Identifying Key Performance Indicators (KPIs) for Farmer Producer Companies in India

Abstract

The institutional changes proposed in the Companies (Amendment) Act, 2002 recognized farmer producer companies (FPC) as one of the most appropriate institutional forms to mobilize farmers and build their capacity to leverage their production and marketing strength collectively. Farmer producer companies are significantly improving the smallholder farmers' access to the market and strengthening their position in agri-value chains. The present study attempted to identify key performance indicators (KPIs) for measuring the performance of the producer companies in the country. Initially, 73 KPIs were identified through literature, out of which 28 KPIs were short-listed by expert elicitation and tested with four selected FPCs in Madhya Pradesh in 2018. It discussed the actors responsible for the success of the producer companies, along with the challenges faced in their growth. The proposed KPIs would enable and assist the producer companies to achieve higher performance in their operations and benefit the farmer members.