Assessing the Sustainability of Farmer Producer Companies (FPCs) in Western Himalayan Region

This study assesses the sustainability and future prospects of Farmer Producer Companies (FPCs) in Himachal Pradesh (HP). According to the secondary data collected from the Horticulture Development Project (funded by World Bank), National Bank for Agriculture and Rural Development (NABARD), Shimla and Small Farmers Agribusiness Consortium (SFAC) there are 216 FPCs registered, with the highest numbers in Shimla (36), Mandi (33), Sirmaur (31) and Kangra (26), accounting for over 50% of the state’s FPCs. Most FPCs were formed between 2021 and 2023, with a linear growth rate of 35.11 percent annually since 2015. The study evaluates the activities of FPCs, revealing that 53 percent focus on horticultural crops, 41 percent on agricultural and allied activities, and fewer on handicrafts, dairy, fishery, and forestry. Using the ARIMA model, it forecasts the registration of 500 more FPCs by 2030. The study recommends training programs, sustainable harvesting, marketing techniques, and NTFP diversification to enhance the sustainability of FPCs. The Himachal Pradesh government’s initiatives in registering well-established natural FPCs further promote sustainability.