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.




Financing Agriculture Value Chains in India


Book Description

This book examines the successful private, public and civil society models of agriculture value chains in India and addresses relevant challenges and opportunities to improve their efficiency and inclusiveness. It promotes the value-chain approach as a tool to improve access to finance for small holder farmers and discusses the possible structure of and regulatory framework for the ‘National Common Agricultural Market’— a term that featured in the Indian Finance Minister’s 2014–15 budget speech, and which is aimed towards standardizing and improving transparency in agricultural trade practices across states under a single licensing system. The book deliberates on the potential of developing innovative financial instruments into the value chain framework by supporting tripartite agreements between producers, lead firms and financial institutions. Its fourteen chapters are divided into three parts—Agriculture Value Chain Financing: Theoretical Framework, Agriculture Value Chain Financing in Cases of Select Commodities; and Institutional Framework for Agriculture Value Chain Financing. Since the concept of value chain financing is being considered as a future policy agenda, the book is of great interest to corporations dealing with agricultural inputs and outputs; commercial, regional, rural and cooperative banks; policy makers; academicians and NGOs.




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.




State of Agricultural Finance in India


Book Description

Agricultural finance has come a long way in the past 15 years. After the concerted efforts of GOI, supported by RBI and NABARD, towards doubling of agricultural credit flow in 2004-2005, the growth in credit flow to the sector has been robust with an impressive CAGR of 18% between 2004--2005 and 2019-2020. While outreach increased, the Terms of Trade (Farmers and Non-farmers) has largely been on a declining trend, reflecting the underlying stressed conditions in farming. There is a challenge of inclusion, where small and marginal farmers continue to struggle for suitable and affordable credit products and access. This book summarizes the current state of agricultural finance in India, highlighting policy blind spots and grey areas. It documents the important advancements made in the agri-finance space in the last few years. The book covers various aspects of Agri-Finance Policy; institutional appetite and architecture for agriculture credit; formal financial services for enterprises in agriculture; agri-business, including FPOs; and innovations in credit, insurance, delivery mechanisms for agri-sector.




Farm Finance for Development


Book Description

Study with reference to agricultural credit in India.




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.




Microfinance and Development in Emerging Economies


Book Description

Using India as a case study, Microfinance and Development in Emerging Economies builds and evidences an argument that microfinance and group lending are the best way to combat and address the economic exclusion that blights so many across the Global South.




Agro and Food Processing Industry in India


Book Description

This book provides different facets of India's agro and food processing industry in both organised and unorganised segments. It brings forth the topical issues having potential to accelerate the pace of growth in its employment, investment and productivity and strive for improving the global competitiveness. Using advanced quantitative techniques, it brings new evidences on inter-sectoral (agriculture-industry-services) employment and production linkages, contractual arrangements through Farmer Producer Companies, and subcontracting in the processed food sector. It also throws light on India's comparative advantage in export of primary and processed food products. With rising per capita income, urbanisation, and changing food habits of people, India is increasingly striving to improve productivity and competitiveness in agriculture and manufacturing. A concerted policy focus to accelerate private investment in food processing, largely viewed as a sunrise industry, is expected to contribute to large scale job creation and external trade not only in the manufacturing but also in the agricultural sector. Keeping this in mind, considerable insights are featured in the book at the industry and firm levels due to a significant bearing of technological, tariffs and non-tariff barriers and labour regulations on their trade intensity, employment and efficiency. Containing perspectives from the top agriculture and industry economists in the country, the book will be very useful to researchers, academicians, trade analysts and policy makers.