A Case Study of Dairy-Based Farmer Producer Company in Haryana: Collective Action Approach for Enhancing Farmer Income

Abstract

The concept behind Farmer Producer Organizations is that farmers, who are the producers of agricultural products, can form groups and register themselves under the Indian Companies Act 1956. The aim is to enhance farmer’s income, capacity building, competitiveness, and increase their advantage in emerging market opportunities. To examine the role of farmer producer organization in enhancing farmers, a case study was conducted in Karnal District of Haryana. Study the management and governance system of FPC and assess the impact of FPC on members was the objective of the case study. Personal interviews and group discussion methods were used for data collection and gathering information on FPC. Mishti farmer producer organization was established on 25 march 2013 for collecting, processing, and marketing milk and milk products. It covered eight villages of Karnal and collect raw milk from members and non-members farmers at high price than other value chain actors. The result of the study indicate that farmer who supplies milk to FPC, get 8-10 rupee per lit high price than others. It also provides bonus to member farmers who are shareholders of the company and their income from dairy farming is enhanced by 25-30 percent. FPC also plays a significant role in enhancing the backward and forward linkage of farmers and capacity building of farmers in different agricultural aspect. Members of FPC are highly satisfied with the services provided by FPC and its performance in local areas.