International Journal of Agriculture Extension and Social Development

author(s)
Kiran Kotyal and SC Ramesh Kumar

abstract
Turmeric cultivation plays a pivotal role in India's agricultural economy, contributing significantly to global spice production and supporting smallholder livelihoods. This research examines the economic impact of Farmer Producer Company (FPC) membership on turmeric farmers in Karnataka's Kollegala region, comparing 60 members of the Kollegala Horticulture Farmers Producer Company Limited (KHFPCL) with 60 non-members. The study analyses cost of cultivation (COC), yield and profitability across two growing seasons (2022-2024), employing structured interviews and statistical methods, including t-tests for significance. Results reveal that KHFPCL members achieve 16.67% higher yields (35 vs. 30 quintals/acre) and 16.83% greater gross returns (?1,84,000 vs. ?1,57,500), alongside a 68.11% increase in net returns (?1,00,410 vs. ?59,729). Collective procurement reduces input costs significantly, with savings of 22.22% in machinery labor, 23.96% in bio-fertilizers and 13.64% in seeds, culminating in a 7.25% lower total COC. Statistical validation (t-values: 7.64 for yield, 12.87 for net returns; p < 0.01) confirms the robustness of these advantages. The KHFPCL model enhances profitability through bulk purchasing, shared resources, technical guidance and improved market access, addressing challenges like price volatility, high production costs and fragmented supply chains. These findings underscore the potential of FPCs to transform smallholder agriculture by optimizing costs, increasing productivity and strengthening market linkages. The study advocates for scaling collective farming models, particularly for high-value crops like turmeric, to improve rural incomes and sustainable agricultural practices. Future research should explore long-term impacts and inclusive participation strategies to maximize FPC benefits across diverse farming communities.