Chapter 2 Dynamics of Incubating a Multi-community, Multi-commodity, Multi-location, FPO The Case of Krishidhan Producer Company in Gujarat

• Format: eBook
• Language: English
• Published: Taylor & Francis 2023
• Subjects: FPO Incubation, Balancing social and commercial goals, Decentralized governance, Contract farming, Gujarat; thema EDItEUR::G Reference, Information and Interdisciplinary subjects::GT Interdisciplinary studies::GTM Regional / International studies; thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCM Development economics and emerging economies; thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCV Economics of specific sectors::KCVG Environmental economics; thema EDItEUR::K Economics, Finance, Business and Management::KN Industry and industrial studies::KNA Agribusiness and primary industries::KNAC Agriculture, agribusiness and food production industries
• Online Access: Open Access: DOAB: description of the publication; Open Access: DOAB, download the publication

 Krushidhan Producer Company Ltd. (KPCL) was incubated by the Development Support Centre (DSC), Ahmedabad. Registered in December 2013, KPCL caters to about 40,000 farmers from 190 villages in four districts, where it was increasingly becoming unviable to practice agriculture. DSC worked in three phases, first establishing an agri-extension system, then forming the company, and finally helping it become financially independent over 6 years. By 2020-21, the company was serving 18,400 farmers - 4409 shareholders and 14,000 non-members. Its share-capital stood at Rs. 4.406 m and its turnover at Rs. 85.0 m. KPCL's success tells us the story of how community mobilization and building social capital of the community in the form of SHGs, Kisan clubs, etc. can lead to a strong institution. It was able to draw on resources from its members to carry out its activities, in the absence of formal credit. This brings out the social nature of FPOs, and needs to balance its social goals with commercial viability. Given its multi-location, multi-community and multi-commodity nature, Krushidhan presents lessons for many similar producer organizations.