Over 7000 farmer producer companies (FPCs) have been promoted in the country since the enactment of Producer Companies Act. A colleague and I are conducting a study of such companies. We are finding that most such companies are under-capitalized. Any many are simply defunct.
Instead of trying to address the issues, the policies continue to focus on launching more new companies. Here’s my recent piece in TheWire on why FPCs are an important part of the solution to agrarian distress, but not the solution per se.
More to come on this topic… stay tuned