Farmer Producer Organisations in North India: Potentials and Challenges

Abstract

This article seeks to analyse the current business model of FPOs to understand socio-economic consequences for individual members. The study selected 10 farmer producer organisations from Uttar Pradesh, India considering diversity along with geographical location, the field of operation and business model. In total, 10% of the villages covered by each chosen FPO and 5 members from each selected village were randomly selected for data collection. Two separate schedules for FPOs and members were administered for data collection. The study found that FPO members, particularly small and marginal farmers, experienced a positive socio-economic impact on their lives due to exposure to new techniques and enhanced bargaining power due to collectivisation. However, lack of capital due to constraints in accessing finance from banks was found to be a major challenge. The article concludes by underlining what needs to be done to make FPOs sustainable.