Producer Companies in India


Book Description

Organising small producers for dealing with production and market risks has been an issue of much debate and research. The co-operative model has been the predominant form of organization of such producers in the past across the developing world and more so in India whether for input supply or output handling and marketing. In 2002, the Companies Act was amended to make space for producer or farmer companies under the Act. As a result, over the last decade, hundreds of producer companies have been promoted by different stakeholders like government, NGOs, farmers’ unions and some corporate agencies to link farmers with markets and create better bargaining power to deal with modern and changing markets. In this context, this study examines the nature and process of promotion of producer companies in India and their performance and dynamics across four states, commodity sectors, and promoters within agricultural sector with the help of case studies of two dozen such companies. It compares and contrasts the Indian producer company structure with traditional co-operatives and with similar innovations in other contexts like Sri Lanka’s farmer companies. The study analyses the performance and the problems of the producer companies from various perspectives, and examines policy and organizational issues to provide guidelines for better structuring and management of this innovative form of producer collectivization in India and the developing world.




Farmer Producer companies in India: Road map to ensure sustainability


Book Description

In India, a significant majority of farmers, specifically small and marginal ones, hold 86 percent of operational land and cover 47 percent of the operating area. These farmers encounter challenges in production and post-production stages, such as accessing technology, quality inputs at reasonable prices, seed production, custom hiring, value addition, processing, credit, investments, and crucially, markets. Farmer producer companies (FPOs) are emerging as effective tools for building integrated value chains, aiming to address these challenges and ensure better income for farmers. While around 7,000 FPOs were registered by 2019, many became defunct. Learning from this, the government initiated the promotion of 10,000 FPOs with various incentives in the 2018-19 budget. These measures, including equity support, credit guarantees, and expense coverage, aim to create sustainable FPOs, contingent on effective management, financial literacy, profitability, and tangible benefits for members. The book focuses on evaluating the performance and sustainability of Farmer Producer Companies through 16 chapters, offering valuable insights for stakeholders such as FPOs, policymakers, agro-entrepreneurs, bankers, and agricultural students.




Farmers’ Participation in India’s Futures Markets


Book Description

Futures markets offer numerous advantages in the marketing of agricultural commodities, and in this context, the book examines the major factors and issues that determine the participation of India’s farmers in the futures markets. These include the efficiency of the futures markets in price discovery, the convergence of spot and futures prices, the dissemination of spot price information, and the socio-economic and exchange-related issues affecting farmer participation. It also examines the factors affecting the demand and supply of participation, and the access to futures trading services. The purpose is to identify different factors that can enhance or constrain farmer participation in the futures markets, which may include market characteristics, institutional features, socio-economic issues, and behavioural aspects of farmer participation. A number of organizations related to rural development, as well as farmer producer companies have sought to facilitate farmer participation in the forward/futures market through offering aggregation and other trading services, and the book also examines these efforts towards the exchange-traded derivative markets and the direct and indirect benefits that accrue. The book also studies the efficiency of futures markets in price discovery and price dissemination applying co-integration tests, and error correction and volatility models, using available data of wheat, rapeseed-mustard, cotton, guar seed, castor, cumin and coriander futures contracts traded in the largest agricultural commodity exchanges in India. Besides, case studies are used to examine and understand the institutional roles of aggregators in aggregation efforts towards the forward/futures market. This book covers several states and locations in India to enhance the representation and validity of the findings. It also examines representative farmer organizations which have obtained institutional membership in the forward or futures markets, and identifies areas of further research. In the current scenario, the book would be of immense importance and relevance to governments, commodity exchanges/markets, aggregators, many private and development organizations, as well as interested researchers and students.




Farming Futures


Book Description

This book studies the management challenges and possibilities in sustaining farmer producer organisations (FPOs). It goes beyond the conventional metrics of cost-benefit analysis by drawing on 15 case studies of diverse FPOs spread across India to fill a significant knowledge-practice gap in the domain of producer collectives. The book explores issues of ownership and governance, studies the empirical basis for policy decisions on FPOs, and provides actionable insights and knowledge, keeping in mind the complexity of the institutional design of an FPO. It also discusses the envisioned role of civil society organisations in supporting FPOs and looks at the kind of institutional innovations that are needed to create a cohesive ecosystem for FPOs. A unique collaborative project jointly authored by academics and development practitioners, the book will be of use to students and researchers of agricultural economics, environment and business, agricultural development, environmental economics, rural studies, entrepreneurship, and South Asian studies. It will also be of interest to development professionals, civil society organisations, and policymakers.




Agricultural Value Chains in India


Book Description

This open access book provides a clear holistic conceptual framework of CISS-F (competitiveness, inclusiveness, sustainability, scalability and access to finance) to analyse the efficiency of value chains of high value agricultural commodities in India. It is based on the understanding that agriculture is an integrated system that connects farming with logistics, processing and marketing. Farmer’s welfare being central to any agricultural policy makes it very pertinent to study how a value chain works and can be strengthened further to realize this policy goal. This book adds value to the existing research by studying the value chains end-to-end across a wide spectrum of agricultural commodities with the holistic lens of CISS-F. It is not enough that a value chain is competitive but not inclusive or it is competitive and inclusive but not sustainable. The issue of scalability is very critical to achieve macro gains in terms of greater farmer outreach and sectoral growth. The research undertaken here brings out some very useful insights for policymaking in terms of what needs to be done better to steer the agricultural value chains towards being more competitive, inclusive, sustainable and scalable. The value chain specific research findings help draw very nuanced policy recommendations as well as present a big picture of the future direction of policy making in agriculture.




NEW INSIGHTS OF CORPORATE CONTRACT FARMING FOR GROWTH OF FARMERS


Book Description

Corporate farming/Contract farming is common in both developed and developing countries in whole world scenario with the heightened interest of consumers in food safety and quality. The farmers and buyers make advance agreements on volume, quality, time of delivery, use of inputs, and price or pricing formula. It contributes to improving production efficiency and income of farmers in general and of small-scale farmers in particular. Although we refer to progress in developed countries (primarily the United States, Europe and Asian countries) to gain a deeper understanding of the impacts of Corporate/Contract farming. We find that although contributes to the improvement of farmers' income by introducing new crops and production methods, there is room for strengthening its effects on poverty reduction through policy. Farmers are king in dealing with their counterparts and secured with all risks which is born by the big entities of corporate who makes maximum use of their expert expertise and digitally marketed products and away the middleman to grab maximum profit from the Farmers ( who are the Annadata). Contract farming stimulates employment. The available evidence supports the notion that contract farming increases welfare. Contract farming is commonly seen as a suitable means of linking poor farmers to markets. In this book this has been elaborated as a great market place for whole society which also involves themselves with the farmers friend. There are also huge chances to increase different employment generation activity in these areas as tourism, eco- friendly climate for short term health improvement programs and availability of all services of experts, doctors, yoga instructors and entertainment event arrangement not such like in metros but on the basis of rural involvement. Learning and participation of small children as school camps in these villages and know the nature in original form. These all can be done if any start-up companies or contract farming companies start their activities in these fields and they have high-income yield business In these areas. Locals can be involved with their training in the different fields their employment and concentration of population in metros will be stopped.







Innovative Institutions, Public Policies And Private Strategies For Agro-enterprise Development


Book Description

In an effort to promote agro-enterprises and agro-industries as viable forms of inclusive development, the Food and Agriculture Organization of the United Nations (FAO) and The Cornell International Institute for Food, Agriculture and Development (CIIFAD) in collaboration with the International Association of Agricultural Economists (IAAE), organized an international symposium on the topic “Innovative Institutions, Public Policies, and Private Strategies for Inclusive Agro-Enterprise Development”, as part of the Triennial Meetings of the IAAE held in Foz do lguaçu, Brazil, in August 2012.This book contains the major papers presented at the symposium, which feature a wide range of country and regional experiences and examine the influence of markets and technology transfer to agro-enterprises on food security, poverty, and economic growth. The contributions also identify alternative market access strategies for sustainable economic development. This volume will enrich existing knowledge of agro-enterprises as a channel for promoting inclusive growth and reducing poverty levels across developing and emerging markets.




Contract Farming for Inclusive Market Access


Book Description

This book aims to typify the extent to which contract farming is helping small farmers to access markets and meet increasingly stringent requirements, not only of "modern" food manufacturers, retailers, exporters and food service firms,by also in non-food sectors such as biofuels and forestry. It also seeks to clarify differences in the functionality of contracts depending on commodity, market, technology, public policies and country circumstances. Conceptual issues are discussed and a series of case study appraisals based on real world examples from developing regions are presented. The issuesraised by the case study authors and the key messages synthesized in the initial book chapter bring new insights and contributions to further enrich knowledge on contract farming as a tool for inclusive market access in development countries.