The Potential of Farmer Producer Organizations in India

14 Pages Posted: 23 May 2017

See all articles by Venkatesh Tagat

Venkatesh Tagat


Anirudh Tagat

affiliation not provided to SSRN; Department of Economics, Monk Prayogshala

Date Written: November 23, 2016


The Government of India recently announced $34 million for setting up a “Producers Development and Upliftment Corpus (PRODUCE)” under the National Bank for Agricultural and Rural Development (NABARD). This article studies the potential role of Farmer Producer Organisations (POs; and more generally, Producer Organisations) in the context of large prevalence of smallholder agriculture in India. We study various POs that have come up over the past years, both, with the support of NABARD, and without, to show how PRODUCE can fill the gaps in the genesis of producer collectives in India. Finally, we offer a brief roadmap for how such funds may be best utilised, along with guidelines for setting up of financially viable POs and promotion of existing ones.

Keywords: smallholder agriculture, NABARD, collective bargaining, economies of scale, sustainable agriculture

JEL Classification: Q13, Q14, N55, O13

Suggested Citation

Tagat, Venkatesh and Tagat, Anirudh and Tagat, Anirudh, The Potential of Farmer Producer Organizations in India (November 23, 2016). Available at SSRN: or

Venkatesh Tagat

Independent ( email )

Anirudh Tagat (Contact Author)

affiliation not provided to SSRN

Department of Economics, Monk Prayogshala ( email )

Mumbai, Maharashtra 400072


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