EMPOWERING MARGINAL FARMERS: A CRITICAL ANALYSIS OF FARMER PRODUCER COMPANIES IN INDIA

AUTHOR – ASHIKA* & KARTHIHARAN Y**

* PG SCHOLARS AT LLM, DEPARTMENT OF LAW, CENTRAL UNIVERSITY OF TAMIL NADU, THIRUVARUR

BEST CITATION – ASHIKA & KARTHIHARAN Y, EMPOWERING MARGINAL FARMERS: A CRITICAL ANALYSIS OF FARMER PRODUCER COMPANIES IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (13) OF 2025, PG. 722-725, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

In India, the Farmer Producer Company (FPCs) or Farmer Producer Organisations (FPOs) are the pillars for rural development. Farmer-Producer Companies are a hybrid legal entity, formed to empower the small and marginal farmers in India through collective action. Initially, FPCs are conceptualised under the Companies Act, 1956; later, it was emerged in the Companies Act, 2013. Government institutions like the National Bank for Agricultural and Rural Development (NABARD) and the Small Farmers Agricultural Consortium (SFAC) also provide certain initiatives for FPC development.

However, with strong institutional backing, the FPCs are facing crucial operational challenges, including poor financing, lack of awareness among farmers, inadequate infrastructure and marketing facilities, and governance issues. This article examines the FPC model, analyses the supporting legal and policy framework, details some of the specific challenges faced by FPC members, and concludes with targeted, suggestive measures for enhancing their empowerment and sustainability.

Key Words: Farmer-Producer Companies, Empowering Marginal Farmers, Challenges faced by Members