Challenges and opportunities of farmers producer organizations (FPOs) in Chhattisgarh plain: A case study

In India, Farmer Producer Organizations have emerged as a significant institutional mechanism for strengthening the agricultural value chain. Farmer Producer Organizations (FPOs) play a crucial role in empowering small and marginal farmers by enhancing their access to markets, improving economies of scale, and fostering collective decision-making. Globally recognized as an effective model, FPOs aggregate smallholder farmers, enabling them to negotiate better prices for inputs and outputs while promoting sustainable agricultural practices. This study evaluates the current status, structure, and challenges of FPOs in the Chhattisgarh Plains, providing insights into their operations and constraints. Data were collected from the Regional Office of the National Bank for Agriculture and Rural Development (NABARD) and the Directorate of Chhattisgarh State, revealing that 130 FPOs were registered in Chhattisgarh between 2013 and 2017, with the majority promoted under NABARD initiatives. Most FPOs (75.67%) were registered under the Cooperative Society Act. The remaining 24.32% were registered under the Company Act. Despite the progress, FPOs face multifaceted challenges. The Garett ranking method was used to analyze the data and draw conclusion. The constraints were categorized into personal, infrastructural, operational, economic and marketing constraints. The study also highlights the challenges faced by Farmer Producer Organizations (FPO) including limited financial resources, inadequate infrastructure and issue of institutional support. The Study recommended that policy makers and stakeholders should provide greater support to FPOs to enhance their sustainability and effectiveness.