Browsing by Author "Sandra, S."

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    Enhancing farmer income through farmer collectives : a case study of Mayyil rice producers company (MRPC)
    (Department of Agricultural Economics, College of Agriculture,Vellanikkara, 2025) Sandra, S.; Prema, A
    The agricultural sector of India is predominantly composed of small and marginal farmers who continue to encounter persistent challenges related to low productivity, limited market access, and constrained income generation. In response to these structural impediments, Farmer Producer Companies (FPCs) have gained prominence as institutional mechanisms that promote collective action and enhance the resilience of smallholder farmers. This study examines the case of the Mayyil Rice Producers Company (MRPC) in Kerala, with the objective of evaluating its role in augmenting farmer incomes and improving the livelihoods. By engaging in collective procurement, processing, and marketing, MRPC endeavors to reduce production costs, strengthen market linkages, and enhance the overall profitability of its member farmers. The principal objective of this study was to assess the contribution of the Mayyil Rice Producers Company (MRPC) to the enhancement of farmer incomes through its collective farming model. Primary data were collected from a sample of 100 farmers in the Mayyil region of Kannur district, Kerala, comprising 80 shareholder-members and 20 non-shareholders. Data collection was undertaken through personal interviews using a pre-tested and structured interview schedule to ensure reliability and consistency. The analysis centred on evaluating the economic advantages associated with MRPC membership, including reductions in production costs, improvements in farm income, and enhanced market access. In addition, the study explored the nature and effectiveness of MRPC’s backward and forward linkages, the efficiency of resource utilization, and the key operational challenges encountered by both the company and its farmer members The socio-economic characteristics of the respondents revealed that 54 per cent of the farmers were aged above 60 years, with predominant male representation (82 per cent). Majority were marginal farmers, owning less than one hectare of land. Farming was primarily pursued as a secondary occupation, while government employment constituted the principal source of household income. Shareholder-members of the MRPC were observed to possess relatively higher levels of education and better access to agricultural inputs and institutional support services compared to non-shareholders. The analysis of costs and returns revealed marked differences in productivity and profitability between shareholder and non-shareholder farmers. Shareholder-members of the MRPC attained a higher grain yield of 6,886 kg/ha, as compared to 6,422 kg/ha among non-shareholders. This yield advantage translated into gross returns of Rs.2,07,749 per hectare for shareholders, significantly exceeding the Rs.1,77,466 per hectare realized by non-shareholders. While the total cost of cultivation was marginally higher for shareholders (Rs.1,55,328/ha) relative to non-shareholders (Rs.1,38,525/ha), the resultant net income Rs.52,421/ha was substantially greater for shareholders against Rs.40,559/ha for non-shareholders. The benefit-cost ratio (BCR) further highlighted the economic advantage of collective farming, with shareholders registering a BCR of 1.3 compared to 1.2 for non-shareholders. Additionally, shareholder farmers exhibited better resource use efficiency, attributed to more access to machinery, fertilizers, and labour, facilitated through targeted training and institutional support provided by MRPC. The analysis of constraints encountered by farmers highlighted acute labour shortages as the most pressing challenge, followed by delays in procurement processes, limited access to quality agricultural inputs, market price volatility, and inadequate technical knowledge. Shareholder-members of the MRPC were better positioned to manage these constraints due to institutional interventions such as collective marketing arrangements, subsidized input distribution, and targeted capacity-building initiatives. In contrast, non-shareholders experienced greater adversity, primarily owing to their limited access to organized support systems and modern agricultural practices. A financial performance review of MRPC over the period 2018–2023 revealed consistent growth in asset accumulation, with total assets increasing from Rs. 6.03 Lakhs in 2018-19 to Rs. 14.48 Lakhs in 2022-23. Improvements in liquidity ratios indicated enhanced financial management and operational efficiency. Nevertheless, declining trends in key profitability indicators, including net profit margins and return on investment, underscored the necessity for strategic cost containment and diversification of revenue streams. Despite these fluctuations, MRPC’s operations substantially contributed to improving the economic wellbeing of its shareholder members. In conclusion, the collective farming model implemented by MRPC has demonstrated considerable potential in enhancing the economic viability of smallholder paddy farmers. To consolidate these gains and address persistent challenges, the study recommends strengthening access to quality inputs, enhancing institutional credit and financial support, expanding technical training and business diversification. These measures are critical to sustain the profitability of MRPC and building resilience of the farmers.