Farmers producer organization: Can transform the face of agri-business in India

Agriculture has always been a lifeline of the Indian economy, providing livelihood to millions of farmers. However high production costs, and low access to credit, as well as poor market linkages hinder the sector’s growth. This adversely impacts the livelihood of small and marginal farmers, which comprises around 85 per cent of the sector. Thus the collective action is an acclaimed strategy to deal with these challenges that small-scale producers face in the agriculture sector. Aggregation and consolidation provide a means for these farmers to unite and reap the benefits of economies of scale and collective bargaining. Specifically, farmer organizations such as cooperatives, associations, unions, groups and federations with different organizational structures have been identified to play a key role in enhancing farmers’ access to markets and has the potential to transform the face of agri-business in the country. Therefore organizing the farmer into Producer Organisations (POs) will be a suitable solution for attaining this target. Thus the aim of this paper is critical discussion around Producer Organisations (Pos) and their role in transforming the face of agribusiness in India.