Research on World Agricultural Economy

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

Deepak Waghmode

Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM), Ganeshkhind Road, Pune 411007, India

Bramhanand Deshmukh

State of Maharashtra’s Angriness & Rural Transformation (SMART)Project, Senapati Bapat Road, Gokhlenagar, Pune 411016, India

Swati Waghmode

Savitribai Phule Pune University, Ganeshkhind, Pune 411007, India

DOI: https://doi.org/10.36956/rwae.v6i3.1901

Received: 25 March 2025 | Revised: Revised: 26 May 2025 | Accepted: 16 June 2025 | Published Online: 6 August 2025

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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: Farmer Producer Companies (FPCs); Sustainability; Supply and Value Chain; Marketing Efficiency; Marketing Margin

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