Enhancing livelihood security of dairy farmers through farmers’ producer company: A diagnostic study of Bundelkhand region

Farmers’ producer organization has been envisaged as a potential driving force for enhancing livelihood security in Bundelkhand. To diagnose the effect of joining farmers’ producer company (FPC) on livelihood enhancement of dairy farmers, Hardol Milk Producer Company Limited (HMPC) was selected for the study. Difference in difference research design was used to record the effect of joining HMPC on enhancing sustainable livelihood dimensions of dairy farmers. For measuring that a sustainable livelihood index was developed which includes six different capital dimensions viz., natural, physical, economic, human, social and political capitals. Equal weightage method of livelihood index formulation was adopted to study the changes in livelihood capitals over time between the treatment and the control group under study. The members and non-member dairy farmers were also compared based on eleven different socio-personal, socio-psychological variables and fifteen management practices related to dairy farming. It revealed that joining HMPC helped farmers to enhance their annual income from milk sale, social participation, extension agency contact, urban contact significantly. A significant difference in different livelihood dimensions was recorded between the HPMC members and control group which indicated joining the dairy based producer company enhanced member farmers’ livelihood security, particularly in social capital (0.385) human capital (0.375) economic capital (0.232) and political capital (0.225).