Determinants of group involvement, membership and participation intensity in farmer-producer companies in India: A social capital perspective with implications for rural wellbeing

Background Most farmers in India are small and marginal. A Farmer Producer Company (FPC), registered under the Indian Companies Act, allows a group of farmers to operate as a company to achieve economies of scale and improve their social and economic status. In the long run, FPCs must raise capital and sustain active member participation to prevent loss of interest, yet many face weak and uneven participation. Active membership and participation are linked to the wellbeing of small and marginal farmers. This study analyses the role of social capital and other variables in determining group involvement, membership, and participation intensity in FPCs. Methods The study draws on a primary sample of 369 farmers, 292 members and 77 non-members from 20 FPCs in Maharashtra. Poisson regression models external group involvement, and a Heckman two-step regression, correcting for sample selection bias arising because participation intensity is observed only for members, models the determinants of membership and participation intensity. Results Groups and networks are positively associated with members joining other groups, while mutuality and collective production is associated with lower external group involvement. Higher age, groups and networks, and trust are associated with a greater likelihood of FPC membership, while groups and networks, information sharing, and mutuality and collective production are associated with participation intensity. The study shows that distinct dimensions of social capital relate differently to different participation outcomes, offering insights for rural wellbeing policy aimed at strengthening FPCs through social capital-building activities such as trust-building, networking, and information-sharing platforms.