Assessment of Economic Performance of Farmer Producer Companies in the Southern Districts of Tamil Nadu: Delineating Socio-economic Determinants and their Impact

GOI in 2000 established a committee under the chairmanship of Prof. Y. K. Alagh to promote the concept of producer companies (PC), aiming to improve support for primary producers. Farmer Producer Companies (FPCs) have become an important model for improving the socio-economic status and economic performance of small and marginal farmers in India, particularly in southern districts like Virudhunagar and Theni in Tamil Nadu. This study explores the role of FPCs in empowering farmers by enhancing market access, improving bargaining power, and reducing input costs. The research involved seven FPCs and a sample of 140 members, focusing on demographic factors, income levels, farm size, and governance structures. In Virudhunagar, four FPCs were selected and in Theni, three FPCs were selected. From each FPO, 20 FPC members were selected, resulting in a total sample of 140 FPC members for statistical analysis. The analysis revealed that FPCs predominantly consist of female members, with an average age of 44. Most members saw increased income after joining FPCs. Additionally, the SWOT analysis identified strengths like better market access and weaknesses such as limited processing facilities, posing operational challenges. The main goal of the FPC is to provide quality inputs, procurement, and trading of commodities to increase the income of member farmers. FPCs showed promise in transforming agriculture, notably through improvements in millet cultivation. For instance, FPC interventions led to a 20% increase in millet yields. Opportunities for FPCs include access to credit, government schemes, and improved market linkages. However, FPCs must navigate external threats such as price volatility, competition from local traders, and uniting diverse member interests. The findings offer valuable insights into potential strategies for strengthening FPCs in Tamil Nadu, such as enhancing cooperative marketing initiatives and investing in infrastructure for value addition to agricultural products.