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Emerging Challenges for Sustainability of Farmer Producers Organizations (FPOs) and the Implicative Strategies

R. Venkattakumar and B. Narayanaswamy

Abstract

The concept of Farmers Producers Organizations (FPOs) has been embraced to solve the problems faced by majority of small and marginal farmers of the country, through collectivizing themselves as business performing organizations across various stages of agriculture related supply and value chain activities. From 2002 onwards, such organizations were promoted by various development departments, by making them to register under Companies Act. Through a research study, the best practices of such FPOs were documented during 2016-2020. These FPOs started serving the broad-based needs of their producer members such as input supply, output procurement, custom hiring facilitation and overall technological backstopping. But performance of many of these organizations were not so successful on a long run due to many emerging challenges. Through focus group discussions and telephonic survey with the office bearers of the FPOs, some of the emerging challenges of the FPOs were delineated such as failure to strike business partnership with input companies, failure to initiate market tie-up with big companies, managing operational costs during the initial years, non-adoption of innovative marketing strategies, lack of experience in branding and profit making business process, lack of adequate technical manpower, failure to arrange credit and crop insurance facilities for the producer members etc. This paper discusses about such emerging challenges and derive implicative strategies to be recommended for practicing towards effective management of FPOs.

Keyword: FPOs; Sustainability; Emerging challenges; Implicative strategies.

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