Financial Gains, Input Linkages, Market Linkages, Access to Infrastructure, Improvement in access to Finance, Training & Capacity Building are the key benefits experienced by the Farmer Producer Company Model of Aggregation.
In an FPC, the profits are nominal and are largely reinvested into the FPC.
Access to infrastructure
The member farmers benefit from access to storage, sorting grading infrastructure.
FPC model helps member farmers with access to inputs – seeds and fertilizers at subsidized rates, thus helping lower production related costs.
Improvement in access to finance
The FPC can receive NABARD grants over the initial 3 years. Access to loans via NABARD, NABKISAN and other banks & financial institutions towards infrastructure creation & towards business development are available. The FPC can benefit by matching equity grant from SFAC.
Most of the seed produced is procured by the government agency helping farmers with a assured market. Training & capacity building Another core benefit drawn by member farmers is access to handholding on crop production, marketing as well as FPO management.