Assessing the Financial Viability and Growth Trajectory of Farmer Producer Companies in India Trend from 2018–2024

DOI

10.2991/978-2-38476-561-4_4How to use a DOI?

Keywords

“farmer producer companies”; “financial performance”; “solvency”; “bankruptcy”; “sustainability”

Abstract

This research stresses the vigorous role of Farmer Producer Companies (FPCs) in promoting sustainable livelihoods and achieving the doubling of farmers’ income by 2024–25. The Farmer Producer Companies have the potential to enhance farmers’ access to sustainable livelihood avenues. However, evaluating their financial solvency and long-term viability is vital to safeguarding their effectiveness and success. The study aims to assess the financial performance of these companies, envisage their solvency and bankruptcy risk, and assess their sustainable growth rates using Altman's Z score model and sustainable growth rate ratio. This research comprises secondary and primary data. It uses the audited financial reports of Farmer Producer Companies (FPCs) uploaded to the Ministry of Corporate Affairs (MCA) from 2018 to 2024. These reports were accessed through the companies’ official filings, using Form No. AOC-4 with XBRL. This research includes 21 FPCs from the Northeast Region based on their financial statements to the Ministry of Corporate Affairs (MCA) for at least three consecutive years. The investigation results reveal that 11 companies’ financial performances are found in the red zone, showing financial distress and a tendency to insolvency, while 7 farmer producer companies are in the grey zone, indicating moderate risk. Of the total, only 3 Farmer Producer Companies’ performances are in the green zone, signifying stable financial performance and a low likelihood of bankruptcy and insolvency, although many FPCs’ sustainability rates show negative growth rates. The investigation results signify the vital need for a revision of the financial management system, operational efficiency, and potential additional financial support to maintain the sustainability growth rate of the companies. This study succinctly demonstrated the early detection of financial performance to facilitate sustainable financial planning and enhance public confidence in the competencies of FPCs by formulating effective recommendations for the FPC.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Partakson Romun Chiru
AU  - Kh Tomba Singh
AU  - Ayekpam Victoria Chanu
PY  - 2026
DA  - 2026/04/23
TI  - Assessing the Financial Viability and Growth Trajectory of Farmer Producer Companies in India Trend from 2018–2024
BT  - Proceedings of the Indo-Bhutan Social Science Conference 2025 (IBSSC 2025)
PB  - Atlantis Press
SP  - 26
EP  - 30
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-561-4_4
DO  - 10.2991/978-2-38476-561-4_4
ID  - Chiru2026
ER  -