Case study - Luvkush Crop Producer Company: a farmer’s organization

Abstract

Producer companies are popularly known as New Generation Co-operatives (NGC). A producer company combines the characteristics of a private limited company and a cooperative society. It integrates the valuable features of cooperatives with the efficiency of a corporate company. The case is about Luvkush Crop Producers Company Private Limited (LCPCL), a producer company operating in Raisen district of Bhopal, Madhya Pradesh (MP). The company is incorporated under Madhya Pradesh District Poverty Initiative Project (MPDPIP) with the help of the facilitating agency Action for Social Advancement (ASA). The company is engaged in production, procurement, marketing, selling, storage, processing, packaging, distribution, and trading of all agriculture produce. Small and marginal farmers in Madhya Pradesh have been susceptible to risk in the agriculture production. Producer company model is rising to integrate them into the value chain with the objective of increasing income. This case explores the potential of LCPCL as a collective institution. LCPCL is bringing change in the livelihood of small and marginal farmers by collective action. The major challenge in front of LCPCL is to generate sufficient capital.