Optimal Institutional Architecture of Farmer Producer Organizations for Sustainable Value Creation for Small and Marginal Farmers

Amar K. J. R. Nayak ()
Additional contact information
Amar K. J. R. Nayak: Xavier University

A chapter in Financing Agriculture Value Chains in India, 2017, pp 239-250 from Springer

Abstract: Abstract This article argues that the assumptions for an industrial model of value addition on size, scope, technology, management, ownership, market landscape and governance structure are different to agriculture models for sustainability of small and marginal farmers. It has been based on a pan-India survey of over 250 producer organizations and case studies of 20 producer organizations across India during 2011–2014. In addition, the findings and suggestions of this paper are informed by an action research on developing a sustainable producer organization for over 8 years (2008–2017). Product-specific value chain as in industrial production system has its own dynamics and complexities. This approach makes a producer company a product company over a period of time and loses the focus of the producer. With greater value addition, it becomes financier centric owing to the technology-capital-ownership lock-up effect. Unlike in industrial products, high-value addition in agricultural produce can lead to value destruction in terms of the nutritional value of whole grain pulses versus polished pulses. Further, instead of selling in distant markets with high transaction costs, an FPO, selling surplus produce in the local market ensures better net price to the small farmers.

Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-10-5957-5_13

Ordering information: This item can be ordered from
http://www.springer.com/9789811059575

DOI: 10.1007/978-981-10-5957-5_13

Access Statistics for this chapter

More chapters in India Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().