Farmer Producer Companies Research Articles

Farmers' Perception on the Functioning of FPC-NRMFPCL in the Zaheerabad Region of Sanga Reddy District, Telangana, India

Indian agriculture is predominantly comprised of small and marginal farmers, who face significant challenges in accessing modern resources and markets. To address these issues, the government has promoted Farmer Producer Companies (FPCs) to enhance market access. This study assesses farmers' perceptions of the Narinja Rythu Mithra Farmers Producer Company Limited (NRMFPCL) in Zaheerabad Mandal, Telangana, using systematic random sampling of 80 farmers and a Likert scale for evaluation. Findings indicate high satisfaction with the quality of seeds and market information, reflecting the effectiveness of the services provided. The results underscore the importance of FPCs in improving farmers' livelihoods and accessing vital resources, suggesting a promising future for collective agricultural initiatives in enhancing market participation and overall rural development.

Adoption of mobile applications (apps) for information management in small agribusiness enterprises – an exploratory mixed-methods study of Farmer Producer Companies in India

Purpose Small farmers in India are collectivized and legalized as Farmer Producer Companies (FPCs) to progress in agri-food value chains as small agribusiness enterprises. FPCs are dependent on timely information for their sustainability and profitability. Mobile apps are a cost-effective form of information and communication technology. Hence, the purpose of this study is to explore the major determinants of mobile apps adoption by FPCs. Design/methodology/approach Quantitative and qualitative data are collected by administering a semi-structured questionnaire and conducting in-depth interviews with board members of 115 FPCs, with a total membership of 30,405 farmers operating in 14 districts of the state of Kerala, India. The logit model is used for quantitative analysis, while dialog mapping is used for qualitative analysis, based on an integrated technology acceptance model and technology organization environment framework. Findings Logistic regression results evidence that amongst FPC characteristics, while company size and age are significantly impacting apps adoption, there is no significant association between board size, education level, multiple commodities business or export intention of companies on apps adoption. Digital literacy and technical hands-on training for FPC board members are quintessential to facilitate mobile apps adoption. Practical implications The findings are pertinent to policymakers to earmark funds for technical handholding and digital upskilling of FPCs. The need for developing comprehensive, location-centric, farmer-friendly apps by agritech companies is evidenced. Originality/value To the best of the authors’ knowledge, this is a pioneering work in the domain of mobile apps adoption from a farmers’ agribusiness enterprise perspective in an emerging market economy using a mixed-methods approach.

A Study on the Factors Influencing the Adoption of Good Agricultural Practices among Farmer Members of Farmer Producer Companies in Different Agroclimatic Regions of Tamil Nadu, India

A Study on the Factors Influencing the Adoption of Good Agricultural Practices among Farmer Members of Farmer Producer Companies in Different Agroclimatic Regions of Tamil Nadu, India

Evolving strategies for improving the performance of farmer producer companies through field studies

Farmer Producer Companies (FPCs) were spearheaded for the integration of resource-poor farmers with the market systems in India. However, 45% of the FPCs aged more than five years had become dormant in function. The present study was undertaken to identify, validate and prioritise the strategies which could facilitate the improved performance of FPCs and ensure their sustainability in the long run. The list of strategies was identified through focus group discussions along with personal and telephonic interviews with experts associated with FPCs, viz. FPC officials (CEO, BODs), farmers, promoting agencies, customers, and government officials. Later, it was administered as a semi-structured interview schedule to experts for validation and prioritization using the Garrett ranking technique. The prominent prioritized strategies were ‘Capacity building of BODS to manage FPC business activities on their own’, and ‘Designing a well-defined business plan for the FPC’ for the stakeholder category Promoting agencies/ CBBOs, ‘FPCs need to strive to build trust among the member farmers’,‘Increasing the active membership strength’ were prioritized under the FPC category. Subsequently, ‘Building adequate knowledge on advantages of business association with FPC’, and ‘Motivating members of an FPC to build their own capacities such as financial literacy’ were ranked first for the farmers category. Under the category of customers, ‘Showing readiness to participate in customer satisfaction surveys,’ and ‘Updating knowledge on FPC products by discussions with friends and family’ were ranked first. ‘Reorienting the policy focus from mere formation to sustained incubation of FPCs’ and ‘Establishing platforms for FPCs to engage in policy advocacy and representation at various levels’ could ensure the sustainability of FPCs in India.

Assessing social capital and its impact on economic performance: A comparative study of members and non-members of farmer producer companies in India

Farmer producer companies (FPCs), modern farmer collectives registered under India’s Companies Act, play a crucial role in providing core services like input supply, marketing, technical, and financial support, as well as auxiliary services such as social capital and consultancy, which are linked to higher economic performance and innovation. The study analyzes the levels of social capital among members and non-members of FPCs and their relationship to the economic performance of their members. The data on social capital were collected from 20 FPCs (292 members and 77 non-members) from Maharashtra state of India. Unpaired student T-tests and Mann-Whitney tests were performed to compare the levels of social capital among the members and non-members. OLS regression was performed to understand the difference in social capital and its effect on economic performance. The results reveal that all the indicators of social capital were significantly higher for the members (Mean = 4.27) than for non-members (Mean = 3.14). The social capital indicators related to membership and participation in groups (p-value < 0.10) and the sharing of production and other information (p-value < 0.01) positively affected economic performance. Higher levels of education (p-value < 0.05) and frequent contact with members (p-value < 0.01) positively affected, whereas higher landholding (p-value < 0.10) and years of membership (p-value < 0.01) negatively affected the economic performance of members. As the Indian government plans to add 10,000 FPCs in the next three years, the strategy to increase the social capital of FPCs may enhance the overall resilience and sustainability of rural economies.

EXAMINING THE RELATIONSHIP BETWEEN SELECTED PROFILES OF BENEFICIARIES OF FARMER PRODUCER COMPANY WITH ITS CONSEQUENCES

The present study was conducted from 2020 to 2023 in the Aurangabad and Latur districts of the Marathwada region in the state of Maharashtra. These districts were purposefully selected for the research study due to the presence of the highest number of Farmer Producer Companies (FPCs). Four FPCs were purposively chosen from each district, each of which had been established either five or three years ago. In total, eight FPCs were selected for the present study. The primary aim of this study was to examine the relationship between selected profiles of beneficiaries of Farmer Producer Companies (FPCs) and its consequences in the Marathwada region. By examining the characteristics and outcomes of beneficiaries within FPCs, we aimed to shed light on the impact of FPC membership on farmers’ livelihoods and agricultural practices in the region. From each of these selected FPCs, two villages were purposively chosen for the study based on the highest number of beneficiaries actively engaged with the FPC. Fifteen beneficiaries were randomly selected from each Farmer Producer Company, resulting in a total sample of 120 beneficiaries. Additionally, 120 non-beneficiaries were selected, bringing the total sample size to 240. Correlation analysis revealed several factors positively and highly significantly related to the consequences of FPC membership, including annual income, social participation, information seeking behavior, mass media utilization, training received, economic motivation, risk preference, innovativeness, scientific orientation, market orientation, and knowledge. Additionally, education, land holding, and occupation were found to have a positive and significant relationship with FPC consequences, while age did not establish any significant relationship. Multiple regressions showed that 77 per cent of the total variation in the overall consequences of FPCs on beneficiaries was explained by the 15 independent variables examined in the study. Furthermore, path analysis indicated that education, social participation, economic motivation, innovativeness, market orientation, and knowledge were crucial variables influencing the overall consequences of FPC membership.

Financial Performance of New Generation Cooperatives in India: Assessment of Selected Farmer Producer Companies in Alipurduar District of West Bengal

The study was carried out in the year 2022-23 to assess the financial performance of selected Farmer Producer Companies in the Alipurduar district of West Bengal. The study used secondary data from the annual reports of these companies and assessed their financial performance through various financial ratios. The measurements of liquidity, solvency, profitability, and efficiency of these collectives revealed concerns related to the non-utilization of current assets even during their handholding period and the risk of poor performance after the handholding period was over. Strong financial management is needed to develop sustainable FPCs. Also, the capacity of member farmers must be raised in terms of financial management, which is a very sensitive and crucial aspect of business.

Benefits of new generation farmers’ collectives: case reflection from an eastern state of India

ABSTRACT The current study uses field survey data from members of five farmer producer companies in the eastern Indian state of West Bengal and assesses the benefits of membership. The real income of member farmers increased by more than 30 per cent after joining farmer producer companies. The access to inputs like seeds, farm chemicals, and farm machines; to weather advisory and storage services; and also, to output markets, improved after joining farmer producer companies. The members were found to market 100 per cent of their produced food grains through farmer producer companies at minimum support prices. Member farmers were found to have stronger networks and greater temporal and informational efficiency. With nearly 40 per cent of members women, these farmer producer companies have emerged as instrumental in empowering them, improving their livelihood and incomes in the patriarchal and rural societal setup. However, even though these collectives are benefitting the rural economy, it was also found that more investment is needed to create local infrastructure.

BOOK REVIEW:Farmer Producer Companies in India: Road Map to Ensure Sustainability BY Srivastava, U.K. and Srivastava, Pramila

BOOK REVIEW:Farmer Producer Companies in India: Road Map to Ensure Sustainability BY Srivastava, U.K. and Srivastava, Pramila

Assessing Marketing Efficiency in the Coconut Value Chain: A Case Study of Western Tamil Nadu's Coconut Landscape

India, the world's leading producer of coconuts, also faces challenges in optimizing farmer returns within its coconut value chain. This study investigates the marketing efficiency of Coconut value chain in Western Tamil Nadu, a significant contributor to national production. A multi-stage random sampling technique was employed to collect data from 300 coconut farmers, intermediaries (commission agents, harvest contractors), processors, wholesalers, retailers, and consumers across four districts (Coimbatore, Tirupur, Erode, and Namakkal). Marketing efficiency was assessed using Shepherd's method, Acharya's modified approach (incorporating post-harvest losses), and Calkin's index. Three marketing channels were identified: (i) Through Harvest Contractors (CVC I), (ii) Through Commission Agents (CVC II), and (iii) Through Farmer Producer Companies (FPCs) (CVC III). This article delves into the factors contributing to these results, explores the existing literature on coconut marketing efficiency, and proposes FPCs as a key strategy for enhancing farmer livelihoods in the region. The findings highlight the dominance of FPCs (CVC III) as the most efficient marketing channel across all districts, followed by CVC I (through harvest contractors) in most cases.

A Comprehensive Mapping of the Coconut Value Chain Actors in Western Tamil Nadu, India

The coconut industry in Western Tamil Nadu, India, epitomizes the intricate interplay of actors and activities within the agricultural value chain. Despite India's prominent stature as the leading coconut producer globally, challenges persist, including price disparities and limited value addition. This study investigates the coconut value chain in Western Tamil Nadu, mapping its actors and activities to elucidate opportunities for enhancing efficiency and sustainability. Employing a multi-stage sampling technique, data were collected from 300 coconut farmers and various stakeholders. Six value chains were identified, encompassing domestic, processing, and export markets. Primary actors, including farmers, harvest contractors, commission agents, wholesalers, retailers, processors, farmer producer companies (FPCs), and exporters, were analyzed in terms of their roles and activities. Results highlight the significance of value chain mapping in understanding market dynamics and optimizing resource allocation. Channel III, facilitated by FPCs, emerged as a promising avenue for reducing costs and enhancing market efficiency. This study emphasizes the importance of informed decision-making and strategic interventions for fostering a sustainable and vibrant coconut industry in Western Tamil Nadu and beyond.

Exploring the key success factors of farmer producer companies in Gujarat: A farmer's perspective

Exploring the key success factors of farmer producer companies in Gujarat: A farmer's perspective

Effectiveness of FPOs: Credit Performance Evaluation of Farmer Producer Companies in Tamil Nadu

Farmer producer organisations (FPOs) in India were introduced as farmer’s cooperative society with the prime objective of enhancing the profitability and productivity of small and marginal farmers by cooperative action. The most crucial element which determines the establishment and success of the farmer producer companies (FPCs) is financial support. Thus, the government is providing direct funding in the form of various grants such as start-up grants, equity grants, mezzanine capital assistance, seed/pulse processing unit and so on. Despite getting huge credit support from the government in the form of various incentives, many companies are struggling and failing to sustain themselves in the long run. The present study evaluated the credit performance of FPCs in Tamil Nadu based on four financial ratio indicators named growth ability, profitability, debt ability/solvency and indicators of per share. The study result indicates that most of the companies fall under the average to low average performance category which highlights the inefficiency in the financial management of study FPCs. Comparatively FPCs’ credit performance was found to be increasing. The results of the analysis shed light on the importance of credit management which is possible through capacity-building training and regular monitoring and guidance for the FPCs in credit handling.

Navigating Challenges for Circular Grape Supply Chains: Blockchain, Business Ethics, and Socio-Economic Sustainability in Farmer Producer Companies of Maharashtra

Navigating Challenges for Circular Grape Supply Chains: Blockchain, Business Ethics, and Socio-Economic Sustainability in Farmer Producer Companies of Maharashtra

Food system resilience: Unraveling power relations and the Matthew effect in farmers networks

Farmer Producer Companies (FPCs) are new-generation food systems meant to address development concerns in rural India. While FPCs were established on cooperative ideals, legacy power relations often persist, with certain actors exerting decisive control over market connections and resources. As FPCs emerge from their pre-existing socio-economic conditions, their resilience is predicated on maintaining robust value chain relationships. In this study, we applied a multi-layered approach with network tools on field data to investigate the Matthew effect, where cumulative advantages to elites maintain or amplify inequality. We focused on network power discrepancies and democratic participation in two selected natural farming FPCs. Social network analysis (SNA) and two other visualization approaches, Self-organizing Maps and Parallel Categories Plots, have been deployed to analyse the member networks and FPC ecosystems, before and during the CoVID-19 pandemic. The FPC exhibiting a strong Matthew effect, with a legacy of preferential relationships, showed lower resilience under uncertainty compared to the other FPC, whose legacy of grassroots efforts involving marginal and women farmers managed to avert the Matthew effect. The findings offer valuable insights for the local governance of inclusive food systems and have global relevance, especially for addressing SDGs 5 (gender equality) and 10 (reduced inequalities).

Impact of Farmer Producer Companies on Small and Marginal Millet growers

Farmer Producer Company (FPCs) is a viable option to increase the farmers’ income through their collective actions. FPCs are emerging in larger number with the support of SFAC and NABARD to provide business services to small and marginal farmers. Many small and marginal farmers depends on the FPCs. Therefore, the present study aims to find the impact of farmer producer companies on small and marginal millet growers in Dharmapuri district of Tamil Nadu. The primary data was collected from 60 members and 60 non-members of farmer producer companies comprising total of 120 millet growers. The study employed resource use efficiency and stochastic frontier model to find the profits earned by the millet growers. The sample FPC established a robust backward and forward linkages in which millet growers realized a profit for their produce. The study also found that, in addition to value added products, allied enterprises like cattle and poultry farming brought an additional income for sample FPCs. The results concluded that millet growers gained a substantial increase in farm revenue.

Willingness of Coconut Growers to Join Farmer Producer Companies in Western Tamil Nadu–An Exploratory Study

Coconut, a versatile crop called as ‘Kalpaviriksha’ – A tree of Heaven. India, with the rich biodiversity of coconut, is the largest producer with 33.02 percent share or 22167 million nuts of the world's largest production of 67128 million nuts. But still, the farmers facing difficulties in marketing coconut. The constraints pertaining to the marketing of coconut were lack of government procurement system, lack of co-operative marketing, lack of proper market information, monopoly of market intermediaries, fluctuation in market price, and high commission among intermediaries were the major problems faced by the coconut growers. This study analyses the perception and preference of coconut farmers in joining coconut producer companies in the Western Tamil Nadu. Descriptive analysis and Garret raking technique has been used and concluded that price provided by the FPC was good and fair enough compared to the market price, which was the major reason for joining the FPC and lack of awareness on benefits obtained, share capital contribution requirement, and benefits not distributed evenly are the major problem in not joining the FPCs.

Stylized facts of performance measures for sustaining the farmer producer companies in India

AbstractFarmer producer companies (FPCs) have widely transformed the livelihoods of the people and mainly squeezed the income and living standard conditions in the rural sectors, specifically a primary sector engaged majorly with village economies. This article diagnoses the collective cooperative concept and formation of FPCs in the country since their establishment in the year 2008–2021. We utilized secondary data from the Ministry of Corporate Affairs (MCA) and the outcome of the study discusses the state and zone‐wise performance of FPCs in the country. The result found that only a few zones are performing in the FPCs businesses which makes it sustainable. The study further adds the sustainable measures for performance of the FPCs.

Beyond the Number Games: Understanding the Farmer Producer Companies in India and the Way Forward

The paper analyses the trends, patterns and performance of Farmer Producer Companies (FPCs) in India. The paper aims at understanding what determines the success of FPCs and also explore whether the current policy focus on a targeted development of 10,000 Farmer Producer Organizations (FPOs) a good idea. The study tries to identify the critical common factors of successful FPC ventures. The study also analyses the issues, challenges and bottlenecks faced by selected FPCs and attempts to understand the best practices, the interventions and alternatives of the selected FPCs. The paper would help in understanding the existing and expected institutional arrangements for and around FPCs in order to make the business ventures robust. We used data provided by National Bank for Agriculture and Rural Development (NABARD) and Small Farmers’ Agri-Business Consortium (SFAC) to explore the trends and patterns. A cross-case analysis was done to assess the performance and to draw inferences on critical common factors for success. The study shows that FPCs are emerging among other legal forms of FPOs. They are prominent in few states, which have enabling environment, enterprising farmers and have a history of collective action. The study shows heterogeneity in the product, functioning, how they work, deal with the issues and mechanisms of FPCs. The paper proposes establishing ‘incubators’ to handhold and support FPCs and different modes and categories for financing them. The macro- and micro-level understanding of FPCs drawn on the country-level data and the specific cases would add to the existing knowledge around FPCs in India. The contextual analysis of FPCs is of interest to global researchers and agri-development professionals, to identify the sectoral challenges, bottlenecks and the issues, which FPCs experience as business ventures. The paper creates possibilities for policy makers to design effective policy responses and strategies to strengthen FPCs in India and also benefit the global south by suggesting the learning from the model.

Identifying and prioritizing the stakeholder linkages of dairy-based farmer producer companies in India: An analytical hierarchy process

The present study was proposed to identify stakeholders involved in the formation of FPCs, as related to the dairy-based farmer producer companies. The proposed study was conducted in Uttar Pradesh, Rajasthan, and Madhya Pradesh, as these three states are the major milk-producing states of India as well as have the highest number of dairy-based farmer producers. Four farmer producer companies from each state were selected randomly, based on three criterias. The sample size was 90 (60 officials of FPCs and 30 experts) for the study. The data were collected from primary and secondary sources. A semi-structured interview schedule based on the Satty,s nine continuum scale was developed to collect data related to stakeholder analysis. The study reported that 12 stakeholders were actively involved in the formation of FPCs. The farmers were the most important stakeholder and got the first rank in the AHP priority ranking.The linkage among the stakeholders were found medium to strong. Interest influence matrix categorized stakeholders into Key players, Context setters, Subjects and Crowd. The study suggests that there is a huge need to enhance and coordinate the backward and forward linkage among stakeholders for developing a sustainable ecosystem for the long-term viability of FPCs.