Farmer Producer Organization–based Value Chain to Leverage the Income of Small Farmers: An Empirical Evidence from India

Collective actions through Farmer Producer Organizations (FPOs) are said to increase the efficiency of the value chain and reduce the asymmetry. More evidence about the FPOs’ impact within value chains would facilitate effective policy and programme development for them. This study investigates the impact of the FPO value chain in Andhra Pradesh and Telangana states of India by employing an Endogenous switching regression model. Being a member of a FPO, farmers experienced an increase in output value, resulting from enhanced price and productivity. Improved Extension and Advisory Services, specialized training on bagging, harvesting techniques, and value addition through primary processing play a key role in the impact of FPOs. These findings highlight the transformative impact of FPOs on efficiency, market access, and economic stability, and suggest promoting more focused and commodity-specific FPO value chains.