The Development of Linkages and Value Chains For Sustainable Farmer Producer Companies: Evidences from Southern Districts of Tamil Nadu, India
Journal Title: International Journal of Agricultural Science and Research (IJASR) - Year 2019, Vol 9, Issue 4
Abstract
Apart from the technological innovation and transfer of technology; institutional establishment like Farmer Producer Company is a viable option to increase the farmers’ income through their collective actions. FPCs are emerging larger in number with the support of SFAC and NABARD to provide business services to small and marginal farmers. This paper aims to bring out the evidences of effective linkages and value chains benefiting the stakeholders of the FPCs in southern districts of Tamil Nadu. FPCs were classified based on several action criteria and financial benefit realized by the member farmers was estimated by Partial Budgeting framework. ‘Virudhai Millet FPC’ adopted a value chain with strong backward (supply of inputs to farmers and purchase of quality millets) and forward (good price, value addition and products of consumers’ choice) linkages, which resulted the FPC member farmers to realize an increased net income of Rs. 1,750 per acre in case of bajra and a net income of Rs. 1,720 per acre in case of black gram. Similar value chain was adopted by ‘Neithal Sustainable Agriculture FPC’ and resulted an additional net income of Rs. 4,100/ac to the member farmers cultivated Kuzhi adichan (red) rice. ‘Ramanathapuram Chillies FPC’ does not supply inputs but arranges input credit to the member farmers. This FPC purchased chillies from the member farmers at Rs. 160 per kg and adopted a strong forward linkage, which contributed an increased net income of Rs. 2, 400 per acre. ‘Madurai Maavatta tennai Mattrum Ethara Payirgal Producer Company Limited’ coconut growers realized an additional net income of Rs. 4,900 per acre through better marketing practices. Similarly, Goat producers of Theni Goat FPC realized Rs. 2,000 additionally for every goat; vegetable growers of ‘Chinnamanur Vegetable FPC’ realized Rs. 17,000 per acre; the mango growers of ‘Periyakulam Mango and Vegetable FPC’ realized Rs. 16,000 per acre and maize growers of ‘Srivilliputhur Maize FPC’ realized an additional net income of Rs. 5200 per acre because of the value chain and management strategies adopted by the respective FPCs. However, other FPCs which are at initial stage of development are yet to reap the benefits of large volume operations.
Authors and Affiliations
Balamohan T. N, S. D. Sivakumar, M. Prahadeeswaran, R. Velusamy, A. Beaulah
Keywords
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- EP ID EP649251
- DOI 10.24247/ijasraug201934
- Views 127
- Downloads 0
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