Agriculture in India — like its enterprises — is largely small scale. While we lament the dearth of medium scale enterprises in the manufacturing sector, we observe that the agricultural sector is trying to achieve scale and capacity through collectivisation. Farmers, when they come together to work as one entity in any phase of their production, are referred to as collectives. This move towards collectivism has been observed on the marketing side for a while, in the formation of farmer cooperative marketing societies, and on the production side more recently, as farmer producer organisations (FPOs). These kinds of collectives have been successful in overcoming certain constraints particular to Indian agriculture, such as fragmented land holding and information asymmetry.
Read the full article here