Sustainability of farmer producer companies in West Bengal: An analysis of challenges and imperative extension interventions in Cooch Behar district

Abstract

Farmer Producer Companies (FPCs) have emerged as an important institutional mechanism to address the challenges of small and marginal farmers by promoting collective action, market integration, and value addition. However, the sustainability and effective functioning of FPCs continue to be constrained by multiple technical, economic, marketing, organizational, and governance-related factors. The present study analyzes the challenges faced by member farmers and Boards of Directors (BoDs) of FPCs in Cooch Behar district of West Bengal and suggests appropriate extension interventions for strengthening these farmer collectives. An ex-post facto research design was adopted, and the study was conducted among 22 FPCs that had been operational for at least five years. A total of 110 member farmers and 44 BoD members were selected using random sampling techniques. Data were collected through structured interview schedules, and the perceived severity of constraints was analyzed using the Rank Based Quotient (RBQ) method. The findings reveal that member farmers primarily face severe post-harvest and marketing-related constraints. Limited processing facilities, undeveloped storage infrastructure, unidentified effective marketing channels, delayed payments, and high transportation costs emerged as the most critical challenges. Inadequate skills in packaging, limited knowledge of ICT tools, and low literacy regarding credit facilities further constrained farmers’ ability to benefit fully from FPC membership. From the perspective of BoDs, major challenges included non-availability of critical inputs on time, high maintenance and repair costs of machinery, inadequate technology and skilled labour, insufficient storage space, weak marketing management capacity, and governance-related issues such as ineffective performance monitoring and limited transparency. Heavy dependence on government capital, low member participation, and weak internal communication also posed serious threats to organizational sustainability. The study underscores that the challenges faced by FPCs are multidimensional and interconnected, spanning infrastructure, governance, human resources, and market systems. To address these issues, the study proposes targeted extension interventions focusing on capacity building, market-led extension, infrastructure development through convergence with government schemes, financial and digital literacy, leadership and governance training, and strengthening backward and forward linkages. A holistic and integrated extension strategy is essential to enhance the sustainability of FPCs and to ensure inclusive growth and improved livelihoods for smallholder farmers in the region.