Farmer producer companies and the role of community institutions: a case from a tribal district of Odisha

This study examines the role of social and community organization in strengthening farmer producer companies, or cooperatives empowered with the flexibility in operation, freedom and efficiency of a private entity. The aim is to improve farmers’ access and income and strengthen sustainable agriculture-based livelihoods with entrepreneurial traits. This area was chosen for the study as it is predominantly inhabited by tribals, most of whom are small and marginal farmers with limited access and awareness to government schemes. The farmers were mobilized by advocating the cost-benefit analysis of seed production and processing. KARRTABYA, a community institution, supports producers through knowledge, finance, market linkages and farmer welfare activities. Farmer producer companies (FPC) protect the interests of small and marginal farmers when they work in groups and take the collective approach to primary production, processing, value addition and marketing. Collective and collaborative approaches enable them to face market competition and safeguard their interest by bargaining effectively with opponents, importers and traders.