Author(s): Prajapati Marut Sanjaybhai, Swati Sharma, Mehul G Thakkar and Likhila B

Abstract: In response to increasing agrarian distress and market volatility, Farmer Producer Companies (FPCs) have emerged as a strategic institutional mechanism to empower small and marginal farmers in India. These farmer-owned enterprises, established under the Companies Act, 2002, aim to strengthen collective bargaining power, improve access to markets, and enhance income through value chain integration. Supported by agencies such as NABARD and SFAC, FPCs are designed to blend the cooperative spirit with corporate efficiency. However, despite their potential, many FPCs struggle with sustainability due to a range of operational and institutional challenges. This study investigates the key determinants influencing farmers' decisions to join FPCs. It also identifies the major financial, marketing, technical, and organizational constraints encountered by FPC members, which affect their participation and the overall effectiveness of these organizations. Data were collected through structured surveys from member farmers across selected FPCs, and analyzed using descriptive statistics and ranking methods. The findings reveals that while farmers are motivated to join FPCs for better market access and financial support, they face significant barriers such as lack of technical guidance, poor infrastructure, delayed payments, and inadequate governance mechanisms. Understanding these issues is vital to strengthen the FPC model and make it more responsive to the needs of grassroots stakeholders. The study offers actionable insights for policymakers, development agencies, and FPC promoters to improve member engagement and ensure the long-term viability of farmer-led enterprises.

Pages: 09-14 | Views: 177 | Downloads: 2

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