Insights into the Performance of Farmer Producer Companies: An Exploratory Analysis in Kerala, India

India faces challenges in farmers’ well-being due to small land holdings and the absence of an organized agricultural market system, prompting the introduction of initiatives such as the promotion of Farmer Producer Organizations (FPOs) to fortify the agricultural market. However, ambiguity remains over the functioning of such initiatives. This study aims to tackle the aforementioned issue by collecting and analyzing data on the operations of 400 registered Farmer Producer Companies (FPCs) in the state of Kerala, India. The analysis focuses on key indicators such as the age of the FPC, paid-up capital, and activity status (whether active or struck-off). A primary survey has also been conducted, both telephonic and face-to-face interviews, based on convenience, using a semi-structured questionnaire. Both farmers and representatives from FPCs are interviewed. The issues discussed are marketing assistance, input sales, type of services offered, managerial capacities, etc. The study finds that not all registered FPCs effectively improve the welfare of farmers. The most common service FPCs provide is marketing, which helps increase product sales through collective bargaining power and access to higher-paying markets. FPCs that engage in contract farming, sell through supermarkets, or explore inter-state or international markets are more successful in increasing farmers’ revenues than those that only use traditional market chains. However, it is important to note that FPCs face several challenges, including a lack of infrastructure and support, limited access to credit, and a lack of skilled and trained staff. These essential factors must be addressed for FPCs to achieve their full potential.