Hindrance Factors for the Success and Sustainability of FPO’s in Tamilnadu – Opinion of CEO’s and BOD’s of Farmer Producer Organization

Author: Navisha B. and Shanthasheela M.

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Abstract

Farmer Producer Organizations (FPOs) have played a significant role in the transformation of Tamil Nadu's agricultural sector. FPOs works to empower farmers by pooling resources, expanding market access, and encouraging group decision-making, hold the promise for sustainable rural development. FPOs, however, encounter few challenges, with significant undertakings. A study was conducted among BODs and CEOs of 101 registered FPOs of Tamil Nadu in the year 2023 to determine the factors that prevent the success and sustainability of FPOs. Constraints are the obstacles that made difficult for the successful functioning of FPOs. The study was carried out under six different domains such as input supply, marketing, financial, governance, social and economic constraints. The primary data collected was analysed using Problem Confrontation Index. It was observed from the study that the main input constraint experienced by FPO was a significant rise in input demand during the monsoon, with a PCI value of 574. Under financial constraint, lack of understanding of the procedures regarding loan applications with a PCI value of 456 ranks first. Less number of trainings and coordination work, both placed first with high PCI values under the social and governance domains, respectively, while high variation in produce comes in first place under the marketing sector with a PCI score of 537. The lower market price was the major significant economic challenge. The observations provided by CEOs and BODs also highlight the FPOs tenacity, fidelity, and inventiveness. By tackling all these obstacles collectively, FPOs may be sustain and successful. In order to achieve long-term profitability, FPOs should prioritize strategic planning, leveraging technology for better market access, and building robust networks among their members. Experts should also give proper legislative frameworks, financial support, and specialized capacity-building programs to help FPOs run successfully and manage these challenges.

Keywords

Farmer Producer Organisation, Problem Confrontation Index, Constraints, Chief Executive Officer, Board of Directors

Conclusion

The study was made to highlight the challenges faced by CEOs and BODs of FPOs. The results led to the conclusion that sudden rises in demand of inputs on the onset of monsoon (PCI, 574); lack of knowledge procedure in obtaining loan from bank/cooperative societies (PCI,456); lack of coordination (PCI, 285); lack of training (PCI, 540); high fluctuations in the price of produce (PCI, 537); and low market prices (PCI, 526) were perceived as severe challenges by CEOs and BODs among the domains of input supply, finance, governance, social, marketing, and economic constraint. Through coordinated and integrated efforts to strengthen FPOs, the severity of these constraints may be decreased. All supporting organisations (NABARD, SFAC, NCDC, State Department of Agriculture, National Horticulture Mission, National Horticulture Board, ICAR, SAUs, e-NAM, private organisations, NGOs, etc.) should work together and aid struggling FPOs. Integrate their approaches to develop essential infrastructure such as poly houses, shade nets, warehouses, packing houses, cold storage, refrigerated vans, mobile vans, etc., to become successful. To surmount these limitations, it necessitates the formulation of well-thought-out strategies, bolstering the capabilities of individuals involved, gaining access to expert guidance, establishing connections with pertinent stakeholders, and demonstrating an unwavering dedication to ongoing learning and adaptability. Furthermore, forging partnerships and alliances among Farmer Producer Organizations (FPOs), governmental bodies, non-governmental organizations (NGOs), and private enterprises can prove highly effective in tackling some of these hurdles more efficiently. The success of FPOs depends on efficient financial management, visionary leadership, sound governance, members involvement, viable market strategies, sound business plan, soft skills and digital marketing.

References

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How to cite this article

Navisha B. and Shanthasheela M. (2023). Hindrance Factors for the Success and Sustainability of FPO’s in Tamilnadu – Opinion of CEO’s and BOD’s of Farmer Producer Organization. Biological Forum – An International Journal, 15(9): 141-148.