Examining managerial and business aspects of women-led FPOs in India

Abstract

In the last few decades, the Indian agriculture and food market scenario has changed significantly from changing consumer consumption and demand patterns to new stakeholders like corporate retailers, food processors, or exporters of quality produce. Under the circumstances, the Indian government aimed to initiate new agricultural production and marketing forms to integrate larger firms and connect small-scale primary producers to these buyers. The government amended the Companies Act 1956 in 2002 and introduced 'producer companies' to bring agriculture and industry closer (Sharma, 2008). The activities of the organizations involve backward linkages such as agricultural inputs, credit, knowledge, insurance services, and forward linkages like collective marketing, processing, and exports. At its core, the objective is farmer empowerment, capacity building, and the elimination of middlemen (Tandon, 2019). Currently, around 6000 FPOs (including FPCs) are active in India formed under various initiatives of the Government of India (including SFAC), State governments, NABARD, and other organizations. The majority are nascent with shareholder membership ranging from 100 to more than 1000 farmers (NABARD, PLP-2020-21). However, there are no detailed data available about the discrete distribution of the women-led enterprises among the consideration set. Though specific regulations of engagement of women farmers in the Board of Directors are part of empowerment strategies, mandatory inclusion as a participation tool can disempower women (Tandon, 2019). The existing papers on farmer-producer organizations focus on financial sustainability, the effectiveness of collective actions, vertical integration linkages, and other business or welfare aspects. Fewer studies on women-led agro-enterprises have been done despite the success of women-centric self-help groups in microfinance (Swain & Wallentin, 2009). This paper aims to study women-led FPOs in India, where women are in a decision-making role and the benefits and challenges of engaging women. We want to explore the management and business aspects, success stories and identify the strategies involved for the women-led enterprises and how the linkages can be improved for more financial sustainability.