IDEAS home Printed from https://ideas.repec.org/a/sae/millen/v15y2024i2p278-299.html
   My bibliography  Save this article

Institutional Strengthening of Farmer Producer Organizations and Empowerment of Small Farmers in India: Evidence from a Case Study in Maharashtra

Author

Listed:
  • N. Lalitha
  • P. K. Viswanathan
  • Soumya Vinayan

Abstract

Small and marginal farmers contribute significantly to agricultural production and livelihoods all over the world. The small size of operational holdings, however, makes them highly susceptible to market risks leading to low levels of farm income. The farmer producer organizations (FPOs) are considered as effective mechanisms as they give voice to the small farmers, help overcome the challenges, by reducing the transaction costs and improving market access. However, in India, farmer collectives suffer from several institutional and structural impediments that affects their performance and thereby not resulting in empowerment and wellbeing of the farmers. In this regard, this article discusses the role of FPOs based on an empirical case study of Sahyadri Farmers Producer Company Ltd (SFPCL) from Maharashtra. The case study analyses the specificities of a private initiative such as Sahyadri, which focuses on making farming viable for farmers with small holdings in particular. The Sahyadri model contributes building the social capital of the farmers and improving the farm income and sustainable livelihoods. The article uses logistic regression to determine the factors influencing collective action and the Cobb–Douglas (CD) Production function to highlight the economic benefits realized by the farmers from being members of the Farmers Producer Company in case of Sahyadri in Maharashtra.

Suggested Citation

  • N. Lalitha & P. K. Viswanathan & Soumya Vinayan, 2024. "Institutional Strengthening of Farmer Producer Organizations and Empowerment of Small Farmers in India: Evidence from a Case Study in Maharashtra," Millennial Asia, , vol. 15(2), pages 278-299, June.
    • Handle: RePEc:sae:millen:v:15:y:2024:i:2:p:278-299
    DOI: 10.1177/09763996221098216
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09763996221098216
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09763996221098216?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Iveta Boskova & Samuel Ahado & Tomas Ratinger, 2020. "The effects of the participation in producer organisations on the performance of dairy farmers in the Czech Republic and future challenges," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(8), pages 345-354.
    2. Yohana James Mgale & Yan Yunxian, 2020. "Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1239-1259, October.
    3. Sarah Lyon & Tad Mutersbaugh & Holly Worthen, 2017. "The triple burden: the impact of time poverty on women’s participation in coffee producer organizational governance in Mexico," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(2), pages 317-331, June.
    4. Raj M. Desai & Shareen Joshi, 2014. "Can Producer Associations Improve Rural Livelihoods? Evidence from Farmer Centres in India," Journal of Development Studies, Taylor & Francis Journals, vol. 50(1), pages 64-80, January.
    5. Delelegne A. Tefera & Jos Bijman & Maja A. Slingerland, 2020. "Multinationals and Modernisation of Domestic Value Chains in Africa: Case Studies from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 56(3), pages 596-612, March.
    6. Andrew Gerard & Maria Claudia Lopez & Daniel C. Clay & David L. Ortega, 2020. "Farmer cooperatives, gender and side-selling behavior in Burundi's coffee sector," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 11(5), pages 490-505, July.
    7. Manasi Phadke & Bhushana Karandikar & Ashok Gulati, 2022. "Grapes and Pomegranate Value Chains," India Studies in Business and Economics, in: Ashok Gulati & Kavery Ganguly & Harsh Wardhan (ed.), Agricultural Value Chains in India, chapter 5, pages 145-193, Springer.
    8. Aleksandra Chlebicka & Michał Pietrzak, 2018. "Size of Membership and Survival Patterns of Producers’ Organizations in Agriculture—Social Aspects Based on Evidence from Poland," Sustainability, MDPI, vol. 10(7), pages 1-24, July.
    9. Evgeny Latynskiy & Thomas Berger, 2017. "Assessing the Income Effects of Group Certification for Smallholder Coffee Farmers: Agent-based Simulation in Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 727-748, September.
    10. Mwanajuma S. Othman & Guy Garrod & Elizabeth Oughton, 2021. "Farming groups and empowerment of women smallholder farmers," Development in Practice, Taylor & Francis Journals, vol. 31(5), pages 676-689, July.
    11. Trebbin, Anika, 2014. "Linking small farmers to modern retail through producer organizations – Experiences with producer companies in India," Food Policy, Elsevier, vol. 45(C), pages 35-44.
    12. Clemens Lutz & Getaw Tadesse, 2017. "African farmers’ market organizations and global value chains: competitiveness versus inclusiveness," Review of Social Economy, Taylor & Francis Journals, vol. 75(3), pages 318-338, July.
    13. Bachke, Maren Elise, 2019. "Do farmers’ organizations enhance the welfare of smallholders? Findings from the Mozambican national agricultural survey," Food Policy, Elsevier, vol. 89(C).
    14. Thomas Reardon & Julio A. Berdegué, 2002. "The Rapid Rise of Supermarkets in Latin America: Challenges and Opportunities for Development," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 371-388, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).
    2. Agus Dwi Nugroho, 2021. "Agricultural market information in developing countries: A literature review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(11), pages 468-477.
    3. Amiquero, K. (Katty) Sanchez & Wubben, E.F.M. (Emiel) & van Dam, Y.K. (Ynte) & Trienekens, J.H. (Jacques), 2023. "Success and failure factors in agricultural cooperatives," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 14(01), January.
    4. Sara D. Elder, 2019. "The impact of supermarket supply chain governance on smallholder farmer cooperatives: the case of Walmart in Nicaragua," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(2), pages 213-224, June.
    5. Schoneveld, George C., 2022. "Transforming food systems through inclusive agribusiness," World Development, Elsevier, vol. 158(C).
    6. Sukhpal Singh, 2023. "(Farmer) Producer Companies in India as new generation cooperatives: Case studies of performance and impact from West Bengal, India," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 1007-1029, September.
    7. Kedar, Vishnu Shankarrao & Kumar, Parmod & Neharkar, Pratibha, 2021. "Transaction Costs, Institutions and Smallholder Market Integration: Chili Producers in India," 2021 Annual Meeting, August 1-3, Austin, Texas 313970, Agricultural and Applied Economics Association.
    8. Tray, Bunthan & Garnevska, Elena & Shadbolt, Nicola, 2021. "Linking smallholder producers to high-value markets through vegetable producer cooperatives in Cambodia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(6), February.
    9. Sukhpal Singh, 2013. "Governance and upgrading in export grape global production networks in India," Global Development Institute Working Paper Series ctg-2013-33, GDI, The University of Manchester.
    10. Fernando Borraz & Juan Dubra & Daniel Ferrés & Leandro Zipitría, 2009. "Supermarket Entry and its effect on small stores in Montevideo, 1998 to 2007," Documentos de trabajo 2009005, Banco Central del Uruguay.
    11. Kumse, Kaittisak & Suzuki, Nobuhiro & Sato, Takeshi & Demont, Matty, 2021. "The spillover effect of direct competition between marketing cooperatives and private intermediaries: Evidence from the Thai rice value chain," Food Policy, Elsevier, vol. 101(C).
    12. Monika Roman, 2020. "Spatial Integration of the Milk Market in Poland," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    13. Jin, Shaosheng & Guo, Haiyue & Delgado, Michael S. & Wang, H. Holly, 2017. "Benefit or damage? The productivity effects of FDI in the Chinese food industry," Food Policy, Elsevier, vol. 68(C), pages 1-9.
    14. Berdegue, Julio A. & Reardon, Thomas & Balsevich, Fernando & Martinez, Anabel & Medina, Ruben & Aguirre, Marx & Echanove, Flavia, 2006. "Supermarkets and Michoacan Guava Farmers in Mexico," Staff Paper Series 11474, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    16. Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
    17. James Wangu & Ellen Mangnus & A. C. M. (Guus) van Westen, 2021. "Recognizing Determinants to Smallholders’ Market Orientation and Marketing Arrangements: Building on a Case of Dairy Farming in Rural Kenya," Land, MDPI, vol. 10(6), pages 1-16, May.
    18. Y. Mainville, Denise & Reardon, Thomas, 2007. "Supermarket market-channel participation and technology decisions of horticultural producers in Brazil," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 45(3), January.
    19. Radosavljevic, Sonja & Haider, L. Jamila & Lade, Steven J. & Schlüter, Maja, 2021. "Implications of poverty traps across levels," World Development, Elsevier, vol. 144(C).
    20. Lin, Benxi & Du, Ruiying & Dong, Zekuan & Jin, Shaosheng & Liu, Weipin, 2020. "The impact of foreign direct investment on the productivity of the Chinese forest products industry," Forest Policy and Economics, Elsevier, vol. 111(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:millen:v:15:y:2024:i:2:p:278-299. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.