Examining the Power of Accumulation: A Case Study of the Lavera Project by Ambala Farmers Producer Company Limited in Haryana, India

Abstract

The concept behind Farmer Producer Organizations is that farmers, who are the producers of Agricultural products, can form groups and register themselves under the Indian Companies Act. 1956. The aim is to enhance farmer's income, capacity building, and competitiveness and increase their advantage in emerging market opportunities. A case study was conducted in the Ambala District of Haryana to examine the role of farmer-producer organizations in enhancing farmers socio economic status. Studying the management and governance system of F.P.C. and assessing the impact of F.P.C. on members was the objective of the case study. Personal interviews and group discussion methods were used for data collection and secondary data from directors for gathering information on the F.P.C. Project Lavera Ambala Farmer Producer Organization, which was established on Sep 02, 2015, for collecting, processing, and marketing milk and milk products. It covered nine Ambala villages and collected raw milk from members and non-member farmers at higher prices than other value chain actors. The study's result indicates that farmers who supply milk to F.P.C. get 9-13 rupees per lit higher price than others. It also provides bonuses to member farmers who are company shareholders, and their income from dairy farming is enhanced by 25-30 percent. Lavera has enhanced net returns for farmers, increased revenue through value addition, and fostered entrepreneurship in rural communities. Members of F.P.C. are highly satisfied with the services provided by F.P.C. and its performance in local areas.