Current Status and Future Scenario of Farmer-Producer Organizations (FPOs) in India

Description

DOI: https://doi.org/10.5281/zenodo.21350519

Sunil and Subodh Agarwal (Department of Business Management, CCS Haryana Agricultural University, Hisar, Haryana)

Farmer-Producer Organizations (FPOs) have grown to be significant organizations that support the societal and financial resilience of India’s small and marginal farmers. Though structural issues, including tiny landholdings, low pricing, and limited market access have made it more difficult for everyone to expand, agriculture nevertheless employs about half of the nation’s workforce and contributes 18% of GDP. This review examines the evolution, current state, and future prospects of FPOs in India. The study critically examines how FPOs impact farmers’ earnings, empowerment, and market integration using government reports, case studies, and real-world examples. It discusses some of the most significant issues, such as inadequate funding, dealing with an excessive number of regulations, inadequate infrastructure, and bad governance. It also examines novel concepts like policy convergence, creating value, and digital integration. By 2030, FPOs may be able to reach more than 5 million farmers, and almost half of them may have annual sales of more than ₹1 crore. Lastly, policy suggestions stress building capacity, working with the private sector, and making sure that everyone can take part in institutional procurement. The research concludes that with ongoing assistance, FPOs can play a pivotal role in India’s agricultural transformation and rural development initiatives.