The Role of Farmer Producer Companies (FPCs) in Creating Efficient Marketing of Soybean in Maharashtra, India

Waghmode Deepak, Deshmukh Bramhanand and Waghmode Swati

Research on World Agricultural Economy, 2025, vol. 6, issue 3

Abstract: Farmer Producer Companies (FPCs) are now a common topic of discussion on various agricultural and rural forums. Over 4.5 million small and marginal farmers are currently covered by more than 10,000 FPCs nationwide. Over the coming years, these figures are anticipated too more than double. In Maharashtra, FPCs are essential to the development of effective marketing strategies. An attempt has been undertaken to investigate the comparative marketing effectiveness of various marketing channels in relation to soybeans in Maharashtra. Using a ‘Descriptive Research design’, the functions of FPCs were investigated, and the comparative marketing effectiveness of various marketing channels was also examined. The basic price data for this study came from market officials and soybean producers in Maharashtra's soybean-growing region. Approximately fifty FPC members were selected to illustrate the challenges these FPCs face. To eliminate the issue of extreme variables and outliers, non-member farmers were selected in the same proportion to ensure that each category included the same type of farmer in terms of cropping patterns, land ownership, and other relevant criteria. FPC and non-FPC marketing channels have corresponding market efficiencies of 1.77 and 1.55. The price difference between the FPC and non-FPC marketing channels is 34.73 and 36.18 percent, respectively. The producer's share in the FPC and non-FPC consumer rupee channels was 65.26 and 63.81 percent, respectively. The FPC marketing channel's market margin and marketing expenses are lower than those of the non-FPC marketing channel. Farmers can reach bigger and more profitable markets with the help of FPCs.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:reowae:412775

DOI: 10.22004/ag.econ.412775

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