Legal Barriers and Awareness Gaps: Key Impediments to Rural Prosperity through Producer Companies in India

The legal frameworks governing agricultural and producer companies have a significant impact on rural prosperity in India. The study identified nine critical challenges affecting producer companies, of which Regulatory Complexity (Driving Power = 8) and Lack of Awareness (Driving Power = 7) emerged as the most influential factors based on Interpretive Structural Modelling (ISM) analysis. Further, the MICMAC analysis categorized these challenges into clusters, highlighting Governance Issues (Driving Power = 9) and Financial Constraints (Dependence Power = 4) as key operational barriers. The findings underscore that resolving regulatory complexities and enhancing stakeholder awareness are fundamental to improving producer companies’ performance, scalability, and their contribution to rural prosperity in India.