Abstract
In the NTR district of Andhra Pradesh, a study was carried out to examine the factors that influence farmers' preferences for contract, non-contract, and FPO farming for chillies. From three villages, a sample of forty-five respondents, including three types of farmers, were selected. The FPO farmers had lower cultivation costs, were older, owned more land, and received higher farm and market prices. Among the three groups of farmers, only contract farmers made more money annually. The central constraint contract farmers faced was an increased risk (73.43) by the use of good agricultural practices. Limited access to markets (63.93) was the major constraint faced by FPO farmers. FPOs were relatively new, and many farmers lacked awareness of their benefits. Efforts are needed to educate farmers, establish member organizations, and build linkages for resources, skill development, and bank credit at district and mandal levels. Additionally, government legislation should support FPOs in creating mutually beneficial practices for both farmers and processors.
Published Version
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