Research on World Agricultural Economy

Empowering Small and Marginal Farmers: Unveiling the Potential and Addressing Obstacles of Farmer Producer Organizations in India

Sushant Malik

1. Symbiosis Institute of International Business, Symbiosis International (Deemed University), Pune, Maharashtra, 412115, India
2. Gokhale Institute of Politics and Economics, Pune, Maharashtra, 411004, India

Dilip Kajale

Gokhale Institute of Politics and Economics, Pune, Maharashtra, 411004, India

DOI: https://doi.org/10.36956/rwae.v5i1.994

Received: 2 December 2023; Received in revised form: 6 February 2024; Accepted: 18 February 2024; Published: 1 March 2024

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Abstract

Farmers' organizations worldwide are essential, ensuring collective bargaining power, sustainable practices, and knowledge-sharing. This supports small farms in commercializing and meeting the growing global demand for better and more diverse food choices. India is also experiencing an increase in Farmer Producer Originations (FPOs), crucial in enhancing economic opportunities for small and marginal farmers. FPOs provide a host of services to members, like input supply, procurement, marketing, technical services, financial services, etc. The study delves into the existing literature and policy landscape surrounding FPOs and their role in the economic development of small and marginal farmers in India. This study also analyses the problems and obstacles concerning the growth of FPOs and provides a future direction. Twenty semi-structured interviews were conducted with leaders of the FPOs to understand the background, issues, future goals and member expectations. The results suggest that lack of working capital, poor management, absence of skilled professionals, and dependency on external agencies are the significant problems FPOs face; there is also a need for proactive government support. There needs to be more literature concerning the auxiliary services of FPOs. As the Indian government plans to add ten thousand FPOs in the next few years, the government needs to address the issues regarding lack of working capital, develop a comprehensive database of FPOs, establish performance metrics and determinants, provide management skill assistance, streamline licensing procedures, and foster social capital building initiatives. This research sheds light on the potential of FPOs to empower small and marginal farmers and suggests vital measures for the effective implementation and sustainable growth of these organizations.

Keywords: Farmer producer companies, Farmer collectivization, Rural development, Sustainable development, India

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