Farmer Producer Companies: A better option for farmers in India: Harshal Arun Lahamge

Farmer Producer Companies (FPCs) are a new type of entity that have been introduced in India to help small and marginal farmers to improve their income and standard of living. FPCs are registered under the Companies Act, 2013 and are owned and operated by farmers. Here’s a closer look at FPCs and how they are helping farmers in India.

Definition :

An FPC is a type of company that is formed by farmers, with the objective of improving the income and living standards of their members. The FPC is a registered legal entity that is owned and controlled by its members, who are all farmers.

Objectives :

The primary objective of FPCs is to improve the income and standard of living of small and marginal farmers. FPCs achieve this by facilitating collective farming, processing, marketing, and other agricultural activities. By working together, farmers can achieve economies of scale, reduce costs, and increase their bargaining power with buyers.

Structure :

FPCs have a unique structure that is designed to ensure that farmers are in control of the company. FPCs have a board of directors that is elected by the members, and the board is responsible for the management of the company. The members of the FPC have voting rights based on their shareholding in the company.

Benefits :

FPCs provide several benefits to farmers, including access to credit, inputs, and technology, as well as better prices for their produce. By working together, farmers can also achieve better bargaining power with buyers, which can help to increase their income.

Legal Framework :

FPCs are governed by the Companies Act, 2013, and are eligible for various government schemes and incentives. The government has also set up several agencies and organizations to support the formation and functioning of FPCs, including the Small Farmers’ Agribusiness Consortium (SFAC) and the National Bank for Agriculture and Rural Development (NABARD).

FPCs are a promising new development in India’s agricultural sector. They have the potential to help small and marginal farmers to improve their income and standard of living by facilitating collective farming, processing, and marketing. With the support of government agencies and organizations, FPCs are poised to play a key role in India’s efforts to promote sustainable agriculture and rural development.