Factors Contributing to the Success and Sustainability of Farmer Producer Organizations in India: A Review: 23561
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https://doi.org/10.35716/IJED-23561
Author: Murugananthi D., Balaji Parasuraman, Aruna Pabha S., Rohini A., Sivakumar S.D., Kalaiarasi D.
Author Address: Department of Agricultural and Rural Management, Tamil Nadu Agricultural University, Coimbatore–641 003 (Tamil Nadu)
Abstract
A significant portion of Indian agriculture is
comprised of small and marginal farmers who are integrated through traditional
value networks and have limited access to markets and resources. Even when they
have opportunities to access markets, they are limited in their ability to
bargain with large buyers because of their weak bargaining position. Farmer
Producer Organizations (FPOs) aimed to
integrate small farmers with the agricultural marketing system and offer
remunerative prices with low transaction costs. FPOs are supposed to improve
the livelihood of farmers by integrating input purchase and providing forward
linkage. This article reviewed the impact created by FPOs, the constraints
faced, and the factors contributing to the success and sustainability of FPOs.
About 90 articles were collected from JSTOR, Scopus, Web of Science, and
peer-reviewed journals and reviewed. FPOs had created an impact in terms of
increased income, the establishment of market linkages, the creation of
infrastructure, and the provision of inputs and technology at a lower cost. To
sustain success, it was concluded that forming both forward and backward
linkages, building the capacity of members, ensuring effective leadership,
creating the necessary infrastructure, employing strategic marketing approaches
like product differentiation, branding, and adding value, along with securing
low-cost working capital, were essential elements for FPOs. Deliberate measures should be implemented to
guarantee the success of this pioneering institutional model.
Keywords: Constraints, farmer producer organizations, success, sustainability.
JEL Codes: Q01, Q13.
Description
Indian Journal of Economics and Development
Volume 21 No. 2, June 2025, 000-000
https://doi.org/10.35716/IJED-23561
Impact Factor: 0.3 (Web of Science)
NAAS Score: 6.30 (2025)
Indexed in Scopus (SJR = 0.13)
Resurchify Impact Score: 0.23
UGC Approved (UGC Care List Group II)
Index Copernicus (ICV 2023: 105.09)