An Econometric Analysis of the Impact of Farmer Producer Organisations on Farmers' Income and Participation in Tamil Nadu
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Author: A. Malaisamy, S. Arun and M. Raswanthkrishna
Author Address: Professor and Head and Research Scholar, Department of Agricultural Economics, Agricultural College and Research Institute, Tamil Nadu Agricultural University, Madurai Campus, Madurai-624105 (Tamil Nadu) and Computer Science and Engineering (AI), Amrita U
Keywords: Agricultural productivity, income determinants, millet cultivation.
JEL Codes: C23, D22, Q12, Q13.
Abstract
This study examined the factors influencing farmer participation in Farmer Producer Organisations (FPOs) and their impact on farmers' incomes in Tamil Nadu. Using a purposive sampling method, data were collected from 140 respondents, comprising 70 FPO members and 70 non-members, in 2024. This study employed the Heckman two-stage selection model to address selection bias, considering factors that could affect both FPO participation and income levels. The Probit analysis indicated that the size of the farm, high-yielding varieties (HYVs), and inputs provided by FPOs had a positive influence on income. At the same time, the dependency ratio and credit from Kisan Credit Cards (KCC) had adverse effects. Ordinary Least Squares (OLS) analysis underscored the pivotal role of FPO-provided training in enhancing agricultural performance, as evidenced by the adoption of modern practices and increased yields. The findings emphasised the need for farm consolidation, the adoption of high-yielding varieties (HYVs), and effective input distribution, while addressing challenges related to dependency ratios and access to credit. The study's findings highlighted the significant potential of FPOs in improving economic sustainability and enhancing rural livelihoods through factors such as farm consolidation, the adoption of high-yielding varieties (HYVs), and effective input distribution.
Description
Indian J Econ Dev, 2025, 21(2), 371-382
https://doi.org/10.35716/IJED-24581