Farmer Institutions in India:Past, Present and Future

Abstract

The purpose of the current study was to investigate the contemporary context to the evolution of different categories of farmer institutions evolved in India. The paper adopted Transaction Cost Economics (TCE)as the main theoretical perspective to evaluate the evolution of farmer institutions from welfare approach to economic enterprise model. The study is based out of secondary literatures and policy documents collected from authentic source. The study also conducted expert and practiotners interview involved in supporting farmer institutions. It was found that the welfare oriented farmer institutions has helped farmers to a limited extent and failed in transforming the existing institutions to match the expectations of modern value chain in agriculture. The evolution from welfare approach to enterprise model at present has been effectively linking small holders across the agribusiness verticals. The existing model of farmer institutions i.e. farmer producercompany is at its nascent stage and evidence revealed it has positive impact on farmers’ income and transforming agriculture to a commercial level. The future of the farmer institutions is based out of effectiveness, resilience and sustainability which are possible out of continuous innovations in and out of framer institutions.