Augmenting Farmers’ Income through Producers’ Cooperative Organization-A Case Study

This paper brings out the role played by a producers’ cooperative marketing society in augmenting farmers’ income by studying the society named Mahakali Flowers and Vegetable Growers Cooperative Marketing Society, Ltd. (MKFVCS) in Shimla. The study is based on the primary survey of the society during 2016–17 and has assessed the operational mechanism, financial viability and marketing management benefitting the producer members. The society is engaged in marketing of flowers (chrysanthemum, carnation, marigold and dahlia) and vegetables (red/yellow/green capsicum and tomato). The cooperative has ensured supply of critical inputs and better prices to the farmers thereby giving them about 77 per cent and 85 per cent share in the price paid by the consumers in green capsicum and tomato, respectively. The gain to producers was 31 per cent in capsicum and 37 per cent in tomato. Financial ratios also proved the prudent fund management and sound business position of the society. Based upon response of members, the performance index of the society was rated very good. The model presented through MKFVCS has proven to be a success story worth replicating in hilly regions.