Strategies for Sustaining the FPOs: Case Illustrations

In India, there are many legal forms of organisations into primary producer can organise themselves. A Producer Company (PC) is one such and relatively new legal entity of the producers of any kind, viz., agricultural produce, forest produce, artisanal products, or any other local produce, where the members are primary producers. PC as a legal entity was enacted in 2003 as per section IXA of the Indian Companies Act 1956. Since the above enactment, the PC has been hailed as the organizational form that will empower and improve the bargaining power, net incomes, and quality of life of small and marginal farmers/producers in India. In India, FPCs were originally promoted and supported by the State Government (Madhya Pradesh) under the World Bank (WB) poverty reduction project since 2005, and thereafter (since 2011) extensively under similar projects in states like Maharashtra. Such initiatives are also taking place in states like Tamil Nadu, Rajasthan and Himachal Pradesh. NGOs, the Small Farmers Agribusiness Consortium (SFAC), Department of Agriculture of State Governments (some supported with World Bank assistance) and the NABARD are promoting (FPOs) in rural areas in the form of producer companies with financial support of the Government of India. Kasturi initiative of Tata Chemicals society for Rural Development is working towards women agripreneurs to realize their leadership and network with other women across value chain. This includes identifying and networking potential partners for strengthening women agripreneurs and helping them for market linkages. The institutional partnerships will support to demonstrate the collective power for long term sustenance.