Producer Companies
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shown good progress in the promotion of
FPOs. Apex federations can arrange finance,
deal with input suppliers and look after
marketing on behalf of their constituents.
Madhya Bharat Consortium of Farmers
Producer company limited has 43 member
PCs with 56,000 member farmers. PCs with
poultry and livestock farmers have not been
taken as members since the apex wants to
concentrate on crops and vegetables. The
main role being played by the apex is market
linkages. The apex also has plans to act as a
wholesale lender to new PCs whose growth
is hampered by lack of loan funds.
Gujarat apex producer company has
an informal membership of 27 PCs with
15 being shareholders. The apex is facili-
tating corporate tie-ups especially aimed
at national and international markets.
Similarly for inputs, especially supply of
quality seeds to the farmers, the apex will
be consolidating demand from all PCs
and negotiating with companies and large
dealers. The apex will take up policy issues
with relevant authorities. Many producer
organisation promoting institutions see the
apex institution as their withdrawal strategy
from PCs. They have a plan for nurturing
the PCs for five to seven years and gradually
withdraw their direct support to the PCs as
apex PC strengthens. Since most of the apex
institutions are facilitating business linkages
they are expected to earn a commission
and cover their costs in a period of two to
three years.
Data on producer companies
While the national data base of SFAC shows
570 FPOs including cooperatives, key stake-
holders mention that more than 1000 PCs
are functional in the country, out of which
400 have been formed during 2014–15. The
year has seenmany FPCs getting promoted.
However, there are also reports that some of
the PCs promoted in the earlier years have
dissolved or have become defunct due to
inability of the promoter to support beyond
three years.
Figure 5.1:
Emerging model of producer companies
Apex PC (Policy
advocacy, market
linkages, strategic
partnerships, HR
support)
Producer company - 500
to 1000 members
(inputs, technology,
capacity building,
marketing
linkages, credit)
Farmer interest group
Farmer interest group -
10 to 30 members (Crop
planning, seed
production, knowledge
sharing, aggregation)
Farmer interest group
Producer company
Farmer interest group
Source:
Authors.
