Need to shift from quantity to quality of farmer producer companies

16,000 farmer producer companies in India require better inclusion, capitalisation and incubation.

Farmer Producer Companies Report Azim Premji University

The Producer Companies Act 2002 was pioneering in its vision of combining the principles of collective action with the structural benefits of a company. Currently, there are about 16,000 producer companies in India covering millions of small producers in the country, and this number is growing rapidly. 

Strengthening the long-term viability of producer companies has the potential to improve the life and livelihoods of millions of small and marginal producers across the country. 

The two reports present a comprehensive view of the landscape of producer companies in India.

Report 1

Farmer Producer Companies: Past, Present and Future


This report analyses the characteristics of producer companies in India based on a database meticulously compiled from website of Ministry of Corporate Affairs. It also presents key insights on producer companies’ strategic challenges, capitalisation, internal governance, regulation, and long-term potential, based on 100+ interviews with producers, board members and management of producer companies, as well as funders, promoters and government institutions involved in the promotion of Farmer Producer Organisations (FPOs). The report also recommends possible strategies for improving the viability of producer companies.


Report 2

Farmer Producer Companies: Inclusion, Capitalisation and Incubation


This report examines the changes in the producer company landscape in the last two years by analysing data on producer companies registered in the country from April 1, 2019 to March 31, 2021. The report examines changes in geographical spread and capitalisation of producer companies in the last two years, in order to determine the extent to which the gaps in the previous promotion efforts have been addressed. It also analyses recent policies to understand their impact on the producer company ecosystem. The report identifies five focus areas to enable the sector to reach its full potential in enhancing the incomes and reducing the vulnerabilities of small producers.