Farm Income and Sustainability as Influenced by Farmer Producer Company (FPC) Membership: A Case Study from Hooghly District of West Bengal, India

Abstract

Farmer Producer Companies (FPCs) are intended to improve the economic position of small and marginal farmers through collective input procurement, production support, and market access. This study assessed the relationship between FPC membership, farm income, and organisational sustainability in Hooghly district, West Bengal, India. Two operational FPCs were purposively selected, and primary data were collected during 2021–22 from 40 respondents comprising 20 member farmers and 20 non-member farmers from comparable localities. Descriptive statistics, comparative analysis, stepwise multiple linear regression, and a five-point Likert scale were used. Member farmers obtained higher net returns from potato cultivation than non-members in both FPCs. The net income advantages were Rs. 53,867 per ha for Bengal Krishi Development FPC and Rs. 33,690 per ha for Bangabhumi FPC Ltd. Quality input use, operational holding, location, and managerial activities were retained as determinants of income, with the final regression model explaining 95% of the observed variation. Inadequate technical knowledge and difficulty in accessing markets were perceived as the most important constraints to FPC sustainability. The findings indicate that FPC membership is associated with improved farm profitability through lower production costs, better productivity, and improved price realisation. Strengthening technical capacity, managerial competence, extension support, and market linkages may improve the operational sustainability and economic contribution of FPCs.