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

administrations to handling and showcasing. The fundamental target of FPO is to guarantee better pay for
farmers through its association. Limited scope farmers don't have specific (both with regards to data sources

and results) to profit from economies of scale. India has an important role to play in addressing the difficulties
looked by little and peripheral farmers by promoting cooperation, improving market access and improving

agricultural productivity. However, FPOs themselves face various challenges and issues that can hinder their

effectiveness and sustainability. The process of forming and registering an FPO can be cumbersome and time-
consuming often involving complex legal and regulatory requirements. This may discourage farmers from

setting up FPOs. Many farmers especially in rural and remote areas are unaware of the concept of FPOs and
their potential benefits. Training and mobilizing farmers to join FPOs can be a major challenge.

5.2 Need of Farmer Producer Organizations:

The main reason is that 86% of Indian farmers own under 2 hectares of land, according to the Census of
Agriculture 2017. As a result, we have small producers who do not produce large quantities. This is the main

reason why they do not get a fair price for their product, and it is likewise the justification for why farmers get

just a little piece of the aggregate sum paid by the last purchaser for their item, while in agricultural marketing
there are many market intermediaries involved as village agents, commission agents, wholesalers, retailers

and finally consumers.

5.3 Objectives of FPO:
The principal objective of FPO is to expand the pay of makers through their association. A little maker doesn't

can profit from economies of scale. In horticultural promoting, the monetary mediator chain frequently works

in a non-straightforward way, prompting what is going on where the farmers gets just a moderately little piece
of the cost paid by the last customer. FPOs help remove the chain of middlemen in agricultural marketing.

5.4 Challenges in Setting up FPOS:

A few examinations dispatched by NABARD have plainly shown the useful impacts of FPOs in expanding
the all-out pay of farmers through informed direction, inputs and rural administrations, institutional credit,

handling and promoting, and working on horticultural tasks moreover, the environment has difficulties and

strategy holes.
5.5 Structure of FPOS:

The structure and association of the FPO varies from country to country and it is depending on national
legislation and policy. The number of FPO members varies from hundred to over thousands farmers. Farmers

with almost identical interests are organized to form a group of fifteen to twenty members called Farmer
Interest Group (FIG). Such 20 or more groups of production area/or cluster of neighbouring villages are

aggregated into FPO. FPOs can make unions at both region and state level in light of handling, marking and
promoting needs for item/product business. They might meet up at a public level to advance bundling/marking

and home-grown/global quality exchange. The efficiency and sustainability of producer organizations depends