Economic Impact of Farmer Producer Organisations (FPOs) in Anakapalli District of Andhra Pradesh, India

Farmer Producer Organisations (FPOs) support collective agricultural activities, but their economic performance depends on service delivery and organisational capacity. The study assessed the performance and perceived economic effects of FPOs, the constraints they faced, and suggestions for improvement. Regarding membership duration, 57.5% of respondents had belonged to an FPO for up to five years, while 42.5% had been members for more than five years. All reported FPOs were registered as producer companies, 92.5% handled crops, and 7.5% handled other enterprises. All FPOs had more than ten members. In terms of board size, 85% had up to ten board members and 15% had more than ten. Of those involved in FPO management, approximately 54% were board members and 46% were staff. All FPOs were involved in input supply and procurement, 95% in marketing, and approximately 81% in value addition. Annual turnover was reported as Rs. 20–50 lakh by approximately 46% of respondents, Rs. 50–100 lakh by 22.5%, and Rs. 5–10 lakh by approximately 14%. Reported crop income increased by approximately 70%, livestock income by approximately 53%, and overall household income by approximately 21% after joining FPOs. Supply of quality inputs and processing and value addition each received high satisfaction ratings from 87.5% of respondents; linkages with government schemes and private companies received high ratings from 75%. Key institutional constraints included weak governance and leadership, low participation in decision-making, and poor professional management. Market-related constraints included inadequate transport and logistical support, dependence on local traders, and poor price realisation. Financial constraints included high credit costs, inadequate working capital, and difficulties accessing institutional finance. Respondents recommended regular training in record keeping and financial management and greater transparency in transactions.