Opportunities and Challenges in Forming Farmer-Producer Organizations

Author: Praveen Kote, Vijaylaxmi B.S., Sidramayya and Ashokkumar B.

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Abstract

Small and marginal farmers’ plays an important role in improvement of Indian agriculture. Several organized strategies are developed in India to connect small and marginal farmers with the market and improve their production and marketing skills. These strategies are helping farmers to improve their livelihood but it is not reaching to all the farmers. Among all the strategies producer's organizations are the most widely used model. These are registered organization under national legislation for collective action whose members are farmers, fishermen, weavers, milk producers, rural artisans, craftsmen etc. The objective of PO's is sustainable development of rural farmers through collective action assisted by the government and partnerships with academic institutions, research organizations and the commercial sector. FPOs are democratic, voluntary organizations that offer their services to all societal members. It is right platforms for collective action and empowerment of farming community including rural women empowerment, improved technology, provision of extension and consulting services that help farmers, processors, traders, and retailers connect with one another so they can manage supply and demand and access essential business growth resources including market data, input supplies, and transportation services. Despite of many advantages and opportunities the concept of FPO has not taken penetration among farmers though it helps in increasing the economy of farmers it had not achieved the expected success. Further it has inadequate experience with marketing and value addition, insufficient business strategies which were needed for obtaining finance as well.

Keywords

Producer organization, volunteer, government agency, opportunities, advantages and challenges

Conclusion

There is a great deal of potential for the Producer Company model to benefit its stakeholders. In the current situation, rural residents have comparatively low levels of understanding of its concept and advantages. Producer Companies will need significant financing support from banking institutions as they establish deeper roots. In order to support their growth, the financial institutions would have to evaluate their financial capacity using novel methods and provide loans.

References

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How to cite this article

Praveen Kote, Vijaylaxmi B.S., Sidramayya and Ashokkumar B. (2023). Opportunities and Challenges in Forming Farmer-Producer Organizations. Biological Forum – An International Journal, 15(10): 1538-1541.