Impact of Farmer Producer Companies on Smallholder Farms: Evidences and Insights from India

Binoo P Bonny; Kuppusamy Ponnusamy; Thamban C; Sudheer K P; Sujatha R

doi:10.56093/ijas.v96i10.172369

Authors

Binoo P Bonny Kerala Agricultural University
Kuppusamy Ponnusamy ICAR-National Dairy Research Institute, Karnal-132 001 India
Thamban C ICAR-Central Plantation Crops Research Institute
Sudheer K P Kerala Agricultural University
Sujatha R Kerala Agricultural University

https://doi.org/10.56093/ijas.v96i10.172369

Keywords:

Farmer producer companies, Smallholder farmers, Performance, Efficiency, Data Envelopment Analysis (DEA), Scale efficiency

Abstract

The study conducted during 2021-2023 evaluates the impact of Farmer Producer Companies (FPCs) on smallholder farmers that comprise 89.4 percent of Indian farms. Data Envelopment Analysis (DEA) used to assess scale efficiency of FPCs found high regional variations with 69 percent of FPCs in early stages demonstrating optimal resource utilization. Further, a Difference-in-Difference (DID) regression analysis revealed significant improvements in income, farm finances, credit access, assets, and yields for FPC members. Performance Efficiency Index (PEI) revealed that majority of FPCs (55.44%) exhibited better performance than the median performance scores. The findings underscore the potential of FPCs to empower smallholder farmers and enhance agricultural productivity in India.

Downloads

Download data is not yet available.

Author Biographies

Binoo P Bonny, Kerala Agricultural University

Director of Extension Education, Kerala Agricultural University, Vellanikkara, Thrissur 680656, binoo.pb@kau.in
Kuppusamy Ponnusamy, ICAR-National Dairy Research Institute, Karnal-132 001 India

Division of Dairy Extension andÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Principal Scientist
Thamban C, ICAR-Central Plantation Crops Research Institute

Principal Scientist, ICAR-Central Plantation Crops Research Institute, Kasargod; c.thamban@gmail.com
Sudheer K P, Kerala Agricultural University

Professor, Kerala Agricultural University, Vellanikkara, Thrissur 680656
Sujatha R, Kerala Agricultural University

Associate Director of Research, Coconut Mission, Kerala Agricultural University, Padannakkad, Kasargod sujatha.r@kau.in

References

Bisht, I.S., Rana, J.C. and Pal Ahlawat, S., 2020. The future of smallholder farming in India: Some sustainability considerations. Sustainability, 12 (9): 3751.

FAO. 2017. The Future of Food and Agriculture: Trends and Challenges. Food and Agriculture Organization of the United Nations, Rome

Government of India, Ministry of Agriculture and Farmers Welfare ,Department of Agriculture and Farmers Welfare,2023

Gulati, A., and Juneja, R. 2018. Innovations and revolutions in Indian agriculture: a review. Journal of Agricultural Science and Technology. 8: 473-482.

Halpati, J.R., Vahoniya, N.D. and Vahoniya, D.R., 2022. Farmer producer organisation (FPO): A conceptual study about farmer producer company (FPC). Asian Journal of Agricultural Extension, Economics & Sociology, 40(10): 1185-1197.

Lalitha, N., 2019. Can farmer producer organisations transform the small holder farming in India? A case study of Sahyadri Farmers Producer Co. Ltd. Nashik, Maharashtra. Pathways for Changing Rural Landscape, 49(1-2): 117.

Muhie, Seid Hussen. 2022. Novel approaches and practices to sustainable agriculture. Journal of Agriculture and Food Research. 10 (100446):1-11. https://doi.org/10.1016/ j.jafr.2022.100446

Mukherjee, A., Kumar, U., Singh, D.K., Shubha, K., Sinha, P.K. and Singh, P., 2022. Assessing performance of horticultural farmers producer companies: Comparative case study. Journal of Horticultural Sciences, 17(2): 520-529.

NSO (National Statistical Office). 2021. NSS 77th Round SAS Report (2021). Situation Assessment of Agricultural Households and Land and Livestock Holding of Households in Rural India, 2019. Ministry of Statistics and Programme Implementation, Government of India, New Delhi

Pabba A S and Ponnusamy K. 2024. Evolving strategies for improving the performance of farmer producer companies through field studies. Indian Journal of Animal Sciences. 94 (8): 725–730.

Saini, Shweta and Chowdhury, Aneek. 2023. Where they live and What they produce. India’s small and marginal farmer: Arcus Blog Series # 1.

Shasani, S., De, H.K., Das, M.K. and Saha, G.S., 2018. Farmer Producer Organisations in Aquaculture-Prospects and Potentials. Journal of Aquaculture, pp.22-30.

Shilpa SK (2020) Emergence of Producer Companies as Innovative Institutions for Agriculture Development in India: Issues and Challenges. Asian Journal of Agriculture and Development 17(2). southeast asian regional center for graduate study research agriculture: 79–92.

Singh, S., 2023. (Farmer) Producer Companies in India as new generation cooperatives: Case studies of performance and impact from West Bengal, India. Annals of Public and Cooperative Economics, 94(3): 1007-1029.

Sreeni KR (2023) Farmer Producer Company: A Model for Boosting Kerala’s Rural Economy. Rural Areas - Development and Transformations IntechOpen.

Venkatasubramanian, V., Rayudu, B.T., Thimmappa, K., Hanji, M.B., Mishra, J.P. and Kadhirvel, G., 2023. Influence of ‘Mann Ki Baat’on farmers Producer Organizations (FPOs): lessons from successful cases. Indian Journal of Extension Education, 59(3): 7-11.