top of page


Farmer Producer Company.jpg
A Farmer Producer Company (FPC)  is basically a group of farmers registered as a producer company under Companies Act, 1956,  amended in 2002.
The main aim of the formation of FPC is
  • To establish basic business principles within farming communities,
  • To bring industry and agriculture closer together, and 
  • To boost rural development by collectivization of the farmers especially small and marginal farmers to address the challenges faced by farming community  

This concept allows farmers to  improve their position of power within the production system and offers better scope for income enhancement through efficient use of inputs, use of appropriate technology and a professional management system. With these advantages, the formation of "Farmer Producer Companies" is gaining momentum across India.

As a part of our field programme we enabled the Self Help Groups in Kursi Hindora region of district Sitapur to aggregate themselves and come under the umbrella of one Farmer Producer Company. Those who agreed were then registered as a company. Some of the details of this company are as follows :

  • There are a total of 230 members from 11 villages in the region.

  • They have a total share capital of Rs 1,95,000 deposited in the local bank in Village Kursi in the name of YOGAKRISHAK UTPADAK SANGH.

  • All the shareholders are in the small and marginal landholding category of farmers. 

  • The revenue model of this FPO is based on the agreement of member farmers to cultivate, process and sell medicinal plants like lemon grass based on technical guidance by a farmer supported by Central Institute of Medicinal and Aromatic Plants (CIMAP) who has been successfully growing medicinal plants processing them into oil for last nine years.

Manavodaya recently conducted a detailed study of 20 Farmer Producer Companies in the state of Uttar Pradesh. For details see Reports and Publications
bottom of page