Page 70 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

Issues and Challenges Facing FPOs Promoting Rural Economic Empowerment
Pravin Gaikwad* and Mahima Singh**

*Assistant Professor, Department of MCA, DYPIM, Pune, Maharashtra, India (E-mail:

pravindgaikwad@gmail.com)

**Associate Professor, Department of MBA, PIBM, Pune, Maharashtra, India (E-mail:
mahimatul@gmail.com

Abstract:

Indian Farmer Producer Organizations (FPOs) are collective entities formed by farmers to improve their

economic status and agricultural productivity. This study examines the challenges and issues faced by Farmer
Producer Organizations (FPOs) in the promoting rural economic empowerment. Agricultural organizations,

which are considered to be key factors in rural development and empowerment of farmers, face a number of
obstacles that hinder their effectiveness. Financial constraints, inadequate infrastructure and limited access to

important market information appear to be the main obstacles affecting the effectiveness of FPO operations.

In addition, external dynamics, including climate variability and changing market conditions, complicate FPO
operations. It provides a concise overview of the critical challenges facing FPOs in India and highlights the

need for strategic action and policy support to increase their resilience and impact in the agricultural sector.

These complex challenges are faced by the Farmer Producer Organizations (FPO) of India, which are crucial
for agricultural development. Financial constraints and lack of infrastructure hamper FPOs, limiting their

ability to deliver effectively to smallholder farmers. Internal challenges such as management and competence
gaps require targeted action to improve organizational capacity. External factors, including climate change,

make FPO operations more complex.

Key Words: Agricultural, Challenges, FPOs, Farmer producers, Growth, Issues.

1. Introduction:

India's economy depends heavily on agriculture, which raises GDP, creates jobs, and ensures food security.

India is primarily an agrarian economy, with a large percentage of its population engaged in farming or related
activities. Agriculture is not only a source of livelihood for millions of people but also a crucial sector for

ensuring food supply and rural development. Small holder farmers face market uncertainty because most

policies and institutional supports favor large and forward-thinking farmers, and smaller farmers lack them,
resulting in an increasing gap between farmers and consumers.