An overview of farmer producer organizations in the state of Andhra Pradesh – Business functional approach

Abstract

Farmer producer organizations (FPOs) act as an effective mechanism in addressing the constraints of small and marginal land holders. However, FPOs vary in their characteristics, operations and functioning. The present study focuses on these aspects to understand the overall characteristics, business focus areas and constraints faced by FPOs in the state of Andhra Pradesh. Majority of FPOs in the study area were registered under companies act and had governing body members ranged between 5 to 15. The member farmers of FPOs had share capital ranged between Rs. 500 to Rs. 2000. Around 80% of FPOs were performing business operations pertained to input procurement and selling, particularly dealing with fertilizers. Difficulty in carrying out market operations and fund mobilization were identified as major constraints by the FPOs.