Development of Farmers' Producers Company

Whilst production technologies may significantly increase production, the ultimate objective of augmented farm income may not be realized. The absence of appropriate and viable marketing facilities may restrict small and marginal farmers from availing the benefits of agriculture development. Small marketable surpluses, lack of market preferred quality, poor negotiation capacity resulting in low and un-remunerative prices further vitiates the situation. To integrate farmers with the value chain and market the best form of institutional model available today is the Farmers' Producers' Company (FPC) under the Indian Company Act (Amendment 2002). The farmers or the producers' are the equity holders of the company thus provides the best framework for ownership. The basic purpose of this FPCs is to collectivise small farmers for –

(a) backward linkage for inputs like seeds, fertilisers, credit, insurance and knowledge and extension services and

(b) forward linkages such as collective marketing, processing, market led agriculture production, etc. At the heart of this effort is to gain collective bargaining power for the small farmers.

Crop Seed Production

In the last one year crop seed production and promotion has emerged as an independent entity in ASA. Quality seed is the most critical and basic input to ensure substantial increase in productivity. However, rigorous efforts have not been made in this regard. The seed replacement rate is generally poor mainly due to unavailability of quality seeds. Keeping in view this fact and to help small and marginal farmers in making available good quality certified seeds and related services, ASA has initiated seed production from 2007.