Agriculture is the backbone of Indian economy with more than 50 per cent of population been dependent of agriculture for their livelihood. However, low profitability from agriculture, high input cost and seasonality of agriculture produce, fails to make it a sustainable source of livelihood for Indian farmers. The transaction cost theory believes that collective actions can help decrease cost and increase profitability in the sector. Mahila Arthik Vikas Mahamandal (MAVIM) took an initiative to open community managed agro service centers with the objective of providing quality input at a reasonable price.
A qualitative study in two districts i.e. Thane and Yavatmal was conducted. Both primary as well as secondary data was collected for this study. Direct contacts and discussions were held with staff of MAVIM district office, community-managed resource center (CMRCs), agro service centers as well as the beneficiaries.
The study found that the agro-service centers promoted by MAVIM are doing well and being a form of collective, have helped farmer’s in reducing the cost of operation and increasing their bargaining power in the market. The study concludes that with small changes in the design and structure of the intervention, the organization can help them in achieving their objectives.