Agricultural Economics Research Review
  • Year: 2019
  • Volume: 32
  • Issue: conf

Small farmers’ big business dream-can farmer producer companies turn this into reality? the evidence from West Bengal

  • Author:
  • Rajkumar Das1, Subhasis Mandal2
  • Total Page Count: 1
  • Page Number: 232 to 232

1Ramakrishna Mission Vivekananda Education & Research Institute, Narendrapur, 700 103, West Bengal, India

2ICAR-Central Soil Salinity Research Institute, Regional Research Station, Canning Town, 743 329, West Bengal, India

Online published on 13 December, 2019.

Abstract

West Bengal is a leading producer of major crops like paddy, potato, jute and mesta, fish, vegetables, fruits, lentil, rapeseed and mustard and flowers. Production is high, but low profitability challenges agricultural household income. Farmer producer companies (FPCs) provide farmers a single-window solution for multiple problems and improve price realization by establishing direct market linkages. To analyse the impact of FPCs in West Bengal, a study was conducted through a primary survey during 2018–19 in six villages covering 120 households (60 FPC farmers and 60 non-FPC farmers) associated with two FPCs, Baruipur Farmer Producer Company Ltd. and Panskura Vegetable Producer Company Ltd. The average family income of an FPC farmer was Rs. 2, 42, 765 per year, significantly higher than the average family income of a non-FPC farmer (Rs. 1, 59, 732). The maximum income was from selling vegetables, flowers and fruits, and FPC farmers (66%) were better linked with financial institutions than non-FPC farmers (43%). The FPCs improved income, made the buying of inputs easier and established linkages with banking/financial institutions. To enhance farmer income and bring about change at the grassroots, FPCs should be formed and promoted in all parts of the state.