Page 76 - IMDR JOURNAL 2023-24

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

5. The manufacturing company has to conform with the amended provisions of the Companies Act, 1956
(Chapter IX A).

5.10 FPO Constrains Factors:

1. Limited Access to Capital: Admittance to fund is quite difficult for some FPOs, especially those in
rural regions. Restricted admittance to capital can oblige their capacity to put resources into foundation,

innovation, and limit building.

2. Market Linkages: FPOs often struggle to establish reliable market linkages for their members' produce.
Absence of admittance to business sectors, value instability, and delegate abuse can block farmers’

capacity to get fair costs for their items.

3. Capacity Building: Many FPOs lack the necessary skills and capacity to effectively manage their
operations, including financial management, marketing, and governance. Capacity building initiatives

are essential to strengthen their organizational structure and management capabilities.

4. Infrastructure and Technology: Inadequate infrastructure and technology pose significant challenges
for FPOs, particularly in remote rural areas. Lack of access to cold storage facilities, transportation,

and modern agricultural practices can limit the productivity and profitability of farmers.

5. Policy and Regulatory Environment: FPOs often face regulatory barriers and bureaucratic hurdles that
impede their operations. Unclear land tenure rights, restrictive agricultural policies, and complex

regulatory requirements can hinder their ability to function effectively.

6. Risk Management: FPOs are exposed to various risks, including climate-related risks, price
fluctuations, and production risks. Developing risk management strategies and accessing insurance

products can help mitigate these risks and protect farmers' livelihoods.

7. Social and Cultural Factors: Social and cultural factors can also impact the functioning of FPOs.
Gender inequality, caste dynamics, and traditional farming practices may pose challenges to inclusive

decision-making and participation within FPOs.
8. Sustainability and Climate Change: Environmental change presents critical difficulties to horticulture,

influencing crop yields, water accessibility, and farming practices. FPOs need to adopt sustainable
farming practices and climate-smart technologies to adapt to changing environmental conditions.

9. Access to Inputs and Services: Limited access to quality inputs such as seeds, fertilizers, and

agricultural extension services can hinder farmers' productivity and profitability. FPOs assume a
pivotal part in working with admittance to data sources and administrations for their individuals.

10. Marketing and Value Addition: Adding value to agricultural products and accessing higher-value

markets can enhance farmers' income and livelihoods. FPOs need to put resources into esteem
expansion exercises, like handling and marking, to catch a bigger portion of the worth chain.