A SUMMER INTERNSHIP PROJECT REPORT

ON
“A study of Farmers Producers Company on production and marketing
of Turmeric, Ginger and other horticultural crops”

Project Report Undertaken

At

(Hadingma Gunjung Organic Producer Company Ltd)

Submitted to:
Assam Agricultural University

In the partial fulfilment of the requirements of the degree of

MASTER OF BUSINESS ADMINISTRATION
(Agri-Business Management)

Submitted by:
Jojob Longmailai
Regd.No:2023-AMJ-26
Department of Agricultural Economics and Farm Management
Assam Agricultural University, Jorhat-785013
 CERTIFICATE

Department of Agricultural Economics and Farm Management

Assam Agricultural University, Jorhat-13

This is to certify that the project titled “A study of Farmers Producer Company on
production and marketing of turmeric, ginger and other horticultural crops” submitted by Jojob
Longmailai, a student of MBA (Agri-Business) Degree Programme, Roll No, 2023-AMJ-26 of
the Department of Agricultural Economics and Farm Management is a record of work carried
out by him during the summer training programme from 1st July to 31st August, 2024.

Dr. Nivedita Deka Dr. Manashi Gogoi

Professor & Head Major Advisor & Asst. Professor

Dept. of Agril. Economics & FM Dept. of Agril. Economics & FM

Assam Agricultural University Assam Agricultural University

Jorhat-13 Jorhat- 13
CERTIFICATE
 DECLARATION

I, Jojob Longmailai hereby solemnly declare that the internship title entitled “A study
on Farmers Producer Company on production and marketing of turmeric, ginger and other
horticultural crops”, under the guidance of Mr. Suranjit Haflongbar, CEO, Hadingma Gunjung
Organic Producer Company Ltd, Gunjung, Dima Hasao, Assam for the fulfilment of MBA
(Agribusiness Management) course from Assam Agricultural University, Jorhat is exclusively
carried out by me.

The assistance and help rendered during the training period have been duty
acknowledged and the findings in this project are based on the data collected by me.

Place: Gunjung Jojob Longmailai

Date: MBA (Agri Business)

Roll No.: 2023-AMJ-26

Assam Agricultural University

Jorhat-13
 ACKNOWLEDGEMENT

It gives me immense pleasure to present this project report on “Production and marketing of
organic products such as turmeric, ginger and other horticultural crops” carried out at
Hadingma Gunjung Organic Producer Company Ltd, Gunjung, Dima Hasao, Assam in partial
fulfillment of the M.B.A. program Assam agricultural university, Jorhat.

I would like to express my deepest appreciation to Hadingma Gunjung Organic Producer

Company Ltd for granting me the opportunity to participate in their summer internship
program focused on the production and marketing of organic products and other horticultural
crops. This experience has been instrumental in broadening my understanding of sustainable
agriculture practices and their intricacies of the organic products market.

I am particularly indebted to Mr. Suranjit Haflongbar, the esteemed CEO of the company,
whose leadership and expertise have been a constant source of inspiration. His unwavering
commitment to promoting organic farming has left a lasting impact on me and his guidance
throughout the internship have been invaluable in shaping my professional growth.
Furthermore, I would be remiss if I did not extend my heart-full gratitude to my major guide/
Dr. Manashi Gogoi (Asst. Prof) department of AEFM. Her insightful advice continues
encouragement and meticulous guidance have been pivotal in helping me navigate the various
challenges I encountered. Her dedication to fostering my academic and professional
development has been truly commendable.

Lastly, I would also like to acknowledge the support of my parents and well wishes puts
unwavering support and belief in my abilities have been my source of strength and also to my
fellow interns who encourage me to do this research work and all those who contributed
directly or indirectly in completing this project to whom I am obligated to even though
anonymously.

Jojob Longmailai
MBA (Agri-Business)
Assam Agricultural University, Jorhat
 EXECUTIVE SUMMARY

The present research work has thoroughly examined the production and marketing of organic
produces with main emphasis on turmeric, ginger, and other horticultural crops. This study was
carried out within the framework of a summer internship at Hadingma Gunjung Organic
Producer Company Ltd., Gunjung, Dima Hasao, Assam. Due to the fertile soil and congenial
climatic condition, the area is very much suitable for organic farming; therefore, this place was
selected for the study.

The current study will discuss the current state of organic farming practices, challenges in the
production of local farmers, and market potential of organic turmeric, ginger, and other
horticultural crops. Identification of effective marketing strategies to enhance profitability and
sustainability of organic farming will also be identified.
 Scope of the Research

1. Production practices: This researches the organic production methods for turmeric,
ginger, and other horticultural crops. Besides, it identifies the practices on soil
management, control of pests and diseases, post-harvest handling, and others to ensure
the quality and sustainability of organic products.

2. Market Analysis: It assesses the local, regional, and national markets for organic
turmeric, ginger, and horticultural crops. It gives an overview of the consumer demand,
pricing trends, competitive landscape, and difficulties and chances for organic
producers to access these markets.

3. Supply Chain and Distribution: It investigates the dynamics of the supply chain, with
respect to intermediaries, transport logistics, and storage facilities that connect them to
the market. It aims at pinpointing the bottlenecks in such a supply chain that hinder the
smooth delivery of organic products efficiently to the market.

4. Marketing Strategies: It will consider the available marketing strategies that would
create more visibility and appeal for organic products. This shall include issues
surrounding branding, packaging, and promotion, and how digital marketing and e-
commerce can help in increasing the outreach.

5. Sustainability and Economic Viability: The sustainability and economic viability of

organic farming practices are assessed in this research paper. This study takes into
account the production cost, return on investment, long-term environmental benefits,
etc., that organic farming imparts.
 6. The research reviews existing government policies and institutional mechanisms of
support to organic farming in the region. This will be done with a view to identifying
gaps in policy implementation and suggesting measures that may aid in strengthening
support to organic producers.

Conclusion

The research imparts some useful insights into the production and marketing of organic
turmeric and ginger, including other horticultural crops in Assam. The findings are likely to
provide inputs toward working out better strategies for enhancing productivity, profitability,
and sustainability of organic farming in the region. Besides, the study also aims at helping local
farmers fully exploit the opportunities that exist in the rapidly growing organic market, thereby
helping in bringing about overall economic development in the region.

This executive summary should provide a nutshell of your entire research. Emphasize what
areas of the study one is going to focus on and why this research is very important. In case you
have particular data or findings which you would like to incorporate, they can be added in
appropriate sections.
 CONTENTS

Sl.No. TOPIC PAGE NO.

1 Chapter 1: Introduction 1-6
1.1: Introduction
1.2: Present scenario of FPC in India

2 Chapter 2: About the Project 7-9

2.1: About the project
2.2: Research Methodology

3 Chapter 3: Objective of the Project 10-13

3.1: Objective of the Project
3.2: Objective of present study

4 Chapter 4: Company Profile 14-23

4.1: Certification of the FPC
4.2: History of the FPC
4.3: Geographic location of the FPC
4.4: Information on the FIGs under the company
4.5: Vision
4.6: Mission
4.7: Activities of the FPC

5 Chapter 5: Organizational Structure 24-27

5.1: Organizational Structure

6 Chapter 6: Functional process of the company 28-30

6.1: Operation
6.2: Human Resource
6.3: Management
 6.4: Finance
6.5: Marketing
6.6: Technical

7 Chapter 7: Business Models and Product portfolio 31-41

7.1: Core business product and secondary products
7.2: Business plan
7.3: Manufacturing process, Production strategies and
value chain
7.4: Facilities available

8 Chapter 8: Growth factors and Future Strategies 42-44

8.1: Early factors of growth
8.2: Future strategies

9 Chapter 9: Analysis 45-47

9.1: SWOT Analysis

10 Chapter 10: Conclusion 48-54

10.1: Findings
10.2: Suggestions/Recommendations
10.3: Conclusion

11 Chapter 11: Photographic Evidence 55-57

11.1: Photographs of different surveys

12 References 58-59
 Chapter-I

INTRODUCTION

1
1.1 INTRODUCTION

Farmer Producer Companies (FPCs) have emerged as a transformative force in the

agricultural sector, particularly in India, where they are designed to empower farmers through
collective action and improved market access. Established under the Companies Act of 2013,
FPCs combine the principles of cooperative societies with those of private limited companies,
creating a unique legal framework that enables farmers to pool resources and engage in various
agricultural business activities. This innovative structure is aimed at enhancing the economic
strength of farmers by providing them with better bargaining power, access to modern
technology, and essential financial services.

Objectives and Benefits of Farmer Producer Companies

The core objective of a Farmer Producer Company is to facilitate collective procurement,

production, processing, and marketing of agricultural products. By working together, farmers
can significantly reduce costs through bulk purchasing, enhance product quality, and secure
better prices in the marketplace. This collaborative approach not only mitigates the individual
risks associated with farming but also fosters a sense of community and mutual support among
members.

Key Benefits of FPCs

1. Improved Market Access: FPCs aggregate the produce of small and marginal farmers,
allowing them to access larger markets and negotiate better prices. This collective
bargaining power is crucial in overcoming the challenges posed by fragmented markets.

2. Value Addition: FPCs can engage in processing and value addition activities, enabling
farmers to capture a larger share of the consumer price. This includes activities such as
packaging, branding, and marketing, which enhance the overall value of agricultural
products.

2
 3. Access to Technology: FPCs facilitate the adoption of modern farming techniques,
improved seeds, and other technologies that enhance productivity and quality. This
technological support is essential for farmers to remain competitive in a rapidly
evolving agricultural landscape.

4. Financial Services: FPCs provide access to credit, insurance, and other financial
services, reducing farmers' dependence on informal sources of finance. This financial
security is vital for investing in better inputs and technologies.

Role of Government and Support Institutions

FPCs are recognized as a vital tool for transforming the agricultural landscape in India,
particularly for small and marginal farmers who often face challenges in accessing markets and
resources. The establishment of FPCs is supported by various government initiatives aimed at
promoting cooperative farming practices and enhancing the livelihoods of farmers across the
country.

Key Institutions Supporting FPCs

- Small Farmers' Agribusiness Consortium (SFAC): SFAC provides equity grants and credit
guarantees to FPCs, facilitating their growth and development.

- National Bank for Agriculture and Rural Development (NABARD): NABARD offers
financial and technical support for the promotion and strengthening of FPCs, helping them to
establish sustainable business models.

- State Governments: State governments support FPCs through various schemes and programs,
including the formation of Farmer Producer Organizations (FPOs) and the provision of
infrastructure and marketing facilities.

3
Challenges and Way Forward

Despite their potential benefits, FPCs face several challenges:

1. Lack of Awareness and Capacity: Many farmers are unaware of the concept of FPCs
and lack the necessary skills and knowledge to manage these organizations effectively.
Education and outreach programs are essential to raise awareness and build capacity
among farmers.
2. Access to Finance: FPCs often encounter difficulties in accessing adequate and timely
credit, which can hinder their growth and development. Financial institutions need to
develop tailored products that meet the specific needs of FPCs.
3. Weak Infrastructure and Logistics: Inadequate storage facilities, transportation
networks, and processing infrastructure can limit the ability of FPCs to effectively
market their products. Investment in rural infrastructure is crucial to support the
operational needs of FPCs.

Strategies for Success

To address these challenges and ensure the success of FPCs, several strategies can be
implemented:

- Strengthening Capacity: Training and skill development programs should be implemented to

enhance the management capabilities of FPC members.

- Improving Access to Credit: Financial institutions should be encouraged to provide tailored

financial products that cater to the unique needs of FPCs.

- Investing in Infrastructure: Governments and private entities should collaborate to invest in

rural infrastructure, including storage facilities and transportation networks, to facilitate better
market access.

- Fostering Partnerships: Encouraging partnerships between FPCs and private sector players,
such as food processors and retailers, can create sustainable market linkages and enhance
profitability.

4
Conclusion

Farmer Producer Companies have the potential to revolutionize the agricultural sector in India
by empowering farmers and enhancing their access to markets and resources. By fostering
collective action and providing a structured approach to business, FPCs enable farmers to
improve their economic leverage and market presence. With the support of government
initiatives and effective implementation, FPCs can contribute to the overall development of the
agricultural economy and significantly improve the livelihoods of millions of farmers across
the country. Through this collaborative model, farmers can better navigate the complexities of
modern agriculture, ensuring a more sustainable and profitable future for themselves and their
communities.

1.2 Present scenario of FPC in India

The current landscape of Farmer Producer Companies (FPCs) in India represents a

significant shift in how farmers can organize themselves to enhance their livelihoods and
improve agricultural productivity. This innovative model is supported by a robust framework
of various government initiatives aimed at empowering farmers, particularly smallholders, who
face numerous challenges in the agricultural sector.

Government Initiatives

The Indian government has made significant strides in promoting FPCs, particularly
through the 2020 initiative to establish 10,000 Farmer Producer Organizations (FPOs) with a
substantial budget of ₹6,865 crore. This initiative is designed to strengthen farmers' bargaining
power and reduce production costs by facilitating collective marketing and resource sharing.
As of now, 7,597 FPOs have been registered across 34 states and union territories, indicating
strong progress towards the target.

Financial assistance is a critical component of this support, with provisions for operational
costs, management salaries, and other expenses for up to five years post-formation. This

5
funding is crucial for ensuring the sustainability of these organizations as they establish
themselves in the market.

Growth and Development

1. Emphasis on Agri-Processing

There is an increasing focus on agri-processing and value addition within FPCs. This shift is
essential for generating additional income for farmers, especially in light of declining land
holdings. By enhancing the economic viability of small farms, FPCs can help farmers achieve
better returns on their investments.

2. Leadership and Capacity Building

The success of FPCs heavily depends on effective leadership and the ongoing capacity-building
of their members. Training and support are vital for developing the necessary skills for
managing these organizations effectively.

3. Market Opportunities

FPCs are encouraged to explore new markets, particularly for health foods and organic
products. This diversification can help reduce post-harvest losses, which can be significant in
India, especially for perishable goods like fruits and vegetables.

4. Future Prospects

The outlook for FPCs remains positive, with continued government commitment to their
development. The model presents a viable path for enhancing agricultural productivity and
improving farmers' incomes. However, challenges such as access to capital, market linkages,
and effective governance need to be addressed to ensure their long-term success.

6
 Chapter-2

ABOUT THE PROJECT

7
2.1 ABOUT THE PROJECT

The project is on Hadingma Gunjung Organic Producer Company Ltd. Established in the
year 2022 under the MOVCD-NER Scheme. It is a farmer producer company located in
Gunjung village, Dima Hasao district of Assam, India. The company was formed with the aim
of empowering local farmers and promoting organic agriculture in the region. By aggregating
produce from member farmers and engaging in value addition and marketing activities, the
company seeks to enhance farmers' incomes and ensure sustainable livelihoods.

Hadingma Gunjung Organic Producer Company Ltd. plays a pivotal role in supporting
local farmers by providing them with free organic seeds. This initiative is designed to facilitate
the transition to organic farming practices and to ensure that farmers have access to high-
quality planting materials. They empowers local farmers to cultivate a variety of organic crops,
with a particular focus on high-value products such as turmeric and ginger. These crops are not
only significant in terms of their nutritional and medicinal properties but also offer lucrative
market opportunities for the farmers involved. The produce are then sold in the local/domestic
market. Recently the products were showcased in the International Expo for Organic Product
held at Delhi.

This project aims to conduct a comprehensive study on the production and marketing of
organic products, specifically focusing on high-value crops such as ginger and turmeric, as well
as other horticultural products. Organic farming has gained significant traction in recent years
due to its numerous benefits, including environmental sustainability, improved soil health, and
the increasing consumer demand for organic produce. This study will explore the various
aspects of organic production, processing, and marketing strategies employed by farmers,
particularly those associated with Hadingma Gunjung Organic Producer Company Ltd. in
Dima Hasao district, Assam.

8
2.2 RESEARCH METHODOLOGY

Research methodology is a broad framework that outlines the techniques used to identify,
select, process, and analyse information about a specific topic. This systematic approach is
crucial for ensuring that research is conducted effectively and yields valid, reliable results.

Study area: Data are collected from farmers of Hadingma Gunjung Organic Producer Company
Limited (HGOPCL) is located in the Dima Hasao district of Assam, India, specifically in the
Gunjung area of the Borail range.

Source of data: Primary data as well as secondary data are collected for the study.

1) Primary data are collected from the CEO, Company Board of directors (BODs) and
from the farmers involved in the company. The data are collected by direct interaction
with the interviewee as well as on distant interaction such as phone call.
2) Secondary data are collected from annual reports,internet etc.

9
 Chapter-3

OBJECTIVE OF THE PROJECT

10
3.1 Objective of the project

The overarching goal of the summer internship:

The primary objective of the summer internship program is to train students by developing
their management skills and enhancing their entrepreneurial qualities within a specific
professional area. This initiative aims to prepare students for self-employment and equip them
with the tools necessary to thrive in a competitive business environment.

The goals of the programme:

The internship program is designed to provide students with a robust foundation in essential
management skills, which are critical for effective leadership and organizational success.

The objectives are:

1) Leadership Development

Understanding Leadership Styles: Students will explore various leadership styles

(transformational, transactional, servant) to identify which aligns with their values and team
needs.

Team Dynamics: Interns will learn to build and manage diverse teams through team-building
exercises that emphasize trust, communication, and conflict resolution.

2) Strategic Thinking

Analytical Skills: Interns will analyse market trends and organizational performance to develop
strategic plans that drive growth.

Goal Setting: Students will learn to set SMART (Specific, Measurable, Achievable, Relevant,
Time-bound) goals to ensure alignment with organizational objectives.

3) Communication Skills

Effective Communication: The program will enhance verbal and written communication skills
through workshops on presentations, persuasive techniques, and active listening.

11
Interpersonal Skills: Emphasis will be placed on building strong relationships and developing
emotional intelligence for effective collaboration.

4) Problem-Solving and Decision-Making

Critical Thinking: Students will engage in case studies to identify problems and make informed
decisions.

Creative Problem-Solving: Interns will apply brainstorming and design thinking techniques to
develop innovative solutions.

5) Enhancement of Entrepreneurial Qualities

Innovation and Creativity: Students will participate in workshops to foster an innovative mind-
set and generate unique business ideas.

Risk Management: Interns will learn to assess and manage various types of risks, preparing
them for uncertainties in entrepreneurship.

Networking: The program will encourage building a professional network through events and
collaborations.

6) Promotion of Self-Employment

Business Planning: Interns will create comprehensive business plans outlining their ideas,
target markets, and financial projections.

Financial Literacy: The program will cover budgeting, cash flow management, and funding
options for start-ups.

Practical Experience: Interns will engage in real-world projects, enhancing their understanding
of business operations.

Mentorship Opportunities: The program will connect students with experienced entrepreneurs
for guidance and support.

12
3.2 Objectives of present study.

During my internship at Hadingma Gunjung Organic Producer Company Ltd. (HGOPCL),

I had the opportunity to learn about the various activities and workings of the Farmer Producer
Company (FPC). Under the guidance of CEO Mr. Suranjit Haflongbar, I gained valuable
insights into the production and marketing of turmeric and ginger, which was the focus of my
report.

To gather the necessary data for my report, I first created a format that included all the
relevant points related to my topic. Given that HGOPCL comprises 20 Farmer Interest Groups
(FIGs), it was challenging to interact with all the farmers in a group setting. To address this, a
leader was assigned among the members of each FIG to facilitate the flow of critical
information and ensure a more organized approach.

Since the FPC covers a vast area of approximately 500 hectares, the region was divided into
smaller sub-parts, with each farmer responsible for around 1 hectare. To collect representative
data, I employed a random sampling method, gathering information from various parts of the
area for my report.

13
 Chapter-4

COMPANY PROFILE

14
4.1 Certification of the FPC

15
4.2 History of the FPC

Hadingma Gunjung Organic Producer Company Limited (HGOPCL) is a private limited

company based in Assam, India. The company was incorporated on August 11, 2022, and is
registered with the Ministry of Corporate Affairs (MCA) under the Corporate Identification
Number (CIN) U01110AS2022PTC023441 and registration number 023441.

HGOPCL is classified as a company limited by shares and is registered with the Registrar
of Companies in Shillong, India. The company has an authorized share capital of Rs. 1,000,000
and a paid-up capital of Rs. 10,000. Its primary activities are related to agriculture, hunting,
and related service activities across India.

The company's last Annual General Meeting (AGM) was held on 15th January, 2024, and
according to the records of the Ministry of Corporate Affairs (MCA), the company last
updated its financials on 31st March, 2023.

HGOPCL is led by a board of directors consisting of five members: Uttam Nunisa, Romitha
Haflongbar, Abijit Haflongbar, Probina Langthasa, and Nabajit Hakmousa. The company's
registered email address is [email protected], and its registered address is C/O
NABAJIT HAKMOUSA, 04 GUNJUNG NORTH CACHAR HILLS AS 788819 IN ASSAM,
India.

The current status of Hadingma Gunjung Organic Producer Company Limited is listed as
ACTIVE.

16
Table 1.1 Company details:

Specifications Details
CIN U01110AS2022PTC023441
Company Status Active
Registration Number 023441
Date of Incorporation 11th August, 2022
RoC RoC-Shillong
Company Age 2 years & 21 days
Authorized Capital ₹10,00,000
Paid-up capital ₹10,000
Company Category Company limited by Shares
Company Sub-Category Non-govt company
Class of company Private
Activity Agriculture, hunting and related service
activities
Listing status Unlisted
Date of Last Annual General Meeting 15th January, 2024

Date of Latest Balance Sheet 31st March, 2023

Email [email protected]

Address C/o Nabajit Hakmousa, 04, North Cachar Hills,

Gunjung, Assam, India, 788819.

Table 1.2 Directors:

DIN Director Name Designation Appointment Date

09680286 UTTAM NUNISA Director 11/08/2022

09680304 ROMITHA HAFLONGBAR Director 11/08/2022

09680323 ABIJIT HAFLONGBAR Director 11/08/2022

09680343 PROBINA LANGTHASA Director 11/08/2022

09682342 NABAJIT HAKMOUSA Director 11/08/2022

17
4.3 Geographic location of the FPC

Hadingma Gunjung Organic Producer Company Limited is located in the Dima Hasao
district of Assam, India. Specifically, its registered office is situated at C/o Nabajit Hakmousa,
04 Gunjung, with the postal code 788819. This area is characterized by its hilly terrain and rich
biodiversity, making it suitable for organic agricultural practices, which is the primary focus
of the company.

The district is actively engaged in agriculture and allied activities, contributing to the region's
organic farming initiatives. And is known for its diverse ethnic communities and natural
resources, which play a significant role in the local agricultural economy.

Fig 4.1: Geographical location of the FPC (Satellite image)

18
4.4 Information on the FIGs under the company

Hadingma Gunjung Organic Producer Company Limited (HGOPCL) is a newly established

entity in the agricultural sector, in Dima Hasao, Assam. The company focuses on organic
farming and has implemented a structured approach to engage local farmers through the
formation of Farmer Interest Groups (FIGs).

Structure of Farmer Interest Groups

HGOPCL has successfully established 20 FIGs, each comprising 25 members, leading to a

total of 500 active members involved in organic farming practices. This structure is designed
to foster collaboration among farmers, enhance knowledge sharing, and improve agricultural
practices within the community.

Management of FIGs

The management process for these FIGs is conducted through executive meetings, which
are held at fixed intervals. This structured meeting schedule allows for effective
communication and coordination among the members, ensuring that the objectives of the FIGs
are met and that members can share insights, challenges, and successes related to organic
farming.

Purpose and Benefits

1) Collective Learning: Members can learn from each other's experiences and practices,
enhancing their agricultural skills and knowledge.
2) Resource Sharing: The groups facilitate resource sharing, including tools, seeds, and
best practices for organic farming.
3) Market Access: By organizing into FIGs, members can collectively access markets,
improving their bargaining power and potentially leading to better prices for their
produce.
4) Support System: The FIGs provide a support network for farmers, helping them
navigate challenges and fostering a sense of community.

19
 Overall, the management of these FIGs through regular executive meetings is crucial for
promoting sustainable agricultural practices and enhancing the livelihoods of the members
involved in Hadingma Gunjung Organic Producer Company Limited.

4.5 Vision

The specific vision of Hadingma Gunjung Organic Producer Company Limited (HGOPCL)
is to effectively engage in the business of producing, procuring, marketing, and exporting
organic products, particularly turmeric, ginger, and other horticultural items. Their vision
includes:

1) Business Operations: Initiate and maintain operations focused on the cultivation and
distribution of organic products, ensuring adherence to organic farming practices that
enhance product quality and sustainability.

2) Value-Added Products: Develop and offer a range of value-added products derived

from the primary organic offerings. This includes turmeric powder, ginger powder,
ginger pickle, turmeric pickle, ginger candy, and juice in squash form. These products
not only cater to diverse consumer preferences but also increase profitability by
enhancing product value.

3) Market Accessibility: Establish a robust distribution network to make these products

widely available across numerous outlets within the national market, as well as in
international markets. This involves strategic partnerships with retailers and e-
commerce platforms to maximize reach.

4) Market Share Expansion: Aim to capture a larger market share by positioning the
business competitively against larger industry players. This can be achieved through
innovative marketing strategies, quality assurance, and building strong brand
recognition.

20
 5) Brand Prominence: Enhance the visibility and recognition of the brand in the
marketplace. This can be accomplished through targeted marketing campaigns,
engaging social media presence, and participation in trade shows and community
events. By creating a strong brand identity and fostering customer loyalty, the business
can differentiate itself from competitors and establish a prominent position within the
organic product sector.

4.6 Mission

1) Promotion of Sustainable Agriculture: HGOPCL aims to lead in organic farming

practices that are environmentally sustainable and beneficial to the local ecosystem.
2) Empowerment of Local Farmers: By organizing farmers into FIGs, the company seeks
to empower these individuals through education, resources, and improved market
access, enhancing their livelihoods.
3) Community Development: The company is likely focused on fostering a strong
agricultural community that supports local economies and promotes healthy food
production.
4) Health and Nutrition: HGOPCL may prioritize the production of high-quality organic
products that contribute to the health and well-being of consumers.
5) Innovation in Organic Practices: HGOPCL aims to be at the forefront of innovative
organic farming techniques, utilizing modern technology and research to improve crop
yields and sustainability.
6) Market Leadership: The company aspires to become a recognized leader in the organic
market, both regionally and nationally, by producing high-quality organic products that
meet consumer demand.
7) Education and Training: HGOPCL is committed to providing continuous education and
training for farmers, ensuring they are well-versed in the latest organic farming
practices, pest management, and sustainable agriculture techniques.

21
 8) Strengthening Local Supply Chains: The vision includes building robust local supply
chains that connect farmers directly with consumers, reducing reliance on
intermediaries and ensuring fair prices for both parties.
9) Environmental Stewardship: HGOPCL aims to promote practices that protect
biodiversity and natural resources, ensuring that farming activities contribute positively
to the environment.
10) Social Responsibility: The company is likely dedicated to social responsibility
initiatives that support community development, including health, education, and
infrastructure improvements in the farming regions.
11) Cultural Preservation: HGOPCL may also focus on preserving local agricultural
traditions and practices, integrating them into modern organic farming methods to
maintain cultural heritage.
12) Collaboration and Partnerships: The vision may include forming partnerships with
governmental and non-governmental organizations, research institutions, and other
stakeholders to enhance the impact of their initiatives and expand their reach.
13) Consumer Awareness: HGOPCL is likely focused on raising awareness about the
benefits of organic farming and healthy eating, educating consumers about the
importance of choosing organic products.

These inferred aspects reflect a holistic approach to agriculture, emphasizing sustainability,

community empowerment, and health, aligning with broader trends in organic farming and
local agricultural development. Through the incorporation of these elements, HGOPCL aims
to create a thriving ecosystem for organic farming that benefits farmers, consumers, and the
environment alike.

4.7 Activities of the FPC

The activities of a Farmer Producer Company (FPC) are designed to empower farmers by
enhancing their productivity, market access, and overall economic strength. The following
outlines the activities undertaken by the FPC:

22
1) Provision of Necessary Materials: The first activity of the FPC involves supplying
farmers with essential agricultural inputs such as seeds, fertilizers, and tools. This
support helps reduce costs and ensures that farmers have access to quality materials,
enabling them to cultivate their crops effectively.

2) Agricultural Practices: The second set of activities encompasses critical farming

operations, including weeding, tillage, sowing, watering, and harvesting. By providing
guidance and resources for these essential tasks, the FPC helps farmers optimize their
agricultural practices, leading to higher yields and improved crop quality.

3) Value Addition: The third activity focuses on enhancing the value of agricultural
products through processing. This includes transforming raw produce into various
value-added products, such as turmeric powder, ginger powder, ginger candy and
pickles etc. By engaging in value addition, the FPC not only increases the profitability
of the products but also helps farmers tap into new markets.

4) Sales and Export: The fourth activity involves the marketing and selling of both raw
and processed products. The FPC facilitates access to broader markets, including export
opportunities, ensuring that farmers receive fair prices for their produce. This collective
approach enhances bargaining power and reduces reliance on intermediaries.

5) Common Service and Custom Hiring Centres: The fifth activity is the establishment of
Common Service Centres (CSCs) and Custom Hiring Centres (CHCs). These centres
provide farmers and local villagers with access to shared resources, including
machinery and tools that they may not afford individually. The CHCs, in particular,
offer rental services for agricultural equipment, enabling small and marginal farmers to
benefit from mechanization without the high costs of ownership.

23
 Chapter-5

Organizational Structure

24
5.1 Organizational structure of the HGOPCL

HGOPCL

Board of Directors

Chief Executive Officer

Farmers (500 nos.)

The organizational structure of a Farmer Producer Company (FPC) is crafted with the goal
of fostering strong governance and smooth operations, all while keeping the needs and interests
of its farmer members at the forefront. This structure is built around three essential levels: the
Chairman, the Board of Directors (BoD), and the farmer members themselves.

Organizational Hierarchy:

1) Chairman

At the pinnacle of the structure is the Chairman, who plays a vital role in steering the FPC.
The Chairman's responsibilities include presiding over meetings, guiding strategic decisions,
and representing the FPC in external matters. This role is essential for ensuring that the board
functions effectively and that the needs and interests of the farmer members are well-
represented.

25
 2) Board of Directors (BoD)

Directly beneath the Chairman is the Board of Directors, elected by the farmer members.
The BoD has a total of five directors, who oversee the overall governance of the FPC. Their
primary responsibilities include:

Strategic Direction: Establishing the vision and long-term goals of the FPC.

Operational Oversight: Monitoring daily operations to ensure the FPC meets its objectives.

Financial Management: Ensuring financial stability and adherence to proper accounting

practices.

Policy Development: Creating policies that guide the FPC's operations and ensure compliance
with relevant laws and regulations.

The BoD may also include independent or expert directors to enhance decision-making, as
permitted under the Companies Act 2013.

3) Farmers (General Body)

At the base of the structure is the General Body, which includes all farmer members of the
FPC. This body serves as the supreme authority within the organization. Some of the standout
features are:

Membership: Only eligible farmers can join, and they possess voting rights to elect the BoD.

Participation: Members are encouraged to attend general meetings, where they can express
concerns, propose initiatives, and influence decisions.

Profit Sharing: Members receive benefits from the profits generated by the FPC, distributed
based on their participation and investment in the organization.

26
The Approach and Schedule for Group Meetings

i) Regular group meetings foster communication and collaboration among members,

leaders, and officers. These meetings provide a platform to discuss issues,
proposals, plans, strategies, solutions, and decisions that serve the group and
individual interests.

ii) Executive meetings should be held every three weeks to enable consistent
engagement, timely decision-making, ongoing dialogue, and member feedback.

iii) Meeting minutes should be accurately recorded to capture discussions, decisions,

and resolutions. This documentation promotes transparency, accountability, and
continuity, keeping members informed about past activities.

iv) The date, time, and venue of the next meeting shall be decided by the members
during the group meeting. This collaborative approach ensures that the schedule is
convenient for all attendees and aligns with their availability.

27
 Chapter-6

Functional process of the company

28
6. Functional process of the company

6.1: Operations and Decision makings

- Clearly define project objectives

- Gather comprehensive data on requirements and constraints

- Analyse alternatives and evaluate feasibility

- Select the best option aligned with goals

- Monitor implementation and evaluate outcomes

6.2: Human Resources

- Assess required skills and competencies

- Provide necessary training to develop skills

- Organize teams with clear roles and responsibilities

- Ensure adequate labour availability throughout project

6.3: Management

- Develop a detailed implementation plan for better production of the products and by-products
as well

- Monitor and control progress against the plan

- A good marketing strategy to attract the customers in the local market and distant market.

- Coordinate among stakeholders like contractors and suppliers

- Maintain quality standards in project outputs

6.4: Finance

29
- Prepare realistic cost estimates for all components

- Secure required funds from banks, institutions and equity

- Disburse funds as per implementation schedule

- Maintain transparent financial records and documentation

- Conduct periodic financial reviews to identify deviations

6.5: Marketing

- Assess market demand and willingness to pay

- Develop a marketing strategy to reach target customers

- Ensure product quality and competitiveness

- Explore domestic and international markets and also through the online marketing system

- Focus on value-added products to enhance revenues

6.6: Technical

- Select suitable technologies and machinery through the CHCs or CSC

- Install and commission required infrastructure

- Implement maintenance protocols for productivity

- Explore new scientific innovations for efficiency

- Adopt modern technologies to improve quality and reduce costs

30
 Chapter-7

Business models and product portfolio

31
7.1 Core business product and secondary products

Core business products

The company specializes in the cultivation and sale of ginger and turmeric, offering both
raw and processed forms of these agricultural products, particularly under the MOVCD-NER
(Mission Organic Value Chain Development for North Eastern Region) scheme. Under the
brand name "Asoma," the company markets a variety of items, including fresh ginger and
turmeric, as well as value-added products such as ginger powder, turmeric powder, ginger
candy, and pickles.

Cultivation and Harvesting

Ginger (Zingiber officinale) and turmeric (Curcuma longa) are significant crops in tropical
and subtropical regions, thriving in well-drained, loamy soils with ample moisture. The
cultivation process involves planting rhizomes, which are the underground stems of the plants.
These crops require a warm climate and are usually harvested after several months of growth,
typically when the leaves begin to yellow.

Processing and Value Addition

Once harvested, ginger and turmeric can be sold in their fresh forms or processed into
various products. Processing not only extends the shelf life of these crops but also enhances
their market value. For instance, ginger can be dried and ground into powder, while turmeric
is often processed into powder or used in making health supplements and culinary products.
The value-added products, such as ginger candy and pickles, cater to diverse consumer
preferences and dietary needs, allowing the company to tap into various market segments.

Branding and Market Strategy

The branding of these products under the "Asoma" label signifies a commitment to quality
and authenticity, appealing to health-conscious consumers. The prefix "Asoma" not only
denotes the brand but also emphasizes the natural and beneficial properties of ginger and

32
turmeric, which are renowned for their anti-inflammatory and antioxidant effects. This strategic
branding helps differentiate the products in a competitive market, fostering brand loyalty
among consumers.

Economic Impact

The cultivation and processing of ginger and turmeric contribute significantly to the
agricultural economy. These crops are not only vital for local consumption but also have
substantial export potential. By focusing on both fresh and processed forms, the company
enhances its market reach and supports local farmers, promoting sustainable agricultural
practices.

Data and information for crops

Sl. No. Name of the main crop Area covered Production (q) Price for sell
(ha) per ha (Rs.)
1 Ginger 150 (approx.) 8-12 tonnes 25 per kg
2 Turmeric 350 (approx.) 3-7 tonnes 16 per Kg

Secondary products

The promotion of horticultural crops in Assam reflects a strategic initiative by the

Directorate of Horticulture and Food Processing Unit of the Government of Assam. This
initiative aims to enhance agricultural productivity and improve the livelihoods of farmers
through the cultivation of various horticultural products.

The MOVCD-NER scheme has established 22 Farmer Producer Companies (FPCs) in

Assam, focusing on the cultivation of diverse horticultural crops. These crops include:

The horticultural crops cultivated by the farmers include:

 Pineapple

 Oranges

33
  Pumpkins

 Local Chilli

 Litchi

 Various Local Vegetables

Climate and Soil Conditions:

The north-eastern region of India, including Assam, is characterized by its diverse climatic
and geographical conditions, which are conducive to the cultivation of a wide array of
horticultural crops. The region's fertile alluvial soil, coupled with a humid subtropical climate,
provides an ideal environment for growing fruits and vegetables.

Cultivation Practices

1. Pineapple: This tropical fruit thrives in well-drained soils and requires a warm climate.
The cultivation involves planting suckers or slips, which can take 18 to 24 months to
mature. Proper care, including pest management and irrigation, is essential for optimal
yield.

2. Oranges: Citrus fruits like oranges require specific climatic conditions—adequate

sunlight and well-drained soil. They are typically grown in orchards, and their
production can significantly contribute to the local economy.

3. Pumpkins: As a warm-season crop, pumpkins are relatively easy to cultivate and can
grow in various soil types, provided they receive sufficient sunlight and water. They
are often intercropped with other vegetables, enhancing soil fertility through crop
rotation.

4. Local Chilli: Chilli peppers are valued for their culinary and medicinal properties. They
require warm temperatures and can be grown in a variety of soil conditions, making
them a staple crop in many local farming systems.

5. Litchi: This subtropical fruit is sensitive to frost and requires a humid climate. The
cultivation of litchi has gained popularity due to its high market value and demand.

6. Local Vegetables: The cultivation of local vegetables supports food security and
provides essential nutrients to the local population. These crops are often grown using
traditional farming practices, which can include organic methods.

34
Economic and Social Impact:

The support from the MOVCD-NER Scheme plays a crucial role in promoting sustainable
agricultural practices and enhancing the livelihoods of farmers in Assam. By focusing on
horticultural crops, the company not only diversifies its product offerings but also contributes
to the region's agricultural economy. The cultivation of these crops fosters local employment,
encourages smallholder farming, and enhances food security.

7.2 Business plan

Why FPC?

FPCs may offer various services to farmer members.

 GAP and crop advisory,

 Input-shop services,
 Custom hiring services,
 credit connect,
 direct market connects,
 common facilities for storage and processing,
 transport and
 seed production

If we closely observe the above avenues, it is evident that all are linked with a business.
Prime and ulimate objective of FPC to do business, earn profit, give bonus or profit share to its
members and attain sustainability.

But these are not easy to achieve.

What is need?

Planning:

What to do, When to do and How to do.....

A FPC has the opportunities to a series of business. So we can list them as

35
Business I;

Business II;

Business III; and so on

A BUSINESS PLAN HAS TO BE DEVELOPED AND IMPLEMENT

Business I: Trading: Procurement and selling of surplus quantity of paddy produced by its
members: "Buying and then selling" businesses such as procurement of produces paddy /
mustard /potato/ Ginger/Turmeric/ Lemon etc. and sale them to suitable buyers at a margin
level of 3-5%. The Collecting Centre which is likely to be provided to the FPC under MOVCD
scheme can be used for aggregation/collection of the agricultural produces.

Business II: “Mechanization of agriculture practices" is one of the important goals of the Govt.
Income from Customized Hire Centre (CHC): The FPC will get a CHC from Govt. scheme at
subsidized rate having machineries & implements like Power tiller / or Tractor, Threshing
machine, Combined harvester, sprayers etc. which can be given to its members on hire basis.

Business III: Renting pick-up van: Under MOVCD provision of providing pick up van to the
FPC at subsidized rate. This van also can be utilized for carrying agricultural inputs for different
farm/agricultural activities. Members can hire the van and an income can be earned by the FPC.

Business IV: Seed production/seed bank/ certified and foundation seeds production for ASC
Ltd.

Business V: Secondary processing Unit (mills etc.)

7.3 Manufacturing process, production strategies and value chain

Processing of Turmeric and Ginger

1. Harvesting and Cleaning:

36
- Organic turmeric and ginger are carefully harvested by hand to minimize damage to the
rhizomes.

- Rhizomes are washed in clean, potable water to remove dirt and debris, without using any
chemical agents.

2. Curing:

- For organic turmeric, the cleaned rhizomes are boiled in water for 45-60 minutes until soft,
without adding any chemicals.
- Organic ginger is typically steamed for 30-60 minutes to kill any surface microbes.
- The curing process helps develop the characteristic colour and aroma of the spices.

3. Drying:
- Organic rhizomes are dried in the sun on clean surfaces like bamboo mats or tarpaulin sheets.
- Drying is done in thin layers of 5-7 cm to ensure uniform drying.
- Artificial drying using hot air at 55-60°C can also be used for organic spices.

4. Polishing:

- Dried organic rhizomes are polished manually by rubbing against a hard surface or in a
rotating drum.
- This improves the appearance by removing scales and root bits from the surface.
- No chemical agents are used during polishing.

5. Grinding:
- Polished organic rhizomes are ground into powder using clean, food-grade equipment.
- Grinding is done in batches to maintain hygiene and prevent cross-contamination.

6. Packaging:

- Organic turmeric and ginger powders are packed in clean, food-grade packaging materials
like paper bags or plastic pouches.
- Packaging is done in a hygienic environment to prevent contamination and extend shelf life.

37
7. Storage:

- Packaged organic spice powders are stored in a cool, dry place away from direct sunlight and
moisture.
- Proper storage conditions help maintain the quality and aroma of the organic products.

By following these organic processing methods, farmers and processors can ensure that the
turmeric and ginger retain their natural properties and meet organic certification standards.

Production Strategies

Farmers can benefit from various programs and initiatives that provide free seeds, training
in organic farming practices, and technical assistance.

1. Free Seeds Provision

Several government initiatives, such as the "Feed for Seed" program in Telangana, provide
farmers with free, high-quality seeds of various crops. This program encourages farmers to
produce their own seeds by supplying seed kits that include instructions for cultivation and
seed production techniques. The aim is to enhance self-sufficiency among farmers and promote
sustainable agricultural practices.

2. Training in Organic Production

Farmers are offered training on organic farming techniques, which includes:

- Vermi-composting: Training on how to produce and use vermi-compost is provided, along

with the necessary equipment like vermi-tanks or units. This method enriches soil health and
promotes sustainable farming.

- Bio-fertilizers: Instruction on the use of bio-fertilizers is also part of the training. Bio-
fertilizers enhance soil fertility and crop yield while reducing reliance on chemical fertilizers,
thus promoting a more sustainable agricultural approach.

38
 3. Management Techniques

Farmers receive guidance on pre and post-management techniques, which encompass:

- Pre-management: This includes planning and preparation before planting, such as soil testing,
crop selection, and appropriate planting techniques.

- Post-management: After planting, farmers are trained on how to manage crops effectively,
including pest management, irrigation practices, and harvesting techniques to ensure optimal
yield and quality.

4. Technical Assistance on Machinery

Technical help regarding agricultural machinery is also provided.

- Machinery operation: Training on how to operate various types of agricultural machinery,

which can improve efficiency and productivity in farming operations.

- Maintenance and repair: Guidance on the maintenance and repair of machinery to ensure
longevity and optimal performance, reducing downtime and costs associated with machinery
failure.

These initiatives collectively aim to empower farmers, enhance their productivity, and promote
sustainable agricultural practices, ultimately leading to improved livelihoods.

Value chain

The value chain of an organic Farmer Producer Company (FPC) consists of interconnected
components that facilitate effective production, processing, and marketing. It begins with
sourcing quality inputs, often through partnerships, and establishing on-farm input production
units to reduce reliance on external inputs.

In the production phase, FPCs organize farmers into groups, enabling training, certification,
and collective farming practices to enhance productivity and sustainability. Obtaining organic
certification is crucial for accessing premium markets by ensuring compliance with standards.

Post-harvest management involves establishing collection centres to aggregate produce,

ensuring products meet market demand and quality standards. Processing activities add value

39
by transforming organic products into items like jams and juices, improving marketability and
profitability.

Effective marketing and sales strategies are vital for FPC success, often engaging in direct-
to-consumer sales to maximize profits. Building a strong brand identity for organic products is
essential, and FPCs invest in marketing to promote their offerings and educate consumers about
the benefits of organic farming.

Consumer engagement through awareness campaigns fosters a loyal customer base and
increases demand. To ensure sustainability and growth, FPCs focus on continuous
improvement, adopting new technologies and practices that enhance productivity while
preserving the environment. Networking and collaboration provide FPCs access to resources,
training, and market opportunities, promoting growth and sustainability in the organic sector.
Through this integrated approach, FPCs create a robust value chain that enhances farmers'
livelihoods and meets the growing consumer demand for organic products.

7.4 Facilities available

The facilities available include a Common Service Centre (CSC) and a Custom Hiring
Centre, which collectively enhance agricultural productivity and provide essential services to
farmers.

 Common Service Centre (CSC)

The Common Service Centre serves as a pivotal point for delivering various government and
private sector services to rural populations. Established under the National e-Governance Plan
(NeGP), CSCs aim to make government services more accessible, efficient, and transparent.
These centres provide a range of services, such as:

- E-Governance Services: Citizens can access applications for essential documents such as
passports, Aadhaar cards, and voter IDs, as well as utility bill payments for electricity and
water.

40
- Agricultural Support: The CSCs also facilitate agricultural services, offering crucial
information and support to farmers, which can include access to government schemes and
subsidies related to agriculture.

The CSC model promotes rural entrepreneurship by empowering local Village Level
Entrepreneurs (VLEs) to manage these centres, thereby creating job opportunities and fostering
economic development in rural areas.

 Custom Hiring Centre (CHC)

In addition to the CSC, the Custom Hiring Centre provides access to agricultural machinery
and equipment on a rental basis.

- Tractors: Essential for ploughing and tilling large fields, tractors enhance the efficiency of
farming operations.

- Power Tillers: These are smaller, more maneuverable machines that assist in tilling soil,
particularly in smaller plots of land.

- Threshers: Used for separating grain from stalks and husks, threshers significantly reduce the
labour and time required for harvesting.

- Combined Harvesters: These machines streamline the harvesting process by cutting,

threshing, and cleaning grain in a single operation.

- Sprayer Machines: Essential for applying fertilizers and pesticides, sprayer machines help in
maintaining crop health and maximizing yield.

In summary, the integration of Common Service Centres and Custom Hiring Centres offers
a comprehensive support system for farmers, facilitating access to essential services and
modern agricultural tools that can significantly improve their productivity and economic
viability.

41
 Chapter – 8

Growth factors and future Strategies

42
8.1 Early factors of growth

The structured breakdown highlights the essential aspects of the BOD, CEO’s role and
dynamics within the Farmer Producer Company, emphasizing their commitment to
technology, collaboration, and effective governance.

1. Active Engagement with Technology:

The BOD, along with the Chairman, is focused on integrating contemporary technology
into agriculture to enhance productivity and sustainability.

2. Alignment with Farmers' Interests:

The BOD shares common goals with farmers, fostering collaboration and developing
strategies that support agricultural advancement and improve livelihoods.

3. Strong Communication:

Effective communication among BOD members facilitates timely exchanges of ideas and
feedback, ensuring alignment in objectives and quick responses to the needs of the FPC.

4. Mutual Understanding:

A strong sense of camaraderie exists among all members of the FPC, enhancing
collaboration and creating a supportive community resilient to challenges.

5. Foundation for Sustainable Development:

The BOD's commitment to technology, alignment with farmers, effective communication,

and mutual understanding collectively contribute to the FPC's success and sustainable
development.

6. Support from the CEO:

The CEO plays a vital role in guiding/facilitating communication with farmers, ensuring
that the organization's goals are met and that members receive the necessary resources and
support.

43
8.2 Future strategies

The FPC can achieve prosperity through the following-

1. Embrace Technology: Invest in modern agricultural technologies and organize training

programs for farmers.

2. Strengthen Market Access: Establish direct linkages with consumers and retailers through e-
commerce platforms.

3. Diversify Products and Services: Expand offerings beyond traditional crops to include
organic produce, value-added products, and processed goods.

4. Build Capacity and Train Members: Organize workshops on best practices, marketing
strategies, and financial literacy.

5. Collaborate and Partner: Form partnerships with governmental organizations, NGOs, and
research institutions for additional resources and expertise.

6. Leverage Government Schemes: Actively engage with initiatives promoting farmer

organizations to secure funding and support.

7. Focus on Quality and Certification: Pursue organic certification and quality assurance
programs to enhance product credibility.

8. Develop a Strong Brand Identity: Create a recognizable brand emphasizing unique product
qualities to attract consumers.

9. Enhance Financial Management: Establish sound financial practices and seek financial
literacy training for members.

10. Monitor and Evaluate Performance: Implement a robust monitoring and evaluation
framework to assess progress and inform strategic adjustments.

44
Chapter – 9

Analysis

45
9.1 SWOT Analysis

A SWOT analysis of a Farmer Producer Company (FPC) that specializes in organic

products highlights the internal strengths and weaknesses, as well as external opportunities and
threats that impact its operations and growth.

 Strengths

1. Higher Quality Produce: The FPC can leverage the growing consumer demand for organic
products, which are perceived as healthier and more sustainable. This can lead to better market
prices and customer loyalty.

2. Collective Bargaining Power: By pooling resources, member farmers can negotiate better
prices for inputs and gain access to larger markets, enhancing their profitability.

3. Technical Support and Training: By providing their members with training and technical
assistance, improving agricultural practices and production efficiency. This is crucial for
maintaining the quality of organic products.

4. Access to Government Schemes: They often benefit from government policies aimed at
promoting organic farming, which can provide financial support and resources for
development.

 Weaknesses

1. Limited Market Reach: They struggle with market access and distribution channels, which
can hinder their ability to reach consumers effectively.

2. Dependence on Government Support: May rely heavily on government schemes and

subsidies, making them vulnerable to policy changes.

3. Inadequate Infrastructure: Lack of proper facilities for processing, storage, and

transportation can affect the quality and timely delivery of organic products.

46
4. Knowledge Gaps: While training is provided, there may still be gaps in knowledge regarding
advanced organic farming techniques, which can limit productivity.

 Opportunities

1. Growing Organic Market: The increasing consumer awareness and demand for organic
products present a significant opportunity for FPCs to expand their market share.

2. Partnerships and Collaborations: Collaborating with NGOs, government bodies, and private
sector players can enhance resource availability and market access.

3. Export Potential: There is a growing international market for organic products, which FPCs
can tap into, provided they meet certification standards.

4. Technological Advancements: Utilizing technology for better farming practices, marketing,

and distribution can significantly improve operational efficiency and product quality.

 Threats

1. Intense Competition: The organic market is becoming increasingly competitive, with both
large corporations and small producers vying for consumer attention.

2. Market Fluctuations: Price volatility in organic products can affect profitability, making it
challenging for FPCs to maintain stable income levels.

3. Natural Calamities: Adverse weather conditions can severely impact organic farming,
leading to crop failures and financial losses.

4. Regulatory Challenges: Compliance with organic certification standards and regulations can
be complex and costly, posing a threat.

This SWOT analysis provides a comprehensive overview of the strategic position of a

Farmer Producer Company focused on organic products, highlighting areas for improvement
and potential growth avenues.

47
Chapter – 10

Conclusion

48
10.1 Findings

Navigating challenges, seizing opportunities and empowering farmers through collective

action.

Farmer Producer Companies (FPCs) are innovative business entities that bring together
small and marginal farmers to collectively address the challenges they face in production,
procurement, processing, marketing, and sale of agricultural produce. These hybrid
organizations, which combine elements of private limited companies and cooperatives, aim to
empower farmers by providing access to technology, markets, and financial services. To
establish one has to fulfil the following-

1. To incorporate a Farmer Producer Company (FPC), the membership must consist of

either:

To establish an FPC, a minimum of ten individuals as producers or two or more producer

institutions, or a combination of both, must come together, which can include Farmer Interest
Groups (FIGs).

This diversity in membership ensures that the FPC can leverage a wide range of experiences
and resources to achieve its objectives

2. Board of Directors

At the time of registration, an FPC must have a Board of Directors consisting of more than 5
but less than 15 members. These directors are typically elected from among the primary
producer members and play a crucial role in the governance and decision-making processes of
the FPC.

3. Professional Management

After registration, FPCs can appoint a full-time Chief Executive Officer (CEO), Company
Secretary, and Accountant from outside the organization to ensure professional management
and smooth operations. This allows the FPC to benefit from the expertise and experience of

49
external professionals, while the Board of Directors can focus on strategic decision-making
and oversight.

4. Functional Responsibilities

The Board of Directors can divide functional responsibilities among themselves to effectively
engage with farmers and ensure the successful implementation of the FPC's objectives. This
division of labour allows for more efficient utilization of resources and expertise within the
organization.

5. Infrastructure Development

While FPCs may currently face challenges in establishing fully functional Common Service
Centres (CSCs) and Custom Hiring Centres (CHCs), recent developments suggest that these
facilities will soon be operational. These centres are crucial for providing farmers with access
to modern agricultural equipment, inputs, and extension services, and their presence can
significantly enhance the productivity and efficiency of FPC operations.

6. Communication and Coordination

Effective communication and coordination between the Board of Directors, Farmer Interest
Groups (FIGs), CEO, and other staff are essential for the success of an FPC. Regular meetings,
clear reporting structures, and open channels of communication can help ensure that all
stakeholders are aligned and working towards common goals.

7. Challenges and Solutions

FPCs often face challenges in the initial stages due to limited financial resources and human
capital constraints. Directors may find themselves taking on multiple responsibilities, which
can be overwhelming. To overcome these obstacles, FPCs need proper assistance in the form
of funding and technical support from government agencies, NGOs, and private sector partners.
With adequate resources and expertise, FPCs can work smoothly and achieve their objectives.

50
 8. Attracting Stakeholders

Engaging in effective marketing campaigns and outreach activities from the initial stage of
establishment is crucial for attracting customers, farmers, and other stakeholders to the FPC.
Building a strong brand identity and demonstrating the benefits of collective action can help
expand the FPC's reach and impact.

9. Hybrid Structure and Growth Potential

Farmer Producer Companies are unique hybrid entities that combine the strengths of private
companies and cooperatives. This structure allows FPCs to leverage the best practices of both
models, enabling them to grow into large-scale producer companies that can compete in
domestic and international markets. The organizational structure of FPCs is well-suited for
facilitating this growth and expansion.

10.2 Suggestions

Based on the findings regarding the challenges and opportunities faced by Farmer Producer
Companies (FPCs), the following concise suggestions are proposed to enhance their operations
and effectiveness:

1. Strengthening Membership and Engagement

- Expand Membership: Actively recruit more farmers and producer institutions to diversify
resources and knowledge.

- Foster Inclusivity: Ensure all members have a voice in decision-making to enhance

commitment.

2. Enhancing Governance

51
- Training for Board Members: Provide training on governance and strategic planning to
improve Board effectiveness.

- Regular Performance Reviews: Implement evaluations for accountability and transparency.

3. Professionalizing Management

- Hire Specialists: Consider hiring experts in marketing and agricultural technology to enhance
operations.

- Clear Job Descriptions: Define roles and responsibilities to avoid overlaps.

4. Improving Communication

- Regular Meetings: Schedule consistent meetings for updates and strategy discussions.

- Feedback Mechanisms: Establish channels for member feedback to foster continuous

improvement.

5. Developing Infrastructure

- Prioritize CSC and CHC Development: Expedite the establishment of Common Service
Centres and Custom Hiring Centres.

- Seek Partnerships: Collaborate with agencies and NGOs for funding and technical support.

6. Securing Financial Support

- Access Funding: Seek grants and loans to support operational costs and infrastructure.

- Financial Management Plan: Develop a comprehensive plan for budgeting and monitoring.

7. Marketing and Customer Engagement

- Implement Marketing Strategies: Execute campaigns to raise awareness of products and

services.

52
- Build Brand Identity: Establish a strong brand that emphasizes quality and community.

8. Training and Capacity Building

- Offer Training Programs: Provide sessions on agricultural practices and business

management.

- Collaborate with Institutions: Partner with universities for specialized training.

9. Promoting Sustainable Practices

- Encourage Sustainable Agriculture: Promote environmentally friendly farming practices.

- Develop Certification Programs: Explore organic certification to attract premium markets.

10. Advocacy and Policy Engagement

- Engage in Policy Advocacy: Participate in discussions to represent farmer interests.

- Build Alliances: Form alliances with other FPCs for shared resources and bargaining power.

10.3 Conclusion

Farmer Producer Companies (FPCs) represent a transformative approach to empowering

small and marginal farmers by facilitating collective action and enhancing their market
presence. The findings highlight both the challenges and opportunities that FPCs face in their
journey toward sustainability and growth. By addressing key areas such as membership
engagement, governance, professional management, communication, infrastructure
development, financial support, marketing, training, sustainable practices, and advocacy, FPCs
can significantly improve their operational effectiveness and resilience.

53
 Implementing the proposed suggestions will not only strengthen the internal structure of
FPCs but also enhance their ability to navigate external challenges, such as market volatility
and resource constraints. With a focus on collaboration, innovation, and community
engagement, FPCs can harness their hybrid organizational structure to compete effectively in
both domestic and international markets.

Ultimately, with the right support and strategic initiatives, Farmer Producer Companies can
become powerful engines of rural economic development, driving positive change in the
agricultural sector and contributing to the overall well-being of farming communities. By
fostering a culture of shared success and sustainability, FPCs can play a pivotal role in shaping
a more equitable and prosperous agricultural landscape.

54
 Chapter – 11

Photographic evidence

55
11.1 Photographs of different surveys

Fig 1: Visit to the FPC office Fig 2: Visit to the Farmers’ field

Fig 3: Mixing of Glycel with water Fig 4: Spraying of herbicide

56
Fig 5: FPC farmers performs weeding Fig 6: Field visit

Fig 7: Areca nut plantation Fig 8: Turmeric plantation

Fig 9: Ginger plantation Fig 10: Coffee plantation

57
References

HADINGMA GUNJUNG ORGANIC PRODUCER COMPANY LIMITED. (2024). Falcon

Ebiz. https://www.falconebiz.com/company/HADINGMA-GUNJUNG-ORGANIC-
PRODUCER-COMPANY-LIMITED-U01110AS2022PTC023441

HADINGMA GUNJUNG ORGANIC PRODUCER COMPANY LIMITED. (2024,

September 1). InstaFinancials. https://www.instafinancials.com/company/hadingma-
gunjung-organic-producer-company-limited/U01110AS2022PTC023441

HADINGMA GUNJUNG ORGANIC PRODUCER COMPANY LIMITED. (2022).

Gyata. https://gyata.co.in/HADINGMA-GUNJUNG-ORGANIC-PRODUCER-
COMPANY-LIMITED-/U01110AS2022PTC023441

HADINGMA GUNJUNG ORGANIC PRODUCER COMPANY LIMITED. (2022). Quid

Connect. https://www.quidconnect.com/2022/aug/hadingma-gunjung-organic-
producer-company-limited-/u01110as2022ptc023441/assam

HADINGMA GUNJUNG ORGANIC PRODUCER COMPANY LIMITED. (2024). The

Company Check. https://www.thecompanycheck.com/company/hadingma-gunjung-
organic-producer-company-limited/U01110AS2022PTC023441

HADINGMA GUNJUNG ORGANIC PRODUCER COMPANY LIMITED. (n.d.). Exporters

India. https://www.exportersindia.com/hadingma-gunjung-organic-producer-
company/

Agricultural and Processed Food Products Export Development Authority. (n.d.). Farmer
Connect Portal. https://farmerconnect.apeda.gov.in/Home/ForGroups?PaccessID=2

Companies House India. (n.d.). Producer

Company. https://www.companieshouseindia.com/producer-company.html

Govil, R., Neti, A., & Rao, M. R. (2019). Farmer producer companies in India: Demystifying
the numbers. Research and Advocacy for Sustainable

58
 Development. https://ras.org.in/index.php?Article=farmer_producer_companies_in_in
dia

NAFPO. (n.d.). What is a Farmer Producer Company? https://www.nafpo.in/about-us/what-

is-a-farmer-producer-company/

Press Information Bureau. (2022, August 3). Formation and Promotion of 10,000 Farmer
Producer Organizations (FPOs) by Primary Agricultural Credit Societies
(PACS). https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1988649

59