company has members who are from Jeevika itself and they procure the produce from farmers whose family members are associated with this project. The company has a stock of around 16,000 metric tonnes of maize at present.

According to terms of the agreement, MSTC representatives will check the samples of maize and then fix a minimum sale (base) price. The actual price of the commodity will be decided as per the agreement reached between the buyers and the producers' company on an electronic platform.

"An internal study by Jeevika has shown how the electronic platform has helped the producers' company get 15 per cent more than the average price that it was getting earlier by selling its produce in different markets. With addition of one more option of MSTC, the producers' company is expected to get an even better price," said the Jeevika CEO.

One of the unique features of the functioning of the producers' company is that it buys maize from farmers at a mutually agreed price and it also gives them share from the profits it earns after selling the produce using the electronic platform.

The producers' company keeps around 30 per cent of the profit to meet its administrative, storage and other costs, while giving back 70 per cent of the profits to the farmers in the form of bonus.