Strengthening agri-sustainability: assessing the impact of farmer producer organization membership on socio-economic outcomes in Gujarat, India

Purpose This paper aims to examine how farmer-producer organizations (FPOs) influence the social and economic standing of their members in rural Gujarat of India, with particular emphasis on the middle Gujarat region. Design/methodology/approach Through structured interviews, primary data were collected from 100 FPO members and 100 non-members in rural villages. The study employed partial least squares structural equation modelling (PLS-SEM) and factor analysis. Findings FPO members earn more income overall than non-members do, with revenue from FPO activities making up a sizable portion of this difference. FPOs also created additional employment opportunities for members in agriculture and livestock-related activities, thereby enhancing their income. The examination of structural equation modelling indicates that membership in the FPO has a positive and favourable impact on both the economic and social status of rural households. Nine factors, identified from members' perspectives, contribute to FPOs' success using factor analysis; among these, professional management and CEO experience emerged as the most significant. This study also emphasizes the importance of FPOs in enhancing the bargaining power of member farmers. Research limitations/implications The study suggests the need for ongoing support and capacity building to ensure sustainability and efficiency. Social implications Strong FPOs help build social trust and unity among rural farmers by giving them a common platform to work together. They improve the status of women and marginalized groups, letting them take part in decision-making and benefit equally. With collective action, there is greater access to information and services, which boosts education, skills and health in communities. FPOs also reduce social inequality by giving small farmers more voice and reducing dependence on exploitative intermediaries. Over time, this leads to stronger social capital, inclusion and more resilient rural societies. Originality/value This study helps to understand how farmer producer organizations hold great promise in empowering smallholder farmers and fostering rural business in Gujarat state of India, and offers suggestions to guide policy for further strengthening of FPOs. Highlights: