Linking small farmers with the value chain in commodities

    KUSHANKUR DEY    ENAMUL HAQUE

Farmer Producer Company can help in bringing them together

Policy support is essential to sustain a Farmer Producer Company (FPC) as competitive yet viable business entity.

Marketing of agricultural produce and managing risks of small growers in the country have been a policy agenda for several decades.

The National Agriculture Policy is aimed at protecting producers from market failures and externalities.

Bringing smallholders together and linking them with markets could be a benign effect of this policy. Co-operatives deserve a special mention as they address producers’ concerns and make the market work for them.

Nonetheless, most of them have failed (except dairy and plantation) to withstand the test of time due to internal and external issues such as horizon problem, capital acquisition and allocation problem, and drift from domain or member centrality to name a few.

Read more here: http://www.thehindubusinessline.com/markets/commodities/linking-small-farmers-with-the-value-chain-in-commodities/article6742407.ece

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