A Literature Review Study of the Farmers Producer Organizations (FPOs)

Abstract

Purpose: With the object of ensuring better income for the producers through their own organization is the main motto behind the establishment of Farmer Producers Organizations (FPO). Due to small size of operations, at national as well as state level, the farming community faces a lot of difficulties and hindrances. These farmers are not able to work on economies of scale, they are having lack of information, low level of knowledge, lack of ability in market access, lack of ability in accessing inputs and credits at subsidised rates, low marketable surplus, having low bargaining power etc. Findings: In order to address these issue the Farmers Producer Organizations are set up. So that small and marginal farmers can be organized in a group and the produces of entire group members are aggregated, and collectively these aggregated products are sold and new inputs are bought. Despite efforts, as they are affected by many challenges and issues, expected outcomes are not delivered by Farmers Producing Organizations. Methodology: In this literature review study an effort is made regarding understanding about the farmer producer organizations, their functioning and understanding about the challenges they are facing. Implication: With a better understanding about the Farmer Producer Organizations, their functioning and challenges and issues faced by them, the challenges can be overcome effectively, the FPOs can achieve the benefits of economies of scale, their profit margins can be improved and inputs can be bought at competitive prices by them which will ultimately be beneficial for small and marginal farmers. Originality: This research paper is original work of author conducted for understanding about the farmer producer organizations, their functioning and understanding about the challenges they are facing. All the reference are duly cited by the author.