Impact of Farmer Producer Companies on Small and Marginal Millet growers

Abstract

Farmer Producer Company (FPCs) is a viable option to increase the farmers’ income through their collective actions. FPCs are emerging in larger number with the support of SFAC and NABARD to provide business services to small and marginal farmers. Many small and marginal farmers depends on the FPCs. Therefore, the present study aims to find the impact of farmer producer companies on small and marginal millet growers in Dharmapuri district of Tamil Nadu. The primary data was collected from 60 members and 60 non-members of farmer producer companies comprising total of 120 millet growers. The study employed resource use efficiency and stochastic frontier model to find the profits earned by the millet growers. The sample FPC established a robust backward and forward linkages in which millet growers realized a profit for their produce. The study also found that, in addition to value added products, allied enterprises like cattle and poultry farming brought an additional income for sample FPCs. The results concluded that millet growers gained a substantial increase in farm revenue.