ABSTRACT

In India small and marginal farmers are facing numerous challenges, that is making farming uneconomical due to escalating costs, fragmented landholdings, limited access to modern technology, and restricted market reach. To address these issues, organized efforts of farmer through Farmer Producer Companies (FPCs) has emerged as a vital solution to promote the production and post production action. The FPCs are acting as legal entities which combines the advantages of Private Limited Companies and Cooperative Societies, and offers collective platform for production, marketing, and other agribusiness activities. This study focuses on the management, business performance, and benefits of FPCs in Dharwad district, of Karnataka state. Using a combination of primary and secondary data from selected FPCs The Relative Importance Index (RII), financial ratio analysis, Garrett’s Ranking Technique were employed for the analysis of data.
The Key findings revealed diverse management practices, varying financial stability, and significant benefits for members, including cost savings and increased bargaining power. However, challenges such as low output procurement, inadequate infrastructure, and financial instability were prevalent. The study emphasized the need for enhanced awareness programs, extended financial support, improved infrastructure, and strategic branding initiatives to strengthen FPCs.
Policy recommendations include increasing awareness to boost membership, extending financial support for more than three years for their sustainability. Further taking up of Custom Hiring Centres, and developing branding strategies by the FPCs will facilitate the farmer to improve their economic and social standing in the agricultural landscape. This, highlighted the critical role of FPCs in transforming the agriculture, particularly in Dharwad district.