Enhancing Livelihoods through Farmer Producer Companies: A Study on Physical and Social Capital in Bihar, India

The study examines the role of Farmer Producer Companies (FPCs) in improving the livelihoods of small and marginal farmers in Bihar, a state in India, with a focus on the interaction between physical and social capital. It aims to explore how FPCs contribute to enhancing agricultural productivity, improving market access, and promoting collective action among farmers, emphasizing the cooperation between infrastructure (physical capital) and networks of trust (social capital) by taking into account the Sustainable Livelihoods Framework (SLF). For primary data, structured questionnaires were sent to 385 respondents, with 300 responding in total; of these, 250 respondents completed the questionnaire accurately. Secondary data is obtained from relevant literature, reports, and studies on FPCs. Regression and variance analyses were used to assess the impact. The study found a significant positive correlation between FPC membership and improvements in key areas such as irrigation systems, storage facilities, and social networks. These enhancements led to increased agricultural resilience, greater market competitiveness, and improved income levels for FPC members. The research is limited to specific districts in Bihar, which may affect the generalizability of the findings to other regions. Additionally, the study focuses on physical and social capital, leaving other factors, such as financial capital, unexamined. The findings offer valuable insights for policymakers, highlighting the need for increased support and development of FPCs. The study provides a comprehensive analysis of how FPCs enhance physical and social capital, contributing to the broader discourse on collective institutions like FPCs in transforming agricultural livelihoods in India.