Role of Government, Private and Cooperative Stakeholders in Development and promotion of Financial Products: A Study of Farmers Producers Organisations (FPOs)

Abstract

The study is an attempt to assess the role of Central and State Government and Co-operative Societies in promoting FPOs in Maharashtra, India. Study also explores Financial Products and their development in order to meet financial needs of FPOs. Finally, study provides measures for promotion and development of FPOs so as to make Agri Finance viable option even for poors’. Study follows descriptive research method based on secondary data and information collected from reports of government agencies, institutions and bodies. In order to ensure the quality and authenticity of results, only reliable websites of central and state government have been accessed. Initiatives have been taken at both Central and Stale level for promotion of FPOs and to develop financial products for financing FPOs. A lot has been done still a long way to go so as to make environment conducive for FPOs. Study concludes that FPOs play a positive role and leads to enhanced income for farmers by providing them with access to institutional credit, informed and better decisions, access to better and improved inputs, effectiveness &efficiency in farming operations and better marketing facilities; there still remains challenges and policy gaps that are unaddressed. Few of the major challenges faced by institutions and government agencies in building strong and sustainable FPOs include inadequacies related to professional management, access to credit, risk mitigation mechanism, accessibility to market, alongside weak financials and lack of technical skill and awareness among users of FPOs.