Last year’s report carried the conceptual
and systemic underpinnings of producer
companies in the Indian context. In the
current year the effort has been to dialogue
with producer companies, their boards,
members and other stakeholders, espe-
cially the promoting institutions in differ-
ent states including some of the resource
agencies. Many POPI, such as Access
Development Services, Access Livelihoods
Consulting, AFARM, AKRSP, Action for
Social Advancement (ASA), BASIX, Catalyst
Management Services/Vrutti, CCD, BAIF,
Ambuja Foundation, Srijan etc., were met
and consulted to understand the ground-
level developments. The narrative is based
on field information, observations and
experiences of stakeholders.
Formation of producer companies
1
during 2014–15 saw a fillip with policy and
funding support from central and state
governments which has led to manifold
increase in their numbers. 2014 was declared
as the year of FPOs by the Department of
Agriculture, Government of India and a
year-long drive was undertaken to increase
awareness about the importance of FPOs
among a diverse range of stakeholders: the
farming community, state governments,
banks and other financial institutions,
private sector companies, civil society
organisations and elected representatives
of the people. According to SFAC data, 570
FPOs exist and about 300 are in different
stages of mobilisation.
2
Four hundred thirty-
two of the producer organisation in SFAC
database are in company form and 138 in
other forms. A number of organisations
in cooperative form are in the process of
transforming into producer companies. The
statewise position of producer organisations
is given in Annexure 5.1. Uttar Pradesh,
Madhya Pradesh and Tamil Nadu are the
top three states by number of producer
organisations.
Some state governments have been pro-
active in policy and budgetary support to
producer companies. The state of Madhya
Pradesh (MP) which has registered 24
per cent growth in agriculture sees FPOs
as key for inclusive growth in agriculture.
Several measures have been announced by
the government for promotion of FPCs, viz.,
treatment of FPCs on par with cooperatives
for issue of licenses for inputs supply, fertiliser
supply on credit basis,
`
25 crores infrastruc-
ture support to FPCs every year under RKVY.
Interest subvention on the lines of farm
Producer Companies:
Aggregation and Value
Creation for Farmer–
Where Is the Goalpost?
Chapter
5
1
In 2002, through an amendment in the Indian
Companies Act, 1956, the Government of India (GoI)
enacted the Producer Companies Act by incorporating
a new section IXA in the Indian Companies Act,1956
based on the recommendations of the Y.K. Alagh
Committee set up for this purpose.
2
Statewise FPO registered in the country as on date
7 May 2015.
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FPO-registered-in-Country07-05-2015.pdf
