What Drives Farmer Producer Organizations (FPOs) Towards Success or Failure in Punjab: Evidence and Implications
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Author: Shruti Chopra, M.K. Sekhon, and Amarpreet Kaur
Author Address: Research Fellows and Principal Economist (Agricultural Marketing), Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004 (India)
Keywords: Loss of business, extension services, membership, pricing, profit.
JEL Codes: Q11, Q13, Q16.
Abstract
The study explored the challenges faced by farmers in Punjab as members of Farmer Producer Organizations (FPOs) registered with NABARD and proposed strategies to address these challenges. The data were collected from 263 farmer members and 32 Farmer Producer Organizations (FPOs) registered with NABARD in Punjab in 2021. The research used a logit regression model to identify the variables that influence the success or failure of FPOs in Punjab. Findings revealed that out of 67 FPOs surveyed, 48 per cent were operational, 28 per cent were closed, and 24 per cent were untraceable. Factors that led to the collapse of FPOs included loss of business, dissolution of farmer membership, funding delays, industry switches due to low profit margins, and administrative issues. Pricing significantly impacted FPO profitability, and the presence of effective officers in districts highly influenced FPO success. The study underscored the need for clearer government policies to support FPO expansion and emphasized the importance of practical approaches in providing extension services by NABARD and other stakeholders.
Description
Indian J Econ Dev, 2024, 20(2), 329-335
https://doi.org/10.35716/IJED-24083