The concept of Farmers collectives was originally conceived to overcome the challenges of farmers who operate on a stand alone basis. This began as Farmers Cooperative societies which did not really succeed due to certain inherent reasons. Later from the beginning of 2000 the concept of Farmers Producers Companies started becoming popular and with the amendment of the Companies Act in 2013, it paved the way for large scale promotion of FPCs. In the beginning the thrust was on aggregating the input supply of seeds, fertilizers and pesticides besides group hiring of farm machinery, etc., as there was plenty of financial benefit from the economies of scale due to bulk procurement of the inputs.

Gradually the activities moved on to aggregation of produce for bulk sale with or without sorting and grading which also contributed to higher margins to the individual farmer. It is when the FPCs took up processing of the produce before actual sale that the farmers started really benefiting because of value addition.

To exemplify this aspect the case of a one FPC in Rajasthan which was encouraged and promoted by a well known national level NGO called Srijan has been studied in detail and this paper captures the case study on the Ghummar Mahila Custard Apple Pulp Producers Company.

Case Study Details -
https://rranetwork.wordpress.com/2019/11/04/farmers-producers-companies-to-benefit-from-simple-processing-the-case-of-ghummar-mahila-custard-apple-pulp-producers-company/