“Constraints Faced by Farmer Shareholders of Farmer Producer Companies in Rajkot District of Gujarat”

Abstract

Farmer Producer Companies (FPCs) have emerged as an important institutional innovation for enhancing the socio-economic status of small and marginal farmers through collective action, improved access to agricultural inputs, technology, credit, and markets. By aggregating produce and strengthening farmers’ bargaining power, FPCs play a crucial role in improving agricultural profitability and rural livelihoods. However, despite their potential benefits, several constraints continue to hinder the effective functioning of FPCs and limit the benefits accrued by their farmer shareholders. The present study was undertaken to identify and analyse the constraints faced by farmer shareholders of Farmer Producer Companies in Rajkot district of Gujarat. Five Farmer Producer Companies, namely Rajkot Farmers Producer Company Limited, Rajkot Krushi Product Farmer Producer Company Limited, Paddhari Farmers Producer Company Limited, Kathiyawar Agricultural Producer Company Limited, and Lodhika Farmer Producer Company Limited, were selected purposively for the study. A total of 200 farmer shareholders were selected through simple random sampling. Data were collected using a structured interview schedule and analyzed using mean score and rank order techniques. The findings revealed that fluctuation in market prices, lack of timely market information, inadequate storage facilities, limited access to institutional credit, and high transportation costs were the major constraints faced by the respondents. The study suggests strengthening market infrastructure, enhancing financial accessibility, improving technical support services, and promoting effective governance mechanisms within FPCs to improve their sustainability and effectiveness.