Socio-economic Role of Farmer Producer Organization in the Sustainability of Farming in Rajasthan
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Author: Sunita Tevatiya, Muneer Ahmad Magry, Sapna A. Narula, Chubbamenla Jamir, and Naqui Anwer
Author Address: Research Scholar, Department of Sustainable Engineering, TERI School of Advanced Studies, New Delhi-110070 (Delhi), School of Management Studies, Nalanda University, Rajgir-803116 (Bihar), Director, National Institute of Agricultural Marketing, Jaipur-302
Keywords: Difference in difference, farmer producer organization, Garrett Ranking Method, impact.
JEL Codes: Q10, Q13, Q18.
Abstract
This study assessed the socio-economic and institutional impact of the Marudhara Guar Agro Producer Company (MGAPC), a Farmer Producer Organization (FPO) based in Bikaner, Rajasthan. Using a mixed-methods approach and a Difference-in-Differences (DID) framework on a sample of 210 farmers (105 each of members and non-members), the study found that FPO membership led to an average increase of ?20888 in annual agricultural income, 29 additional employment days, and ?13,093 higher annual savings. Social indicators, including education (DID = 0.746), nutrition (0.7833), housing (0.2767), health (0.7833), and empowerment (0.306), also showed significant improvements. Garrett Ranking identified timely input supply, effective leadership, market access, and participatory governance as key drivers of sustainability. The findings affirmed the potential of FPOs to address rural poverty, enhance resilience, and support inclusive growth. The policy support should prioritize capacity-building, financial transparency, and equitable participation. The study offers a replicable model for strengthening grassroots institutions and scaling farmer-led development strategies across India.
Description
Indian J Econ Dev, 2025, 21(2), 225-238
https://doi.org/10.35716/IJED-25059